New Loan Modification on it's way?

[angelisax3]

This is my first time posting so please excuse the post if it's wrong or in the wrong place

I have not made a payment on my account since May 08 due to an error with a c/w rep not submitting a request for loan mod at that time. I was told my account was flagged for the 12/1 program and have sent my paystubs and bank statements 3 separate times. I finally received a fed ex package yesterday and here is what they offer: They are adding all the past due payments to the balance increasing my balance owed from $258,000 to $292,000. My payments goes up from $1868 to $2162 (no escrow account) and my interest rate is now 7.75 instead of 7.25 which I was at before. My first payment would be 4/1. The documents are signed HOPE department. Does this sound like a good offer? I know you probably need a ton of info from me to answer my question, but any feedback would be greatly appreciated.

[patnj]

I dont' see how they can raise your interest rate and call it a modification!

[angelisax3]

That's what I was thinking. I'm grateful that they offerred something but just not sure this is the right option for us. Also, I thought they weren't supposed to charge any late fees either?

[heehoo22]

The modification does not raise your interest rate. Most likely you have an ARM loan that went through an adjustment so that would be your current rate.

I believe they are not charging late charges from Oct to present day but if your late charges are from before that, then they can and will charge them to you.

[angelisax3]

I'm not sure what type of loan it is (I don't have paperwork in front of me right now) but it was referred to as a "Comeback Credit" loan? What's the difference between HOPE and NHRP?

[angelisax3]

We received a fedex package from the HOPE department on Monday. On Wednesday, we received 2 recorded messages saying congratulations that we were being send a fedex offer from Fannie Mae and it should arrive within 5 business days. I know there was a thread in the past about this, but has this happened to anyone else? Are they referring to the package I already received or is there another one on the way?

[Moe Bedard]

If this is the Streamlined Modification program from FannieMae, it will most likely lower your rate by 2% for a certain period of time and also may extend the term to 40 yrs...............so I would think that this would be a different mod than what you had already.

Let us know when you receive the docs...........

[luisren]

angelisax3, very interesting. Please keep us posted!!

[hockey17]

So typically cw not really helping you. They call this a mod but it is really a forberance add the money at the end and your pmt goes up (I fell for it to) Its like being in the middle of the oceans and they are throwing you a life line for the time being to set you up for failure. I would tell them you cant afford it and they need to do better. You need a true mod interest red or change in yrs to be truly effective. Good luck I have been battleing thme for 15 months and I will win.

[angelisax3]

Received a FedEx package today from CW Home Retention Division although I had received the pre-recorded message saying I should be expecting a package from Fannie Mae - don't know if this is what they were referring to. It's almost the same offer I received last Monday. The difference is that it reduces my interest from 7.75% to 6.875% for one year then increaseds each year thereafter but the increases will not exceed the annual lifetime cap which is 7.5% of the scheduled payments of principal? On last week's offer, the tacked my lates onto principal and pmt would be $2152. Here they offerred me $1,616 for one year but that total would increased if I can't come up with past due of $22,000. Now what?

[Moe Bedard]

there should be a number to call on the modification for questions........call and ask what this modification is...........

[bigshirl]

Hello, everyone a long time reader my first time posting I receive the mod package on Monday after waiting 8 months of nonsense from CW open package very excited to see that CW have finally come threw with the dec 1 program rate @ 3.75 bringing my mortgage from 2050.00 to 1010.08 every year .5% increace until it max cap of 7.87% which will be for ten years. Great I thought call to confirm what I was reading come to find out that I have deliq amt of 25000 which was added to the principle for now that ok with me I can still keep my home and breath again but I also have about 23000 in deliq escrow. that was not added on which was the reason for my deliq. this bought my payment a month to 4400 a month and with this mod bring it to any additional 1100 including the 1010.08 which will put me back over 2000 a month hello I had problems paying this before what are you guys doing . Cw advise me that is the beast they can do I had mod before and all the deliq. amt was add to princple so what happen to this mod why has it change. I have call the ag settlement dept they will call me back today and they also adv. me to call florida ag office which I did I not going to give up this crazy

[patnj]

Hi all,

I also recieved a mod on monday. I was interst only 6/5% and now they changed it to 3.60 which will increase .50% each year to cap out at 6.5% in 5 years which will bring me right back to the same place. I plan on selling my house in 4 years so I guess this will work out and save me interst ovet the 4 years but I was really hoping for a interest and principal fixed loan for the life of the loan. They seem to be only putting bandaids on these bad mortgages and most people will be back in trouble after the introductory rates expire....not sure what they are thinking. I have an appointment with NACa and I am wondering if I should maybe apply again and try for the fixed rate interest and principal loan. Also, they did add all of my late charges to the principal. Waived late fees. I had made a payment of $3600. that was never applied and they are giving me the run around of where this is exactly. They say it will be applied after I send doc's back, does this sound right?

