Got Help CW Option Arm Success!!

[whatdidigetinto]

Ok...hello everyone i'm new here and had a few questions?first of all i want to say i am clueless whwn it comes to loans!I recently tried to modify my loan with cw and was denied!i tried refinancing but my loan is upside down and i owe more than it's worth! have an option arm with cw,for the last 2yrs i have been paying the minimum payment and my loan has increase by $44,000!I only have 2 more minimum payment before the loan reaches $550,000.00 and i can no longer make the minimum payment,then i will have the interest only or interest and principle but the interest only is $3,700.00 and i have a second loan with wells fargo for $50,000 that i pay $384.00 so that brings me at 4,084.00 mortgage payment a month in only interest!I sent in all the paper work cw asked for hardship letter and taxes for 2007.A week later we recieve a letter saying they denied it so we called in and the lady we spoke to was very rude!she told my husband we were denied because we have too much debt and also because we have an option arm and those can not be modified!so my husband asked her what other options we had and she said"why don't you get a second job so you can pay your mortgage or go to a near by church and ask for free food!"so know i don't know what to do!can i reapply for a loan modificaton?please please if anyone has ANY advice i would really appreciate it!cause the only other option i'm thinking of is foreclosure!oooh and what exactly is qwr?
thank you!

[Moe Bedard]

Hi whatdidigetinto,

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

First things first.............
When you put together a household income versus a household expense sheet........do you have a surplus left over of at least $100-$250..........
This is what you need for a modification.......if you don't have the surplus you will get denied.

And one of the other issues on the modification of an Option Arm is that if it were to get modified the payment would be fully amortized over the remainder of the loan time frame including Principle, Interest, Taxes and Insurance. If you are not able to handle the minimum interest only payment will you be able to handle a fully amortized payment?

[lifeinmn]

Good Luck........

[whatdidigetinto]

Originally Posted by *** Damiano

Hi whatdidigetinto,

Welcome to the forum and thank you for joining..................
THANK YOU!
First things first.............
When you put together a household income versus a household expense sheet........do you have a surplus left over of at least $100-$250..........
This is what you need for a modification.......if you don't have the surplus you will get denied.
Do you mean extra money?Should it be no more than $250?

And one of the other issues on the modification of an Option Arm is that if it were to get modified the payment would be fully amortized over the remainder of the loan time frame including Principle, Interest, Taxes and Insurance. If you are not able to handle the minimum interest only payment will you be able to handle a fully amortized payment?

fully amortized over the remainder of the loan time frame including Principle, Interest, Taxes and Insurance?Can you explain that to me?I'm sorry i feel stupid like i said i have no clue when it comes to loans
I think that maybe if the mortgage payment stayed at about the same we are paying now 3,700.00 hopefully a little less but we were paying principle on it,i think we would see what we could do to pay each month,like getting rid of our car payment some credit cards,i guess it would be worth it if we were paying more than just interest cause i don't see a point in paying 4100.00 in interest if houses are loosing value everyday and we already owe more than it's worth?so is it still possible to reapply for a loan modification?and is it true cw doesn't modify option arms?THANK YOU!I really appreciate you responding so quickly!

[HappyHome]

I am New Here too! Good Luck! TC

[whatdidigetinto]

Thank you lifeinmn!

[HappyHome]

hello again I am in the process w/my mtg co., to re-do or continue a Loan Mod. that they assured" me I WAS still in..until I got my latest/greatest Huge $600 mo. increase on my Payments!

So, as I read on here and although I am NEW here I did try Again and am still trying (Missing work home sick..) call,call call and tomorrow or next week starts the Fax Fax Fax

Blessings to you I hope you get help you need , me too!

I sometimes feel like a teacher here in the forums (guess that is because that is what I do)....

In order to provide assistance, you need to provide specific factual information Let's start with answers to the following questions:

1. What state is the property located in and is it your residence?
2. You reference two loans. Where they created at the time you bought the property? What is the current balance of each loan?
3. What is your best guess as to the fair market value of the property?

Daniel

[whatdidigetinto]

Originally Posted by ProfessorShays

I sometimes feel like a teacher here in the forums (guess that is because that is what I do)....

