Purposely 2 Months Late - Nervous. Feedback?

[txnlady]

Hello, All…
I want to know the best way to simply get in the works to be considered for a loan modification. I was told that absolutely I’d be able to refinance at the end of my first 2 years (which is when my ARM was scheduled to reset). My ignorance makes its appearance at this point: I call Countrywide to get refinanced and I’m told that I can't (owe more than house is worth, etc).

My situation is now such that I can pay the mortgage or I can pay my bills (school loans, utilities, taxes, no frills!). I also have an installment agreement and a tax lien courtesy of the IRS.

I am told that when doing a loan mod the company takes into consideration these criteria: divorce, income status change, medical bills, etc. Should I include that info with my data? Do I mail it? Where to?

Will the tax lien cause me to be denied anyway? I am worried the ultimate end to this has no option BUT foreclosure….? With the IRS and CW duking it out……

Please advise. Because if that really is the end of the story and I'm just prolonging my agony - I'd like to plan in the right direction and be proactive.

Ideally….I want to pay my installment agreement monthly with the IRS and make my mortgage payment – and also recover my lost income back. I know I CAN and my biz WILL come back around to the higher income – BUT I don’t think its going to do it in time to save me from my ARM loan.

I have tried calling CW in the past – and I can NEVER get to anything resembling a loan modification department and if I did, I can’t tell – because I can’t understand the representative. I think CW must outsource to another country. I hope this doesn’t make me sound terrible but I really want to talk to someone whom I understand clearly when discussing financing and my families home. So – I can’t figure out how to actually GET to the right department. Is this normal? to call and call and call and not get ANYWHERE?!

Additionally – I can’t make the entire mortgage payment this month and I keep hearing that I have to actually miss a payment before CW will wake up and notice me with someone who actually works in the loan mod dept.

Where do send loan modification request? What do I include? What do I ask for? Does CW actually have a department that will let me speak to them or do they really have to see me 30 days late before they will even consider the loan mod?

Loan Stats:
2 loans -one is already fixed
ARM - 30 yr
Original $172,000
Interest Rate: 7.44%
New Rate as of 2/1/09: 8.94% (adjusting again in July)

[Moe Bedard]

Hi txnlady,


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


Begin by putting together a hardship letter........

These are what most lenders consider to be generally acceptable hardships....

1. Loss of job or reduction in income
2. Death of the homeowner, spouse or family member
3. Illness of homeowner or family member
4. Divorce or separation
5. Forced job relocation by employer
6. Adjustable rate reset-payment shock

The best way to set up a hardship letter..........

* First, describe the hardship and the circumstances that caused it
* Explain what steps have been taken to correct the situation
* Provide the lender with your plan to get back on track and stay there
* Assure the lender that you are a responsible homeowner who just needs a second chance and that you are very motivated to save your home.



Then you would need to contact CW's Home Retention Dept. to begin the process of a modification...............

CW Home Retention
1-800-669-0102


If you feel that you may need some help going through the process and this is the only property that you own.............you can try going through the non profit HUD counseling agency NACA and see if they can help........
here is the link for the info..............
https://www.naca.com/refinance/refinanceTenStep.jsp

[teenut]

txnlady,

I was only 30 days behind when I asked for help with CW and I was denied. But once I hit the 90+ mark. I recieved a MOD in the mail even without reapplying for one, but the MOD they offered was only to bring me current and not do anything about the ARM so I have sought the help of NACA. I too have a pretty hefty tax lein but after much fighting with the IRS, I got them to place it in non-collectable status due to my income. I dont think the tax lein will prevent you from getting assitance, especially if you are paying on it. After all if they forclose, the IRS will get there money before anyone. These mods are supposed to have nothing to do with your credit, but what you can afford based on your legitimate monthly expenses and I cant think of anything more legitmate than the IRS. If you cant get what you want from CW and this is the only property you own, you can try to go with NACA. You dont have to be behind to request assistance from them. They will add your IRS payments into your expenses.

[txnlady]

Thanks to both of you for your replies:-)

***: Do you think I should just send a letter first and not my data? Or just go ahead and include data? And do how much do I include? I've heard that they don't look at every little monthly expense you have.

I also keep seeing people talk in this forum about having the extra $200-$300 after bills are paid. Is this something they specifically look for? I apologize if that is a question addressed specifically somewhere and I missed it

Teenut - I wish I'd pushed for non collectible status with the IRS - but I find that they are very similiar to CW in that they don't seem to know their head from their, er, behinds.... At first they said non collectible and a tax lien. Then they said no tax lien and here is this agreement and then they couldn't figure out why they said non collectible....I am sometimes shocked that our Treasury Dept is still running - they are so unorganized... But they had already filed the lien. I have been working with them for over a year and I just finally caved on the lowest payment they offered. Did you have an accountant help you or did you do it yourself? My accountant wasn't agressive enough so I did alot of it myself.

