Profile picture for chevyguy0783

need advice on current loan

hello everyone I just registered here and i decided to post this because i read a few topics and it really seems that the people in here know what they are talking about. I need help with my currect loan with Countrywide. I've been trying to refi since january with no luck what so ever. I started with my current lender which at first seemed really help full in the end the guy who i was dealing with didnt return phone calls or email and a few week later sends me an email explaining that he went on vacation.. wow that was an experiece. I proceeded with local broker which till this day i keep getting the run around. I'm basically to the point that i want to quit but ofcourse you cant just quit when it comes to somethign like this. I found out that theres a lot of people in my area that already stop paying their houses but none have actually gone into foreclosure or short sale. I was recently in contact with the agent who help me buy this condo and she informed me that the max that the condo can be appraised is 270k and my loan right now is for 340k. She suggested a short sale. I hear alot of different things on tv and just want to see what you guys suggest, i didnt really want to loose the place but dont have a choice she said if i do a short sale i can stay there for about 9 months with out paying anything if it doesnt sale.. My original payment was 2300 and right now because of the variable rate it went up to 2900. I'm fed up and need to know what you guys thing. Thanks in advanve and once again I'm new in here and not sure if i posted this in the right place.

  • May 29 2008 - US
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Answers (24)

Sorry for your situation... If Countrywide won't re-work your loan (loan modification) and you TRULY cannot afford to keep up with the rising mortgage payment- then yes, a short sale would benefit both you and the lender. However, there are tax ramifications. (supposedly those will be wiped out when the new legislation hits, but we'll see). As it stands now, Countrywide can approve your short sale, then 1099 you for the difference. If it was a first AND second mortgage, the second mortgage holder can them come after you as well... It's a sticky situation, and not something you want to consider unless you absolutely NEED to get out from under that loan.

 

What type of loan did you have with Countrywide? When is your next adjustment?

 

 

  • May 29 2008
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Profile picture for ELender

Your rate went up and caused your payment to go up $600 per month??  I work at CW and can have a quick look at your loan to see what is going on...

  • May 29 2008
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Profile picture for chevyguy0783

well i only have a single loan and its with country wide. Ofcourse last time i refinanced this place was when everything was ok and i had a two fixed then varialble after that which is where I'm at now. I believe the loan was at a 8% and went up to 9.5 and do to go up another 1.5 point in two more months. Yes my payment went from $2385 to $2950 (somewhere close to that) . Wow i didnt know i would be hit for the difference like i said i dont know much about short sales but i thought  the bank would have to eat the rest but only if they approve it. I really dont want to owe anything to anyone in the end and i was looking forward to what the agent said which was that i would be able to stay there for another 6-9 months w/o paying anything. Theres too much stuff going around and by the time you hear it some of the details are left out. I cant afford the payment anymore and was looking for the best possible option and it seemed was the short sale.

 

 

elender

 

i started with countrywide and like i said i dunno what happened with that guy but i dont think he did the right thing, he ran everything my credit and had all my info and left me in limbo land. If you could look at and tell me was up would be ok.

 

Like i said the agent that I'm talking to NOW said that the home wont value the amount that I owe and therefore the best thing would be the shor sale so i dunno what should i do. Thanks for the info by the way.

  • May 29 2008
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Chev,

 

There is probably not any workout of a loan situation that you will be able to afford according to the tone of your post.  List it with an agent with some experience in dealing with attempting short sales.  They are not easy like you hear on TV and they are not simply "short" people who handle the closing.  Then,  I would save every bit of money I can each month to be prepared to live elsewhere.  Sorry for your strife, but SAVE money...  I have personally spoken to someone 5 months behind... says he can't afford $3,000/month (current payment), but could pay $2,000/month.. I said... "I'll be you $500 you don't have $10,000 in your checking account."  He told me he had less than $1,000.  meaning... he can afford $200/month rent at that pace.  get prepared now and don't try to become a financial savings guru when removed from your home.  We only change our financial ways when we want to make the change as noone can do it for you.  Good luck and get good people to help you.