Thanks to everyone for sharing your stories and experience.

[teenut]

Originally Posted by patnj

Hi all,

I also recieved a mod on monday. I was interst only 6/5% and now they changed it to 3.60 which will increase .50% each year to cap out at 6.5% in 5 years which will bring me right back to the same place. I plan on selling my house in 4 years so I guess this will work out and save me interst ovet the 4 years but I was really hoping for a interest and principal fixed loan for the life of the loan. They seem to be only putting bandaids on these bad mortgages and most people will be back in trouble after the introductory rates expire....not sure what they are thinking. I have an appointment with NACa and I am wondering if I should maybe apply again and try for the fixed rate interest and principal loan. Also, they did add all of my late charges to the principal. Waived late fees. I had made a payment of $3600. that was never applied and they are giving me the run around of where this is exactly. They say it will be applied after I send doc's back, does this sound right?

Thanks to everyone for sharing your stories and experience.

see this is exactly why I am afraid of sending in my payments while I am going through the process with NACA. I have read about to many stories of payments just disappearing and not being applied. I am strongly considering just holding them in my credit union account monthy untill this process is over.

[gray517]

patnj
while going thru the mod process, cw ususally puts any payments you pay into what is called a suspense account until the mod is done, if you log into the cw website, on the left click on account information then transaction history and your payment if processed should show there as a balance with ( ) around it. We got our mod using naca, the process is slow (cw's fault) but less stresful, but they base the proposal on an affordability budget of what you can acutally afford for a mortgage payment and their mods are fixed for the life of the loan and are principal and interest.

[angelisax3]

Now that I've fully read both modifications and determined they're basically the same, I get a letter saying Thank you for asking for help but you don't quality for the National Homeowner's Retention Program dated 2/3/09. I'm also getting calls from a live person asking me to call back to discuss my modification. I guess I'm gonna join the crowd and start the NACA process later today since it doesn't look like I'm getting anything from Fannie Mae.

[bigshirl]

Originally Posted by gray517

patnj
while going thru the mod process, cw ususally puts any payments you pay into what is called a suspense account until the mod is done, if you log into the cw website, on the left click on account information then transaction history and your payment if processed should show there as a balance with ( ) around it. We got our mod using naca, the process is slow (cw's fault) but less stresful, but they base the proposal on an affordability budget of what you can acutally afford for a mortgage payment and their mods are fixed for the life of the loan and are principal and interest.

If I am correct you work for CW this new program are they not adding deliq escrow to the principle balance? When I call the Ag settlement office the gentleman I spoke to was under the same imprecision as me that everything is added to the principle balance. Is this new mod different? fficeffice" />>>

[FLgata]

Originally Posted by patnj

They seem to be only putting bandaids on these bad mortgages and most people will be back in trouble after the introductory rates expire....not sure what they are thinking.

This is what I think they are thinking...

They handed out these bad loans knowing that one day, we would not be able to afford them, but the real estate market was booming so they assumed that once they sucked us financially dry, then kicked us to the curb, they would be able to sell the home and still make a profit. Well, since the market crashed, they're stuck with all these vacant homes. They've realized that this is not profitable. Now, they are trying to disguise their ulterior motives by offering "loan modifications". Of course these modifications are only temporary fixes. They want us to keep paying as much as we can so they don't lose anymore. When you hear these CW reps say over the phone, "But Mr./Ms.. Smith, this modification could be a big help to you. You don't know what could happen in the next five years." Trust me, they are not hoping for us to win the lottery or come into a windfall of money. They are hoping that the market turns and when we can't make the payments again, they will be able to toss us into the streets and start fresh with a new sucker! They are only worried about their money...not us! That's what I think!

[mto66]

hi,

I received a call before my modification and we went over exactly what was going to happen. My situation may be different, but I rejected the first modification and explained why. Two weeks later I recieved a reduced rate and a 30 year fixed. Recieved the docs the following day and just sent back yesterday. Made copies of everything including the fex ex return. That way I have my proof of who signed.

I am with NACA as well, but can well afford this payment and just want an end. I had to pay money for late fees etc., but after not paying for 3 mos I feel this is only fair. I also don't have to make a payment until April 1st.

I only had one loan of 205K which is now raised to 213K. After reading many other stories I know I am not in as bad a situation as many. I wish the best of luck to all.

After I finally got a negotiator I felt that it worked out well. The hell was getting to a negotiator. I was so persistant in calling and I think that finally got me where I needed to be.

NACA was trying for a lower rate, but at this point I am ok with what CW offered and thought it was fair.

Just wanted to post what my experience was and thanks to all the information I received. It helped tremendously.

