CW Option Arm ( MTA ) SUCCESS!! - Loan Modification Forum

Looking4Help · 04-22-2008, 09:07 PM

Hi everyone. To bad there has to be a site like this but, since the situation sadly exsists thanks for having a site to help.

My situation is I have an MTA pay option and I have been paying the minimum payment for 1 year now and have accrued about 24 thousand in deffered interest. If the loan hits the recast state its Game over of coarse. In an effort to avoid that I have tried refinancing with brokers with no success. My real estate agent told me to directly deal with CW which I started today. I basically called them and told them I will leave my keys on the kicthen counter because I am about to walk away from the house unless something is restructred. They told me the I meet all the requirements for modification and that someone will be assigned to my case within the next 10 days and to wait for a call. That seemed to be good news until I read the posts and stories on this site. It seems some of you are way more knowledged and educated and ahead of the game when it comes to this and that the end result is frustration and dead ends. What should I be doing? Any tips or advice on what to do? Whatare my chances of surviving this. Thanks for all your help in advance.

Moe Bedard · 04-22-2008, 09:27 PM

Hi Looking4Help,

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

You are in the starting phase of a very difficult fight...........
What CW is doing when modifying loans is freezing rates at anywhere from 5-7%............however, they are fully amortizing the payments to include Principle, Interest, Taxes, and Insurance.........
Is this something that you will be able to do moving forward?

For the modification with the Household Income versus the Household Expenses you need to show a surplus of around $100-$250 when all is said and done..............

Looking4Help · 04-22-2008, 09:31 PM

I am a bit confused forgive me ignorance or lack of knowledge. Can you explain in more detail ( so a dummy can understand )

Moe Bedard · 04-22-2008, 09:44 PM

No problem............

and feel free to ask for further explanation.............sometimes at this hour I do start to ramble.......LOL.

In order to do a loan modification.........you need to put together a Hardship Letter and a Household Income & Expense Sheet...........we have examples for you in the Homeowner Tool Box to the left side of the forum.........

When you put the income that all working parties in the household make and calculate all of the expenses........ie.....the mortgage, taxes, insurance, utilities, groceries........and such........you would need to show a plus left over of at least $100-$250.

The modifications that Countrywide are working out are payments that include the Principle, Interest, Taxes, and Insurance........
You can see the workouts being offered in the Success Section of the forum...........keeping in mind that each workout is different.

We have some members, such as yourself, just starting the modifications on the Option Arms..........to date with Countrywide we have one success with an Option Arm..........

To have a running start, what you can do is put together the hardship letter in an email and send it to each one of the following email addresses.........they should contact you within 48 hours........

Looking4Help · 04-22-2008, 09:49 PM

The current loan I have now was stated because I do not show any income. In realityy yes I have a surplus of 150-250 dollars but I cant prove it. My loan balance is now 524,000 so 5-7% on that balance and it would include principle tax and insurance? Am I wrong?

Moe Bedard · 04-22-2008, 10:02 PM

That would be correct............
The one that is in the Success Section was a 5.25% fixed, but her payment did go up, because of the Principle, Interest, and Taxes being added in......however, she was happy to be out of the option arm.......so for her that worked. But she fought long and hard and it was a couple of months ago that she received the modification.
We have roughly 4 or 5 members working on modifications of option arms currently.

Here is her story...........

Countrywide Success V

Looking4Help · 04-22-2008, 10:04 PM

I am a bit confused. How would I calculate my payment? If my loan balance is 524,000 how would I calculate my payment including the tax, insurance and principle?

Moe Bedard · 04-22-2008, 10:15 PM

How much are your taxes per year and your insurance per year?

Does the 524k include the 24k deferred interest?

Looking4Help · 04-22-2008, 10:31 PM

Right now I have taxes and insurance escrowed and my escrow payment equals out to about 900 a month and yes the 524k includes defeered.

How bad is the lack of income proof going to hurt me.

Moe Bedard · 04-22-2008, 10:42 PM

Here are the payment amounts based on what you have here at different interest rates amortized over 30 years.

5% = $3712.95
5.50% = $3875.21
6% = $4041.64
6.50% = $4212.04
7% = $4383.47

As far as the income goes you have to show income for the modification.........how do you get paid?

Looking4Help · 04-22-2008, 10:44 PM

I have an ebay business. All of my income comes in via paypal.

Moe Bedard · 04-22-2008, 11:16 PM

It sounds like it is pretty regular.........do you have TIN?
How do you file taxes on the business?

Looking4Help · 04-23-2008, 04:13 AM

I have no TIN and have not had to file for taxes and ebay doesnt report if u make under 100k a year.

Moe Bedard · 04-23-2008, 08:01 AM

I am not sure if they will look at a Paypal account for income...........you will have to ask that question when you speak with them..........