In order to provide assistance, you need to provide specific factual information Let's start with answers to the following questions:

1. What state is the property located in and is it your residence?
it is CA and yes it is my residence
2. You reference two loans. Where they created at the time you bought the property? What is the current balance of each loan?
these 2 loans were created when i refinanced about 2years ago ,one is the option arm w/cw and the balance is 544,000.00. The second loan is by national city(didn't even know this till i looked at the statement right now)and balance is of 48,931.00
3. What is your best guess as to the fair market value of the property?when i look it up online it shows up as 530,000.00

Daniel

Thank YOu!

[Moe Bedard]

HappyHome.........hang tight your next........



Whatdidigetinto,

Yes we have a couple Option Arm successes from CW in the Success Section...........
The surplus can be a little more, but you don't want to end up with over $500 left over because that wouldn't really show a hardship.......
We would have to see what type of modification workout rate you receive and then I can help you figure the payments..........

Lets get you started........shall we......

You need to put your hardship letter in the body of an email and send it out to each one of these email addresses below........ASAP. You should receive a response within 48 hours......to get you started on the modification and also into the right dept.
You also need to keep in mind that each loan has different investors and they decide what they will or won't modify..........we have seen some, although not CW yet, that will not modify Opion Arms.......so you have your work cut out for you............but it sounds like in the end it will be worth it to you to save your house........

[whatdidigetinto]

[QUOTE=*** Damiano;18179]HappyHome.........hang tight your next........



Whatdidigetinto,

Yes we have a couple Option Arm successes from CW in the Success Section...........
The surplus can be a little more, but you don't want to end up with over $500 left over because that wouldn't really show a hardship.......
We would have to see what type of modification workout rate you receive and then I can help you figure the payments..........

Lets get you started........shall we......

You need to put your hardship letter in the body of an email and send it out to each one of these email addresses below........ASAP. You should receive a response within 48 hours......to get you started on the modification and also into the right dept.
You also need to keep in mind that each loan has different investors and they decide what they will or won't modify..........we have seen some, although not CW yet, that will not modify Opion Arms.......so you have your work cut out for you............but it sounds like in the end it will be worth it to you to save your house........


so should i send only the hardship letter?I will do that tonight!THANK YOU SOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOO MUCH!

I had one question before i forget:when(if) they modify the loan do they charge?if so what should i be prepared($$) to have?

[Moe Bedard]

Yes just email the hardship letter.............
As far as the amount needed that would depend on if you are behind on any payments...........if you are not then usually a month......but it is different with different investors so just try to stay on top of it as best as you can right now........

[whatdidigetinto]

Thank You!!!

Unfortunately as the result of the refinance you lost the "purchase money" status available under California Code of Civil Procedure Section 580b and that is not good news for you. Prior to refinancing the debt was "non-recourse" meaning you had no personal liability on it. A worst case scenario for you is that the first forecloses, thus snuffing out the second and making it an unsecured loan and then the second sues you as an unsecured note, seeking to enforce repayment by levy, garnishment, etc.

I would follow ***'s approach, given your circumstances.

Take care,

Daniel

[whatdidigetinto]

Originally Posted by ProfessorShays

Unfortunately as the result of the refinance you lost the "purchase money" status available under California Code of Civil Procedure Section 580b and that is not good news for you. Prior to refinancing the debt was "non-recourse" meaning you had no personal liability on it. A worst case scenario for you is that the first forecloses, thus snuffing out the second and making it an unsecured loan and then the second sues you as an unsecured note, seeking to enforce repayment by levy, garnishment, etc.

I would follow ***'s approach, given your circumstances.

Take care,

Daniel

if you file bancrupcy can the second loan still come after you?

[whatdidigetinto]

Is this hardship letter ok?should i change anything?

Aril 7, 2008

Countrywide Home Loans

RE: Loan number ********* Loan Modifications

To Whom It May Concern:

My wife and I are writing this letter to you in hopes of reducing our payment and making our loan a fixed loan. My wife and I bought this home 4 years ago with both of us having good paying jobs. My income has been able to increase due to me working over time(6days a week)but my work has recently started cutting back on overtime and soon I will be back to working 40 hours a week and fear I may not be able to make the new payment. My wife run’s a Home Day Care business, there are months that are good but there are months that a child leaves due to moving or starting preschool so our income fluctuates constantly.
When I called Country Wide a couple of months ago to inquire about refinancing the person I spoke to told me refinancing was not an option at this time and when my loan reaches $550,000.00 I would no longer be able to make the minimum payment (I am not too far away, my loan is at $543,073.25 at the moment with all the negative amortization from making the minimum payment).
We have been able to keep our mortgage current even to this date. We are currently making the interest only payment at the moment( to stop the negative amortization) but it has made a huge impact on our family’s ability to live and now we have stopped paying our utilities and other bills just to keep with the mortgage. We really do want to stay in this home due to our kids’ schools being within walking distance and don’t want to make them move.
We want to come to Countrywide now and make this happen before we become delinquent and have to make the decision to let the home go into foreclosure and find cheaper living in a rental.
Enclosed is our current 2007 taxes to show our income, and hope that this will help reduce and fix our payment. You may communicate anything to us at *********or
*********
Sincerely,
*******************