[gray517]

Originally Posted by bigshirl

If I am correct you work for CW this new program are they not adding deliq escrow to the principle balance? When I call the Ag settlement office the gentleman I spoke to was under the same imprecision as me that everything is added to the principle balance. Is this new mod different? fficeffice" />>>

I don't work for Countrywide, although I have been involved in the real estate industry for many years. We got a successful modification using Naca and I was relating my personal experience. Most of the time when you get any type of modification the past due interest, fees and escrow shortage are tacked onto the loan balance to bring the account to a "current" status. Having said that some lenders CW included are asking for what is called "upfront funds" in order to do the modification.

[ocalalady]

Originally Posted by bigshirl

I had problems paying this before what are you guys doing . Cw advise me that is the beast they can do I had mod before and all the deliq. amt was add to princple so what happen to this mod why has it change. I have call the ag settlement dept they will call me back today and they also adv. me to call florida ag office which I did I not going to give up this crazy

Yeah, that sounds so rediculous! Let us know if you hear from the AG...I havn't had much help from them, but I did let my voice be heard. You can also send an email....anything to get some kind of response. I havn't used them, but I've read wonderful things here about NACA....maybe look into them too.

I also agree with other posts that say how many of these bad loans are only receiving "band-aids"....I agree!!! For people that want to have a low payment for a few years and then try to sell their home, that may be okay....but if someone wants to stay in their home and have no desire to leave, then those people need LONG TERM relief. That was one of the terms we specified with the Griswold law office before we 'signed on'....we do not want a band-aid!

[ocalalady]

Originally Posted by FLgata

When you hear these CW reps say over the phone, "But Mr./Ms.. Smith, this modification could be a big help to you. You don't know what could happen in the next five years."

That is like what the cw reps would say to us when we would call regarding the difficulty with our existing pay option arm....told to "keep paying the minimum and when the market gets better your house will be worth more and you can sell".....huh? Are you living in the real world? Who knows when we'll see an upturn in this economy...and Im for sure not going to stay in this mess till then! And we don't want to sell our home anyway!

[FLgata]

Good Morning Ocala (neighbor) ,

I've had two different reps tell me the same thing, so I'm sure it is scripted for them. When I first started this modification nightmare with CW, I had an opportunity to speak with a nice lady who flat out said...

"These ARM's were intended for investors who planned to purchase and sell houses within the first two years of the loans. Unfortunately, greed set in and that's all they began offering people. It really is a shame."

That makes me SOOOOOOOOO ANGRY! My broker knew this was going to be my primary residence, yet this was the only option I received when I bought my home.

If these people really wanted to make things right, they would reduce principal or at least fix our rates for the life of the loan. I am willing to pay what I owe, which is over $60,000 more than it's even worth...as long as it is a decent and affordable payment. I can't believe that they haven't learned their lesson and are still trying to screw people over. I watch the market closely because my field of work puts me into everyday. I know what houses are selling for right now...brand new, never lived in! My home won't be worth what I owe for at least 7 years.

That's why I will walk if my NACA proposal is denied! I refuse to line their pockets with dough while my quality of life and health suffers.

I've had enough!

[angelisax3]

These must be some type of "form letter" modifications because I received a 3rd fedex package today. The first one came on 2/2, the second on 2/9 and now one today. This one is exactly like the last one interest only for 10 years and only lowering my interest for 1 year then increasing in steps.

I called the 877-665-6866 which was the number listed on my letter for Home Retention. I spoke to someone who didn't know why I had received so many packages. She said she had to check on it and when she came back on the line she said I was lucky in that I qualified for 2 programs - HOPE and the AG Settlement. I asked her what about the recorded msg saying my Fannie Mae offer s/b arriving and she said Fannie Mae was a government agency not an investor and that I would have to call Home Retention at 800-669-4578.

I called them and Carlos told me he doesn't know anything about pre-recorded messages and that my investor is BONY not Fannie Mae and this is the best Countrywide has to offer right now. He also said that the Steamlined Modification Program is new for them and they won't be doing anything til 4/1. Anyone else getting this response?

[mgallant]

Originally Posted by FLgata

This is what I think they are thinking...

They handed out these bad loans knowing that one day, we would not be able to afford them, but the real estate market was booming so they assumed that once they sucked us financially dry, then kicked us to the curb, they would be able to sell the home and still make a profit. Well, since the market crashed, they're stuck with all these vacant homes. They've realized that this is not profitable. Now, they are trying to disguise their ulterior motives by offering "loan modifications". Of course these modifications are only temporary fixes. They want us to keep paying as much as we can so they don't lose anymore. When you hear these CW reps say over the phone, "But Mr./Ms.. Smith, this modification could be a big help to you. You don't know what could happen in the next five years." Trust me, they are not hoping for us to win the lottery or come into a windfall of money. They are hoping that the market turns and when we can't make the payments again, they will be able to toss us into the streets and start fresh with a new sucker! They are only worried about their money...not us! That's what I think!

Well said!!! I think you hit it right on the nose.