[Dan Bailey]

txnlad,
Send the letter first. They will request the info needed from you.

There is no magic formula, everyones mortgage has different circumstances such as state, investor, guidelines for area, financial guidelines etc...and even these change regularly withing the investors groups.

Let them tell you what they need from you and answer as succinctly as possible.

[teenut]

txnlady,
Getting them to place it noncollectable status was a very hard task. Dealing with them was one of the worst times of my life. I owed alot, but I was no longer making the money I used to make and had been out of work for about 3 years so I had no income. When they came after me, I had just started a new job and I was making 3x less then what I made before, so based on my income and expenses, there was no way I could pay what they were asking for. I educated myself on the process and the laws. I was consumed with it. It was to late for me to do anything about the lien, but I was able to stop them from any collections. They sent me one of those threatening letters about garnishment and bank accounts and with that I filed an appeal. When you file an appeal, it goes to one dept, where you speak with one person which is better than dealing with the many different IRS collectors. I got all my bank statements and every bill from the mortgage to the prescriptions to show that it would cause a hardship if they continued collections. So just like CW, they want you to prove your hardship. I did this with the help of legal aid. Which was totally free. I actually got the information for free legal help in my area from the IRS website! Of course you get what you pay for, meaning that I did most of the work before I went to see them, but I read that they respond better if your represented by an attorney. The attorney basically went to the face to face hearing I requested from the appeal, to further drive home the point that I couldnt afford to pay. Even though its in uncollectabe status doesnt mean they cant come back for me. My tax debt is old, and with tax debt they have a statue of limitations on the time they are allowed to collect on it. Next year one of the years I owe for will fall off. So I am hoping with this economy they will lay off of me for a while. You can also get rid of it in bankruptcy but its some stipulations for that such as how old the tax debt is and other requirements. But just like CW they try to take advantage of the fact were scared and ignorant of the laws and offer us horrible payment arragments. Its amazing how so many people in congress owe tens of thousands in back taxes but everyday people like us who are barely able to pay our bills are pursued relentlessly by the IRS.

[txnlady]

Okay I wrote a hardship letter. I'd like constructive feedback if anyone has any. I used the templates provided in the tool area as a springboard.

I am wondering is there too much drama or emotion? Do I need more emotion in it? Also - with my tax lien did I word that properly? I don't want to sound like its a veiled threat but honestly do I understand correctly? If I don't make my payments and its foreclosed for real the IRS gets it right? So isn't it in CW's best interest to help me keep it while I am working through the lien?

Okay here it is: fire away with the feedback, I'm open to all suggestions

To Whom it May Concern:

I am writing this letter to ask for assistance and help. My ARM went up this month and my income was significantly decreased this past year. I am a single mother of two young boys and I work very hard and bring in a solid, steady income but due to changes in my life and my business, my income is not enough to continue paying my mortgage as it climbs and will continue to climb with the adjustable rate.

I’ve gone through a lot of financial hardship this past year and I’ve worked very hard to keep current and not get behind. This month with the adjustable mortgage payment going up it was the last straw. My mortgage was originally written by another company and bought by Countrywide. I was assured that refinancing would be no problem but that turned out not to be true (according to your representatives) due to the downturn of the housing industry and I now owe more than the house is worth.

In the recent past, I have undergone quite a few changes in my circumstances:

1. This past year: As an independent contractor, the company I contract for changed the way their compensation plan is structured and I made $30,000 LESS last year than the year before. Significantly less than the amount that I was qualified for with my original loan criteria. I am under contract with them not to work with competitive companies so it’s not just a matter of leaving and performing the same type of work elsewhere without losing nearly ALL of my full time paycheck.

2. In 2007 I was legally separated - but taking care of his bills too.

3. In 2008 I went through a divorce and the judge split our medical bills and other debt down the middle.

4. As a single parent, I receive NO spousal support (some child support) from my ex-spouse.

5. I also went through some health issues and incurred a couple of trips to the ER -more medical bills! and additionally very recently had to have biopsy and tissue removed from one breast. Insurance did not cover all of that procedure as well leaving me holding yet another bill for almost another thousand.

6. My federal income taxes were not computed properly by my CPA a few years back and because of that I owe significant back taxes. The IRS has given me an installment agreement and they’ve also imposed a federal tax lien on this house and everything I own or may own.

I sincerely believe that I am a very good candidate for loan modification because I am motivated to keep a roof over my 2 year old and 10 year old sons’ heads. However, I also believe that if my monthly payments were reduced to an affordable amount, I could continue making my payments and keep my home.

