Should I request for a loan modification first or befor trying to refinance to lower the monthly

[kawor168]

Hi Experts:

I am really new to this forum. I would like to thank everyone for posting all the suggestion. I have gone through some of them; it is really informative. I have a question for you regarding to my mortgage.


Here is my situation. I have bought house about 520K with 20 %percent
down. I have Country wide 30 fixed at 6% percent. Principal balance is
$422400(original). I have never been late with a single payment. The
problem is that my current financial situation is not in a good sharp
( company is start reducing a number of hours and like everyone else,
my monthly income hit hard.

The monthly interest payment on the loan is $2900 (including
properties tax). I cannot afford to make this payment much longer. But
as of now I am still making payments on time.

The property is over-leveraged now that prices have fallen about 30%
percent. I am thinking to go for short sale; However, I would like to
stay in my home if the payment were more manageable.

I have contacted Countrywide to request for a home loan modification.
However, Countrywide Representative told me not to do home load
modification because it will add one extra payment on my entire 30
fixed payment, and it will affect my FICO score.

Also, they told me to wait for a government support program
countrywide/other Morgate companies. and government are working on) -
This program will re-value my house value ( lower pricipal) with
current market value.

Also, right now the interest rate is going down, I am thinking to
either refinance; Hope that it will lower my monthly payment. However,
the current value of my houjse is almost the same as my current
principal.


I am a little confused about all this information. I am not sure if I
should do a home loan odification even if I haven't missed a payment yet or I just should refinance.


Please let me know if you have any advise....

[Moe Bedard]

HI kawor168,


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

You would need to speak to CW refinance dept. first and see if your loan is eligible to be put into a refi...........the H4H program would depend on the loan limits in your area because it is an FHA progam..........but they will be able to let you know if you can qualify for that..........or if you would need to begin the modification process............

Try calling refi for existing customers first............
1-800-763-1054

[kawor168]

So, You would recommend me to apply for refinance first and also apply for home loan modification at the same time.

[Moe Bedard]

I would suggest that you see if you can qualify for a refi first and ask if your investor is participating in the Hope for Homeowners program which is the refi that they are talking about.......... and then make a decision from there...............

[kawor168]

Hi, All:

Thank for all your advise...I have talked to CW refinance department today; They have asked me what is the current value of the house. I told them the value about 410K ( this is what I have seen the price has been sold in my area).

They told me that because the current balance on my loan is about 401K; they said they can only loan me about 80-90%. That is meant I have to buy down the loan to around 360K. I don't have any extra cash to do.

So, now should I called CW for loan modification ?So, you think will it affect my FICO score or any extra fee that I have to look after. Right now I am in the situation that I need to look for a way to lower my month mortgage. Please let me know if you have any advise. I am really appreciate all your help..

[Moe Bedard]

A modification doesn't have a negative effect on your credit......the only thing that will is if you default on the loan just like it normally would........

Call CW and ask what the options are from the investor on your loan for a modification............
1-800-669-6607

[kawor168]

All:
I have called CW explain my current situation and they have asked my income, all my expense and 401K.

However, they said modification is only designed for people has delinquent
On the mortgage payment. So, loan modification will add the missing payment to the principal and recalculate the monthly mortgage again.
However, It is all I ask is there is any way that I can lower my interest to help lower my monthly payment to avoid foreclosure.
So, what should I do next? Please give me an advise; I am really desperately need help.

[Moe Bedard]

You can also try going through NACA instead for the help they are a non profit agency............they will work on a modification with you to present to your investor and CW.........
click on the link for the info...........
https://www.naca.com/refinance/refinanceTenStep.jsp