unemployed but not broke - want to modify!

[cmh2ii]

Hi! I am new to this site and very grateful for all the info that is available here!

I have looked through the various forums, but not found a situation that is identical to mine. So, here it is:

I was laid off in September 2008. I am collecting $2K month in unemployment, but have no other income. My wife is not on the loan (we married after I purchased the house), and is a social worker with an income of about $1000 a month. I have remained current on my fixed rate (5.3%) mortgage with a monthly payment of $1900. I am the only person on the loan, and I have NO debt other than my student loan. I have about $10K left in the bank and will get $15K (tax return) in the next few weeks.

I really want to get a modification that will allow me to lower my payments for a short period. Although I am not in danger of defaulting in the next few months, I am trying not spend every penny of my savings while I try to find work. I have called Countrywide, but cannot get anyone to talk with me about modification. I was put on a “waiting list,” and told that someone would contact me in the next two weeks. That was three weeks ago. I was told that I could not get a refinance because our household income is too small and that they cannot tell me if I qualify for loan modification yet because they do not have the requirements in their system yet. I do not want to wait until I am broke to start the process. Even when I get a job, I am sure that I will not have anywhere close to the income that I had before September 2008.

WHAT SHOULD I DO? Will having money in the bank eliminate my chances of getting a temporary reduction in payments? I want to be proactive, but it seems as if the system is set up to only help after it is too late...

Thanks in advance for your help. Any and all comments would be greatly appreciated!

[Moe Bedard]

HI cmh2ii,



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


In answer to your question.............the guidelines state:


The borrower’s Monthly Gross Income is the amount before any payroll deductions includes wages and salaries, overtime pay, commissions, fees, tips, bonuses, housing allowances, other compensation for personal services, Social Security payment, including Social Security received by adults on behalf of minors or by minors intended for their own support, annuities, insurance polices, retirement funds, pensions, disability or death benefits, unemployment benefits, rental income and other income.

The borrower’s income will be verified by requiring a signed Form 4506-T (Request for Transcript of Tax Return) and obtaining the most recent tax return on file for each borrower on the note. For wage earners, the two most recent pay stubs for each wage earner on the note will also be required. For self-employed borrowers or for non-wage income, the borrower’s income will be verified by obtaining other third party documents that provide reasonably reliable evidence of income.

Borrowers must also represent and warrant that they do not have sufficient liquid assets to make their monthly mortgage payments.


The information and steps to take in contacting CW for this new program can be found here along with a link to the program information and eligibility requirements..............
Countrywide Financial - Real Estate Mortgage Lender - Home Loans - Equity Loan Mortgages

[cmh2ii]

***,

Thanks so much for the reply! I really appreciate this site and the info that you provide.

If I understand you and the regulations correctly, savings counts against me. I went from earning $150K / Yr to less than $24K / Yr on unemployment. Does that not count for anything? I am not looking for a handout here, just a chance to reduce my monthly payments until I get a job. Does it make any difference if the money I have left is invested in CD's and other investments that are not cash and have a penalty for withdrawal?

Again, thanks for the great site!

[cmh2ii]

One more thing - I already followed the instructions on the Countrywide link that you included. They told me that
a- I do not qualify for a refi because my income is too low
b- they do not have the federal loan modification requirements "in their computer system." They out me on a waiting list, and will contact me in late April. When I called in early March, they told me something similar, and that they would call me in two weeks. That did not happen, and I am very hesitant to sit around for another 2 weeks waiting for them not to call...

[Moe Bedard]

If this is the only property that you own.............you may want to try going through NACA instead...........they are a HUD approved counseling agency and their services for their Home Save modification are free.........many members who do not want to work with CW directly are going through NACA...................NACA will work with the investor on your loan through the CW advocacy team................here is the link for the info.........

https://www.naca.com/refinance/refinanceTenStep.jsp



The information that I had posted regarding the income and assets is directly from the guidelines............how it is interpreted would be up to the servicers that are implementing the guidelines.