Countrywide loan modification?

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I make this quick. Have some circumstances, my wife and I fell behind our mortgage. Our lenders nationwide. We requested a loan modification. How many times have they actually achieve in something sensible? We financed 100% of subprime ARM with a 80/20 and prepayment penalties. (A piece of junk loans, I know, we now know better) Countrywide wants more financial information to our case. We are still struggling with their payments. We are just starting to get traction back financially, but in serious crimes. There is no justice, there is a house in Florida, we have some money but not enough to update. anyone advise? Please do not lecture on the economy or the “housing crisis.” It refers to a mortgage modification.
I therefore propose to start a new job. Im in Ohio and I am bewegt.Wir South Florida two years of a mortgage, never missed a payment. There is currently interest, but it’s an arm, the adjustment began after 7 years Hätte.Es is a first mortgage and installment loan from National City Mortgage and National City Bank, respectively. 80/20 Total funding $ 419.000.Also my question .. we just want to walk? Should I try to short sell? My wife is the only person on the loan docs and it currently has a good credit (700 +) but no income. I know it’s his honor and mine has always been small in 500 because I have problems with medical bills are lazy verwüsten.Wir end 20 with 3 small Kindern.So … I did not pay January 1st Mortgage, National City called and they sent me a hard form. If you have not yet fulfilled. The term loan has been our current account automatically eingezogen.Mein thought was to seek clemency for 12 months until then, I could probably take over the payment of commissions from my new job we do for rent in Florida first two could Jahren.Auf the other side is a lot of money $ 35,000 a year to just try to keep my wife sell hoch.Eine credit score in the short and long and could take credit ruinieren.So my wife anyway … What should I do? Chapter 7? The important things are that we will be able to rent to rent cars and houses proceed. We do not use credit for anything else. We have about $ 35,000 in credit cards and less than $ 10,000 in balances and we pay you re regelmäßig.Vielen in advance for all your advice!

  1. Reply
    February 20, 2011 at 7:24 am

    Give them the financial info they are asking for. This is your best bet to get the loan terms modified.

  2. Reply
    Michael G
    February 20, 2011 at 8:00 am

    I’ll get straight to the point.
    You asked how often do these actually materialize into something decent?
    well, that depends.
    here is how a loan mod works:

    let’s say your mortgage is 1000 per month.
    and let’s also say you are 6 months behind.
    that means you are behind $ 6000. with me so far?

    okay, the way a loan mod works is this:

    countrywide will take that $ 6000 that you owe and divide it up over the next 6-12 months and ADD it to the mortgage you already have. so let’s look at the most favorable example:

    if they split it up over the next 12 months (which is all based on approval), that means your loan mod payment is $ 500. make sense? $ 6000 divided by 12 months is $ 500. okay?

    here’s the kicker: that’s on TOP of your existing mortgage, because you still owe that.

    so what will happen is you will end up paying your regular payment of $ 1000, PLUS the $ 500 for the next 12 months.
    make sense?

    a couple of statistics that may interest you:

    89% of people who sign up for a loan mod never make their first payment. yep, you read that right. the reason is fairly obvious. if it was difficult to make your original payment, increasing that payment only makes it more difficult, doesn’t it?

    the reason a lender is willing to do it is for that 11% of people. you see, foreclosure is expensive for banks. it costs them on average more than $ 30,000 per house after you account for attorney fees, holding costs, taxes, insurance, etc. they want to avoid it and squeeze every bit of money out of you before they do so.

    hope this helps. if you have any questions, email me.

    oh, by the way, you can check this out to see what other options you have:

  3. Reply
    February 20, 2011 at 8:13 am

    A chapter 7 will wipe out any possibility to get a credit card, lease a car and in some cases will get you rejected when you apply for a rental.

    At this point you don’t even know whether you qualify for chapter 7 since it looks like you just want the easy way out.

    Why don’t you reconsider and rent your place out? With any luck you can get enough rent to cover the mortgage for a while.

  4. Reply
    February 20, 2011 at 8:31 am

    Anything that has you not paying your bills will hurt your credit and increase costs for credit later on. This includes not getting finance or paying a higher interest rate later on. I knew one person who declared bankruptcy and he could only get a 4 year old car with 18% interest rate. Regular rates were around 4-5%. If you do walk away make sure you do not want to own a house for many years, because it will be very hard to afford one later.

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