Countrywide Declined My Loan Modification :(

[ltrain823]

Hello everyone, I hope all is well. I wanted to share with everyone what just happened to me this morning and also ask some advice is if I could...

Countrywide called me this morning and told me my loan modification was declined because I was current on my mortgage. The lady specifically said if i was 120 days late or more than there possibly could have been a program available.

I cooperated with everything they asked me to do to get this done and in my financial hardship letter it stated that our family business is going to be closing down Feb 2nd and that there could very well be some missed payments and possibly even a forclosure. The lady literally said when you are close to 120 days late give us a call back and we will see what your options are.

Now here is my question, I am currently in a ch. 13 and I did not include my home. What if I waited 120 days to pay them and called them then to make a modification and they denied me again and then I continued to make payments to them 120 days later...what would countrywide do? My payment is $2045 and I know in February and March I'm not going to be able to pay it, I may be able to come up with half but thats all. My family and I plan on going back to work soon since our business is closing which would really help with the income in the house but "what if" we didnt pay the next 3 months and then picked up where we left of 3 months from now? Would countrywide want the entire 3 months of missing payments? Would I be able to continue to pay $2045 90-120 days later? I know it sounds dumb but does anyone think I would be able to call countrywide and explain to them after 90-120 days late why we couldnt pay them and that now we are back in shape to be able to make the payments? I've heard of something like they would just add those 3 or 4 months payments to the 30 year loan adding 4 more months to it?

I'm not trying to get around anything I just know I'm not going to be able to make these payments for a little while and I didnt want to go into forclosure because I want to keep my home but does anyone know if countrywide could take my home away from me for missing a few payments?

Your help is much appreciated. Thanks!

[usmccop]

I'm no expert and looking at my options. I am doing some research. Help may be on the way thxxx to actual Leadership almost on the train to the White House. Also, not sure, if the CRAMS pass, the specific terms by the BK CT. Also, not sure of your specific scenario tho as I was behind when I filed. Sounds like you were current. Also, you have leverage due to the economic mess.

I look at the current state of the banking system, bailout, and it's sickening. They're all broke, handed money if the hopes to ease credit, but it's looking as it is the reverse. And we have a very good chance of eating it for them and the outgoing/gone Admin. They lobby for BK reforms, they go broke, we hand out billions on hopes of worthless stock. And they don't even have to do a BK. SORRY, had to vent... Actually, turned RED in 2000 for about 9 mo. Poor decision.

[catleg]

It's not like a credit card where they can jack the rate to 29.99% right?
Seems to me you're risking at most a few late fees, your credit score is not your main concern right now. But caution, this is just my pure speculation, not my legal advice, which is to start drinking heavily.

[rjl0206]

I was/am in the same boat, mortgage lender (my mort. with fannie) even says on their website you must be at least 60 days behind AND NOT in bankruptcy. I did pretty much the same thing you did, contacted them 4-5 times explaining my situation (loss of hours/overtime at the hospital) and me getting into a newer stabler hospital but with a cut in pay. Current on everything except now starting to get behind and live paycheck to paycheck each month because of the loss of money/hours. You can only cut out so much in your life, even went ahead and started debt management program, stopped using major cc's etc. Finally, pleaded my case with them before I get behind and would eventually be late/miss a mortgage payment. What did they keep telling me? YOU MUST BE AT LEAST 2 MONTHS BEHIND ON YOUR MORTGAGE FOR US TO EVEN CONSIDER YOU FOR MODIFICATION!!... Grant it, this was before I ever conceived about going into bankruptcy, but now you know what? **** it, Im going into bankruptcy anyway? why not end up (NOT INTENTIONALLY) missing two months payment and use that cash to fix up my car, pay down some debt (smaller cc's/medical bills) and such prior to filing? whats the worst that can happen? forclosure? Big drop in credit rating? im already gonna end up in bk, might as well try to go for a lower apr through modification before I file!!! plus I may be able to clear away a good amount of small debt/fix my car/pay off tuition etc with the money i would've paid my mortgage which would end up being late or missed anyway..


good luck,
ray

[justbroke]

I'm no expert and looking at my options. I am doing some research. Help may be on the way thxxx to actual Leadership almost on the train to the White House.

I beg to differ. Help is NOT on the way, just because some person is riding a train to D.C. and will be entering the White House on Tuesday (20JAN2009).

The plan which is presented by the Congress won't help even 600,000 people of the current 6,000,000 to 10,000,000 of the people who need it NOW. Trust me, the Bankruptcy process is very very specific and won't cover everyone. Plus, you have to be in Bankruptcy for any of the judge induced loan modification to even be possible.

Personally, I would continue to work with your Bank. You do actually need to be past due by 90 days to get a loan modification from almost any of the Banks. They won't show mercy until you are really in financial need, and that's not just anticipated need.

If you can't get a modification through your Bank, then you may be one of the lucky 2% that can get a modification through HOPE or any of the "new" programs, that are not working and will not work because they have so many pe-requisites.

