Countrywide 3yr Interest Only Modification

[bd1214]

I am hoping someone can help me out here. I have been battling with Countrywide for the past 8 months trying to modify my sub prime jumbo loan along with my HELOC. My HELOC is owned by Wells Fargo. Both of my current loans total $4500. I am up to date on my payments and I am about a year away from the loan resetting. I just want to get out of this risky loan. I have had success with them in working with me. It just seems like the offers get better and better from them when I refuse their offer. The first was a 30 year 5.25% fixed rate. They said they couldnt touch my HELOC which has an interest rate of 10%. Although a great loan my payment would have gone up $2000!! I declined and kept calling. They then offered a 5 year interest only at 5.25 and couldnt touch my second. I declined this and was passed on to Zach Harrod in the "Office to the President" department. All of a sudden he was able to reduce my HELOC to 8% from 10%. He also submitted a 4.5% interest only modification to Wells Fargo. Well Fargo declined that and came back with a 3 year interest only at 5.25%. After 3 years the rate will be adjustable. I am a little hesitant on the adjustable rate after 3 years, should I take their latest offer(3yr interest only 5.25%) or keep fighting to get a better rate?

[bd1214]

I am sorry. Correction. My Jumbo loan is owned my Wells Fargo.

[Moe Bedard]

Hi bd1214,


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

Wells Fargo as an investor is very difficult to deal with..............and from my perspective only you missed out on the piece of mind offer which would have been the 5.25% fixed for 30 years without ever having to worry about the fluctuation of an adjustable rate again...........and also would be paying toward the principle balance every month...................
now your offer is only 3yrs at the same rate but interest only, not paying down the principle at all...........and then it will follow the original adjustable rate note pattern.............

If it were me I would have taken the fixed rate and ran........just my 2cents.

[bd1214]

I understand that it was a great offer but at the present time I am unable to afford the $6800 monthly house payment. The $6800 includes my HELOC as well. My HELOC is owned by Bank of NY. Any suggestions on how to deal with my HELOC which is $117K at 10%

[Moe Bedard]

In your original post you said both of the current loans total $4500.............

As it stands right now your loan modification had been escalated to the top office in Countrywide with Zach..........he is who you would have to work with for the modifiation on both loans as he has been assigned to your file..............but he is only able to offer you what the investors are telling him to...........

If you decline this offer............I am not sure what will happen.........for that you will need to check with Zach and see if you will be able to get any other type of offer.............

[bd1214]

Zach said that the best they could do was lower my HELOC from 10.37% to 8%. I read in another thread that Bank of NY authorizes Countrywide to lower interest rates on their loans. Does Countrywide have to ability to lower these interest rates for Bank on NY? Should I work with Zach to see if he can get this lowered? How can I find out what the HELOC margin is?

[Moe Bedard]

Bank of NY gives them a parameter on the loans that they are willing to modify......so that they don't have to go back and forth...........and Zach works in the highest dept.............so he now has your file and working with him will get you the fastest results..........
Since not all lenders calculate the margin the same you will have to check with Countrywide on that question............

[bd1214]

Hello ***,

I have a couple more questions. I was talking to an mortgage attorney today and was discussing my struggles with my loan modificaiton. At this time Countrywide has requested the following:
1. Paystubs
2. Spreadsheet of all my monthly expenses, utilities, costs of living etc.

Then Countrywide sent a guy out to my house a couple weeks ago, to take inside/outside pictures of my home. Why are they doing that?

My attorney was telling me that it sounds like Countrywide is not taking a loss nor doing a loan modification/loss mitagation...but rather putting a package together to sell the note to Wells Fargo! He thinks that is the reason why they may not be working with me on my HELOC but just working on the primary loan with Wells Fargo. Also, because we have never been late on a payment. What do you think about that?
My attorney said that during a "loss mitagation", Countrywide should be offering me a PERMANANT Loan Modification for BOTH loans (Primary and HELOC) and sometimes reduce total loan amount. It sort of sounds like that Countrywide is just trying to sell my note off to Wells Fargo so they don't take the hit....wouldn't that be why they came by to do a BPO a couple months back and now a guy from countrywide came out to take pics inside my home?

Also.....What kind of rights do I have when it comes to Countrywide employees degrading me on phone calls by using negative comments about my curent situation?? (I.E., One Negotiator -Carla Alvarez: "Why don't you get a second job to help pay your mortgage?", Zach: "Perpaps you should cut out your lawn maintance/maids/house maintance expenses?", Zach: Also, is now criticizing me and questioning me on why my water utilitily bill is larger this month....I think this is unacceptable...don't you? Do I have any rights on this type of treatment?

PS...UPDATE ON OUR SITUATION: As of Friday, I have now been upgraded to Zach's supervior, Jan Lee, Team Leader....she has taken over my loan becasue of miscommunication I had with Zach in regards to my reported expenses. Do you know anything about Jan Lee?

Thanks for EVERYTHING: Bd1214

[Moe Bedard]

I have not seen anyone on the forum working with a Jan Lee..........
If your attorney feels that Countrywide shoud be doing all of that, why aren't they negotiating on your behalf?

The modification isn't up to Countrywide it is up to the investor on the loan and they did offer you a permanent modification of 5.25% fixed for 30 years on a jumbo loan,......a person can't even get anywhere near a rate like that on a jumbo loan either purchasing or refinancing nowadays...........and you also did get a permanent offer on the HELOC as well from 10%-8........if you are unable to afford the modification you might need to think about other options...........

you would need to ask them what the purpose of the BPO was for............I am sure Jan Lee will be able to answer that for you.....I guess at this point you will have to see what can be done........