Countrywide Short Sale Seller closed today!!!

[snook]

Hello to all....My situation is as follows:
I have an investment property in Florida, it has decreased in value over 60%.
I owe Countrywide 140,000 on the first, and 17,000 on a second equity line of credit....the condos are listing at around 70,000....I am now 3 months late on making my mortgage payments....When I first called Countrywide and told them that I would stop making payments, they informed me that will only speak with me when the loan is in default...well the loan is officially in default...
My goal is to try to work out an agreeable modification...A negotiator called me the other day and left a message....I called back the home retention number and was told by a customer service rep that I have to submit a financial hardship letter and my past 2 years of tax returns....I have no information as to where these documents need to be mailed to...I have not received any information from Countrywide requesting this information as well, I am trying to be pro active and get this whole process completed....stumbiling across this website was a godsend!!
Where should I send these documents to and since the negotiator did not leave her name or extension # how do I proceed??
I just want to make sure the documents end up on some real persons desk rather than getting lost in the shuffle....thanks for the advice....

[Moe Bedard]

Hi snook,

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

To start off you can put your hardship letter into the body of an email, make sure you have your loan number and contact info in there, and send it to each of the email addresses below..........you should receive a response back either Mon. or Tues. and they will give you the contact info you need and where to send the other documents to get started.......

Hope this helps.......
Please keep us updated......

[snook]

Thank you ***,

this web site is an incredible resource, i was contacted by the presidents office this afternoon by Khara Turner, she was very pleasant and gave me the guidelines for trying to remodify the loan.... I will keep you posted on how its going....

[snook]

I just finished all my paperwork that CW had requested, our profit and loss statements were all negative for the past 6 months....I dont think I will be able to remodify....
I am currently trying to do a short sell....no interest for 60 days now
My wife is not on the note, her credit is fine
Our assets are in our primary house which is homesteaded, and our IRA's...there is some monies held in joint accounts but my wife (who did not want to be involved from the get go) will never let the bank have it....
will CW take a deed in leiu? (its an investment property)
if they foreclose, are they issuing defiency judgements??
I owe 140,000 on first, 17,000 on second (all with CW)...the property is worth approx. 75,000....I might be able to swing some additional monies for negotiations.....any thoughts??

[Moe Bedard]

snook,

Here is the Florida Foreclosure Law for you............
as far as Deed in Lieu.........that would be a question for CW and the same department that gave you the o.k. for the Short Sale can answer that.
Whether or not CW will go after a deficiency judgement or not......in Florida they are allowed.......and because their interest is in both loans......they might.

Florida Foreclosure Law

[snook]

If I cannot remodify my loan, and face foreclosure or possibly a deed in leiu, I know my credit will be shot for 7 years or so, My wife is not on this investment mortgage nor is she attached to the loan in any way....will her credit be affected in any way.....if she is clear, she has good credit and we can just put any items in her name....is this a correct assumption??

[Moe Bedard]

That would be a question for an accountant.........

[snook]

I found out yesterday that the home retention department informed me that my remodification for my loan was denied....when I called my negotiator, he had no clue but agreed we had no extra surplus left over....I guess Im heading down the road to foreclosure at this point.....I just wanted to share my thoughts about this whole experience....I am so over the depression and guilt....We packed up and went to Disney last week and had a great time!! No body here is a criminal, some of us made bad investments and some of us had a bad turn of luck....nothing more than that....yes it will be a bump in the road, but I will get thru it!!! If you go through life without thinking you will not make any mistakes your terribly wrong....I have a 5 year old son who NEEDS to see me with a smile on my face....and that is going to happen from here on out.....the most important thing in the world is your health, family and freinds....this bank mess will go away and I will come out fine in the end.....just my thoughts.....

[schwefls]

Snook:

I am so sorry to hear this. They gave you no reason for the denial? Did you show the $100-250 surplus in your budget? I would demand an explanation if one was not provided.