[schwefls]

Whatdidigetinto:

Sounds good in adition to the tax returns and the hardship letter you may also need 1 month of paystubs/1099 as well as 1 months bank statements. I am unsure with your lender but that is what was required of mine, oh yes your monthly budget will need to be included as well.

Otherwise, it's all good.

Best of Luck

[whatdidigetinto]

ok... so Thursday May 1, I e-mailed my hardship letter to all on the list of e-mails *** provided,an hour later i received this e-mail:

I have forwarded your email on to our Office of the President for further attention. If no one contacts you in the next 2 business days, please feel free to contact me for additional follow up.

Regards,
_________________________________
Elizabeth J. Moyer
Senior Vice President, Investor Relations
Countrywide Financial Corp.

Then on Monday May 5 i received about 3 calls from them but i didn't pick up because i was still getting my financials together.Well after them calling 3 times in the day they finally left a messege,they said it was Erica from the presidents office to please call them back.So about an hour later we called back,she asked us to give her all our info about our financials and asked us to fax in a copy of 2 check stubs plus a recent copy of our bank statement and that she would call us when she received it.So we haven't heard from her so i'm thinking of calling her today.

[whatdidigetinto]

Well right after writing this someone called but told me they could not speak to me cause i'm not on the loan(only my husband is on the loan)so they said they were going to call him at work,so we will see what they want!hopefully it's good news!

[Moe Bedard]

I am waiting with anticipation.............

I hope it is good news too!!!!

[whatdidigetinto]

ok so they called my husband and left a voice messege,my husband called them back got a voicemail then they called him again and my husband said the person he spoke to told him we were denied!!!!and told him to try again in june!I asked my husband why?he said he could barely understand him!I was so pissed!(at my husband for not asking questions)so i told him to call on 3 way!so we called about 5 times till we got through to someone he was very nice asked about finacials(again)and said we were positive over 2,000.00!So i told him how could that be so he started going over our financials and i told him there was no way of us being positive 2,000 because we have been making the intrest only and that is 3,700.00 a month so he said "no wonder we were basing it on you guys paying the minimum payment of 1,800.00 so....i'll see what i can do i'll run some numbers and call you on Friday or Monday,i just finished a mod kind of like your loan and they're intrest rate was at 6% at a payment of 2,700.00 a month so i'll run some numbers with your negotiator and call you on Friday or Monday"so then i say so that means this loan can be modified?and he said"i think i can work something out for you guys".So I am crossing my fingers and toes!!at least someone said they might be able to do something!I'm so excited!!!!!THANK YOU GUYS!and i'm ready to rumble!lol!

[schwefls]

Positive thoughts are with you, fight hard, politely stand your ground, be patient and remember good things come to those who wait. And, one more thing maybe your husband can sign a consent type thing so that they will speak to you moving forward. I know in my marriage I seem to get more answered/accomplished than my husband.

[whatdidigetinto]

Yes!thank you!the guy we spoke to actually asked us to fax a letter just saying that from now on they can speak directly to me.

[schwefls]

Great, I am sure you will be moving to success in the near future. Hang in there we are here for you

[whatdidigetinto]

so today i faxed in a letter of consent to speak to me(since only my husband is on the loan) i also sent him a messege(On the fax cover sheet) just saying we will be waiting for his phone call tomorrow so...hopefully he will call with good news!also today i received a letter from Erica from the office of the president just thanking me for contacting thier office and that the concerns addressed in my letter(hardship)require further detailed analysis(this is the lady we spoke to on Monday who asked us to fax in the 2 check stubs and bank statement).As soon as i figure out how to scan it i'll post it up!so we will see if he calls tomorrow!Ohh my goodness this is all i can think about from the time i wake up till the time i put my head down!