CW Option Arm finally SUCCESS!!!!

[lecia11]

I've been in the loan modification process since early January of 2008. I sent all of the paperwork, and I've been calling regularly to see what's going on with the application. All of the calling might have finally helped because the person I spoke with saw there were still no updates in my file about the application, so she put me on hold to speak with her supervisor. She told me that someone would be calling me back either that day or tomorrow. I wasn't holding my breath. However, a supervisor called my home and left a message saying that they were going to be speaking directly with my negotiator (his name is Angel Romero and I've never spoken with him, nor has he ever called). She needed me to call back and update all of my financials, which I did (this is about the 3rd time). So hopefully, I'll get some answers.

I have an Option ARM with probably little if any equity left in my place. It resets in about two years, so I have a little time, but I want to get this done now. I've been told by several people in the Home Retention Dept. that I qualify for the modification since I have excellent credit (750+), am current on my payments and have a good income with very low debt. But I know I'll have to keep calling and calling to get some answers. I also e-mail through the message center online on the CW website.

I consider myself a very intelligent woman, and this has really rattled me. I thought when I bought my home that I could afford it. I didn't realize (until now) that I would never be able to get a fixed-rate loan. It's strange now that these awful ARMs have come to light, I may get one. I know some people think that we're being bailed out, but I don't see it that way. If the lender is willing to work with me to keep my home, then what's wrong with that?

Not a think wrong with it and if the shoe were on the other foot, just whom do you think would yelp louder......the nay sayers....lest they think that they are immune, might I remind them that their property values too have subsided with the sun to the west....

Just keep calling and if they start on the ignore program again holler back and we will give you some ammunition...

[lecia11]

So I took the advice here and sent out various e-mails to higher ups last night. This morning there was an e-mail from Angelo Mozilo saying that he would have a senior manager look into my case and get back to me shortly. I feel like something actually may be done soon! Cross your fingers!

Do not wait, keep at it, this group is known for their inability to communicate with anyone or anything...well maybe the Cube wall that they are sitting in..

Please do not let up keep up the call, call, call and fax, fax, fax and e-mail, e-mail, e-mail....program, gets results and while you are at it QWR the file that also gets results.

[Kimbly]

Hi Lecia,

This is exactly how I finally got their attention - with an email that received a response from Angelo Mozilos office. I had a phone call from them about 24 hours after the email and they reassigned me to a new negotiator and even provided me with 2 direct phone lines (one to Racquel Robinson in the office of the prez and one to my negotiator). Two weeks later and I just signed my mod agreement yesterday!

Be sure to ask for direct lines. If you don't feel like you're getting anywhere, keep up the emails to everyone.

Good luck!!

[lecia11]

Hi Kimberly!

I'm so glad that you got your modification. What were your new terms if you don't mind my asking?

[Moe Bedard]

Lecia this is what Kimbly received.........

yearly rate of 6.6% from the 1st day of April 2008 to the 1st day of April 2013...and thereafter will be in an amount as calculated to the original terms of the Note).


You can read her whole story in the Success Section under "Newbie Countrywide Success"

Good Luck with yours too...

[Kimbly]

[QUOTE=*** Damiano;14794]yearly rate of 6.6% from the 1st day of April 2008 to the 1st day of April 2013...and thereafter will be in an amount as calculated to the original terms of the Note). QUOTE]

As *** said - 6.6% (my teaser rate), I/O, for five additional years. I asked for them to lower my rate so that I could make the same payment but being paying on principal and interest. I knew that was a long shot, but I thought by asking for more, maybe I'd get what we did (which I also told my negotiator was my #2).

We've also implemented some changes (since we tried to figure out how to afford the reset) to our budget so that we can start putting some money aside for an emergency fund and/or principal once we have an established fund. This whole process was really life changing for us.

Good luck! Just be persistent, nice but assertive.

Because of the difference in products between yours and Kimbly's there will be significant differences in the modification that you will be offered. You have not reset yet and if you are not near the Cap, there will not be the kind of modification that you get with the 2/28 or 3/27 ARMS. Option ARMS are the hardest product to modify out there and the results are entirely different that the ones experienced with the fully amortizing products.

Although you are going to be proactive and determined in this process, the problem is that the ARM has not yet reset and they may not be able to do anything as the investors have not yet come up with the guidelines that will allow the modification yet. You do need to try, however this is an entirely different product and the results will be vastly different.

The methodology that they are using to modify the Option ARMS is so vastly different than the ones that are 2/28 or 3/27 you can not gauge the offer that others have gotten against what they will do with this product. Your offer will be fully amortized and that is significantly different then the payment that you have been making.....it will also contain the neg am that has added to the principle over the life of the loan if only minimum payments have been made.

Please everyone needs to understand that the offer/modification that one person gets and the one that they get are just not going to be the same. This is variant on the investor and product type and pehaps in many cases if the investor has even made arrangements for that particular pool to even be modified yet.