Looking4Help · 04-23-2008, 12:34 PM

I am on the verge of mental breakdown. I dont think the loan modification is going to work with me being that I dont show income. My only other idea is this can you give me your advice please. My mom has probably a 150k equity in her house and with credit lines being very low rates right now what if she pulled some money say ( 50k ) out and I put it towards a refi on this house. Will that make it easier for me to get approved? I can afford to pay her heloc payment and my loan if its reasonable say an interest only at 6-6.2% Paying isnt the problem its getting them to beleieve I can pay and approving me.

My balance now is 524 if i put 50k down on that I am at 474k

474 @ 6.2% interest only is about 2450.00 plsu my taxes and insurance brings it to about 3200.00 and then if I can get the heloc payment to be under 500 or so I can manage. Is this far fetched? I am desperate and feeling very alone even though many people are in my position.

Moe Bedard · 04-23-2008, 01:41 PM

My advice to you would be before going through all of this.........you really need to look more into the loan programs that are available today.........they are very different then they were when you bought the house.
For the types of programs you are looking for a direct lender, bank, or credit union does not offer that type of program............so therefore you are back at the beginning with what was called "creative financing" and caused alot of this mess.......
Alot of the lenders don't offer interest only programs anymore due to what is happening currently with defaults and taxes and insurance not being paid........
Also check on stated programs..........most of those require a 20% down payment now........
And lastly make sure that you can get a down payment from your mom........programs are very different in their guidelines as to where a downpayment has to come from......

I know this probably isn't what you want to hear..........but that is what to expect in this type of a market........

Just really look into what is out there for you and make the best decision you can for you...........

I really hope it all works out for you........
Please let us know how it goes.......

Looking4Help · 04-23-2008, 01:49 PM

I just talked with a mortgage broker that comes highly recomended. He said our margin on our current MTA is almost criminal. He said it should be at 3% the very highest and its at 4.650% He said to call countrywide and see if they can at least lower that margin. I they lower the margin he said maybe the interest only payment would be more affordable and we can stop the bleeding for now at least. I wonder how many people commit suicide over this. I wouldnt be suprised if quite a few do.

Moe Bedard · 04-23-2008, 01:54 PM

Use the email contacts that I posted for you...........and explain that as the hardship, exactly as you have put it here...... and see if the will work with you on that, if that is what will help you in the long run.........

It is worth a try.........

Looking4Help · 04-23-2008, 02:05 PM

What do I include in the hardship letter? Does it have to be formally written out professionaly or just a desperate plea for help?

Moe Bedard · 04-23-2008, 03:08 PM

Keep it a desperate plea for help............

However..........Steve is going to post another option that might also work for you...........shortly.......

04-23-2008, 03:37 PM

Dear Looking,

I just got off the phone with *** discussing your post, and there is another very viable solution. I've been a mortgage broker for years and I have currently been giving the following advice in some cases. Let's look at your situation in a different way. I am going to make some assumptions, please correct me in another reply, then I will tighten up the my scenario.

Get out one of your current mortgage statements to answer these questions.

You have deferred $24,000 in interest in 12 months, or more accurately you defer $______ per month in interest month.
What is your fixed minimum payment right now?
Your INTEREST RATE changes every month, and is currently about 8.5%.(MTA = 3.79% + your margin 4.65% = 8.44%)
Your escrows are about $900.00 / month.

Your Countrywide loan docs will indicate when and how your loan will recast. Typically the CW Option ARM loans are 110% or 115% recast.
Assuming your original loan amount was $500,000, then at 110% your loan balance would be $550,000 to force a recast, or at 115% it would be $575,000 to force a recast.

Assuming you did nothing at all except make the minimum payment, An estimation of your date of recast if 110% ($550,000) would be about 11 months from now. if 115% ($575,000) the recast would come about 22-23 months from now.

You indicated that you had access to some money. Possibly from an equity line that your mother has or somewhere else? Here is why this is very important.

The possible solution:

You can make a lump sum payment against your current CW loan that will pay back any or all of the dererred interest you have accumulated. There is NO PREPAYMENT PENALTY issue here.

By doing this, you have essentially, "reset the clock" on your loan going over the 110% or 115% recast amount, and thereby buying yourself another 12 months at least before you will recast. Get it?

Assuming you have to borrower the money from Mom, if she has decent credit, here HELOC rate would be around 6%ish. Even if you pay her an additional 2% to borrow that money, it is still far cheaper than A) You refinancing, B) Allowing your loan to recast soon, C)trying to get a loan mod in which you will have to make a PITI payment as explained by *** in a post above.

