Countrywide 1st & 2nd Mortgage on an Investment Property

[HobieCat]

I did not realize that there was a separate section for Investment Properties.

One of my two rental properties is with Countrywide for both first and second mortgages. I bought the house as my primary residence and I lived in the house for 1.5 years. It is currently rented for $1,250/month and the total mortgage for the house is $1,450.

With a reduced income from my job, I am having a hard time to afford my primary residence house payment (I am also working to get that modified as well) so I am looking at the big picture of my financial worksheet and trying to cut costs and this rental house seems to have higher rates than the other one.

1st Mortgage is $134,000 with a Conventional Jumbo 6.75% and the investor of the loan is Fannie Mae.

2nd Mortgage is $34,000 with a Conventional 2nd Balloon at 7.875% and the investor of the loan is Bank of New York.

I am hoping to get the loans modified so I don't have any out-of-pocket cost. I called Countrywide a couple of times and one of the reps that I spoke with was suggesting that I sold the house since they did not modify fixed-rate loans. Anyone knows if Countrywide modifies these type of loans and where/how do I start?

I appreciate any input that anyone has to offer. Thank you.

[Moe Bedard]

they are not modifying the FannieMae fixed rate loans..............
You might want to try to have them reamortize your second and remove the balloon if you are planning on keeping the property..............

[HobieCat]

***, who do I contact to modify the second loan? Would it be Countrywide or Bank of New York?

[Moe Bedard]

whichever one services the loan...........

[HobieCat]

***, I registered my CW home loans through Mycheckfree.com website as you suggested in one of the stickies. On my CW first loan, I received this error message:

We're sorry; we are unable to receive electronic versions of your bills from Countrywide Home Loans (account *****6852 ).The biller reports that your electronic bill can't be activated for this reason:

Lockout Code > 2.

This message only applies to your electronic billing service. It does not affect other services or payments that you may have scheduled.

For assistance, please contact Countrywide Home Loans directly.

Thank you.

I submitted the payment anyway today and inserted the amount manually without having an e-bill like the normal process that Mycheckfree.com uses. I hope it goes through.

Also, I wanted to update everyone that I called CW on Oct 27, 2008 to their Home Retention Dept., 1-800-669-6607, and was able to talk to one of their rep who took my financial information over the phone. She also told me to fax a hardship letter and proofs of income. She also recommended me to continue to make payments even though the loans would be going through reviews. I faxed everything on October 28, 2008.

I called them again this past Friday to see if they received my paperwork. The rep, Jones, told me that they received everything on Oct 29, 2008. He also told me that it would take 30 days from 10/29 before I would know anything. He said a negotiator would call me in 30 days. He also said even if in the event I could not get it approved, CW would have a lot of programs to help; which he said would be discussed with the negotiator. It sounded too good that I am worried if he just pacified me to get off the phone. But hopefully I would hear something by 11/29/08.

[Moe Bedard]

Countrywide investors have been working on a number of programs with their customers.............but with the sheer volume of customers needing them I am sure that they are running a bit behind...........if you don't hear in the next two weeks...........call for an update.

[HobieCat]

I wanted to update you with the status from CW. I called them this afternoon to see what the status was. The rep told me to call back on Nov 27 if I did not hear anything by then... She also told me that I should hear something from a negotiator by then....

[HobieCat]

I still have not heard from anyone from CW. I wonder what I should do next.. Should I call them again to see what is going on?

[Moe Bedard]

don't wait on them.........they are not very good at the follow up.......also check online as well as calling them.

[HobieCat]

I called CW again today to check on the status on my modification request. I also checked online and learned that my request for modification was only applied to my first loan and I asked for modification on both my loans. I called and with much shorter wait time than before, I got transferred to the Workout Department.

The rep who answered the phone told me that there has been no activity since 11/21 which was the last time I called and actually was able to talk to somebody longer than 5 minutes and able to get some sort of two-way conversation and not just the typical to call back, etc., etc.. I was shocked about it!! I should've called earlier like you suggested, ***. Instead of telling me what I needed to do, the rep decided to argue with me and told me that they had no program at this time to help me!!!!! She didn't even say why I was not qualified other than she only said that CW was only modifying those who were facing foreclosures and those who were late; and she also said that they were only modifying those with subprime, ARM and hybrid loans... This is so different than what the previous reps were telling me and how they said they should have something for me!! What am I supposed to do?? Should I call again?

[Moe Bedard]

HobieCat,

For right now............If I were you I would get the modification on the first wrapped up so that nothing can happen there..........let them update the account once you receive the paperwork......and once that is all in place....... then work to tackle the second.
IMO

[HobieCat]

I wanted to update my status on this forum. I called Countrywide about a week ago and found out that my mod was denied on Oct 29. I never received any kind of notification about it. So when I called I mentioned about sending in a QWR, and the rep decided to re-submit my request for mod for the 2nd time. I had paid some of my debts and now I am about breaking even and with about $30 positive in my budget sheet.

I called them again this morning and learned my 2nd mod was denied again. The rep, Keisha, said that a modification was only to change the interest rate when it has reset for those with subprime rates and to recapitalize late payments into the capital. Based on those two, I was not qualified for a mod. She also said that the fact that I did not have a deficit in my budget showed that I did not need a mod!!

What am I supposed to do now???

[Moe Bedard]

Investment properties are harder to get modified than the principle residences....the lenders are working harder to keep people in their homes........ If you forgot some expenses from the rental, you may want to see if you can resubmit the financials for another look in a month or two since the rep mentioned the financials............if a modification is not going to be possible on this rental property, you would need to ask what other options the investor on your loan has and then make a decision from there........

The most important thing is the roof that is over your head...........and being able to afford your principle residence.