Countywide 1st SUCCESS!! Now on to HSBC 2nd

[JAWJr]

First I'd like to say thank you to all who contribute to this forum- I might not have had the courage to tackle my loan problems on my own had it not been for all your efforts.

I have a 1st with Countrywide for $345000, started at 5.75% fixed for two years, then will adjust for the next 28. It has now adjusted 3 times since December (after the two year mark), and now is at 9.35%. Its payment including impounds has risen from $2500 total per month, and is now sitting at over $3500 per month. You see my dilemma. After calling Countrywide in May I sent all req'd docs via fax on the first of June. I was instructed to not call until at least 30-45 days after sending that fax because it would slow down things. So I waited. It's been impossible to make my payments, but I have scraped by at the end of each month. I saw a posting today about checking your modification status on the CW website, so I did and they show receiving my docs on the 6th of June, but under status it reads no action taken!!! What does that mean? I don't want to spend $4000 to have someone fix this for me- What's the best route to take? Do the e mails on the CW pages here still work after the takeover?

My 2nd was sold to HSBC from CW about 6 months after I moved in. It is a fixed interest only for $85000, at 11.2%. Payment is $850/month. Haven't read too many postings in regards to HSBC- what's the possibility of getting my rate reduced, and a principal reduction? Not sure who the best people to contact are etc.

Any help would be appreciated, I don't want to lose my house!

Thank you,

~Jon

PS total loan amount was $430000 originally, now has just been appraised at $330000. That's where I think I might have my ammo for a principal reduction. Ideas?

[Cat Damiano]

Hi Jon,

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

as far as the emails go some are working some are not...........I have not been able to determine yet if they might change........but will soon........

Countrywide is just doing the modifications through their.........

Home Retention Dept.
1-800-669-6087

What we are seeing from HSBC because they are a finance company is only 6 month forbearance programs if someone is in default........but they are not doing principle reductions..........you can see what they might do for you.....

HSBC Default Resolution Team
1-888-648-3124

Please keep us posted on how it goes..........

[JAWJr]

Thanks for the quick responce Cat- I'll call CW and get on them about why I haven't gotten a response yet... Will letters to the presidents office in addition do any good? Or are those being overlooked bc of the takeover?

I found one e mail for a president or someone in that office on this site for HSBC- should I shoot an email to them first before calling? Not sure what the best sequence of events is...

Thanks again

~Jon

[Cat Damiano]

You would need to call first and get the process started with both lenders..........and see what options they would have for your loans........

[JAWJr]

Will do- I'll let you know how it goes.

Regards,

~Jon

[elpjohnson]

Good luck Jon!

Stay with it and don't give up! Keep us posted on your progress....

[JAWJr]

Allright so I called in to Countrywide, almost an hour on hold and being transferred 5 times... They agreed they got the documents I sent in last month, said yes nothing's been done... Had to bite my lip for that one...

So, we start doing a inclome/spendatures analysis and I come to realize I should have done one on paper first- but they said they could only take it by phone, not fax. Didn't we have a link to an expense sheet somewhere on this forum? I might just be brain dead from thinking about this so much but I couldn't find it anywhere. And I suppose the most crucial question is for the $100-250 surplus income each month we need to show... is that before or after the loan mod? Wasn't sure which looked better. This lady backed me into a corner and came up with a deficit of over $1000 per month and flat out denied me. I back pedaled and said I would calculate a correct one and call back.

Thanks guys,

~Jon

[Cat Damiano]

Jon,

Don't panic...........we are here to help...........
The Income & Expense Sheet is in the Homeowner Tool Box to the left of the forum........just click on it..........

The surplus needs to be with your current payment because you don't know what kind of workout they are going to give you so you can't base it on a hypathetical figure................

The nice part about the sheet is that you can work with groceries, necessities, and miscellaneous expenses to help achieve the surplus goal....


Hope this helps..........keep us posted......

[JAWJr]

Cat is the income before or after tax? Thanks...

[Cat Damiano]

That is a tricky one...........most lenders do gross.......but there are a few that ask for net..............I think CW uses gross.......

Just ask them if you are supposed to be figuring the worksheet off of gross or net income.........

[JAWJr]

Allrighty... So I re-calculated what my expenses were, wrote them all down, called back, got transferred around... Then got connected with a very nice lady in India. I was actually happy I got someone there because I didn't want them to ask questions about why my expenses were so low outside of my mortgage... Anyway she updated the file and said she would forward the request to a negotiator. She then requested that I re-fax a hardship letter and proof of income only, not the other things I sent before... I asked how long I should expect to wait before the process was over and she said 30 days. The only thing I'm worried about is that I'm commision only and income is up and down all the time... that's why I used my 1040 in addition to paystubs before... Should I worry? Am I on the right track? Kind of feel like I am where I started...

~Jon

[JAWJr]

Oh PS she said what they will do is a rate reduction, not a loan modification because I'm not late yet... Is this correct?

[Cat Damiano]

A rate reduction is a good thing...........what she might mean is that they won't have to capitalize any arrearage into the principle balance.....because you are not late...........

Sounds pretty good so far.......

[JAWJr]

At this point pretty good is sounds pretty darn good! That was a lot of work for one day, I'm going to fax in the proof of income tomorrow and wait... I'm scared though bc my current income doesn't reflect my past two years to date... we'll see I guess...

~Jon

[JAWJr]

So I just faxed in my hardship letter and paystubs to Countrywide... I used the second one off your examples- I think it was pretty good. I'll call tomorrow to confirm the received it.

Should I start the process with HSBC immediately? I can't think of why I shouldn't... so here goes for the second round!

~Jon