Now, regarding your margin. Your broker told you that a margin of 4.65% is almost criminal.>>>He is right. That is way high. Somewhere around 3-3.5% is more appropriate. You MIGHT have a shot at Countrywide lowering your margin with a modification if you make a lump sum payment against the loan to payoff any deferred interest.

IT is a win-win solution to all involved if you pay down the deferred interest thereby reducing their risk of your default at recast, and reducing the margin will reduce your interest rate which will also reduce their risk of your default.

Another payment option that no one tells you is actually an "invisible" option. You can always pay MORE than the minimum payment every month. It doesn't have to be the next available interest only payment, but can be anywhere in between. It can even vary from month to month. Anything you pay over the minimum payment is applied to principal, thereby effectively reducing the amount of the deferred interest.

I realize I have almost written a book here, but I'll help you and anyone else that has an option ARM type loan. In case anyone has not noticed, the prevailing trend in the MTA, the LIBOR, the CMT indices is DOWNWARD. That is a great thing for ARM type loans!

ANOTHER fantastic solution might be to contact us regarding a forensic loan document review. These doc reviews are generally a huge asset in convincing a lender to make a favorable loan modification.

Doc Review
http://www.loansafe.org/index.php?pid=13

Looking4Help · 04-23-2008, 04:29 PM

My loan recast is at 125% which is 622,125.00 How does this change your prescrpective?

My deffered interest is 2161.78 each month

My fixed monthly minimum is 2662.88 including 827.83 in escrow

My moms credit is about as bad as it gets so I think thats out of the question.

04-23-2008, 05:01 PM

Based on that information, your full interest payment choice should be around $3996.00. right? or your statement indicates __________?

At the current rate and deferral, your 125% should come in about 38-40 months. If you do nothing except make your minimum payments you have a little over 3 years before recast.

Assuming that a refinance right now is out of the question due to no equity and income not being documentable, here are some options:

Do nothing, as above
Find some cash, pay off the deferral, which delays your recast until around Spring 2012
Make the true interest only payment of approximately $4,500 including your escrows.
Pay as much as you can afford OVER and ABOVE the minimum payment amount. It DOES NOT have to be a payment option amount on your statement. If you are paying $2,662.88 now, try to pay $3,200.00 or more. This will also delay the recast.
Do #2 above, and negotiate with Countrywide for reduction in the margin to 3% or so. They are more likely to do it if you lessen their risk by paying down the loan.

In order to refinance out of this loan in a few years, you will need to show adequate income on your tax returns. It is HIGHLY UNLIKELY that stated income products as we knew them will survive this mortgage crisis.

You need to talk with a tax professional now and explain that you need to maximize your taxable income for loan purposes, but that may be contrary to the advice of lowering your taxable income for reducing your tax liability.

Looking4Help · 04-23-2008, 05:08 PM

Thanks so much for your help. I am so desperate and confused. I just dont see a way out of this. I feel like im in a slowly sinking boat and myhands are tied. I will not give in I need to find a way around this. This country is headed towards financial hell if these lenders dont help people like us. How will the economy ever bounce back if noone owns a home.

So say I pay an extra 1000.00 a month over minimum am I correct in assuming that would almost double the time before recast to almost 6 years?

04-23-2008, 05:49 PM

Probably fairly close to that time frame. However, some loans have a maximum of 5 years no matter what for them to recast.

The variable in your favor would be interest rates continuing to decline. The variable against you would be interest rates increasing so that you are deferring more and more every month.

Quote:

Originally Posted by Looking4Help

Thanks so much for your help. I am so desperate and confused. I just dont see a way out of this. I feel like im in a slowly sinking boat and myhands are tied. I will not give in I need to find a way around this. This country is headed towards financial hell if these lenders dont help people like us. How will the economy ever bounce back if noone owns a home.

So say I pay an extra 1000.00 a month over minimum am I correct in assuming that would almost double the time before recast to almost 6 years?

04-22-2008, 09:07 PM	#1 (permalink)
Looking4Help Member Join Date: Apr 2008 Posts: 23 Nominated 0 Times in 0 Posts TOTW/F/M Award(s): 0	CW Option Arm ( MTA ) SUCCESS!! Hi everyone. To bad there has to be a site like this but, since the situation sadly exsists thanks for having a site to help. My situation is I have an MTA pay option and I have been paying the minimum payment for 1 year now and have accrued about 24 thousand in deffered interest. If the loan hits the recast state its Game over of coarse. In an effort to avoid that I have tried refinancing with brokers with no success. My real estate agent told me to directly deal with CW which I started today. I basically called them and told them I will leave my keys on the kicthen counter because I am about to walk away from the house unless something is restructred. They told me the I meet all the requirements for modification and that someone will be assigned to my case within the next 10 days and to wait for a call. That seemed to be good news until I read the posts and stories on this site. It seems some of you are way more knowledged and educated and ahead of the game when it comes to this and that the end result is frustration and dead ends. What should I be doing? Any tips or advice on what to do? Whatare my chances of surviving this. Thanks for all your help in advance.

