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Hello to everyone who responded to my earlier post. First of all, I want to thank you because my husband and I learned so much from your knowledgeable input.
Here's the update regarding our situation with Countrywide. We took your advice to be squeaky wheels and this time we took our issue directly to the Loan Modification department. This is what they offered to my husband:
1. No penalty because it's a modification (our current loan has a huge prepayment prior to 1/1/09)
2. Five years interest payment at 5.5%.
3. Cost to us will be $500.
Because we'll be paying interest only as opposed to the minimum we had been paying, our payment will go up but we will be able to handle. At it's face, the terms of this modification appears reasonable to us. However, since you've all had a hand in guiding, please let us know if you think this is reasonable and if there are any questions we should ask before proceeding. Thanks.
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the only thing to worry about would be the lack of increasing equity. If housing prices rise again, you'll be fine in 5 years... BUT, that is a huge if... Hope for the best, and at the very least this will buy you some time.
If you can afford it, it wouldn't hurt you to apply a little extra every month to your principal.
Did they mention what specific implications this arrangement would have to your credit profile?
Jennifer?? Lack of increasing equity? She is currently negative every month....better to at least stop the bleeding, don't you think?
I think you did great. 5.5 is a below market interest and this a perfect example of the modification resulting in an improvement to both the homeowner and borrower.
How long did it take you to get the results from Countrywide?
That is great news!
I just hope more folks in your situation make the calls they need to make. Don't take no for an answer.
e- I was more talking about the fact that the 5.5% would be interest only... unless I read it wrong... that means, in 5 years, she'll be in the same situation- unless home prices increase. Of course I think she should stop the bleeding, which is why I stated 'Hope for the best, and at the very least this will buy you some time.'
Thanks for your concern :)
I see what you mean but at least she won't owe more in those five years than what she does now...hopefully she can find a way to start paying down the principal....
You folks are great. We just wanted validation that we've been offered the best option (wish we knew about Zillow three years ago). We'll get the paperwork started. This is a huge load off of our shoulders. To answer some of your questions:
1. Our credit profile would not be too adversely affected as we confimed that the only they'll be doing is pulling a credit report. Our combined average score is about 780 so even if it does go down a bit, it won't be the end of the world.
2. The negative amortization (coupled with the downturn) over the last three years pretty much ate much of our equity. It's okay, though. We can live with it. At least with this modification, we won't be upside down.
3. It took only one call (this morning) to Countrywide today and we got these results. (Unlike these past six months where we've gone every where from trying to refinance, write letters, phone calls to annoying voice-mails, etc. and received no substantive help/results. This time, taking the advice from our earlier post, my husband called directly to loan their modification department.
Have to think positive. Will wait for the documents and this time we'll read them through to make sure it reflects our understanding.
p.s. Kids all graduated by end of next year. We will definitely be out of this house within five years. :)
Congrats on finally breaking through!! I'm sure this time has worn on your family and I hope you use this opportunity to put you in a better financial position for your future...
Amazed at the speed you got this offer through them. Sounds like it will work for you and what you were trying to accomplish and stop the monthly bleeding.
Let's hope it sticks. I had a customer recently in similar situation get an offer from WAMU and when it came time to sign the mod the rate was 7.1%.
Let us know how it turns out.
Maybe CW read this post over the past days also; knew they should put their hands to the sky...When you review the docs come back on here again and ask more questions. Many times credit gets trashed when a loan is modified, double, triple check this for sure, also take a look for any refi/sell the home type 2nd liens that they might try to sneak inAll and all this is a 'so far' happy ending to a bumpy story...both you and CW could take a little heat for the result at hand up to now, good to see each of you (you - David, CW - Goliath) are coming to a reasonable compromise and leveling the battlefield.
Good, heart ticking news is hard to come by in this industry these days Nang... thanks for the update
Great to hear! There are a lot of good people on this board with a lot of knowledge and experience to share. That is a VERY good rate. The lady I did the modification for went from an adjustable 10.5% down to just above 8% fixed, and she was thrilled. 5.5% is unbelievable. Good job!
nangnang....the loan modification dept was so rude to me. Do you have a particular contact you spoke to that I may possibly speak with? I am in the same situation.
I have an ARM with Country Wide that will adjust in March 2009, I asked for a loan modification a month ago, they said to call back 1 month before my loan adjusts. Is it possible to get a modification this early or are they deceiving me.
Keep calling, be persistant...
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