Naca dropped the ball!!

[michigan tsunami]

I am a small business owner in Michigan. I did a no doc loan (liar or self employed loan) in 2003 from CW with an interest rate of 5.25% for 7 years currently with a balance of $275000 adjusting in a year. I also have a heloc taken at time of closing of $50000 to avoid paying PMI. I currently owe $43000 on the second. Heloc was suspended earlier this year and principle payments were put into effect. I pay $1661 on the first, $485 on the second and taxes and insurance runs another $500 a month. I can't afford this payment anymore because like i said "I LIVE IN MICHIGAN" My house is upside down, with a value of $250000- $260000. I also have an SBA loan on one of my stores where if I default on my home or file bankruptcy I could lose my store. I have stopped paying credit cards and am being harrassed daily. There is only so much I can do. I am behind a month, almost two on my mortgage. The only way I see any light is if CW drops my principle enough to lower payments $800-$1000 a month. If they foreclose statistics say it will cost them $60-$100k. Am I asking too much to ask for a $60000 principle reduction with a fixed low rate? Or does anyone have a better idea? If so, How would I go about this?

[Moe Bedard]

Hi michigan tsunami,


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

Have you contacted CW to see if your loan qualifies for the program that included your state and began on Dec. 1st.?
click on the link for the info and call 1-800-669-6650 to check........
Countrywide Financial - Real Estate Mortgage Lender - Home Loans - Equity Loan Mortgages

[michigan tsunami]

I don't think no doc loans were part of the settlement. Please tell me I'm wrong!

[Moe Bedard]

I think at this point they are looking more at the loan type and not necessarily how it was arrived at......it includes subprime loans..............and because your state's AG filed suit on behalf of CW customers in your state of Michigan you should call to check anyway.........it is worth a try.......

[dthom]

Michigan tsumani, I too live in Michigan. When I spoke with CW about the Dec 1 program and told them I was in Michigan and had a sub prime fixed they told me I did not qualify for the Dec 1 program because you have to be 90 days behind for them to help you, I pay late, but haven't missed any payments. They had me fax most recent pay stubs, 3 bank statements and hardship letter to retention dept after determining that I do qualify for a modification, but only thru the regular program. 10 days later and I am still waiting and watching the website, shows they got my paperwork but nothing else. I was told it would take 30-35 days. Maybe see if you can qualify for the reg. modification program. Just a side note, at one point I was told all of us in Michigan would get a letter regarding the settlement and what options we have, then told not all of us here will qualify,despite the settlement. Keep calling them, because each person you get will tend to give you a different answer. Sounds to me like you should qualify for something. My house is upside down too, mtg is 141,000 (approx) and value now only about $107000. Just watched another neighbor move out this past week, checked city records, another foreclosure, there goes the value some more. Hang in there. We here in Michigan will survive. Good Luck

[michigan tsunami]

Thanks dthom, I am going to call them this morning. The hope for homeowners program through HUD sounds interesting.

[michigan tsunami]

CW told me today that I don't qualify for loan modification and to call back in 2 weeks. I'm 2 months behind, $60000 upside down on my mortgage and I live in Michigan. Any thoughts?

[Moe Bedard]

The problem is..............

That you need a principle reduction, and the investors on the firsts are not willing to do that at this time......whether or not they will in the future is anyones guess. The only option out there currently that offers this is the H4H (Hope for Homeowners), which is a refinance program through FHA, but for this program your HELOC would have to be willing to release it's lien and extinguish the loan and this would need to be the principle residence and the only home that you own.............to see if that is a possibility you would need to call the servicer on the second and ask if they are participating in the Hope for Homeowners program.

Also try NACA and see if they may be able to help as they do work closely with the investors on CW loans.........
www.naca.com

[michigan tsunami]

The second (heloc) is also a CW product.

[michigan tsunami]

It will probably cost CW $50000-$75000 if our home goes to foreclosure, so why wouldn't they want to deal up front?

[dthom]

H4H is the first place we called. They said we definitely qualified for the Dec 1 program, but CW keeps saying that they have not approved that program as of yet. I kept calling CW and that is how we ended up talking to retention dept about getting a modification and being told we qualify for a regular modification. I'm am still skeptical as to what the outcome will be. These people had my info from H4H for over a month and never did anything with it, even after admitting that it did show I would qualify for something. Bottom line, keep calling and be persistent.