04-22-2008, 09:27 PM	#2 (permalink)
Moe Bedard Founder Join Date: Aug 2007 Location: Southern California Posts: 16,887 Nominated 0 Times in 0 Posts TOTW/F/M Award(s): 0	Re: MTA Pay Option HELP PLEASE !! Hi Looking4Help, Welcome to the forum and thank you for joining................ You are in the starting phase of a very difficult fight........... What CW is doing when modifying loans is freezing rates at anywhere from 5-7%............however, they are fully amortizing the payments to include Principle, Interest, Taxes, and Insurance......... Is this something that you will be able to do moving forward? For the modification with the Household Income versus the Household Expenses you need to show a surplus of around $100-$250 when all is said and done.............. __________________ Moe Bedard Founder LoanSafe.org "America's #1 Home Loan Forum" LoanWorkout.org "America's # Loan Modification Blog" Get My FREE Loan Modification E-Book \| Please donate to LoanSafe.org \| Loan Modification Training For Attorneys \| Rate Your Mortgage Servicer The comments by me and the materials available at this web site are for informational purposes only and not for the purpose of providing legal advice. Most of the information you find here is easily available on the internet. You should contact your attorney to obtain advice with respect to any particular issue or problem. The opinions expressed at or through this site are the opinions of the individual author and may not reflect the opinions of the firm or any individual attorney. Please Read our Privacy Policy and Legal Disclaimer Here.

04-22-2008, 09:31 PM	#3 (permalink)
Looking4Help Member Join Date: Apr 2008 Posts: 23 Nominated 0 Times in 0 Posts TOTW/F/M Award(s): 0	Re: MTA Pay Option HELP PLEASE !! I am a bit confused forgive me ignorance or lack of knowledge. Can you explain in more detail ( so a dummy can understand )

04-22-2008, 09:44 PM	#4 (permalink)
Moe Bedard Founder Join Date: Aug 2007 Location: Southern California Posts: 16,887 Nominated 0 Times in 0 Posts TOTW/F/M Award(s): 0	Re: MTA Pay Option HELP PLEASE !! No problem............ and feel free to ask for further explanation.............sometimes at this hour I do start to ramble.......LOL. In order to do a loan modification.........you need to put together a Hardship Letter and a Household Income & Expense Sheet...........we have examples for you in the Homeowner Tool Box to the left side of the forum......... When you put the income that all working parties in the household make and calculate all of the expenses........ie.....the mortgage, taxes, insurance, utilities, groceries........and such........you would need to show a plus left over of at least $100-$250. The modifications that Countrywide are working out are payments that include the Principle, Interest, Taxes, and Insurance........ You can see the workouts being offered in the Success Section of the forum...........keeping in mind that each workout is different. We have some members, such as yourself, just starting the modifications on the Option Arms..........to date with Countrywide we have one success with an Option Arm.......... To have a running start, what you can do is put together the hardship letter in an email and send it to each one of the following email addresses.........they should contact you within 48 hours........ __________________ Moe Bedard Founder LoanSafe.org "America's #1 Home Loan Forum" LoanWorkout.org "America's # Loan Modification Blog" Get My FREE Loan Modification E-Book \| Please donate to LoanSafe.org \| Loan Modification Training For Attorneys \| Rate Your Mortgage Servicer The comments by me and the materials available at this web site are for informational purposes only and not for the purpose of providing legal advice. Most of the information you find here is easily available on the internet. You should contact your attorney to obtain advice with respect to any particular issue or problem. The opinions expressed at or through this site are the opinions of the individual author and may not reflect the opinions of the firm or any individual attorney. Please Read our Privacy Policy and Legal Disclaimer Here. Last edited by Moe Bedard; 04-22-2008 at 09:47 PM..

04-22-2008, 09:49 PM	#5 (permalink)
Looking4Help Member Join Date: Apr 2008 Posts: 23 Nominated 0 Times in 0 Posts TOTW/F/M Award(s): 0	Re: MTA Pay Option HELP PLEASE !! The current loan I have now was stated because I do not show any income. In realityy yes I have a surplus of 150-250 dollars but I cant prove it. My loan balance is now 524,000 so 5-7% on that balance and it would include principle tax and insurance? Am I wrong?

