11.75% on a 30 year fixed. Do i have any hope of a reduction?

[wmchristopher]

I was renting my house for $500 per month until I purchased the home 4 years ago when my landlady passed away. During the next two years I owned the home on a contract for deed with a monthly payment of $950.

In 2007, the contract came due and I needed to get a mortgage. After meeting with a mortgage officer I was advised that the best thing to do would be to get a no document loan in the short term. Once I had the loan I was assured I would be able to shop around for a much better loan at a much lower rate.

I knew I could use savings to make up the difference between what I could afford and what I had to pay for a little while as I shopped for a new mortgage. I had hoped I would be able to get the new mortgage within a few months. Unfortunately that was not going to be as easy as I was led to believe and I had to continue to find ways to pay the $1850 monthly mortgage payment on a house I could have been renting for a third of that. It is to the point that I hate this house because keeping up the payments is wrecking my life.

I acknowledge I agreed to the 11.75% interest rate but I was also told that it would be a temporary thing while the mortgage person worked to find me a better loan. I never intended to carry this burden this long.

I tried in December to get a rate reduction and they told me I didn't make enough money to get my rate lowered?!

Since then I got a raise and they are now telling me I don't need the reduction.


I have never missed a payment. Should I stop making payments to get their attention?


Has anyone heard of anything similar working?

[Dan Bailey]

wmchristopher,
Glad you found the forum and posted.

Due to the different investors behind everyones loans, the servicers have to abide by different criteria.

If you tried to get a mod already and were denied/put off by CW, you may want to concider contacting NACA:https://www.naca.com/refinance/refinanceSubmission.jsp . They are a non-profit homeowners advocacy group that has gone to bat for many folks on the forum. CW seems to respond better to this orginization than to individuals.

Hang in there and good luck!

[gray517]

wmchristopher
we had a high fixed rate (11.125%) with countrywide, like you i was told I could refinance and get a lower rate in short time after our credit was cleaned up. Wrong, property lost too much value to refi and with me losing my job our credit went down further instead of up. We used the services of Naca to get a fixed for the life of the loan modification to 6%. They are a non-profit their services are free. You sign up and do the steps online and if you don't have a local naca office then you can make phone appointments for your counseling session. it worth a try and it won't cost you anything.

[allenmcadoo]

Keep the faith. I just got my loan mod. Went from a 10.99 to 5.25 interest free then a fix 5.25 for the rest of the loan...

[stressedout1]

allenmcadoo
thanks for the info..did you have a fixed conventional loan?

[allenmcadoo]

Yes it is fixed for 30 years at 5.25 percent. I did get the loan docs in this morning. I finally got fed up and called the office of the president and gave them alittle piece of my mind. Within 25 days it was finished...Get angry and stand up dont settle for the bad rates..

[stressedout1]

thanks for your reply..i meant your original loan before the mod..was it a conventional loan? thanks