[lecia11]

Hi Poppy,

I understand that every case is different. I think a 40-year fixed at about 5% would work for me. That way, my payment only goes up about $150. Hopefully, I can get this type of modification. I'll keep you posted.

They may only be able to do 30 year as the pools are sold like bonds....20, 25, 30 year issues and once the loan is made the term is sort of set as to the pool that it is in and the term of the pool/"bond". There were 40 year products and pools/"bonds" sold, but if the loan was originated as a 30 year then it is commonly left as a 30 year as the end term for that investment pool is the 30 year term that the loan has.

They can not swap pools or terms, they can pull and instrument out of a pool, but very rarely do you see that, it is done pretty much only when they find that they had material violations and serious issues with the loan compliance to Reg Z, RESPA, etc....then again some of the pools were rated with those loans in them and they did not care, they were already graded for the imperfections that the loans had. We fondly refer to them as Scratch and Dent....

Please keep us posted and let us know your progress.

[lecia11]

Well, it can't hurt to ask for the 40-year. I sent an e-mail following up with Angelo Mozilo and Steve Bailey (who Mr. Mozilo cc'd on his reply to me) saying that this loan would work for me. If it's not possible to get this loan, hopefully they have some idea how to keep my payments reasonable. Hopefully, I'll hear something in the next few days.

[lecia11]

Great news! I got a call today from Stephanie in the President's Office. She told me to please send her updated financials and she will give them to a negotiator from a group that they use (not the one I've been assigned and never heard from). She told me what the challenges were of modifying an ARM, but she was confident that we could get me into something that I culd afford and that would prevent the negative amoritization from happening. She said once she got my updated info (which I fedexed this evening to get there Thursday), it would take 7-10 business days to have a modification ready for me to consider. Whew! I feel much better. I think this may actually work out for me!

[Moe Bedard]

That is great Lecia.........I will keep my fingers crossed that you get offered something that will work for you.........

Please keep us updated on your progress......k......

[lecia11]

Well, things seem to be happening. I've talked to Stephanie in the Office of the President (Mozillo) twice. Today she told me that she should be able to tell me what loan modification they can offer me by the end of the week. I have a new negotiator named Brandon, who also called me to double-check some information. So hopefully, by the end of the week, I'll find out what they can do for me. Stephanie asked me how much I could afford to pay every month, she said she would also pass this on to the negotiator. I'll keep you posted!

Please keep us posted and let us know how they handle the problems from here on out. I figure that you have their attention, but do not let them drop the ball and momentum on the process.

They are also famous for that

Meanwhile the fact that they are data gathering is evidence of something being done on the file, next time you speak with them ask if they have ordered Taxes and Title work yet...that is generally the last phase of the process prior to submission to underwriting and the investor.

[lecia11]

Okay, so I spoke with my negotiator Brandon at CW today. He'll be presenting a fixed rate for five years at 5.2% for me on my option ARM to a panel who hopefully will approve my modificiation. My payments will be $1,630, which is about $300 more than I pay now, but it's doable. He'll call me next Wednesday or Thursday to let me know what happened. Hopefully, I can either sell or refinance into a 30-year fixed rate by the end of the five years. I'm happy with the deal and hopefully it'll go through.

[Moe Bedard]

Lecia,

My fingers are crossed for you...........I hope they approve that.....
That is a good rate on an option arm for the 5 yrs. Hopefully it will offer you some much needed relief.

Please update when you hear.......

[lecia11]

I notice that a lot of the modifications are for a 5-year freeze on the rate. I keep hearing that the real estate market may still be going down in five years. So happens then if one still doesn't have equity in their home or very little? Do you think that CW and other entities will modify the loans again if you can't refinance? Just wondering... any ideas?

[Moe Bedard]

Most loan modifications are for 1-5 years correct. My feeling on this are that yes, we are looking at 3-5 years for a turn around. But as far as taking a loan modification for 5 years, I think it is fair for a lender to modify for a minimum of 5 years. AT that time, which is a long way away, you can reevaluate your mortgage.

I do think that if you are in the same spot in 5 years, that they will offer another loan mod if necessary. (as longs as you have not defaulted or were delinquent)

[lecia11]

Thanks, Moe. That's exactly what I hoped to hear. My condo is in Harbor City, CA, and I suspect it will go down in price even more in the coming years. I've always been current with my mortgage, and I definitely will continue to be so. Thanks for your thoughts.

[Moe Bedard]

No problemo and keep up the good fight!

[lecia11]

My loan modification was approved on my option ARM. Yay! 5.25% fixed for five years. My payment will be $1630, which is more than I pay now obviously, but very doable. The loan paperwork is on its way. Thanks to everyone on this forum! You guys have been a huge help!

[Moe Bedard]

Lecia,

That is great...........I am so happy for you!!!
You must be so relieved!!!

Please let me know when you sign the docs and send them back so I can put you in the Success section for all to read.

[Kimbly]

Congratulations Lecia!!!!