[snook]

I called my negotiator yesterday just to discuss more options....he said If I could show a surplus of some funds, the remodification would still increase my monthly payments....how does this work.....Prior to being in default for 4 months, I was making minimum payments and going into negative ammoritization every month....In a remodification plan do they forgive any of the debt?? I asked my negotiator about remodifying using current market prices.....he keeps on telling me the same thing over and over, make the minimum payments and bring the loan current.....I keep on explaining to him that this would take me back to square one.....I owe 140,000 on first, 17,000 on second and both are CW. My minimum payments are around $600.00 (about another $600 gets tacked on for the negative ammoritization) so my loan continually goes up.....I told him that if I could lock in the 600.00 payment with no negative ammoritiaztion, find a renter, this would probably work.....but he keeps telling me that my remodify would be higher....Very Confused....any thoughts

[faith]

Peace be with you!

You have to prepare your heart about this matter.

Have you tried to email the ones that *** mentioned in this site. Did you write them a financial hardship letter and explained to them that you cannot afford it and you are trying your best to work with them thru modification, or short sale.

If CW will not approve your modification, you need to talk to a real estate agent that knows the in's and out of Short Sale, you can check BBB search for the best real estate agents and go from there. CW will accept short sale if your home is already listed with an experienced agent who knows short sale and if you have an offer from a buyer. But just want to let you know short sale is a very draining process, buyers backed out due to long process, it takes about 4 to 10 months before a short sale gets approved from CW.

You also have to consider to move out now while your credit is still good and look for another home or apartment to rent but you have to let CW know where to send their correspondence to you. If you have moved out, consider opening a mail box for a while and forward your mail to the mailing box, less stress.

If Short Sale is not what you want and you continue to default and CW will not modify your loan, then the last thing CW will do is to foreclose but even that takes about 6-10 months sometimes a year.

If you want to rent an apartment, the rent now goes from $1675 thru $4,000 depending on the size and location. I am renting a 2 BR and 2 BA in a very secured and gated and quiet and nice apartment in SD County, homes here rent from $2000 to $4000 a month. I am giving you all the scenario for you and your wife to weigh which apple is bad and which one is not.
I hope and pray that God will help you make the right decision and the right people, agent, negotiator to help you with your situation.

God bless you and peace be with you.

Take care,
Faith

[snook]

thank you Faith....I followed Cats advice, gave all documents to the bank, my negotiator basically keeps saying the same thing we can not do anything....at this point I am trying to short sell but I am also being realistic that this might go to foreclosure.....if it does, I'll take the hit and move on....this is not my primary residence and my wife is not on the note as well...so credit wise I will only take the hit...

[Moe Bedard]

snook,



In answer to your question.........the reason that a modification can sometimes raise the payment, is because you were making the minimum payment which most of the time is interest only........when they modify they don't forgive debt........they take the past due payments and add them to the principle balance.........then they will modify somewhere in the 5-8% range depending on the investor on the loan.........but the payments are fully amortized including Principle, Interest, Taxes, and Insurance..........so this is why the payments would turn out higher than the minimum you are paying.....

Hope that helps clarify.........

Good Luck with the Short Sale..........
Please keep us updated on how it is going.........

[snook]

***,
Thank you so much for your dilligence and answers, it must be an incredible task to keep up with all this....My negotiator whose name is Coleman, will not do anything for me, he said since I was at the time making the minimum payments at the lowest rates, he said my payment would probably be double with a remodification....On a different note, my wife did not sign on the note, she is in no way attached to this mortgage at all, we file jointly and the only way we could have afforded the loan would have .been to include her on the orinial note. There is no way I should have been approved without her signing on the original loan....Would a "Qualified Written Request" under Section 6 of the Real Estate Settlement Procedures Act (RESPA) be something that I should inquire about...I have read a little about this, and it seems to be something that might help some of us.....thanks so much.....

