No help from Countrywide with Loan Modification

[Burke]

My wife and I have lived in Las Vegas for four years as students. We purchased a one bedroom condo when we first moved here, and have been trying to sell it since February. We are moving across the country in at the end of July, and due to the market in Las Vegas, we are currently upside down with our mortgage. Our mortgage went adjustable last October, but we have maintained a perfect payment history. As we are graduating this month and moving shortly for a job, we only have part-time, low paying jobs. We have contacted Countrywide numerous times to discuss our options, and each time they transfer us to the short sale department to speak with a representative with marginal English. Although we would ideally like to sell our condo before leaving the state, we recognize that our neighbors foreclosing on all sides will make this nearly impossible. If we were to rent our condo right now, we would lose over $500 per month based on what other one bedroom units are renting for and what we pay each month for our mortgage/HOA payment. We were told, not by Countrywide, that our best option would be to modify the terms of our loan. My wife spent over an hour being transferred from rep to rep at Countrywide trying to pursue a loan modification. Bottom line, they cannot help us because we have not paid off enough principle on the loans (interest only) and we do not make enough money. We have worked hard to maintain our credit, we have consistently paid our mortgage payments despite the terrible terms of the mortgage, and we want to do everything possible avoid foreclosure. If anyone can help, we would really appreciate any information that you can offer. Thanks.

[Moe Bedard]

Welcome to Loan Safe!

Sounds like you are just speaking with customer service and they are giving you the run around. This is normal. Do not worry, we will help you get some help.

It is in their best interests to offer you a loan modification. Especially since your loan has went adjustable. What type loan do you have and what rate is it currently at?

This BS about nor paying of enough principle is just that, BS. Heck, 99% of the people in this situation have paid little principle. My guess is they are using that as an excuse. Maybe you make too much money or have assets that they see??? If not, then we you need to fight for a loan mod or else you have to plan to walk. If you walk, there is no way out of your credit being damaged severely.

[Moe Bedard]

Hi Burke,

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

At this point your condo has been on the market long enough for CW to initiate a Short Sale with you as they require a listing of at least 60 days........you could have you agent do this for you so you don't get the run around..........just give the agent permission to speak to CW on your behalf and CW will give the parameters of what they will accept on your condo. If you don't want a foreclosure..........at least this way you can sell and compete with the REOs in your neighborhood.
You might have other options as well..............call the Home Retention Dept. and see what they can do for you.........

Contrywide Home Retention Dept.
1-800-669-6650

Hope this helps......

[Burke]

Thanks for your help. Currently my wife and I both work part-time and are making $10 and $12 p/hour. Our only assets are our condo and one car, and we only have enough in our savings to get by for the next 2-3 months before I start working full-time. I can't imagine that they would deny us based on what we have, because we don't have anything. We have been living off of student loans for the past 4 years, and we will both finally be done with school this month. When we bought our condo, we were enticed by "upgrades," appliances, etc. to use the builders' preferred lender. This has proved to be a nightmare. I believe that we were seriously taken advantage of as first-time buyers. We have 2 loans through Countrywide. The first is a 30 year adjustable rate and has a balance of $93,000 at a rate is 8.375%. The second loan is a "2nd balloon" with a balance of $22,700 at a rate of 9.125%. The original purchase price of the condo was I believe $117,000, and we did 100% financing if this makes any difference. Also, I think that we closed at the end of October or beginning of November 2004. Thanks again for your concern and hopefully you can help us resolve this.