what are the CW basics?

[goldenbethel]

The short:
ARM loan that qualified for CW retention. I have been calling twice a week since Dec1 and today was first time I was told anything.

Also we have not made a payment since November while waiting. Original mortgage as 282k and now @ 305k(self employed-only working parent-tough past year).

We were told that jan23 our mortgage was moved to a department for principal reduction etc. and that we should hear by feb 23.

We are considering selling the house either way. Will we be legally allowed to sell a house with a principal reduction immediately after the new papers?

Also-does it matter we are not paying the mortgage? I am worried about taxes since we lump them in. However NO ONE from CW has called me since last OCtober. It is always me calling them for info.

thanks and great forum!

[pdsfoley]

Have you updated your financials since Oct.? Please call and do so if you haven't. Don't give them any reason to take you out of the work-out process. Good Luck!

[goldenbethel]

Yes we sent everything in and did the whole budget conversation.

[heehoo22]

So you're currently in review for the AG Settlement and I'm assuming you have a payoption arm. I wouldn't hold my breath about hearing an answer by Feb 23rd. I seriously doubt you'll hear anything by then. If by chance, the modification goes through before you are able to sell your property, you will most likely be responsible for the amount of reduced principal you've received.

I'm pretty sure that the principal reductions they'll be offering is that they will only be defering the principal. If you sell or payoff your loan, you would also have to pay off the amount they reduced your principal by.

[goldenbethel]

Originally Posted by heehoo22

So you're currently in review for the AG Settlement and I'm assuming you have a payoption arm. I wouldn't hold my breath about hearing an answer by Feb 23rd. I seriously doubt you'll hear anything by then. If by chance, the modification goes through before you are able to sell your property, you will most likely be responsible for the amount of reduced principal you've received.

I'm pretty sure that the principal reductions they'll be offering is that they will only be defering the principal. If you sell or payoff your loan, you would also have to pay off the amount they reduced your principal by.

Correct on payoption arm.

I am concerned about not paying the mortgage...No one calls me for it. very odd.

I think it is worth a wait before we shortsell to see if we do get a principal reduction.

[goldenbethel]

Correct on payoption arm. Thanks for insight. What happens if we present a shortsale(only a few thousand under balanced owed) and it does not get approved? I was told we would have to start the program all over again.
A

I am concerned about not paying the mortgage while we wait...No one calls me for it. very odd. What is the most negative issue other than being behind $$$

I think it is worth a wait before we shortsell to see if we do get a principal reduction.

[keylargo8]

Hello Everyone,

I am new to the blog but I have reading your comments for a while now and yet I have not found many people in my situation. I have sent a package to Countrywide this week with a copy to my attorney, to the Attorney General in my State- Florida- and the Treasury Department. I got my loan through Countrywide in Sept of 2006 with 20% down and excellent credit score 765 and 775 for both myself and my husband. When Countrywide/BofA announced the Home Retention Program on Dec 1 I contacted them since they had told me to wait for that program. I was advised that I did not qualify for any help because my loan was current. Today the value of my house is down 50% which is a substantial decrease and my lprincipal balance is way up there specially with a Negative Amortization portion and my payment is set to re-cast next to $6500.00 a month. My business is down following the economic downturn and yet I still do not qualify for help. I am hoping that the soon to be announced new laws will help but I know there are millions out there like me but I do not think many lost 50% value and will have their payment recast to close to 3 times their current payment. I have my attorney ready to act if necessary and I have hired a loan audit firm. I am putting all the eggs in my basket. I am bound to get help one way or the other but your stories do inspire me not to give up. Thanks a bunch! keep writing!

[goldenbethel]

1-When you enter one of their retention programs and stop paying your mortgage until new papers are sent and agreed?
1a-Are all the missed payments lumped into the new deal?
1b-If principal reduction is part of the new deal what happens to the missed payments?