[Moe Bedard]

snook,

Coleman is right about the payments..........maybe not double, but they will go up because of being fully amortized........

A QWR is a (Qualified Written Request) it doesn't hurt to do it, but if you feel that there maybe violations of RESPA associated with your loan, it would be a good idea to have an attorney do a doc review with a modification so that they can use that information to budge the lender on the modification if they can..........go to the loan modification section of the forum.........I have an example there and CW addresses to send it to........

[snook]

my real estate agent just called me, she has a contract for cash, its a short sell and who knows how long this will take....can my negotiator Coleman point me in the right direction? Or do I have to start all over again.....I am going out of the country next week for a job and wont be able to work on this...can I give my agent the phone numbers to contact??

[Moe Bedard]

snook,

Hasn't your agent been dealing with them while you have been listed? You should have sent the authorization for your agent along with the Short Sale package...........it is called third party authoriztation and it should have been in the Short Sale package.........
Then you don't have to worry about all of that because that is what the agent is for......

[snook]

***,
Once again you shed some light, I was never mailed a short sale package, nor given the opportunity to have my agent authorize a deal....I spoke with Khara Turner this morning and she wants all the information regarding the short sale and authorization letter faxed to her office....she said she will get this to the right person and department, and encouraged my agent to call her for follow ups....Khara has been a great contact....I am a bit concerned over the difference of the sale price and what I owe.....I owe approx 160,000 and the short sale is for 65,000....what can I expect Countrywide to do about the balance?? My negotiator Coleman, said that most likely the bank would accept the offer.....still not sure how this will pan out....but I guess at this point, its better than a foreclosure and its encouraging to get a cash offer...

[snook]

***,
Once again you shed some light, I was never mailed a short sale package, nor given the opportunity to have my agent authorize a deal....I spoke with Khara Turner this morning and she wants all the information regarding the short sale and authorization letter faxed to her office....she said she will get this to the right person and department, and encouraged my agent to call her for follow ups....Khara has been a great contact....I am a bit concerned over the difference of the sale price and what I owe.....I owe approx 160,000 and the short sale is for 65,000....what can I expect Countrywide to do about the balance?? My negotiator Coleman, said that most likely the bank would accept the offer.....still not sure how this will pan out....but I guess at this point, its better than a foreclosure and its encouraging to get a cash offer...

[Moe Bedard]

snook,

If your agent is well versed in and has done Short Sales before then they should know that they would have to negotiate as part of the Short Sale on the deficiency amount that would be left..........it is part of the negotiation process that your agent can do for you...........

[snook]

First off, cudos to *** and others for the advice and understanding.....My short sale was approved on July 22nd by Countrywide and received the agreement in writing....(all debt was forgiven) I received the call from the title company and my real estate agent a while ago that the sale was closed and countrywide was wired the monies from the sale....it was a cash deal by the buyer which made it easier, after reading all these horror stories, my deal was done in under 2 weeks and I believe that there were some key elements to the deal which I would like to pass on:
As *** said, you need to go thru the office of the president and no one else!!!
Send all documents which are requested and follow thru
YOU NEED A TENACIOUS REAL ESTATE AGENT WHO WILL NEGOTIATE THE BEST POSSIBLE DEAL....I did not deal or speak with the short sale negotiator at all....
My real estate agent who is a family freind worked relentlessly to get this deal done....she deserves all the credit for the sale....
I feel like an anchor was lifted off of my chest!!!! Have faith and DO NOT give up..

[elpjohnson]

snook

CONGRATULATIONS!!!! This is great news.....enjoy!

[Moe Bedard]

snook,


YAY For YOU!!!!!

Congratulations!!!

I hope you are celebrating!!!

[faith]

Snooky,

Yay!!!!!!!!

Congratulations!!!!! God is really good.

Faith

[mustangpg]

Wow, that's awesome! Countrywide is one of the slowest ones out there!