ARM/Modification with Carrington

jimlyke · 10-09-2008, 08:11 AM

Hello,

My name is Jim. I puchased my home in March of 2006 for $350,000 with a New Century Loan. My specs are as follows: 1st-8.1% arm resetting in March of 2009 loan amount is $280,000+/- . 2nd -11.25% fixed loan amount is $70,000. My income has gone down 50-75% since purchasing the home. My wife's income has gone done 10-15%. Our combined income monthly is $7000.00, however with the current financial crisis could soon be less. Monthly mortgage payment is $3000.00 We stopped paying our credit cards 4 months ago. I just paid September's mortgage payments. I've called both servicers-1st-Carrington and the 2nd is HSBC for modification packets. I've hired an attorney for a Chapter 7 BK for the credit card debt. ($30,000). Should I file the BK first and then try to modify, or try to modify first. I called Carrington and they said to modify first, but the guy I was talking to could barely speak English. I thought I would be a stronger borrower without the credit card debt. Also with the bailout bill I thought I might be able to get some help from HUD, or at the least have some more leverage with Carrington. Your thoughts are greatly appreciated. P.S. My home's current value is probably $300-$315,000..thnks jim Boise, Idaho.

Dan Bailey · 10-09-2008, 09:06 AM

Jim, Welcome to the forum and thank you for joining. *** or Moe will be by to answer your questions as soon as they can. In the meantime, there are some good posts on BK and modification to check out throughout the forum.
Good luck!

Moe Bedard · 10-09-2008, 08:46 PM

Hi Jim,

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

You would need to modify the loan first if you are filing Chapter 7 BK.......because if you file the BK first, you would need to wait until it was fully discharged before applying for the modification and mortgage payments would need to be kept current thruout the BK term. Also with the FHA program that began on October 1st your current investor would have to agree to participate and accept a short payoff...........so it wouldn't necessarily create any leverage on their part because the participation in the program is strictly voluntary.

HOPE for Homeowners