Suggestions Desired

[fozzmichigan]

I am hoping that someone can point me in the right direction. I am some what over whelmed, as I am sure everyone is, with the amount of information available on this site. I will try to give a short summary of my situation. As everyone knows Michiganhas been dealing with declining employment numbers for a very very long time. Our office reduced hours from 42.5 to 32 per week in December 2006. In December 2008 we reduced further to 30 hours per week. We seem to be stable at this level.

We are current on all payments with no late payments.

We currently have a 1^st. mortgage with country wide which is a 30 ARM which will reset on 12/2010 and currently is at 5.875% with a payment of $2,034.59. Balance of $327,814.82.

We have a 2^nd Mortgage with Countrywide which is a 15 year balloon at 10% with a payment of $772.26. Balance of $82,264.02.

We have an IRA that in October 2006 had a value of $250,000. Now from the market meltdown and from borrowing while to make up for the loss in income, paying the tax penalties etc… is now down to $70,000.

House appraised at $430,000.00 in Sept. 2005
House appraised at $375,000.00 in Feb. 2009

Income October 2006 $8,673.43/month
Income November 2006 $6,649.00/month
Income December 2008 $6,424.00/month

We are currently about $1200.00 per month short of barely making it.

This is a house we built ourselves and like many others desperately want to stay in it. I can probably keep this up for another 3 months max. We made quite a few phone calls to Countrywide in January of 2008 without any resolution other than you have to be in arrears before we can do anything. I know we must do something and I am ready to send a hardship letter to Countrywide but I am unsure what to ask for or what to expect.

Any help or suggestions will be greatly appreciated.

[Moe Bedard]

Hi fozzmichigan,


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

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.



Here are some examples to help you.......
Examples of a Hardship Letter


The you would need to call CW Home Retention and ask what the options are for a modification............they will ask for additional information

CW Home Retention
1-800-669-0102

Have this ready when you call...........

Your Loan Number and Property Address
Bank Statements and Tax Returns for the past two (2) months
Recent income documents (e.g., pay stubs)
List of current expenses
Brief explanation of your current financial circumstances warranting assistance