Our 9m fight CW SUCCESS!!

[lifeinmn]

I talked with a rep in Aug who suggested we apply for their "work out program". So we did. We faxed them in all the info they needed the next day. So weeks went by and I called and was told we were not assigned to someone yet and to try back in a week. Same think happened the following week. I finally got a letter in the mail Oct but it was asking for the same info I had already sent in. Omg! So I resent it. No we are behind and we got a foreclosure notice. I broke down and cashed out all of my 401k (it wasn't too much) and got us paid up as I was told the "work out dept" will NOT work with us if we are not current. A few weeks went by and I still haven't heard anything, so I called again. New rep, he said they are other people who are behind and are in more trouble that you are and the "workout dept" needs to deal with them first. OK, well we were told we needed to be current, so I cashed out my life savings. He did not care. I also want to add that we were also in the beginning stages of doing chapter 7 due to overwhelming credit card/medical debt. In one of my many calls of then verifying our employment I said we were going to do bankruptcy and at NO time did they mention the "workout dept" would NOT help us if we did bankruptcy. At the end of October I lost my job and went on a on call basis. We have been very strapped for money and have not paid since November. I tried to call them and find out what was going on and was told they can't talk to me now that we are doing bankruptcy, so they transferred me to that dept. The man there could not tell me anything but to contact the office of the president because of the runaround and mis-information I have been given. My question is now that we are so far behind, do we even have a chance for then to work with us, esp. since we are coming off a bankruptcy? We tried like mad to get this taken care of before the bankruptcy began. CW kept dragging their feet and asking me to send the same documents over and over. They even have an appraisal so what was the hold up??!!We have some money we can pay, but not all of it. I was able to get a different job, same company, so my hours will increase in April. Our discharge from Chapter 7 is in April. I hope all of this made sense to you. Thank you so much for this forum!

During the BK and in particular a Chapter 7 they can not do anything, none of the lenders can, their hands are totally tied by the BK Courts and the BK process. It is even worse with a Chapter 13 as they can not generally modify anyone in the body of a Chapter 13 plan.

Once you are discharged then you can proceed to request a modification and they would be able to assist you. Do you have a fixed rate or ARM loan, that too will determine if they can modify the loan as well. At this point they will probably do a forbearance roll to modification plan if you are extremely far behind. That means that they will want to see 5 to 6 months payments with a lump sum that will be capitalized and rolled onto the principle balance at the end of the on time payments with the 5 to 6 months plan.

They would also if they can roll the taxes into the principle balance as well at that time....your new payments will be Principle, Interest and Taxes as they are collecting taxes in the Modified loans for Property Tax Impounds.

Frankly you BK Attorney should have told you all of this, they are aware that the Banks can not modify during the process of BK....

[lifeinmn]

Hi Poppy,

We do have an ARM. It was a refi and we had a credit score of 700 for me and 670 for my husband at the time. This is what she puts us with. I had no idea. I was "stupid". Honestly, I trusted her as we have used her many times before and I know nothing about loans it is like they are talking another languare to me. I have learned my lesson the hard way. Anyway, our arm has since adjusted 3x. My loan officer set it up that taxes and insurance are paid seperately by us it is not in escrow. I have no idea why she did that.

At this point they will probably do a forbearance roll to modification plan if you are extremely far behind. That means that they will want to see 5 to 6 months payments with a lump sum that will be capitalized and rolled onto the principle balance at the end of the on time payments with the 5 to 6 months plan.

I am confused. Does this mean we would need to come up with the money asap for the 5-6 months? We only have about 2 months.

As for our BK lawyer telling us that CW would not work with us, I am lucky he can even remember our case when I call him. He confuses us with other people a lot!

That would be your typical BK Attorney, love 'em and leave 'em....get the case filed and forget the clients.......Jack@ss.

No, that means the minute you get that doggoned discharge that you get your hardship letter, household budget, 2 months Pay Check Stubs and 2007 W-2's together, make copies, put your loan number, name, property address and last four of SS# on every page and fax that with a cover letter outlining your situation and requesting modification.