04-22-2008, 10:02 PM	#6 (permalink)
Moe Bedard Founder Join Date: Aug 2007 Location: Southern California Posts: 16,887 Nominated 0 Times in 0 Posts TOTW/F/M Award(s): 0	Re: MTA Pay Option HELP PLEASE !! That would be correct............ The one that is in the Success Section was a 5.25% fixed, but her payment did go up, because of the Principle, Interest, and Taxes being added in......however, she was happy to be out of the option arm.......so for her that worked. But she fought long and hard and it was a couple of months ago that she received the modification. We have roughly 4 or 5 members working on modifications of option arms currently. Here is her story........... Countrywide Success V __________________ Moe Bedard Founder LoanSafe.org "America's #1 Home Loan Forum" LoanWorkout.org "America's # Loan Modification Blog" Get My FREE Loan Modification E-Book \| Please donate to LoanSafe.org \| Loan Modification Training For Attorneys \| Rate Your Mortgage Servicer The comments by me and the materials available at this web site are for informational purposes only and not for the purpose of providing legal advice. Most of the information you find here is easily available on the internet. You should contact your attorney to obtain advice with respect to any particular issue or problem. The opinions expressed at or through this site are the opinions of the individual author and may not reflect the opinions of the firm or any individual attorney. Please Read our Privacy Policy and Legal Disclaimer Here.

04-22-2008, 10:04 PM	#7 (permalink)
Looking4Help Member Join Date: Apr 2008 Posts: 23 Nominated 0 Times in 0 Posts TOTW/F/M Award(s): 0	Re: MTA Pay Option HELP PLEASE !! I am a bit confused. How would I calculate my payment? If my loan balance is 524,000 how would I calculate my payment including the tax, insurance and principle?

04-22-2008, 10:15 PM	#8 (permalink)
Moe Bedard Founder Join Date: Aug 2007 Location: Southern California Posts: 16,887 Nominated 0 Times in 0 Posts TOTW/F/M Award(s): 0	Re: MTA Pay Option HELP PLEASE !! How much are your taxes per year and your insurance per year? Does the 524k include the 24k deferred interest? __________________ Moe Bedard Founder LoanSafe.org "America's #1 Home Loan Forum" LoanWorkout.org "America's # Loan Modification Blog" Get My FREE Loan Modification E-Book \| Please donate to LoanSafe.org \| Loan Modification Training For Attorneys \| Rate Your Mortgage Servicer The comments by me and the materials available at this web site are for informational purposes only and not for the purpose of providing legal advice. Most of the information you find here is easily available on the internet. You should contact your attorney to obtain advice with respect to any particular issue or problem. The opinions expressed at or through this site are the opinions of the individual author and may not reflect the opinions of the firm or any individual attorney. Please Read our Privacy Policy and Legal Disclaimer Here.

04-22-2008, 10:31 PM	#9 (permalink)
Looking4Help Member Join Date: Apr 2008 Posts: 23 Nominated 0 Times in 0 Posts TOTW/F/M Award(s): 0	Re: MTA Pay Option HELP PLEASE !! Right now I have taxes and insurance escrowed and my escrow payment equals out to about 900 a month and yes the 524k includes defeered. How bad is the lack of income proof going to hurt me.

04-22-2008, 10:42 PM	#10 (permalink)
Moe Bedard Founder Join Date: Aug 2007 Location: Southern California Posts: 16,887 Nominated 0 Times in 0 Posts TOTW/F/M Award(s): 0	Re: MTA Pay Option HELP PLEASE !! Here are the payment amounts based on what you have here at different interest rates amortized over 30 years. 5% = $3712.95 5.50% = $3875.21 6% = $4041.64 6.50% = $4212.04 7% = $4383.47 As far as the income goes you have to show income for the modification.........how do you get paid? __________________ Moe Bedard Founder LoanSafe.org "America's #1 Home Loan Forum" LoanWorkout.org "America's # Loan Modification Blog" Get My FREE Loan Modification E-Book \| Please donate to LoanSafe.org \| Loan Modification Training For Attorneys \| Rate Your Mortgage Servicer The comments by me and the materials available at this web site are for informational purposes only and not for the purpose of providing legal advice. Most of the information you find here is easily available on the internet. You should contact your attorney to obtain advice with respect to any particular issue or problem. The opinions expressed at or through this site are the opinions of the individual author and may not reflect the opinions of the firm or any individual attorney. Please Read our Privacy Policy and Legal Disclaimer Here.

04-22-2008, 10:44 PM	#11 (permalink)
Looking4Help Member Join Date: Apr 2008 Posts: 23 Nominated 0 Times in 0 Posts TOTW/F/M Award(s): 0	Re: MTA Pay Option HELP PLEASE !! I have an ebay business. All of my income comes in via paypal.

