NACA Hardship Letter for Countrywide

[valdamax]

Hi all,

Any help would be appreciated with my question Here's my situation:

* I purchased a condo through Countrywide in CA in 2006. I was a first time buyer, pressured by parents, and not clearly knowing what all I was doing. The home was purchased at 313k. 13k was paid down, and for the rest CW set me up with a 5yr interest only mortgage of 250k @ 6.25%, and then a HELOC to cover the other 50k with a base of 7.5%. My home is now valued at roughly 250k

* My wife recently left her job in December as they said they were going to likely let her go soon, and begun her student teaching to become a teacher. During that time she has since become pregnant. (My hardship part)

* As my alias is just made up for this, I'll trust my anonymity and also for arguments sake say my gross pay income is roughly $62k

* With all those variables said and done, my savings will be depleted within two months and for the first time I forecast becoming delinquent on my mortgage in May or June.

Here's what I'd _like_ to accomplish - I'd like to have the principle adjusted to at most 250k (I realize the reality can be very different) - in effect wiping out the HELOC, and with a new loan with lower interest rate to accommodate my monthly salary. I've seen on here references to "NACA" which I'm unfamiliar with. I contacted Fanny Mae/Freddy Mac and one of them said they own part of my loan (per the Obama Home Affordable refinancing...)

* Should I contact NACA for assistance? What then?

* Should I contact Countrywide and pursue the CA Attorney General lawsuit for getting the loan modified to have the principle reduced and loan refinanced?

* Should I pursue the new Home Affordable Loan refinancing program? Part of this that makes it sound attractive is that it says home payments capped at 31% of gross pay would include HOA which for me is about $200 a month, and also property tax

...any other thoughts or anything I'm missing?

Thank you

[Moe Bedard]

Hi valdamax,


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

Here is the link to find out if you are eligible for either option..........
for the refi option your loan would need to be backed by either FannieMae or FreddieMac...........there is a section to see if your loan is one of those......

Making Home Affordable - Home Affordable Refinancing - Home Affordable Modification


here is the link for the steps for the President's program through CW.....

Countrywide Financial - Real Estate Mortgage Lender - Home Loans - Equity Loan Mortgages


The issue with the AG settlement is that nobody received any kind of Principal reduction...........the principal reduction was available on option arms...........which in the post above it doesn't sound like that was the type of loan that you have.



If this is the only property that you own...........you can use the services of NACA.........their Home Save modification program is free.........they are a HUD approved counseling agency.........here is the link for the info.
https://www.naca.com/refinance/refinanceTenStep.jsp

[valdamax]

Hi All,

Could you please take a moment to review my proposed hardship letter for my NACA pursuits in getting a loan modification w/ Countrywide? Would be much appreciated...

---

Name:
Address:
Lender Name: Countrywide
Loan #: (your Loan #)

To Whom It May Concern:

I am writing this letter to explain my unfortunate set of circumstances that have caused us to lead us to being unable to afford our monthly payments. We have done everything in our power to make ends meet, but unfortunately we have fallen short and would like you to consider working with us to modify our loan. Our number one goal is to keep our home and we would really appreciate the opportunity to do that. When we purchased the home we were pressured by the builder to go with their preferred lender, Countrywide, who told us we had to take out a primary loan for $250,000, and then a second loan as a HELOC for around $47k to pay for the rest - this was our first home, and I didn't really understand what the implications were or how it worked.

The main reason that has led to our fiscal troubles has been that my wife, xxxxx, is no longer able to assist in paying the mortgage per a job loss, and I am unable to pay the mortgage on my job alone. In December she was notified that she would soon no longer have a job there per the economy. She took the opportunity to continue getting her teacher credentials to teach High School, and is currently a student teacher until June. During that time we also discovered that she had become pregnant, and is expecting in September. Our prospects of her getting a teaching job vanished as our School District has begun sending hundreds of pink slips to current teachers. We have been able to make it so far by using the student loan money my wife received for her student teaching, but that will have evaporated after making the May 2009 payments and leaving us unable to make payment for June. With soon becoming late with payments and our income not being nearly enough, we're unable to identify how we'll be able to make ends meet. It is our full intention to pay what we owe. But at this time we have exhausted all of our income and resources so we are turning to you for help.

We believe the financial situation would typically be temporary until my wife would be able to contribute again for the monthly payments. With her being pregnant, and job prospects held off, the soonest we could hope to make ends meet again would be in 2010. At that time however then our 5 year interest only ARM would reset. We feel that a loan modification would benefit us both. We would appreciate if you can work with us to lower or delinquent amount owed and or payment so we can keep our home and also afford to make amends with your firm. We're hoping amongst various options available, such as President Obama's Home Affordable Refinancing & Modification programs may be able to help, and as part of that we've verified at least part of our loan is owned by Fannie Mae.

We truly hope that you will consider working with us and we are anxious to get this settled so we all can move on.

Sincerely and Respectfully,

Borrower’s Signature
Date

[~Jess~]

Just wanted to mention that the Obama plan only applies to first mortgages. They would only have to lower your 1st mortgage to 31% of your income.

If you're on an interest-only loan right now, it may not be realistic to expect your payment to decrease from refi'ing your I/O first into a fixed-rate loan.

Hopefully they'll have another plan available to you though...Good luck & congrats on your wife's pregnancy!

[valdamax]

Thanks Jess - do you think I should leave that part out then, about OBama's plan?