CW Loan Modification Error Now I Have To Start All Over Again - Please Help Me!

[jager]

Hello everyone! I'm new here, so please be patient with me.

We bought our home about 18 months ago in California.

We got into a 80/20 no down with 5/1 interest-only ARM at 5% on the first loan, and 15-Yrs at 6.125% Conv 2nd Balloon on the second loan.

On our first home loan, the loan type is 30 Yr Combo Jumbo Arm and we have a payment choices (e.g. interest only, 15-Yr amortized , and another amortized payment choice - total of 3 payment choices). Is this this the same as Option ARM? We also had points paid on purchase of this loan that is about $27,000 so we can get the first loan with 5 Yrs-Interest only fixed at 5% and the second loan at 6.125% fixed for 15 years. This loan will reset in June 2012. I don't even know how to calculate how much our payment would be in June 2012 which scares me to death.

Being so naive, we were assured that when it came time to adjust the rate, we could simply refinance. But I know now that this is not possible since the total balance on both loans is $722,000 and the current appraised value is $575,000. We are $147,000 down.

Our home loans are both with Countrywide and I just found out yesterday that our Investors are Citimortgage on the first loan and Bank of America (BANA) on the second loan.

We are 30 days delinquent and will be 60 days this month. Both loans are now in a "work out" loan modification progress and being reviewed as of Jan. 5. I haven't heard from a negotiator yet, but according to my online workout info: "More info. to be available on Jan. 26 and to not call before then".

I called CW yesterday because I saw on my online account a message that says "This account needs special attention and to call 800-669-6607". The person I talked to informed me he doesn't think I will be approved for a loan modification because I am right now with a 5-Year fixed rate interest only on the first loan and 15-Year fixed rate Balloon on the second. You mean to tell me that I just paid $27,000 points on purchase to get the rate fixed for some years and now I can't be qualify for a loan modification because of that? Does this sound right at all? Should I be concern and take his word for it?

Can anyone give an input as to how to handle this? Should I just wait until Jan. 26? or start with NACA now?

***, can I contact/e-mail both my investors and send them what I already sent to CW (e.g. hardship letter and pay stubs)?

My ultimate goal is to have my delinquent mortgage put in the back of the loan and get a 30 or 40-year fixed-rate loan. I don't need a principal reduction.

If a letter/email would be the way to go, who should I send it to?

I would greatly appreciate to hear from anyone who had success with CitiMortgage and Bank of America National Assoc. (BANA in short).

Thanks to everyone who has read this message to this point. I look forward to hearing your advice.

[Dan Bailey]

Jager,
Contacting the investor is futile, they will refer you back to the serviser, since that is what the servicer is paid to do.
Contacting NACA, is a good idea, they have been extremely helpful, and it is never too soon as long as there is a hardship.


Glad you found the forum!

[Moe Bedard]

Hi Jager,


Welcome to the forum and thank you for joining...............

The investors do not deal directly with customers...........they will refer you back to CW..............the modification process would need to go through CW...........if you are going to try NACA you would need to decide whether you are working with CW or NACA..............they will only work on one modification proposal to present to the investor.............so you may want to call NACA and see if they are able to help and if you meet the criteria first.
click on the link for the info.............
https://www.naca.com/refinance/refinanceTenStep.jsp


CW Home Retention
1-800-669-0102

[jager]

I applied for a loan modification on Jan. 5.... According to my work out status, more info will be available on Jan. 26..... I had been calling last week and they kept telling me the computer was down and told me to call every two hours.... No luck...

Today I finally got through, guess what? They said my loan modification work out has been cancelled Jan. 7th and I was on a short sale process now.... I never applied for a short sale.. I only applied for a loan modification.... How can this be? The account manager admitted though that it was CW error... So What now???

The account manager told me they will cancel the short sale process and in 48 hours I should call back to re-apply for a loan modification... Does this sound right???

Please anybody.... Help me! What do I do now?

Any input would help... thanks!

I would like to e-mail the Office of the President... can anyone give me the updated email for this... and any suggestions to cc: anyone else with my letter that can help me in regards to this matter will be appreciated.. Thanks!

[Moe Bedard]

jager,


This would be just a matter of them coding the file back to modification status versus short sale.............I don't think that they will make you start the process over..........they already have the file on you.........

you can call the executive team directly and see if they can help.....
1-800-405-0078

[jager]

Thanks for a quick response ***! I was so nervous hearing from the account manager that my workout is for a short sale... wheww!! It sure made my blood rush through my head!!!

Is it possible to send an email to the executive team?

I am scared to call the home retention team now because I feel they messed up already and I don't want it to happen again... I just don't want to wake up one day and I'm already in a foreclosure process :-(

*** - do you think it's time for me to try NACA? I just thought I'd give CW a try first but doesn't seem so promising at this point.

Am I just wasting time going through CW? .... Anyone's input will be appreciated... Thanks

[Moe Bedard]

that is the number to the executive team

[jager]

I started the 10 Steps......NACA Home Save Process...

Oh boy! What a lengthy submission... wheew!!

I'm not even done yet...

[klauss54]

im going with naca after being denied by cw naca is great no one at cw has any info your wasting your time calling them

[jager]

I finally finished the lengthy NACA 10 steps and 2-hour phone appointment on Feb. 14 (Valentine's Day).

Very pleasant process for me and came up with the solution the same day... Now just waiting for NACAs supervisor's approval for submission to CW....

NACAs proposal to CW will be to combine both 1st and 2nd (HELOC) loans with 4% fixed rate for 30 years... ***- Is this possible?? Has anyone have a success combining 1st and 2nd loans through NACA? Any input would be appreciated....