I'm not trying to be a downer, but the reality is, that this is NO program proposed or current that will save everyone's homes. You actually have to be able to afford the house... just to start thinking about qualifying for any program -- even those today.

[Flamingo]

First, since you are in Chapter 13, you cannot do anything as to your loan without first consulting your attorney. If you miss mortgage payments while in your Chapter 13 you risk dismissal. Your finances are not under your control during a Chapter 13 and are under the control of the Trustee. Call your attorney and discuss with him before you proceed with anything else. Best of luck to you!

[usmccop]

Outdated info

[QUOTE=justbroke;233712]I beg to differ. Help is NOT on the way, just because some person is riding a train to D.C. and will be entering the White House on Tuesday (20JAN2009).

I too. I said help MAY be on the way. And it probably is already here.... First, there are a number of proposals in the works right now regarding a number of BK changes, not to mention CRAM DOWNS (BK Judge write-downs). Citi has already agreed, with counter proposals, to the aforementioned. However, whether or not it passes, and what the specific rules will be--we'll see. But the our new president, tomorrow, has said in the past his support of such. CRAMS bill will be for people already in a 13 Plan, but who knows if it'll be a reality.

It's not one man, but getting rid of the other two, not to mention hundreds of others in the admin, and a number in that party in Congress, and, hopefully, a new mentality.

Banks are realizing they cannot sustain more and more foreclosures. So, we'll see. (but maybe so with the 800 billion handed out). Actually, the changes to the 2005 BK code, and subsequent failed attempts to allow write-downs, can be directly attributed to the mortgage meltdown, and now the recession and maybe a depression. The financial institutions begged, cried, and financed BK reform, but, ironically, they are now reaping what they sewed.

For others: There is a new site, for 13's to assist w/ modifications... Trustee approved. I do not know all the facts!!! It's some "web-portal." GOOGLE: new chapter 13 web portal. Your attorney has to sign you up. I e-mailed them and was given the site to have my attorney submit my info.

Also, to a number of below posts, only my suggestion, I'd hold off on purposefully getting yourself behind so the mortgage companies will discuss mods with you.------till we see what happens in next 60-90 days.

[justbroke]

i just hope that there is real meaningful reform. I don't want to point blame at any particular person or groups of people, because they are all equally at fault.

Everytime the collective they have announced some new plan to stop foreclosures... it did not.

If we do get the ability to modify loans in a Chapter 13... a current Chapter 13, it won't help me much because I already stripped my 2nd and the residual was just about the value of my first. However, a re-amortization or something else, would be nice.

[rrockinggramma]

don't count on the people who got us into this mess to get us out. There are way too many bankers and lawyers in the pockets of the Democrats for any cram down in bk to occur. Too many oppose it because it causes people to file for bk to get it, it changes legal contracts that were signed, and it will continue to kick the can down the road.

[imaloser]

clawback

just watch - there will be clawback clause to be sure - this meaning that the lender/servicer will share in "appreciation", or, the principle amount that was reduced in chapter 13.

and just like the junior lein strip in a chapter 13, for that strip to "stick" you must complete the plan for the cram-down of the primary to "stick".

so, you'll still be under someone's "thumb".

most modifications default in the first place because payments actually rise - especially for all the option arm folks - they qualified for a loan at the lowest possible interest rate (thinking they could refi out of it). but refi into what ? a fixed rate loan ? they couldn't afford the payment to begin with - a fixed rate loan, that is. they certainly can't qualify now for a fixed rate. the payments are too high !

[vicmost]

don't count on the people who got us into this mess to get us out. There are way too many bankers and lawyers in the pockets of the Democrats for any cram down in bk to occur. Too many oppose it because it causes people to file for bk to get it, it changes legal contracts that were signed, and it will continue to kick the can down the road.

Thats for sure!

[saintjohn]

loans were supposed to help people to enjoy things they can't buy immediately, but can pay for, little by little at a time.

now, it seems to be the very thing to take you down. pathetic.

[aa06a47]

Funny, the banks are asking and taking billions and billions of dollars because they are in trouble, but don't seem too motivated to assist people who need it. Wonder if uncle sam wasn't with them writing checks, would they be more willing to help. Face it, on a 30 year loan, I would estimate after about 12 years of paying, the mortgage company has every dime back and more that it loaned.

[StartingOver08]

Funny, the banks are asking and taking billions and billions of dollars because they are in trouble, but don't seem too motivated to assist people who need it. Wonder if uncle sam wasn't with them writing checks, would they be more willing to help. Face it, on a 30 year loan, I would estimate after about 12 years of paying, the mortgage company has every dime back and more that it loaned.

Absolutly. If you look at a regular 30 year amortization schedule you end up paying back more than double. For example, you borrow $300,000 now at 6% for 30 yrs and you end up paying back $647,514. in principal and interest. This does not include all the fees to originate the loan and assumes () no refinancing or early payoff.