30 year fixed Mortgage Cust Here<-----

[wingman69]

Hello all,

I am trying to follow protocol, and stick to the rules of this site.

It seems I do not fit the mold with regard to all I have read in the various threads herein. I currently have a mortgage being serviced by CW, but it is not "toxic", at least not by their standards.I have a "conventional" loan with 28 more painful years to pay on it at 6.875% interest.

Our problems stem from the fact that my income has been cut down by $1500.00 per month and we are paying 54.3% of our take home pay for mortgage/tax/insurance. This, by any financial planner's standard, is insanely high. As I do not see this income returning in the near or distant future, I must take action and this house must be dealt with.

Our home prices here in the central valley of Ca.(Stanislaus Co.) have seen some of the most drastic declines in all the united states. Our home was purchased in May of 2007 for $395,000.00. Today, it will list for $190,000.00. Next week....????? is anyone's guess .

We need to know, what are the options available to those of us in this situation? We will be officially late on our payment at 12:01 on the 16th of February, 2009. We have exhausted all sources of additional monthly income - no more borrowing from anyone. We've been borrowing since June of last year. We contacted CW then and were told we are "opportunists".

Going forward, I hope anyone reading this will have come to the same conclusion we have with regard to finances. Do the math based on proven percentages of take home pay based on base salaries, not overtime. Our broker failed to do what we requested in this regard, and we were ignorant and ill informed.

I could go on, but for now I will leave it here.

Thank you in advance for any and all help.

Sincerely,

David

[Moe Bedard]

Hi David,


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

The modifications given are up to the investors on the loans and with the type of loan that you have, your investor may be FannieMae or FreddieMac..........there modification program is currently looking at the loans that are 90+ days in default.............if this is the only property that you own...............you may want to look into getting help from NACA instead, they are a HUD approved counseling agency............they will put together a modification proposal based on an affordability equation to present to the investor through CW and their services for the Home Save modification program are free............
here is the link for the info............
https://www.naca.com/refinance/refinanceTenStep.jsp

[wingman69]

Hi ***

Its my birthday tomorrow, remember?

Anyway, thank you for the lead/link. I was looking at mt note that CW has available on their website and I think you are correct, its a Fannie mae /Freddie mac...I think? There is a statement at the bottom of each page with the following; MULTISTATE FIXED RATE NOTE- single family-Fannie Mae / Freddie Mac UNIFORM INSTRUMENT.

Is this an indication that they are the ones who ended up with our loan? Or, is this merely a standardized document with these entities guidelines printed on the forms?

We have only this one loan with PMI. You mentioned that "they" meaning Fannie Mae are only looking at loans that are 90+ days late, is this correct?

We were/are considering a short sale. Should we pursue a mod instead? If we do pursue a modification in lieu of selling, should we put any short sale ideas on hold? We have not yey given the green light to any real estate agent. And, as stated earlier we will only go in arrears one week from now.

I will follow the link you gave me, thank you so much.

David

[wingman69]

Hello all,

Good luck. I am deeply saddened by the downward spiral this housing dilemma has taken.

I am in distress as a result of income reduction due to the loss of hours at my job, and because I was ill advised at the time we entered into our house buying nightmare.

I have a fixed rate 30 year conventional loan @ an interest rate of 6.875% on a balance of $388,000.00. This coupled with $40,000.00 in debt leaves me completely insolvent. This house has fallen to $189,000.00 FMV and I am trying to find the right sequence to follow in order to resolve this horrible mess. Do I try to seek a modification first, then shoot for a short sale? Or, do I forego the modification and go directly to the short sale attempt?

I'm current to date on all payments. The 16th will be the late date. I do not care about taking a "hit" on the FICO score. It means nothing to me anymore as my whole outlook with regard to this messed up system has been transformed. I simply want to expedite this ordeal and find the right path back to sanity.

Anyone have a clue as to how property taxes and insurance is dealt with in all this mess? I have an impound account at CW with less than what would be needed to make the next tax payment. How does the assesors office deal with this?

The only viable and longterm solution for me is if my loan is modified in the following way- principal reduction to current appraised market value with no taching on the difference to tail end of the loan. A reduction of the interest rate to current market rates and leaving the 30 years in place. I'm looking for what many would say is the impossible? Perhaps I am?

In the end I just need to know if a loan modification is even the next right thing to pursue? I already have what all of you are looking for. I am simply at a crossroads and need sound advice as to which road to start down and which one to avoid.

Okay, I'm putting out here. Wonder what will come back?

All the very best to you all! Thanks in advance for any and all help.

David

[Moe Bedard]

Already given.............

[wingman69]

Hello all,

There is no hope of modifying my loan. I have exhausted all avenues and they all lead to the same place- short sale.

The only modification that makes any sense simply is not out there. Can anyone here show me where anyone has received a reduction in their principal loan amount? How is giving us a lower payment going to solve our problem?It is obvious that they are merely selling us on a lower payment by temporarily reducing the interest rate for a period of time, only to go back up leaving us all in exactly the same place we are today.

What they offer puts it all on us, the home owner. The banks created this horrible mess and are refusing to share ANY of the burden to make it right.

The only solution to this is to permanently reduce each and every affected mortgage principal balance to current market value . Otherwise any other modification is simply more of what you already have. You are merely kicking the can down the road.

I pity all who have paid one or more mortgage payments to attorneys who in the end will only be able to negotiate a doomed settlement with these soulless entities. We talk about reducing payments by $300.00/month, like somehow that will solve our financial woes.Sadly, it will not If your margins are that close you are doomed to forever be a slave to these heartless/soulless companies/investors.They are going to convert us into permanent renters of our homes by extending to 40 years and giving temporary reductions in interest rates. They will also roll all missed payments/fees into the loan.

We have been fooled into believing that our FICO score is the measurement of our worth in this world. FICO =" I love debt!"and heres the big o'l 750 to 800 to prove it.

As of 12:01 am tomorrow we will be delinquent on our mortgage. After finally realizing that there is not one single person who has had a reduction of their principal mortgage balance, we are done. Our home loan/value got caught in the sub-prime fantail of the Titanic as it was/is sinking to the bottom of the ocean. I am throwing myself a life line! Our government is not going to save us. Why would anyone who has lost over 50% of the value of their home be standing in line to give away their hard earned paycheck to line the pockets of the unscrupulous bankers who through their greed and short sightedness have turned owning a home into a nightmare?

I have made every attempt to work it out with CW, beginning in June of 2008. I also have my integrity and morality to uphold. I will pursue the next right action-short sale. If this fails then foreclosure it will have to be. I will not have to regret anything. I will have done my utmost, and my best to reach an equitable solution.

Bless you all and good luck,

David

My eyes have been opened and what I see is years of prolonged foreclosures as a result of this "kick the can" approach to all this.

[stressedout1]

i'm in the same situation with you. countrywide put us through a lot of hell and i'm not gonna even bother with the short sale. foreclose on me then. meanwhile, i'm just gonna live here rent free. (6 months behind and counting)