04-22-2008, 11:16 PM	#12 (permalink)
Moe Bedard Founder Join Date: Aug 2007 Location: Southern California Posts: 16,887 Nominated 0 Times in 0 Posts TOTW/F/M Award(s): 0	Re: MTA Pay Option HELP PLEASE !! It sounds like it is pretty regular.........do you have TIN? How do you file taxes on the business? __________________ Moe Bedard Founder LoanSafe.org "America's #1 Home Loan Forum" LoanWorkout.org "America's # Loan Modification Blog" Get My FREE Loan Modification E-Book \| Please donate to LoanSafe.org \| Loan Modification Training For Attorneys \| Rate Your Mortgage Servicer The comments by me and the materials available at this web site are for informational purposes only and not for the purpose of providing legal advice. Most of the information you find here is easily available on the internet. You should contact your attorney to obtain advice with respect to any particular issue or problem. The opinions expressed at or through this site are the opinions of the individual author and may not reflect the opinions of the firm or any individual attorney. Please Read our Privacy Policy and Legal Disclaimer Here. Last edited by Moe Bedard; 04-23-2008 at 07:53 AM..

04-23-2008, 04:13 AM	#13 (permalink)
Looking4Help Member Join Date: Apr 2008 Posts: 23 Nominated 0 Times in 0 Posts TOTW/F/M Award(s): 0	Re: MTA Pay Option HELP PLEASE !! I have no TIN and have not had to file for taxes and ebay doesnt report if u make under 100k a year.

04-23-2008, 08:01 AM	#14 (permalink)
Moe Bedard Founder Join Date: Aug 2007 Location: Southern California Posts: 16,887 Nominated 0 Times in 0 Posts TOTW/F/M Award(s): 0	Re: MTA Pay Option HELP PLEASE !! I am not sure if they will look at a Paypal account for income...........you will have to ask that question when you speak with them.......... __________________ Moe Bedard Founder LoanSafe.org "America's #1 Home Loan Forum" LoanWorkout.org "America's # Loan Modification Blog" Get My FREE Loan Modification E-Book \| Please donate to LoanSafe.org \| Loan Modification Training For Attorneys \| Rate Your Mortgage Servicer The comments by me and the materials available at this web site are for informational purposes only and not for the purpose of providing legal advice. Most of the information you find here is easily available on the internet. You should contact your attorney to obtain advice with respect to any particular issue or problem. The opinions expressed at or through this site are the opinions of the individual author and may not reflect the opinions of the firm or any individual attorney. Please Read our Privacy Policy and Legal Disclaimer Here.

04-23-2008, 12:34 PM	#15 (permalink)
Looking4Help Member Join Date: Apr 2008 Posts: 23 Nominated 0 Times in 0 Posts TOTW/F/M Award(s): 0	Re: MTA Pay Option HELP PLEASE !! I am on the verge of mental breakdown. I dont think the loan modification is going to work with me being that I dont show income. My only other idea is this can you give me your advice please. My mom has probably a 150k equity in her house and with credit lines being very low rates right now what if she pulled some money say ( 50k ) out and I put it towards a refi on this house. Will that make it easier for me to get approved? I can afford to pay her heloc payment and my loan if its reasonable say an interest only at 6-6.2% Paying isnt the problem its getting them to beleieve I can pay and approving me. My balance now is 524 if i put 50k down on that I am at 474k 474 @ 6.2% interest only is about 2450.00 plsu my taxes and insurance brings it to about 3200.00 and then if I can get the heloc payment to be under 500 or so I can manage. Is this far fetched? I am desperate and feeling very alone even though many people are in my position.

04-23-2008, 01:41 PM	#16 (permalink)
Moe Bedard Founder Join Date: Aug 2007 Location: Southern California Posts: 16,887 Nominated 0 Times in 0 Posts TOTW/F/M Award(s): 0	Re: MTA Pay Option HELP PLEASE !! My advice to you would be before going through all of this.........you really need to look more into the loan programs that are available today.........they are very different then they were when you bought the house. For the types of programs you are looking for a direct lender, bank, or credit union does not offer that type of program............so therefore you are back at the beginning with what was called "creative financing" and caused alot of this mess....... Alot of the lenders don't offer interest only programs anymore due to what is happening currently with defaults and taxes and insurance not being paid........ Also check on stated programs..........most of those require a 20% down payment now........ And lastly make sure that you can get a down payment from your mom........programs are very different in their guidelines as to where a downpayment has to come from...... I know this probably isn't what you want to hear..........but that is what to expect in this type of a market........ Just really look into what is out there for you and make the best decision you can for you........... I really hope it all works out for you........ Please let us know how it goes....... __________________ Moe Bedard Founder LoanSafe.org "America's #1 Home Loan Forum" LoanWorkout.org "America's # Loan Modification Blog" Get My FREE Loan Modification E-Book \| Please donate to LoanSafe.org \| Loan Modification Training For Attorneys \| Rate Your Mortgage Servicer The comments by me and the materials available at this web site are for informational purposes only and not for the purpose of providing legal advice. Most of the information you find here is easily available on the internet. You should contact your attorney to obtain advice with respect to any particular issue or problem. The opinions expressed at or through this site are the opinions of the individual author and may not reflect the opinions of the firm or any individual attorney. Please Read our Privacy Policy and Legal Disclaimer Here.