  • May 29 2008
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Profile picture for chevyguy0783

martin

 

the problem is getting people to tell you the truth right away insted of running around saying that they can make it happen. I can pay up to $2400 which is what i had before but why pay that for it if the house isnt worth it anymore. Thats what i was thinking about just do the shorsale and save the money so when i have to leave the place. I know nothing is simple specially how everything is now I just whished i was told what your saying now 5 months ago when i started paying the $2900 for this place. By the way if i go the "short sale" route what happens when the house doesnt sell and its time for you to get out? I've heard different things one being that they go and throw you out and dont let you take anything, is this true?

  • May 29 2008
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Profile picture for ELender

Chevyguy--I just need your last name and last four digits of your social and your last name.  I'll have your loan analyzed in a few minutes.  If you want to email me or look up my number on my profile that would be great.

 

As far as a short sale goes, if you are in the home trying to sell it for less you will still want to try to make your payments....maybe see if CW will waive the escrows for some temporary relief (realizing that those tax and insurance bills are still coming).  If you stop making the payments all together I'm pretty sure that they will start the foreclosure process.  They can't lock you out of the home until the foreclosure process is complete...

  • May 29 2008
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Chevy- last question first- Yes, whatever you don't get out prior to the date they take your home will become their property. Most people leave junk.

 

If you can afford the $2400, hope for the loan modification. That way, you can stay in the house (even though it is depreciating right now- just pretend you are paying rent) and you don't have to worry about all the tax/judgement/lien issues that will come up with the short sale. If you don't get the loan mod, consider the short sale then. After you miss 3-4 payments, they will be more willing to talk about it. At that point, your credit is in shambles. Don't think you'll be able to get any credit, of any kind, soon after...

 

Just like the GI Joe sign-off- "Now you know, and knowing is half the battle"... why I just had a flashback to after school cartoons is beyond me, but still- the message is clear. Get a fixed rate next time :)

 

 

  • May 29 2008
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elender i emailed you..

  • May 29 2008
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OK, give me a little while...

  • May 29 2008
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Profile picture for Wayne.T_ .....Colo.

Chevy, be sure to get sound legal advice as well.  As others have suggested, there are sgnificant issues involved.  Short sales can be with or without recourse (ie: whetehr the bank wants you to pay after the sale or not).

 

Sorry you are having to face this, but surround yourself with quality support and you will get through it. 

  • May 29 2008
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Profile picture for ELender

Any of you lenders recommend a good short sale agent??  San Jose CA

  • May 29 2008
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Profile picture for chevyguy0783

i know wayne like i stated before finding quality support is sometimes hard to find, a person can say one thing but will do something else. This is what happens when you get stuck with sucky loan and with bad timing.

  • May 29 2008
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You got the pay for two years and then refinance when your situation approves right??

  • May 29 2008
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elender- oh what a tangled web we 'weaved'? 'Wove'? Shoot, what's the past tense of weave??? :)

 

 

  • May 29 2008
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Even though I was in retail I got to see plenty of AE's pushing those loans....everyone wanted my turn downs....

  • May 29 2008
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Profile picture for Wayne.T_ .....Colo.

Chevy, let's take a look at some basics again.  You mentioned not wanting to loose your home.  Your agent is suggesting short sale, but that is not your only option if you want to keep your condo. 

 

You need to either increase income or decrease expenses to make ends meet.  IF the refi (decrease expenses) is not available right now, look at what areas you can decrease expenses. Is a 2nd income possible for a while? The GOV't is still working on changes that will allow lenders to do bailouts / extensions / etc. The right condition does not exist now, but may soon, so consider options for a while to ride out the storm.  

 

Overall, consider your total financial picture. How do rents compare to your house payment? If letting the house go to short sale or forclosure puts you into a rental situation where the payment is just as bad ..... not a good idea.  Better to dump "toys" or 2nd car or other items and keep holding on. 

 

Good counselors:  Local church / pastor you can trust?  Check out Crown Financial Ministries online at www.crown.org for some helpful insights on both.  

 

I cannot do loans in CA, but I can certainly help with finding support.  Feel free to email and I can send you more detailed info on who may be available in your area (not lenders, but other support you could trust).     

 

Best regards to you!

  • May 29 2008
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Chevy--speaking of rents what could you get if you rented the place?  If you can get say $2200 for it that leaves you $700 short in the payment.  Downsize you living situation maybe find a place for $1500 and that leaves you with $2200 out of your pocket every month and you can hold on to the place and ride out this downturn.   Just an idea

 

  • May 29 2008
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Profile picture for chevyguy0783

Well the only reason why I didn’t want to loose the house was really because I always got good taxes at the end of the year. The only benefit that I thought about this was that I might be able to stay there for a little bit until the short sale went throught therefore letting me save some money but now I'm hearing that might not be the case.

