NACA Mod approval questions

[raejean]

I have a long story similar to others. Long story short - I have a interest only option arm with CW that will eventually reset to something we cannot afford. I got into this loan by a broker who is now in jail. I have had a foresic loan officer verify my loan docs and apparently have tila violations. I hired an attorney to try an work with CW to get me into a fixed rate (and hopefully reduce the principal- which should be done anyway due to the tila violaitons) and he actually refunded my retainer as he couldnt handle working with CW as they ran him around just like everyone else. So I then tried to deal with them again, and sent in all my docs and as with many other I am reading about from the posts today, I have the exact same thing showing on my CW website page about not qualifying as of 12/30/08...blah, blah, blah.....
I wished I wouldnt have even looked at that website this morning as I have not accomplished a darn thing today except obsesssing about all of this again. At least when CW was reviewing all my docs (that took several time faxing in as most have experienced) I was was at least calm with some sort of hope (mis-guided hope none the less).
I have had no late payments. I did however file bankruptcy last year in January which was discharged in April 2008. My problem I have only been able to pay the minimum payment of the 4 options, and eventually this thing is going to reset which I will never be able to pay. The other issue is that the loan balance is now at 270k when I originally only took the loan out for 248k (increase due to min. only payments) and the home is probably only worth 250k ish.
My financials only showed a positive monthly amount of about $200 or $300 so I really thought they would do a modification. But they did not, and I have been denied like the others as they are saying I did not qualify. I am still waiting for my info in the mail to find out why.
I have been trying to get out of this loan since almost literally the day I signed the docs (tried to rescind it but the broker talked me out of it).
I am losing my fight. I am sick to death about this and dont know what else to do. Do I stop paying so that it creates more of a hard ship so they will work with me? I see alot of the posts have been referred to Naca. Is this org. new? And can they help all different types of situations?
Dont know what else to do any more......

[Moe Bedard]

NACA is not new...........they are a non profit that has been around for 20yrs. and they work with CW and other servicers and the investors on modifications.
Most that are getting denied by CW are giving it a go with NACA........they are a non profit so it is free.......click on the link for the info...........
https://www.naca.com/refinance/refinanceTenStep.jsp

[raejean]

What happened to the loan mod officers and email addresses that were being given before (that got buyers to the top people at CW a few months ago)? Is that no longer working since they switched to B of A? Sorry, just confused as it seemed a few months ago people were having success by emailing the "top dogs" . I actually referred my neighbor to this site, she did that (emailed that long list of CW reps), and they are now in a modification and able to stay in their home. I however, have not been so fortunate, and I am still dealing with this. I guess I should have taken my own advice and done so then, however I didnt think I could do to my bankruptcy. Now I have found that I should still be able to modify the loan if they would just do it. I just wondered if naca is new since I hadnt heard of them before when I was on this site (a few months ago probably). I will try Naca if I can muster up some more fight in me ...
Thanks for an alternative option.

[Moe Bedard]

CW was taken over by BofA in July..............there aren't any executives left..........so it hasn't been working since then. It doesn't have anything to do with a long list of emails..............they were referring people back to Home Retention...............what it does have to do with is the investors on these loans and what they are willing to do.................some have investors that are more flexible than others................
NACA has been around for 20 years..............you are hearing alot more about them because they are not a scam that is taking peoples money like the modification companies out there.................they are a non profit and their services are free.............and they do more than the scammers that take people's money and run.

[raejean]

***,
By the way.... I meant to tell you thanks for the great site and info. Just the support alone is helpful to me and I am sure to others knowing we are not alone.
Also, please help me settle a debate....my neighbor who I mentioned in the last post kept referring to you has a "him" and I kept saying you were a "her" Not that it matters but I am curious which of us is right :-) lol

[Moe Bedard]

Click on my profile to see who wins........

[raejean]

Thats funny! I thought so, I worked with a gal with the same name and just automatically assumed I knew, but you never know and they might have been right. I will have to share this with the neighbor. I hadnt been on here for awhile so I had forgotten about it!