[michigan tsunami]

dthom,H4H sounds like the perfect program for us if we are going to stay in our home. Do you want a CW modification or or a H4H modification in your situation?

[Moe Bedard]

Since the HELOC is also with them as the servicer...............and I believe they are able to do the FHA refi for the H4H..........see if that can be an option for you instead......

[dthom]

Preferred H4H, interest rate plus principal reduction) but CW wouldn't even look at it. Insists that CW has not given approval for the program etc etc. The problem is that H4H is voluntary for the lenders from what I understand, so even if they say they are a particpating lender they don't have to do anything. CW didn't even pay attention to my income analysis from them, so I am hoping something good comes of the modification they say they are looking at for me.

[michigan tsunami]

I talked to CW Dec 31 and got a sympathetic person who told me to fax a hardship letter, tax returns and 2 months bank statements hopefully to qualify for some help.I am now 2 1/2 months behind in my payments. Collections have ceased according to CW website. Today I saw someone taking pictures of my house. Should I be concerned here or what?

[Moe Bedard]

they may just be doing a BPO (Broker Price Opinion) as a part of a modification..................call to follow up with CW tomorrow and ask about that.

[michigan tsunami]

Thanks *** should I call today? Under CW workout status details, it states that all collections activities have been suspended and not to contact them until 1/23/09. Does this mean I should not call about this? Does this mean I should ignore the acceleration notice dates? What do you think?

[Moe Bedard]

we can not advise you to ignore any documentation that your lender sends you.......that comes generated from a different dept.........you should address your concerns about still receiving that information even though your online account indicates that the collections have ceased....... There should be some sort of contact number on the papers you are receiving that you can call and ask.........that is usually a different dept. than the loss mitigation dept.

[michigan tsunami]

***, I read from another thread that CW isn't allowing the H4H to happen? They own both my first and Heloc and was hopeful something could get done. Do you think the new administration will help with the foreclosure/modification issues? Sounds like I'm hanging on false hope that something substantial will happen in my situation.

[Moe Bedard]

It is the investors that are not participating in the H4H..........on loans that CW is the investor..........they have looked into it.............but qualifying is hard also. You have that HELOC.........and that investor would need to agree to release that lien and extinguish that loan.......that has been another glitch with this program...........it isn't working for anyone that has more than one lien on their property.

[michigan tsunami]

CW is the investor and my property is underwater approx $75000 with my Heloc balance at $43000. Why wouldn't they release the lien on the 2nd?

[Moe Bedard]

I am not sure what you are saying as to why won't they release the lien...............it isn't being paid off.........the investor would have to agree to accept nothing and detach from the property...........

Has CW agreed to do this on your second?

[michigan tsunami]

Doesn't the H4H program bring down the mortgage to " current " appraised value? In my case $250k with current mortgages $314k. It seems to me it would be better to help me now with H4H than to eat the costs of a foreclosure.

[Moe Bedard]

the investor doesn't look at it the way you and I would.............for them a foreclosure isn't an immediate write down...............it stays on the books as a performing assett for as long as that property takes to sell................
a modification or a principle write down is an immediate loss to them.......this is why it is so difficult to get investors to do anything that really helps long term.................what they offer is a little bit here and a little bit there............but no real solid help..................
I do hope that more effective programs come into play for all of us soon.

[michigan tsunami]

I am self employed in Michigan. I have been working with Naca since January. I have faxed literally hundreds of pages of bank statements,self employment workout sheets etc. After several appts my file was supposed to be submitted Feb 19. I sent an email March first that my status hadn't changed. March 6 it was actually submitted. Calling faithfully every 2 weeks for updates with nothing new to report. I have also been talking to CW who doesn't give out much info since I'm working with Naca. However the advocacy dept about a month ago claimed they didn't have any financial docs and that I should contact Naca. Naca assured me everything was fine that CW was playing games with me. Yesterday I received a voicemail from Naca that I will need property insurance declerations, authorization to pull new credit reports, 6 months of bank statements seperating personal from business etc. I'M STARTING ALL OVER AGAIN!!! I realize Naca is free but somebody should be held accountable. I'm 7 months behind and did I mention, I live in Michigan? Anybody have some different phone numbers or emails to somebody important from Naca. I was told to stop paying credit cards in January, now I'm being sued by Amex. Good times