At that point the position will be a forbearance, with a Good Faith payment, not all that you owe, but a reasonable amount and then 5 to 6 payments of a somewhat reasonable amount with a huge lump sum that is utterly unreasonable and that is what they will roll into the Principle Balance and then modify the puppy at that time to something far more reasonable.

That is call exhibiting the ability to have capacity and willingness for the 5 to 6 months to make the payments and then they go ahead and do the full modification.

Start getting the paper work together.....and keep us posted and we will provide the names, phone numbers, fax numbers and e-mails of the guilty parties at Country Wide for you to start the campaign.....

[lifeinmn]

Thank you so much. We got our discharge letter last week but it also had a letter that said the discharge was entered improvidently and is vacated. We have a court date to reaffirm my husband truck. Oh course we need to pay the BK attorney more $$ to go to court for that. I honestly don't think it is worth it and wish we could just have the discharge. Sorry off the subject of CW. I needed to vent!!

I am going to gather the paper work and be ready. Thank you. I hope so much we can keep our home. My husband thinks there is no way that will happen. I guess I will prove him wrong. (or so I hope)

[Moe Bedard]

Lifeinmn,

If you stick to the advice and treat this like a second job......you might be able to surprise your husband with a good outcome too.....
If you read some of the Countrywide success stories, there were a couple of doubting husbands that changed their tunes when their wives showed them the modification docs.......
It could happen to you too.....stay positive and focused......

Keep us updated on the progress......

[lifeinmn]

Thanks ***! I am very focused and determined to keep my house. You guys rock! Thank you so much for the support. People who are not going through this have no idea what hell it is. I NEVER thought we would be in the situation we are in. But life happens and I am going to turn this around for us.

[Moe Bedard]

None of us ever thought we would be in these situations, but here we don't judge we offer help and our expertise.......
Just keep updating here through your thread and we will answer whatever questions we can for you.........you have a whole rooting section behind you, and then when the modification comes through, you can show your husband exactly what you did to get it...........

[needingsomehelp]

Hi there,

I just wanted to chime in and say that we are in a similar boat, except we are in Chapter 13, and are converting to a 7. Try calling the CW Office of the President, and speak with someone there. We have also sent out numerous emails to our senators, reps, banking dept, President of Countrywide, etc. We got the run around very similar to the way that you have. We spoke with someone at the Office of the President, who said they will try to help us if we discharge the Bankruptcy (hence the conversion the the 7), of course, no guarantees. They way we are looking at it though is that it is worth a shot, because there is no way they can help us in the Chapter 13.
Anyways, sometimes it just helps to know you are not alone. We have been working really hard trying to save our home, and to be honest the whole reason we are even in the Chapter 13 was because we were trying to make home improvements, in order to refi.. didn't happen, then we were just trying to make our payments. Our Credit scores used to be in the 700's. We look at this as a lesson. Good luck to you!!

[lifeinmn]

Ok so we finally got our discharge from our bankruptcy (Chapter 7). Yesterday I emailed my hardship letter to all the emails I could find. Within an hour I had a response from Elizabeth Moyer and she said she is forwarding my info to the Office of the President. She said if I do not hear from them within 2 business days to contact her again. Before we recieved our dischage we got a letter from Discover (our 2nd) and it said if we didn't pay $400.00 by April 26th they were going to start forclosure procedures. How can I get them to hold off while I am dealing with CW? I don't want to pay the $400 if we in the end are going to lose our home. I have already lost my 401k because in Oct 07 I was told by a CW rep they would not work with us unless we were current.

