Pay-Option Jumbo ARM

[chriskeeler]

My mom is old and she wants me to handle her account to try and get a modification, since she can not continue down the path she is on with her loan. My family & I moved into the house to help her pay the utility bills and part of the mortgage ($1300), but it is not enough.

She has a CW Pay-Option ARM and can only afford the minimum payment:

Loan Amount: $1,400,000.00
Balance: $1,527,834.67 (115% max limit set on deferred interest)
APR: 5.5% (this month)
Monthly Payments:
Option 1: (Amortized Payment) $9,262.30
Option 2: (15 year amortized) $14,385.61
Option 3: (Minimum) $5,463.92 (1,958.00 deferred)
Option 4: (Interest Only) $7271.74

I contacted NACA, but because she "holds" more than one property (even though she is letting them go) they can't help us and recommended we go to Countrywide directly. She was told back in December that she was "on the list" for the Homeowner Retention Program since the property was in the state of Florida and it was a Pay-Option ARM. We sent in all of her financial info to CW, several weeks went by, then we got a letter saying she did not qualify for the program because her account was currently current. WTF? She was alluded to by a CW rep that she needed to be 60 days late in order to qualify (which is different info than what they even have posted on their website: HRPFactSheet )

So, she stopped paying and put the money into a savings account. Today she is past the "60 days" so supposedly eligible, but we are having a difficult time even contacting CW to see about the program. I called the regular customer service number and the machine wanted a promised payment agreement or something...no rep. I also called the Home Retention Program number, but they now have that routed to the same automated system as the above. Does anyone have any ideas? I don't think one hand knows what the other is doing over at CW.

The property is also now WAY underwater. The county tax records show a taxable value of $1,047,606. She really wants to keep this house!

Any advice is appreciated.
Thank you.
-Chris

[Woodland Hills Worrier]

I am in similar circumstances in California. I believe your mother's ARM might qualify for a principal reduction to 95% of current value. At least that is what the legal agreement states. However, I have not heard of any principal reductions taking place. I am still current as my wife is absolutely panicked by the idea of foreclosure and is juggling the books like crazy just to make the minimum payment. We are $40,000 up in three years on our original $640,000 with the 115% automatic recast approaching. I know there is a great lawyer in Florida who is helping homeowners. I am trying to find out why the legal settlement is not being imposed. Good luck!!!

[sbas2k]

I just received news yesterday that my modification was denied. I too are in a neg am loan here in California, I owe $645k. I have a decent income and show a surplus every month. I was told simply that the investor (they won't tell me who the investor is) denied the modification even though i'm supposed to be part of the AG settlement. Good luck with Countrywide, they don't know up from down. Nice purchase B of A, you really picked a winner!

[N2Deep]

Originally Posted by sbas2k

I just received news yesterday that my modification was denied. I too are in a neg am loan here in California, I owe $645k. I have a decent income and show a surplus every month. I was told simply that the investor (they won't tell me who the investor is) denied the modification even though i'm supposed to be part of the AG settlement. Good luck with Countrywide, they don't know up from down. Nice purchase B of A, you really picked a winner!

sbas2k,
I also got deciled for the AG program on the 11th for the same reason. So essentialy the settlment is mandatory for Countrywide but not their investors. If thats not changed investors will continue to block mods. So I wrote our AG here in CA and would ask you do the same.
Office of the Attorney General - Edmund G. Brown Jr., Attorney General
This below link has all but been removed from the site as ther e have been alot of complaints about the lack of progress data.

FAQs - Attorney General's Office Lawsuit Against Countrywide - Consumers - California Dept. of Justice - Office of the Attorney General

The settlement requires Countrywide to make regular reports to the Attorney General’s Office regarding which borrowers do and do not get a modification, and the reasons why. If the AG isnt realeasing data it cant be going well.

[sbas2k]

Good point N2Deep, thanks for posting the link to the attorney general, I also filed a complaint with them. On another note, I was told there could be another modification program out there for me and that a negotiator would be contacting me in the next few weeks.

[N2Deep]

Originally Posted by sbas2k

Good point N2Deep, thanks for posting the link to the attorney general, I also filed a complaint with them. On another note, I was told there could be another modification program out there for me and that a negotiator would be contacting me in the next few weeks.

Did they say the mod would be through CW and not any Gov programs? They told me I was eligable for one through CW as my Investor was not playing ball with any Gov programs. They also said this would be a much quicker process. So I asked if my investor isnt taking mods from the stimulus or Ag program then what could CW offer the investor to get a mod approved.
They said if my lender doesnt agree with a portion of the program (Im thinking Principle reduction) then can negotiate other terms.

[pdsfoley]

Everybody that is in the AG settlement needs to contact the Attornry General and let them know Countrywide is NOT complying....Its ridiculous...I work at Countrywide...I see whats going on...I think the more people that do not complain...the more they think we'll just go away. the AG bill was a lawsuit with specific things stated they had to comply with...I haven't seen any of it...PLEASE PLEASE contact your Atttorney general and COMPLAIN...its going to be the only way to STOP this mess!!!