[raejean]

Continuation-
I submitted my paperwork with CW to try and get a modification on 11/1/08. On 12/30/08 I was denied and the web stated I did not qualify but I had no papers (the so called "packet") to support why. Yesterday I received my 1 page packet (!) and it basically said nothing, except that I didnt qualify and in so many words that there was no hardship! Funny, as I have an interest only option arm that will reset and send my minimum payment from $1400 to about $3000 ish! Yikes. Now to me that is a hardship, not to mention my principal balance increases every time I make a minimum payment only which causes me to be more and more upside down every month (about 40k in the negative now).
I was concerned when they took all my info over the phone and then had me fax in my paperwork because we are self employed and the financials are bit tricky (my income includes payroll with taxes and then distributions which arent taxed since we are an s-corp-basically so were not taxed so heavily from being self employed). Also we have company vehicles that show in our name but are paid by the company and it doesnt come out of my personal income. So I have been worried since you cant actually talk to the department making the decisions that I might be denied since they may not understand my financials just by looking at the papers they had me fax in. So I called the number listed on my denial letter and went over the info again, and they are going to resubmit it again.
So here I go again. The web site now shows that I should hear something by 1.27.09 (however the last round was delayed by about a month). So I guess we'll see. I am thinking I will probably end up waiting another 2 months only to get another denial but who knows. I also found out a few things. The CW rep (who by the way was actually pleasant and helpful) told me that my lender is Bank of New York. She also told me the modification they are looking at is just their program which is the National Homeowners Retention Program and isnt H4H. I thought they were doing H4H too? I have read on this site that H4H hasnt had any successes. That being said, is it even worth trying H4H too? I can also try Naca, but was wondering if I should try H4H or if that is just a waste of time?
Thanks for any input. -RJ

[Moe Bedard]

members have already tried and are being told that CW investors are not participating in the H4H program.

[raejean]

funny, because the CW rep I talked to last night gave me the number for H4H and said to call then and try that program too. Probably their way of getting rid of us. These reps dont seem to realize how time consuming and stressful this all is. I wont bother trying H4H then. I may try Naca or wait and see if I get denied again and then try them. Such a long process. I started this February of last year and I am no further than I was then except more upside down in the mortgage and closer to it resetting. Unreal.

[Moe Bedard]

What number to H4H did he give you.................the number to the CW refi dept.?

[raejean]

She gave me 1-800-225-5342
Do you recognize this as a CW number? It itsnt the one they show for refi's on their website anyway.
I was originally told to fax in my paperwork and they would look at a regular modification but if I didnt qualify then they would have what they need to look at the H4H for me. Now they say H4H is totally seperate and she said its a program through FHA that I could also try.
Can you tell me on the mods you have seen that have come through CW - are they reducing the principal balance owed or just giving fixed rates? I need both or none of it makes sense for me. I am not going to stay in a home that is 49k upside down as it would probably be paid off before there was ever any equity built back up. Dont you agree?
Anyway curious if the CW mods are including principal reduction or just changing the rate to a low fixed?
Let me know what you think about this phone number and if its one you've seen b4.
Thx much

[Moe Bedard]

Yes I do recognize the number..............it isn't CW at all........it is the HUD number to call for FHA.

I have not seen any principle reductions given on modifications.......just the interest rates lowered and terms extended...........I have seen two principle forbearance, but not through CW investors.........and that doesn't lower the loan value either...........it just tacks some of it in a balloon payment to the end of the term.

[raejean]

okay, trying to make sure I have this all sorted out right in my mind....
1-They told me this was the FHA number for the H4H program- Just to clarify, to your knowledge - none of the CW folks have been helped through this program, correct?
and
2- Nobody has recieved a principal reduction on CW National Retention program done through them, right?
and
3- Do you know if Naca has been successful with any principal reductions?

If not, since this home is so upside down, and I no longer have any equity, and the home was part of my bankruptcy and I can legally walk away -wouldnt it make sense to do so at this point? I keep asking myself what am I really fighting for anymore? And if none of the programs will reduce the principal and get me back to where I should have been had I not gotten suckered into this interest only option ARM then why bother. I know you cant make this decision for me, only I can, but I am trying to be as logical as possible. If I cant get a principal reduction then getting a better rate only helps me stay here and afford the monthly payment but I may never have equity here so why bother. Am I missing something? I just dont want to keep fighting and stressing over something that is never going to happen when I should probably just move on and try to do something that makes more financial sense..... am I making sense? !! lol

[Moe Bedard]

If that is the plan that you want to follow for your financial future..........than you need to do what makes the most sense to you.

It is the investor that is on your loan that would need to accept a short payoff...........so you can ask CW if Bank of NY is participating in the H4H program.........

That is the only loan you have correct? If so and you find out that Bank of NY is participating...............all you would need to do is to find an FHA approved lender in your area and go through the process of applying for the new FHA loan.

[T1dc35]

what fax number you sent in your hardship letter?