[lifeinmn]

Last week a day after I emailed my hardship letter I was contacted by someone in the Office of the President. She said someone would be getting in touch with us after we sent in our current financial info. She said they would try for a modification and add what we owe to the loan. I asked how long we would have to repay. She said it would probably be 27 years. Since it is a modification not a forbearance. Yesterday we got a call from our new negotiator from HOPE. She just called to give me her phone # and tell me she was assigned our info. She also asked if we had any money we could put down and I said not really, I just started back at my job. She said she would get back to us by the end of the week. Today I called her because I wanted to see if she needed this weeks pay check. During the conversation, she mentioned she did not get to run the loan by management (?) but hopes to today or tomorrow. Then said she will put it through with no down payment but they might come back saying we need to pay something. My question is why would they do that if we are adding payments we missed into the loan? Also I never submitted a QWR, should I do this at this point?

[Moe Bedard]

Usually they will require one month good faith payment............what they are trying to do is add the arrearages to the principle balance.......but when you make a payment the interest is going to the month before........so that is why they require that one month.........

For instance if you were approved today your good faith payment would cover the interest for April making the first new payment on a modification due June 1st. Again it all depends on how many payments they put onto the principle balance...........but keep this rule of thumb in mind.

Hope this helps........

[lifeinmn]

That does make sense. Should I still send in my QWR?

Thank you!

[Moe Bedard]

If you feel that you might be missing some of the documents from your lender from the closing.........the QWR will get you the full file.........so it won't hurt you to do this step. Then you could always have it for your records.

[lifeinmn]

We received our offer. Is this good? Our original rate was 5.85% then when it first adjusted it went to 7.85% and it adjusted again to 8.85%. They said they will add our pay months that we have not paid into the loan and our rate will be 7.85% interest only for 5 years and after that it will be 7.85% at a fixed rate. Is this a good deal? I am thrilled to death that they will work with us but I guess I am surprised our rate did not change much.

[Moe Bedard]

Your rate isn't going to ever adjust again.................I would say that is pretty good.
They can only offer you what the investor on your loan is willing to do for a workout.........

Let us know when you receive the docs and if you have any questions on them.......o.k....

[lifeinmn]

Thanks ***! You are so awesome! I would have NEVER saved my house if it wasen't for this webpage and the help of people like you.

The person at CW told me that they are going to have someone come to our house and have us sign the paperwork with them and get it back to them that way. Is that normal?

One more question, after 5 years of interest only, will our payment be crazy high compared to what they will have been the past 5 years?

Thank you!

[Moe Bedard]

If you give me your.....

loan amount?
taxes for the year?
insurance for the year?
how many years are left on the loan right now?


I can tell you what they will be like..........

[lifeinmn]

Thanks ***!

Our taxes and insurance are not included in with our loan. We pay that seperate.

loan amount? $205,128.10
how many years are left on the loan right now? 26 years and 7 months

[Moe Bedard]

It is going to be some difference because all of the difference will go to the principle balance of your loan.

And also after the five years I am just figuring this on you not paying any additional to the principle balance. And this is five years down the road.......so a long time to get finances in order and apply more to principle.....

The way they structure the modification and you will be able to see this when you receive you docs is that they take the remaining time left on the loan so on 22 years left the Principle and Interest payment would be around $1636 this is without taxes and insurance..........so $295 difference, but that is what will go to paying down your principle 5 years from now........

[lifeinmn]

Thanks ***! You rock. Again, I am so grateful for all your help!

[Moe Bedard]

You are welcome............

Let us know when you get those docs and if you have any questions.......k.

[lifeinmn]

Thanks to this awesome board and the helpful people here!

Here is our offer. I posted this on the CW area too.

Our original rate was 5.85% then when it first adjusted it went to 7.85% and it adjusted again to 8.85%. They said they will add our pay months that we have not paid into the loan and our rate will be 7.85% interest only for 5 years and after that it will be 7.85% at a fixed rate.

[Moe Bedard]

When you get those docs signed sealed and delivered...........then I will move your whole story to success..........

Then it will be official............

[lifeinmn]

Last Friday I called the Neg and told her my husband was not comfortable with the offer and she said she would submit it again. We got the 2nd offer on Monday for 5.85% for 5 years at interest only. We had the notery here tonight and she will overnighting the paperwork back to them.

Thanks again LOAN SAFE!