Yes a 2nd job is possible or getting rid of things also but really why do it if the house is already 60k under from what my loan is? This is overwhelming and never thought that I would be in this situation. 

Thanks for all the help and all the advice I really hope everything turns out ok in the end.

  • May 29 2008
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Profile picture for Rob Cochems

Chevy,

 

You really only have a few options.

 

Rent it out and try to make by with your payments.

Get a loan modification

Shortsale

Foreclosure

 

They all have negatives, but refinancing is not an option.  Speak to conselors, figure out which one benefits you the most. 

  • May 29 2008
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Chevmeister. . . I am not sure what state you are in; however, in CA Arnold has negotiated with Wells, Countrywide and I think about 8 total lenders as part of President Bush's fiscal stimulas package passed in February that may help you. 

 

Essentially is you are current on your mortgage and the increase due to the reset will result in you not being able to make your payments and you VOICE that to Countrywide, they should agree as per the terms of the fiscal stimulas package to keep the rate fixed for five years as it stands before the reset. 

 

So I would call call call Countrywide and see what you can get done.  It is not a traditional loan modification but a more progressive forebearance agreement that are the norm in CA due to the high level of bank owed and short sales. 

 

Good luck!

  • May 29 2008
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"It is not a traditional loan modification but a more progressive forebearance agreement that are the norm in CA"

 

Mike you give out some good info at times, but when did a forebearance of any kind be the norm in CA? And no offense E Lender but when has countrywide actually negotiated with anyone on anything more than a case be case basis?

  • May 29 2008
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GC,

 

I doubt any lender has started calling up their portfolio and asked if they could rework their loan for them....

  • May 30 2008
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Chev,

 

Sorry I did not repsond back to you, but you have gotten great info from others as well.   You referenced you could and did pay $2400 and also rode the last 5 months at $2900/month, but the home is not worth it anymore.  I'm not saying you are doing anything wrong, but every car that is financed is underwater for years and yet the vast majority of them are paid for.  No the payment doesn't jump $500/monht in year 2, but there is some trickeration in car financing as well..   Make sure YOU and I stress you and you only at the end, make the best financial decision for yourself in the now and the future credit wise.  Bad credit and credit scores are very expensive... not today, but the next time you need capital.  We make "mistakes" on credit cards worth $1,000 and our scores sufffer and the next itme we need a $40,000 car loan or a $200,000 mortgage and we get the "risk" priced from previous decisions in our rate on the 2 largest items we usually finance.  It is not a simple asnwer as nobody on this board knows the future, but I will tell you that if you have terrible credit scores, you will be penalized the next time you borrow money.  Get great advice and a road map on how to save money if you leave, negotiate "terms" payoff and credit wise with your lender if you must sell and weigh all those facts before you simply give up.  If you can tough it out there (underwter right now and all) it might be the best financial decision you make or not.. up to  you.. I wish you well and glad the E could shine a little light at Cwide for you.

  • May 30 2008
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One option would be looking into what the counselers at the government sponsored Hope Now program can do (http://www.995hope.org). Though, due to the overwhelming amount of requests for help they’re receiving right now (http://loanworkout.org/2007/09/29/995-hope/)… they may not be of much help (especially since your ARM hasn’t adjusted, much less have you fallen behind).

Lastly:
Please vote "yes" if you found this post helpful on the button below (lenders too... there's good stuff in here for you all as well! ;-)

Resources:
FHA Max Loan Limits Per County: https://entp.hud.gov/idapp/html/hicostlook.cfm
Great Loan Workout Sites: http://www.loansafe.org & http://loanworkout.org
Trusted Credit Repair: www.creditresourcecorp.com
Trusted Loan Modification Company: http://www.homerescueprograms.com/ (Great helpful site too. I’ve personally spoken to Jim a couple of times. Nice guy. He’s been doing this way before the subprime crisis sparked off.)

Best wishes in your mortgage search!

Sean Rafferty, CMPS®
Sean@YourPersonalMortgagePlanner.com

  • June 17 2008
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