CW 80/20, never been late, need help

[StPeteFL]

• I am in St. Petersburg, Fl - Deficiency Judgments Allowed
• I have an 80/20 3/1 ARM loan: 80 Countrywide ($167k) and 20 Etrade ($93k). It started adjusting in November.
• My house is currently Zillowed at about $140-150k. We did much improvements to this home since we owned it though.
• I have never been late, been on autopay for over 3yrs (since bought house).
• I have had great credit since I was 18 years old (30's now), not one bad mark on my credit.
• My wife recently moved out (getting divorce), so I no longer have that income to help with payments. This is a 4/3/1 home with only lil ole me living in it.

I just want out!

I can make the payments, but just barely. I won't have any extra money nor be able to save anything if I keep paying, no money for emergencies. I am worried about losing my job due to the economy and working for a small company.

When I bought this house I figured at worst I could refinance to a fixed loan or sell it for a profit since I bought it at a great price (at the time) and did lots of work to it. But now instead I am backed in a corner with CW telling me they won't just consolidate and fix, can't refinance because under water, and can't sell because of market and again I'm upside-down.

I don't care about my credit anymore, I just need to get on with my life. So what should I do? Do I purposely stop payingand hope to short sale? Let it foreclose and hope they don't come after me for the rest (and garnish my wages)?

I would consider keeping it if the payments were lowered considerably and the principle was lowered.

And before anyone judges me, I feel like the only reason I am stuck in this situation is because of the shady/geedy lenders and government people involved, and all the other people who over-bought and stopped paying.

Any help would be most appreciated.

[StPeteFL]

I also understand that the Obama bailout won't help me because CW isn't Freddie or Fannie based, is that correct?

[Dan Bailey]

StPete,
There is a whole section of the forum devoted to this topic with excellent insight by Prof. Shays.
Link:Deed in Lieu of Foreclosure - Do You Need Help to Walk Away? - Loan Modification Forum - Loan Safe

[sandyg]

*** will probably be by to give you a hello and some info. of what direction you should go in.
I think everyone on this site will tell you to go to the NACA website and educate yourself about their services and possibly to begin the paperwork for a modification or restructure of your loans.
I'm almost 10 days into my process with NACA and so far so good!
Good luck and hang in there...people on this sight will keep you focused!

[Dan Bailey]

There is also a section about the "plan" LINK:http://www.loansafe.org/forum/stop-f...html#post63591

[gray517]

st pete

Countrywide is your servicer you would need to ask them who your investor is (they may or may not tell you and they don't have to due to the servicing agreements) you live in florida like me so you do fall under the Attorney General Settlement with countrywide, but you need to be delinquent or will become delinquent when your arm adjusts. here is info on that

Countrywide Financial - Real Estate Mortgage Lender - Home Loans - Equity Loan Mortgages

Countrywide Financial - Real Estate Mortgage Lender - Home Loans - Equity Loan Mortgages

[StPeteFL]

Deed in Lieu of Foreclosure seems out since "the appraised market value of the property must be less than the outstanding debt from the original agreement".

I bought my house for 210ish, added 50k to HELOC.

[heehoo22]

The appraised market value of the property does not need to be less then the outstanding debt... what does need to happen though, is having the home on the market for 90 days at the current market value with no sufficient offers reviewable for a short sale.

[StPeteFL]

So what I have gathered from reading and being a news junkies is that my options are:

1. Keep paying as long as I can, calling CountryWide asking for loan modification.
2. Try to sell/short sell (not likely)
3. Stop paying and hope CountryWide will offer a loan modification.
4. Stop paying and live rent free for as long as I can, hoping they don't come after me for money after the foreclosure.
5. Deed in Lieu of foreclosure.

Did I miss anything there? Any recommendations on these choices?

Should I get a lawyer?

[StPeteFL]

I realize my credit will be basically ruined with any of the choices accept 1 and 2a, but I don't care if it means getting my freedom back. I just don't want to get my wages garnished.

[StPeteFL]

Anyone? Professor Shays? ***?

[Moe Bedard]

because the investors are not doing principal reductions as a part of modifications.................and you indicated that is what you would need to stay in the home.......which eliminates #1 and #3...........
why would short sale not be likely to try?

[StPeteFL]

A short sale would obviously be tried if I stop paying. I was actually just making sure I was right that those are my only options that I listed there.

I would stop paying and let it go if I knew for sure there wouldn't be a deficiency judgment, but I am in Florida, so I wonder what the chances are that they will come after the rest.

[Moe Bedard]

You may want to ask a foreclosure attorney the odds on that.................
.......but there may be a statute of limitations as to how long they will be able to pursue it.............
also if you hire an agent to do a short sale that has done them before and is a good negotiator............they can work on that amount and maybe even a settlement with the second.

[StPeteFL]

How does one find a short-sale specialized realtor?

[Moe Bedard]

you can try the realtors that are familiar with working with CW for short sales................just make sure that you ask them if they have done them before............then cross reference them with the real estate commission in your state...........click on the link to find one in your area
Countrywide - Home Purchase