[raejean]

Everything was faxed to 800-658-0395

[raejean]

*** - I just called the number they gave me, which is the FHA Resource Center, who then gave me 1-888-995-4673 for H4H, who then transferred me to CCRS (Credit Counseling Resource Center) who says they are working with H4H. They told me they were going to transfer me to a counselor and to expect to be on with them for 30 minutes. I told them I didnt have time right now (trying to work too) and would call back, so they gave me 1-866-437-3016 to call back on. I dont know about talking to CCRS now???? I am in Colorado (Denver area) -cant I just call an approved FHA lender and see if they can work with me? Do you know who I might ctc for that?

[Moe Bedard]

I would think that you can contact an approved lender..........but you would need to look on the list for that.........
List of Lenders Who Are Participating in the HOPE for Homeowners (H4H) Program

[raejean]

update-
Just got off the phone with one of the approved lenders for h4h. He tells me that my numbers look good for qualifying but the problem is that there are NO lenders participating at the current time. So the government put this program out there but no lenders are doing it. He took my info and said that if something changes like lenders coming on board or guidlelines loosening up (he said only about 10% of the people he talks to actually qualify- mine is a little shy but very close) but for now its just a useless program that looks good on paper but it isnt being used. So that was another dead end, for now anyway. Maybe things will change with the new administration, who knows. He also told me that maybe CW will work with me since interest only option arms are now illegal in the state of CO. Even if they did a loan mod it would just be on the rate and not principal reduction so I dont think they can even help me. Can anyone tell me if Naca has been successful in getting the principal reduced?

[Moe Bedard]

When you contact NACA you can ask about the options that they pursue............I think only the refi will do something like that........but you would need to see if you are able to qualify.

[gray517]

I have not seen any principal reductions with naca, me and another member got our rates lowered so that we now have an affordable payment. I think the objective is to have an affordable payment not reduction in principle, my loan is now $20,000 over the value, when I refinanced and got the cw loan in 2007 I still had $100,000 in equity from the appraisal, but my property has lost that much in value over the last year, I think that is the problem most people are having is they are now upside on thier mortgage ltv. I have read other forums and none of the lenders are reducing principal. Lowering rates, changing arms to fixed, extending terms and rolling past due back payments into loans, is pretty much all that is being offered by any lenders at this time.

[raejean]

Thanks for the info gray517 and ***-
I am about 40k upside down now, and every month that goes by that I make only the minimum payment (which is all I can afford) I get about $500 more upside down. Since this home was included in my bankruptcy and I can walk away I just dont know if its worth staying here for the amount of years it will take to get any kind of equity established. It could take the life of the loan to get it evened out. Thats why I was hoping for the hope for homeowners I guess since they will reduce the value to 90% of the appraised value. You end up sharing the equity when sold but at least you end up with something. If Naca isnt able to get a principal reduction then I dont know if I'll spend the time with them. I may just have to wait another few months and see if any lenders start participating in the h4h program. Thanks -this is the info I was looking for. If anyone else knows of Naca getting a principal reduciton for anyone please let me know, but it doesnt sound like it.

[raejean]

I am in an interest only option ARM and have only been able to afford the minimum payment since we got the loan which has driven the principal up and of course values have gone down.
I went to NACA and my counselor was going to submit our file and request our modification for 3% fixed.
I got approved, but it is at 5% fixed.
I have always been current on the loan, but last months payment is not showing as paid and CW told me its because of the mod.
The problem I have is that at 5% fixed it is only $45 less than the interest only option ARM amortized payment which has been available to me to pay all along, however I havent paid that amount because all I can afford is the minimum.
So I sent everything back to NACA and the NACA negotiater finally answered my yesterday via email and basically told me they negotiated what they could and if I need a lower rate I would need to start the whole process all over again.
I then contacted the original NACA counselor who took all my financials and she said yes she did submit it for 3% but they got what they could and I would have to start all over to get it lower. I believe they dont have my car payment in the figures and it is $700/mo (I know, I know its a high car payment but credit is shot and it is what it is) but when I asked the counselor and negotiater about it neither one acknowledged that I asked and neither answered about it, just said I have to start all over!
Here is my question- Does anyone know if I take this deal at 5% fixed, can I then start over with NACA and make sure they have my financials right and try and get the 3%? or am I locked in for good at 5% and thats that? I just want to take the 5% so I have something sort of decent (plus need the breathing room of no payment for the next 2 months with no payment) and then try for something better when I get my second wind?
Help!!

[Moe Bedard]

When you say the payment is only $45 less than an interest only payment..........wouldn't the amount be more than that because the NACA modification would also include the Principal, Taxes, and Insurance in their payment...............versus the less than interest only payment that you had been making. So now you would have the opportunity to pay prinicpal down...............and have your taxes and insurance included...........
How much are the taxes and insurance that you were paying separately, on a monthly basis?