04-23-2008, 01:49 PM	#17 (permalink)
Looking4Help Member Join Date: Apr 2008 Posts: 23 Nominated 0 Times in 0 Posts TOTW/F/M Award(s): 0	Re: MTA Pay Option HELP PLEASE !! I just talked with a mortgage broker that comes highly recomended. He said our margin on our current MTA is almost criminal. He said it should be at 3% the very highest and its at 4.650% He said to call countrywide and see if they can at least lower that margin. I they lower the margin he said maybe the interest only payment would be more affordable and we can stop the bleeding for now at least. I wonder how many people commit suicide over this. I wouldnt be suprised if quite a few do.

04-23-2008, 01:54 PM	#18 (permalink)
Moe Bedard Founder Join Date: Aug 2007 Location: Southern California Posts: 16,887 Nominated 0 Times in 0 Posts TOTW/F/M Award(s): 0	Re: MTA Pay Option HELP PLEASE !! Use the email contacts that I posted for you...........and explain that as the hardship, exactly as you have put it here...... and see if the will work with you on that, if that is what will help you in the long run......... It is worth a try......... __________________ Moe Bedard Founder LoanSafe.org "America's #1 Home Loan Forum" LoanWorkout.org "America's # Loan Modification Blog" Get My FREE Loan Modification E-Book \| Please donate to LoanSafe.org \| Loan Modification Training For Attorneys \| Rate Your Mortgage Servicer The comments by me and the materials available at this web site are for informational purposes only and not for the purpose of providing legal advice. Most of the information you find here is easily available on the internet. You should contact your attorney to obtain advice with respect to any particular issue or problem. The opinions expressed at or through this site are the opinions of the individual author and may not reflect the opinions of the firm or any individual attorney. Please Read our Privacy Policy and Legal Disclaimer Here.

04-23-2008, 02:05 PM	#19 (permalink)
Looking4Help Member Join Date: Apr 2008 Posts: 23 Nominated 0 Times in 0 Posts TOTW/F/M Award(s): 0	Re: MTA Pay Option HELP PLEASE !! What do I include in the hardship letter? Does it have to be formally written out professionaly or just a desperate plea for help?

04-23-2008, 03:08 PM	#20 (permalink)
Moe Bedard Founder Join Date: Aug 2007 Location: Southern California Posts: 16,887 Nominated 0 Times in 0 Posts TOTW/F/M Award(s): 0	Re: MTA Pay Option HELP PLEASE !! Keep it a desperate plea for help............ However..........Steve is going to post another option that might also work for you...........shortly....... __________________ Moe Bedard Founder LoanSafe.org "America's #1 Home Loan Forum" LoanWorkout.org "America's # Loan Modification Blog" Get My FREE Loan Modification E-Book \| Please donate to LoanSafe.org \| Loan Modification Training For Attorneys \| Rate Your Mortgage Servicer The comments by me and the materials available at this web site are for informational purposes only and not for the purpose of providing legal advice. Most of the information you find here is easily available on the internet. You should contact your attorney to obtain advice with respect to any particular issue or problem. The opinions expressed at or through this site are the opinions of the individual author and may not reflect the opinions of the firm or any individual attorney. Please Read our Privacy Policy and Legal Disclaimer Here.