[sbas2k]

Thank you pdsfoley. I'm going to start a new thread on that. CW did tell me that I "might" be eligible for a mod through CW not a govt. program. However although the person gave me sketchy details, it sounded like a slight interest reduction and add the past due payments/late charges to the loan. She said the payment might actually be higher. With offers like that, no wonder why the statistics show that after mods. are done they still default. CW is a joke.

[N2Deep]

Thanks for your Honesty Pdsfoley,
I couldnt help but notice you said" They think we'll just go away" do you have interest in the AG program as well?
Anyways a few other program complaint topics I have written in to the CA AG about are...
1.The removal of the Fixed rate option not providing a permanent solution.

2.No updates or data on the progress of the program

3. Why would the math that, say, Bank of America or CW does on a loan review , figuring out that the loan would be worth more modified, not jive with the investor's math on the same loan?

[pdsfoley]

Yes I get call after call after call everyday...from people that got mods that they can NOT afford...the payments get raised EVERY time...the AG settlement seems to be quietly going away...we need complaints!!!! I just wrote and complained to my AG. If they get enough complaints maybe something wil get done. I think they are holding out to see if the Gov't will do something so they don't have to.

[pdsfoley]

N2Deep....yes I also have a Pay option ARM with CW....I have been trying to modify FOREVERRRR.....They are ridiculous!! and I work there...Ughhhhhh...

[sbas2k]

My sister just bought the house next to me from CW on a short sale for $325k (I know the loan balance was $625k) but they won't modify my loan even $1? It's sickening, so losing $300k is much better than keeping a customer that can actually afford his home? What a bunch of bozo's over there.

[pdsfoley]

I agree...why not "short sale" the homes to the people already living in them???? Seems to easy I guess....Or I'm just dumb....because I'm missing something in the big picture....

[tandm]

pdsfoley -

In the H.R.1106 bankruptcy cramdown bill, the bill that passed the house has a provision to protect banks from investor lawsuits for passing mods they didn't approve. If this bill passed, do you think it would it free up the banks or not change a thing?

[chriskeeler]

I wrote a complaint to Florida's Attorney General, Bill McCollum, but really don't see this as doing anything. I will keep pestering CW now that I have a phone number that actually gets a rep: 1-800-669-6093.

Maybe a trip to Tallahassee is needed in order to make some real noise! Road trip anyone?

-CK

[lha3140189]

I'm in California and wish I could accompany you to Tallahassee. But the idea is worth exploring. Many are calling for a letter writing campaign to the A/Gs. In addition, maybe some actual borrowers with protest signs in front of Countrywide locations would get the attention of the media. The main offices are in Simi Valley California. How many California Homeowners would be up for a couple of days of a vistit to the corporate offices with a few calls to the media? Remember, there is strength in numbers! Maybe some of your Florida neighbors would be up for the fight? The fact is that C/W is playing hard and fast with the agreements they made.

[chriskeeler]

Does anyone have any info on how reasonable Deutsche Bank is (as the investor) on doing loan mods?

I asked Countrywide today who our investor was, and the rep said Deutsche Bank! I was surprised that I even got this info.

Any help is appreciated.
Thank you.
-CK

[chriskeeler]

Forgot to mention that we have a Pay-Option jumbo ARM, and we live in Florida, so we also have the whole AG settlement on our side as well.

-CK

[chriskeeler]

I faxed all financial info per Countrywide's request to them (63 pages) to see about getting a loan MOD. Was told to call back in 2-3 days to make sure they got it. We'll see...

[chriskeeler]

Just ordered a forensic mortgage audit from a company. We'll see what they find out.

[katita]

I also have 4 option arm in California is my rental. The only deal I got was on October 2008 they gave me 30 days grace period and put that payment on my principal, on the top of it they still do not update my account and I look far behind in my payments which is not true.
Also Bank of New York is my investor . Would be great if chriskeeler find a fraud

[chriskeeler]

CW denied us AGAIN. Funny thing is the denial came 5 days BEFORE we faxed in our paperwork for the 2nd mod request per CW's request. WTF? Also, while on the phone the rep kept saying, "I can't find your paperwork...." A typical response from them I hear. I gave her the date/time and fax# it went to...then she said we were denied...Still not saying she found the paperwork.

We have decided to escalate this an attorney, since this seems to be the trick that will make CW magically find paperwork, and get callbacks for a loan mod.

The reason given for the denial was "negative income to loan ratio." Funny thing is, that the Florida AG settlement specifically states that a principal reduction should be applied if the borrower has a negative LTV ratio, which we have by 30%. I wonder if they took the time to factor that in. My guess is...probably not.

See you in court Countrywide!

[pdsfoley]

They did the same to us....got denied the day before our last papers were faxed to them....absolutley amazing...

[Katie3773]

Absolutely amazing is perfect. Although I have been performing in their circus for 10 months, I still have to stop and think "really" is this not a dream....hahah...When it finally hit me "truth" in the forehead i was hysterically laughing to balling my eyes out...so wrong so wrong.....never quit ..good luck

[katita]

HI Chriskeeler,
In one of your posts you mentioned that NAca advised you on your case?
You have two properties right?...So that's why you were not helped by them., however they did advise you over the phone...is it right?