Additionally, if I am able to keep making my payments with CountryWide this also allows me to continue paying off the IRS and eventually eliminate my tax lien. It also keeps my mortgage holder from losing my home to the IRS because if I can’t make my payments to CountryWide then the IRS has first dibs on my home. If I can’t pay my taxes because my mortgage payments are too high, I still may lose my home to the IRS.

A loan modification is in the best interests of both myself and the mortgage holder because it allows me to keep my home, pay CountryWide AND the IRS.

Please help me save my home. I am now one payment behind and this likely would not have happened if I had been able to refinance in December as I was led to believe would happen back when I agreed to the original ARM. I would never have agreed to this ARM if I had known that refinancing would not be an option now.

I sincerely want to stay current and keep current with my mortgage and keep my home. Please consider working with me and setting up a loan modification.

Respectfully,

[Dan Bailey]

txnlady,
There is no need to get into so many specifics. Simply listing medical issues, divorce, etc..is quite enough.
The double entendre of the IRS does not need to be mentioned. Most likely, if you receive the mod, the lien amount will be rolled into the principle owed.

[txnlady]

Okay so the hardship letter is all written up - I got it on one page. I am sending it to some of the addresses I have here and I also want to fax it in to as many of CW's fax #'s as possible.

I think, when I first got here to the forum, I saw somewhere in a post or two that there were a couple of fax#'s?

So - to all those who have faxed loan modification hardship letters, do you have the fax # somewhere?

Also - thanks to Moe's idea - I put this as the last line of my hardship letter.... I know everyone is working hard and I really want to hear back from you soon so that I don’t miss anymore payments. Additionally, my particular case with CountryWide is being profiled on 2 well known public websites called www.loansafe.org and www.loanworkout.org. Their readers will gain hope and encouragement from my positive experience with CountryWide.

[Moe Bedard]

So as not to have multiple workout files for your loan number...........where the hardship letter is concerned, it would be best to fax it to the Home Retention Dept., they will be working on a loan modification for you and putting together the loan modification file.

Home Retention Fax#
1-800-658-9346

[txnlady]

Okay so as of today - I am now two months late on my mortgage. I made the decision not to pay based on feedback from other folks who said CW won't talk to you until you are late. Which is crap, if you ask me. It seems you should get help if you work to stay current - which I've been doing until now.

Whenever I try to speak someone about loan modification - I get some lady taking down my "financials" I'm told that some refer to that as being passed to the "sucker extension" but no one wants to talk to modification and I was told I'm now ineligible for refinancing.

I've faxed my hardship letter in to a couple of numbers with CountryWide and received "generic" calls from CW about being late and offers to connect me to their "sucker" line again where someone takes my info but no one wants to talk about modification.

Is there a process I need to be aware to "get in" the loan mod door with CW? Do I keep sending letters and a loan mod package arrives? How do you actually speak with someone who can truly assist you with your mortgage?

[Moe Bedard]

txnlady,


We at LoanSafe would never tell any members to purposely stop making payments........if that was another members way of trying to obtain a modification, that isn't a very wise one because notices of default and foreclosure follow a process which has already been outlined in the Deed of Trust documents that one would have received at closing and then the foreclosure timeline of the state after that......modifications are given based on hardship and from the investors..............and while some investors have programs set up with forbearance payments first before entering a modification, such as FannieMae and FreddieMac, .............most will work with you even if you are not late.



What is the number you are using to call them?

[txnlady]

Okay so - I finally got on the phone with someone who seemed to be able to actually talk to me about either a loan mod or what she referred to as a "loan workout."

She took my financial data and submitted it - and she said that the "only" option that it came back with us an A.G. option and that not all states have this but mine does.

She gave me a fax # and told me to fax my documents in within the next 10 days and that all "collection" efforts would be suspended during that time. I am supposed to get either an approval package or a denial letter.

I have done alot of research online but I did play a little dumb (well, dumber in my case LOL) and ask her if the "Obama plan" was also something they did.

She actually said that they did not have all the details or the information they needed yet at CW to do those type of loan mods that the press announced last week. WHAT does she mean by that? Is it because CountryWide is so huge they can decide not to participate? (I thought I read somewhere that they did agree?) Is it because they are swamped with people asking for help and don't know their behinds from their brains?

Anyway - I'm curious as to what she meant by that - she seemed to think that it wasn't something they were offering yet due to lack of "something" they were waiting for.

My main question though is Exactly what does A.G. option mean other than Attorney General? Differences in what has been announced in the press recently?

Searching the net now but wondered if anyone had prior experience or knowledge?

[Moe Bedard]

CW is updating their information about the president's program here........
Countrywide Financial - Real Estate Mortgage Lender - Home Loans - Equity Loan Mortgages



here is the info on the AG program..........
Countrywide Financial - Real Estate Mortgage Lender - Home Loans - Equity Loan Mortgages