04-23-2008, 03:37 PM	#21 (permalink)
SPAMMER IDIOT Guest Posts: n/a	Re: MTA Pay Option HELP PLEASE !! Dear Looking, I just got off the phone with * discussing your post, and there is another very viable solution. I've been a mortgage broker for years and I have currently been giving the following advice in some cases. Let's look at your situation in a different way. I am going to make some assumptions, please correct me in another reply, then I will tighten up the my scenario. Get out one of your current mortgage statements to answer these questions. You have deferred $24,000 in interest in 12 months, or more accurately you defer $______ per month in interest month. What is your fixed minimum payment right now? Your INTEREST RATE changes every month, and is currently about 8.5%.(MTA = 3.79% + your margin 4.65% = 8.44%) Your escrows are about $900.00 / month. Your Countrywide loan docs will indicate when and how your loan will recast. Typically the CW Option ARM loans are 110% or 115% recast. Assuming your original loan amount was $500,000, then at 110% your loan balance would be $550,000 to force a recast, or at 115% it would be $575,000 to force a recast. Assuming you did nothing at all except make the minimum payment, An estimation of your date of recast if 110% ($550,000) would be about 11 months from now. if 115% ($575,000) the recast would come about 22-23 months from now. You indicated that you had access to some money. Possibly from an equity line that your mother has or somewhere else? Here is why this is very important. The possible solution: You can make a lump sum payment against your current CW loan that will pay back any or all of the dererred interest you have accumulated. There is NO PREPAYMENT PENALTY issue here. By doing this, you have essentially, "reset the clock" on your loan going over the 110% or 115% recast amount, and thereby buying yourself another 12 months at least before you will recast. Get it? Assuming you have to borrower the money from Mom, if she has decent credit, here HELOC rate would be around 6%ish. Even if you pay her an additional 2% to borrow that money, it is still far cheaper than A) You refinancing, B) Allowing your loan to recast soon, C)trying to get a loan mod in which you will have to make a PITI payment as explained by * in a post above. Now, regarding your margin. Your broker told you that a margin of 4.65% is almost criminal.>>>He is right. That is way high. Somewhere around 3-3.5% is more appropriate. You MIGHT have a shot at Countrywide lowering your margin with a modification if you make a lump sum payment against the loan to payoff any deferred interest. IT is a win-win solution to all involved if you pay down the deferred interest thereby reducing their risk of your default at recast, and reducing the margin will reduce your interest rate which will also reduce their risk of your default. Another payment option that no one tells you is actually an "invisible" option. You can always pay MORE than the minimum payment every month. It doesn't have to be the next available interest only payment, but can be anywhere in between. It can even vary from month to month. Anything you pay over the minimum payment is applied to principal, thereby effectively reducing the amount of the deferred interest. I realize I have almost written a book here, but I'll help you and anyone else that has an option ARM type loan. In case anyone has not noticed, the prevailing trend in the MTA, the LIBOR, the CMT indices is DOWNWARD. That is a great thing for ARM type loans! ANOTHER fantastic solution might be to contact us regarding a forensic loan document review. These doc reviews are generally a huge asset in convincing a lender to make a favorable loan modification. Doc Review http://www.loansafe.org/index.php?pid=13

04-23-2008, 04:29 PM	#22 (permalink)
Looking4Help Member Join Date: Apr 2008 Posts: 23 Nominated 0 Times in 0 Posts TOTW/F/M Award(s): 0	Re: MTA Pay Option HELP PLEASE !! My loan recast is at 125% which is 622,125.00 How does this change your prescrpective? My deffered interest is 2161.78 each month My fixed monthly minimum is 2662.88 including 827.83 in escrow My moms credit is about as bad as it gets so I think thats out of the question.

04-23-2008, 05:01 PM	#23 (permalink)
SPAMMER IDIOT Guest Posts: n/a	Re: MTA Pay Option HELP PLEASE !! Based on that information, your full interest payment choice should be around $3996.00. right? or your statement indicates __________? At the current rate and deferral, your 125% should come in about 38-40 months. If you do nothing except make your minimum payments you have a little over 3 years before recast. Assuming that a refinance right now is out of the question due to no equity and income not being documentable, here are some options: Do nothing, as above Find some cash, pay off the deferral, which delays your recast until around Spring 2012 Make the true interest only payment of approximately $4,500 including your escrows. Pay as much as you can afford OVER and ABOVE the minimum payment amount. It DOES NOT have to be a payment option amount on your statement. If you are paying $2,662.88 now, try to pay $3,200.00 or more. This will also delay the recast. Do #2 above, and negotiate with Countrywide for reduction in the margin to 3% or so. They are more likely to do it if you lessen their risk by paying down the loan. In order to refinance out of this loan in a few years, you will need to show adequate income on your tax returns. It is HIGHLY UNLIKELY that stated income products as we knew them will survive this mortgage crisis. You need to talk with a tax professional now and explain that you need to maximize your taxable income for loan purposes, but that may be contrary to the advice of lowering your taxable income for reducing your tax liability.

04-23-2008, 05:08 PM	#24 (permalink)
Looking4Help Member Join Date: Apr 2008 Posts: 23 Nominated 0 Times in 0 Posts TOTW/F/M Award(s): 0	Re: MTA Pay Option HELP PLEASE !! Thanks so much for your help. I am so desperate and confused. I just dont see a way out of this. I feel like im in a slowly sinking boat and myhands are tied. I will not give in I need to find a way around this. This country is headed towards financial hell if these lenders dont help people like us. How will the economy ever bounce back if noone owns a home. So say I pay an extra 1000.00 a month over minimum am I correct in assuming that would almost double the time before recast to almost 6 years?

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