Need help getting a loan modification

[mz6377]

Looking through the forum I've seen so much positive feedback and was hoping someone can point me to the right direction...

I bought my home in El Sobrante, Ca. My loan is to reset in Oct of this year. Both of my loans are with Countrywide. The first loan is at 8.5% paying interest and principle. But my second loan is at a whopping 11%. I bought the house at $500,000. and the value of the house is at $360,000 according the the letter I received from the Assessor of Contra Costa County. I have not paid my property tax for this year yet, and won't be able to because I can't afford it at this time. A few months back we applied to see if we could get help because we were struggling to make our mortgage payments, but denied us saying we were making enough money to live on and pay all of our bills, however when my husband reported all of our expenses he did not include a couple of things. My question is, what can I do to try and get a loan modification? right now we are current, however I've only paid the smaller one for this month, but will once again be 30 days late of the second loan, therefor will take us behind a month again. The people who work at countrywide are so rude and just tell you to get a second job or cut back on expenses, but how can you do that when there's nothing you can cut out? I'm worried come October our loan will reset, and we'll really not be able to make our payments! Please help!
Whats my first step?

Mz

[schwefls]

Hi MZ welcome to our forum:

I wanted to stop in say hello and assure you, you are not alone. Shortly someone will be reaching out to you with some sound advice/suggestions. In the interim please hang in there and know that we are here for you.

[mz6377]

someone please help...

So I received a call from Countrywide just now, and they asked me why I have not made a payment for this month. I told them that I made the second payment which was $952 but did not have the money at this time for the first payment which is $2874.96. They told me I would stay into collections until it was paid in full.

I asked them how we could try to get a loan modification and they said that we were not qualified because we were at a negative of $1300, and that we would have to have at least another $1500 of income coming in.? I don't understand, I thought if we were having a hard time making our mortgage payments then we could get help? So the lady said that she could request us to do a foreberence plan? not sure if I even spelled it right.. but i'm also not sure what type of plan this is? I told them I was concerned that when my arm loan resets in Oct, and my payments go up, I won't be able to afford it, and asked them about the 5 yr freeze.. they said they could not do anything for us until that time came and when it resets. and at that point they're not even sure if we could get approved for that!
OMG! what am suppose to do?

[Moe Bedard]

Hi mz6377,


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

here is where you might run into trouble for a modification..........when you put together your household income versus the household expenses you would need to have a surplus of $100-$250 left at the end of the month...........this is what they are talking about............the lenders want you to be able to afford the household and not just the mortgage.........

A forbearance plan takes past due payments and in this case the lender will be forced to pay the taxes if you are not to avoid a lien being placed on the property............so those too..........and that amount is spread out over a certain period of time and added to the current payment............so it actually raises the payment..........so that option won't work...........

If you are denied a modification............you would need to ask the lender what options are available to you.............at that point you might be able to do a Short Sale on the property...........but don't cross that bridge unless you absolutely have to...........


If you can show the surplus than try calling the Home Retention Dept. to try again for a modification..........

Home Retention Dept.
1-800-669-6087


Please keep us posted on your progress...........

[mz6377]

Thanks for the breakdown ***. I will keep you posted.

[mz6377]

so here's an update...

I rec'd a call from the retention dept at Countrywide. They were asking me what type of help I am needing. i told them that I'm not able to keep up with my mortgage payments and that if there were any options that I had. Danna and countrywide told me that I'm not qualified for the loan modification, which I already know.. but she mentioned something about calling their other department about the possibility of refinancing my home.. and she gave me a number to call. If the value of my home when down, is there still a possibility of refinancing? She also mentioned that we should call them back at the end of Oct to review us to freeze at the current interest rate for 5 years...

Should I call that dept and see about refinancing? Is there any question I should ask when talking to them?

Please any feedback would be much appreciated...

MZ

[Moe Bedard]

MZ,

The qualifications might turn out to be the same with the dept. that she gave you to call............but it won't hurt to pursue every avenue that you can....... to try...........

Please keep us updated on how you make out.............