I just got my 1st CW loan mod fedex packege today (Feb. 16) for my 2nd loan... as I expected from what I've seen in this forum... the 1st offer is nothing but adding my 3 months behind mortgage into the loan raising my mortage from $880 to $1350.... that's $470 more a month... where's the logic in that? Can anyone explain me why would I want to pay $470 more a month for the rest of the loan being 3 months behind?

Oh boy I am really looking forward to what CW will offer on my 1st loan now....

I am so glad I have NACA as my Plan B....

Anyone please give me some encouraging advice... I obviously must reject this first offer and ask (or beg) for a better offer...

[Moe Bedard]

I have not heard of that happening with two different investors on the notes before without refinancing............but NACA can also do refinances...........so I guess we will have to see what happens..............there is always a first time for everything.

[jager]

I have started with NACA and just waiting for the supervisor's approval to submit proposal to CW....

I am 3 months behind now but planning on making a payment next month even if I have to borrow from family... Would starting to make payments prolong the process?

[gray517]

I don't know, we didn't make payments as we couldn't afford them and CW would not take partial payment from us, we were 6 months behind when we got the modication, they roll the past due into the loan. if you make payments while you are in the modification process, CW ususally holds them in your suspense account until the modification is complete. you can ask naca about making payments or you can hold the money incase the modification is not accepted, at this point since naca has not submitted to cw, if you are not in a cw workout process they should apply your payment due. Making or not making a payment is a personal choice based on your situation, as not making payments could lead to foreclosure if the modification is not approved. good luck with naca!

[jager]

Gray... Sorry to bother you but you seem to be very helpful and since you've had success with NACA I thought you wouldn't mind if we ask you some questions.... Afterall, you know exactly or somewhat what we are going through right now....

I've just received today a loan modification offer that increases my monthly mortgage to $470 a month... No doubt I have to reject and request for a better offer... Should I just stick to NACA?

[gray517]

I wish I could answer that for you, but it is a decision you will have to make based on your own personal situation. In my case, we really wanted to keep our home, but if we couldn't make the payment then we were screwed anyway. Even though our loan qualified for the 12/1 AG settlement offer (delinquent more than 60 days, sub-prime fixed) we never actually got an offer from cw even though they kept saying it was coming, the only offer was the approval of the naca proposal. I would have accepted a step rate for 5 years from cw if we did not get approved for the naca proposal, as this would bide me more time. the modification you got is only adding the past due to the loan balance which increases your payments, if you are having trouble now, a higher payment won't help you. We decided if the naca proposal failed and cw wouldn't help us, we would stay in the home saving money until they made us get out. this was an absolute last resort, as I stated before we wanted to keep our home as it was "our home" you have to decide how far you can go with this comfortably? what your home means to you? what is the monthly amount that you can pay if needed to keep your home? is what you have invested both emotionally & financially in you home worth losing? I advocate for naca 100% but everyone's situation is different and only you can decide what is best for you and your family. good luck & my prayers are with you !

[gray517]

jager
ask all the questions you need to, if i can help I surely will

[jager]

Gray

Thanks for your input... I really appreciate it... I am afraid I have to reject CW offer for now since it's silly for them to offer anyone in a financial hardship with a higher payment...

I will take my chance with NACA... I'll keep praying NACA can help us keep our home...

Thank you again... it's very nice and comforting to have someone to talk to re: this matter... I read your thread and saw what CW put you through.... In the end NACA came through for you and I hope that they'll do the same for me... I am very happy for you and reading your thread made me go through NACA for a backup and I am very glad I did that...

NACA seemed to think CW will work with them with their proposal.. I will keep my fingers crossed...

I am very thankful for this forum most of all... special thanks to *** and Dan who gives us hope and great info to make it possible for everyone to get a success with loan modification...

Thanks again everyone and I will continue to post my progress with CW and NACA...

[jager]

***

I received a loan modification offer from CW today it is only adding my late payments into the principal and raising my monthy payment....
I have started with NACA on Feb. 14 and already came up with a solution/proposal .... if I reject CWs offer, would they still work with NACAs proposal for me?

[Dan Bailey]

jager,
If you are working with NACA, it is important to contact them and let them know about the CW proposal. They will most likely tell you to reject it.

[jager]

Thanks Dan! I was just afraid that once I reject CW offer then that would be the end of my chance for a loan modification with them.....I will call NACA and let them know today...

Thanks again!

[Moe Bedard]

jager,


The dept. in CW that takes care of the non profit workouts is the Advocacy Team..........you can call them and give them your NACA ID# and then you will work only with that dept. and NACA.............
1-877-327-9225

[jager]

***,

I just called the Advocacy Team and gave my NACA ID#..... I was told that from here on I can only talk to NACA for updates on my work out... and collections will resume.... Does that sound right to you?

[Moe Bedard]

That happens in any case with a modification, if you are not making payments, ..............collections do continue...............but when you are working with NACA.......you would need to work with them..............the Advocacy Team is the dept. that will get your workout from NACA to present to the investor.

[jager]

***

I can't thank you enough...

[jager]

***,

Is it just a coincidence that a couple of hours after I called the "CW Advocacy Team" to inform them that I am now working with NACA and gave them my NACA ID # (per your advice) that my assigned negotiator to my first loan called me!!!

My CW negotiator verbally informed me that he is going to send a proposal to my investor with a 5% interest only for 5-years and then 5.5% fixed for the remainder term of the loan.... I honestly don't know what to think of this.......... I really hope this is for real....

I'd believe it when I physically have the loan mod packet in my hand with those terms actually in it....

We'll wait and see... here comes the waiting game again...