CW Loan Mod

[azgomita]

After 7 months and 2 declinations, CW has finally "approved" us for loan mod. We received the paperwork and find that the only thing that has been modified is that they have tacked on the arrearage to the principal and lowered the monthly payment by $200, bringing us "current" and therefore avoiding foreclosure- for now. However, the principal is now more than the original note and the value of the home is less than that, so we are upside down. We are 4 months behind and have an ARM which has just reset. All other terms of the ARM remain the same. During the time frame of this modifcation process, the interest lowered slightly so that now the payment difference is only $100 less than the current new rate. There is just no way we can sign this new agreement, it won't put us any better off, we will just default on the new one. My first inclination is to call CW and see if we can negotiate this to a permanent modification, ie to a fixed, low rate mortgage. Do anybody know if they will do this? And of course, we have only a few days to decide what to do. I've been reading so many posts that they have done this for some people. What are their guidelines, does anyone know? Thank you so much for this forum and this easure trove of information...if nothing else, it helps to know there are others out there..struggling to do the right thing.

[Moe Bedard]

Hi azgomita,


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

The modifications given are up to the investors on the loans.......you can try contacting them and seeing if anything more can be done or if that is it..............also if they say that is it..........and if this is the only property that you own..........you can try going through NACA instead......they are a HUD approved non profit counseling agency that works with CW to negotiate a low fixed rate modification.............here is the link...........
https://www.naca.com/refinance/refinanceTenStep.jsp

[azgomita]

Thank you for the advice, I've been to the NACA website and it seems that we have to go to a meeting before anything else can be done and the next meeting in our area is next month (too late for us) and 100 miles away. So, maybe we will try to negotiate on our own....

[Moe Bedard]

If it is too far away............NACA does allow to do phone consultations which can be made right online while going through the process.