My Same Sad Story

[Kaizen73]

What a great site, I’ve been so frustrated till now, but I’m hopeful that I might get some real answers now… Here’s my details and questions…

I live in Vegas and bought my house in 2006 for $571K.
I have a $456K, 30yr Fixed at 6.625%, Interest Only for 10 Years
I also have a second for $85K, 30yr Conventional at 9.25% with a balloon after 15 years.
Comps are selling around $350K, so I’m upside down by about $190K.
Both loans are serviced by Countrywide and CW has told me that Bank of New York owns both loans, not Freddie or Fannie.
Payments have all been on time and my credit is around 680-720.
To make things more complicated, I’ve been unable to sell my starter house, and subsequently I rent it for a small loss ($150) each month.

When I bought this house, we felt we needed to upgrade before we were priced out of an ever-increasing market. My wife and I were both working and making a decent wage so we could afford it. Then she got hurt and has been on disability for the last 2+ years. Fortunately, I was able to pick up overtime shifts to ensure all the bills got paid, but overtime is now almost obsolete. We are still able to cover our bills and pay our mortgage, but barely. Savings has been depleted, credit cards are maxed.

We love our house and don’t want to move, but being so upside down, it feels like we’re throwing good money after bad. It could take up to 15+ years before my home is worth what I paid. But because we love our house, if I could reduce my monthly expenditures and improve the terms of my loan I think we would do our best to stay here and weather the storm.

I’ve had numerous phone conversations with CW representatives that provide no real help and seem like they are reading scripted responses to my inquiries. To date conversations with CW have been a total waste.

I own more than one home so NACA is out. Bank of New York owns my loans so I think an Obama modification is out.

So… Where do I go from here???

Should I send a QWR? Should I submit my case to the CW President??? Is more lame direct contact with CW my last resort? Or say screw it and move back into my rental, declare bankruptcy, etc…

Any ideas would be very appreciated.

[Dan Bailey]

Kaizen,
Glad you found the forum and posted.


You can start your process by sending in a Hardship letter first:Examples of a Hardship Letter
Then, try calling the CW Home retention #: 1-800-669-0102

Finaly, it seems CW has put up a new site you can check out:Countrywide Financial - Real Estate Mortgage Lender - Home Loans - Equity Loan Mortgages

Hang in there and good luck! It is a long process.

[Moe Bedard]

Hi Kaizen73,


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

If you are looking to modify your principle residence that you occupy and your mortgage payment on that property alone is more than 31% of your gross income...................than that would be one of the criteria to modify..........

Front-End DTI is the ratio of PITIA to Monthly Gross Income. PITIA is defined as principal, interest, taxes, insurance (including homeowners insurance and hazard and flood insurance) and homeowners association and/or condominium fees. Mortgage insurance premiums are excluded from the PITIA calculation.

The Back-End DTI is the ratio of the borrower’s total monthly debt payments (such as Front-End PITIA, any mortgage insurance premiums, payments on all installment debts, monthly payments on all junior liens, alimony, car lease payments, aggregate negative net rental income from all investment properties owned, and monthly mortgage payments for second homes) to the borrower’s Monthly Gross Income. The servicer must validate monthly installment, revolving debt and secondary mortgage debt by pulling a credit report for each borrower or a joint report for a married couple. The servicer must also consider information obtained from the borrower orally or in writing concerning incremental monthly obligations.

Borrowers who otherwise qualify for a modification under this program, but who would have a post-modification Back-End DTI greater than or equal to 55%, will be provided with a letter stating that they are required to work with a HUD-approved counselor and the modification will not take effect until they provide a signed statement indicating that they will obtain counseling.




Qualifications Terms for Home Affordable Modification:

The home must be an owner occupied, single family 1-4 unit property (including condominium, cooperative, and manufactured home affixed to a foundation and treated as real property under state law).

• The home must be a primary residence (verified with tax return, credit report, and other documentation such as a utility bill).

• The home may not be investor-owned.

• The home may not be vacant or condemned.

• Borrowers in bankruptcy are not automatically eliminated from consideration for a modification.

• Borrowers in active litigation regarding the mortgage loan can qualify for a modification without waiving their legal rights.

• First lien loans must have an unpaid principal balance (prior to capitalization of arrearages) equal to or less than:

1 Unit: $729,750
2 Units: $934,200
3 Units: $1,129,250
4 Units: $1,403,400


Home Affordable Modifications are designed to prevent foreclosures by making mortgage payments affordable for working homeowners struggling to retain homeownership. The plan is not intended to replace equity lost by home price depreciation.


If you are able to meet this criteria...........the contact CW and ask to be considered for the Home Affordable Modification Plan...........
1-800-669-0102

[Kaizen73]

Thanks Dan! Thanks ***!

It seems like your both suggesting I look into a HASP modification.

Does the fact that my loans are owned by Bank of New York disqualify me?

Thanks again!

[Moe Bedard]

Not for the modification.............but the modification would only apply to your principle residence that you live in.