Comments on: Paulson Wants to Develop Standard Criteria That’s Going to Allow for Loan Modifications and Loan Workouts

By: Linda Johnson

Linda Johnson — Sat, 23 Feb 2008 04:08:03 +0000

I was told to modify my loan would take me $4,000.00 for Bank America to do this . I request this Tom Clark to put this in writing but he refused.He wanted me to take out a loan with Fannie Mae to do this and pay Bank America $4,000.. I will lose all my equfity in my home. I was told to pay two house payments which I did and now they refused.

By: Ann

Ann — Sat, 01 Dec 2007 02:11:53 +0000

I am concerned that this is not going to solve the problem. The problem is 1)Too much housing inventory 2)Tightened credit condition and 3)Reseting/Foreclosures…

Although he is proposing a situation to help # 2 and #3 I think this idea is to HOPE that problem #1 starts to slow down and recede..I have a feeling that the Fed is trying to buy time..5 to 7 years with the HOPE that inventory goes down and prices stabilize…What scare me is what happens if doesn’t work that way? And is the Fed telling us in their own way that the housing bottom and return to normalization is 5 to 7 years away??…

So far all the things the Fed has tried to get us out of this issue,(lower discount rate, lower fed rate, tell lenders to work with borrowers…)NONE have worked or kept us away from talking about a recession…as a matter of fact the recession talk has become a growing concern since Fall..

By: MLS-2.com Blog

MLS-2.com Blog — Tue, 27 Nov 2007 10:36:32 +0000

4. The loan was to a speculator or flipper with no real assets or income
5. The loan was planned to be paid for with the “cash out”, which ran out
6. Borrowers are behind on property tax payments too
7. Some borrowers can’t even make the payments on the teaser rate! MANY of these defaults are occuring before the loan resets!

By: JacMac

JacMac — Thu, 22 Nov 2007 11:26:36 +0000

Thanks so much!!! I want to go in with guns blazing!

By: Mom in Michigan

Mom in Michigan — Thu, 22 Nov 2007 10:27:12 +0000

JacMac….CW will ask you for everything under the sun. If it shows income, then take it. Tax returns, bank statements (last 3 mo), hardship letter (and make sure it is lengthy and very descriptive). Make sure your loan number is at the top of all the documents!!! If you don’t get anywhere, post again and I will get you names and numbers of heads of that department and/or email addresses because they shut down all voicemail systems. Good Luck my fellow CW friend.

By: JacMac

JacMac — Thu, 22 Nov 2007 10:05:19 +0000

I've decided rather than play phone tag to have my loan modification done in person, at Countrywide's Financial Center. I am scheduled to go there on Friday and speak to the Loss Mitigation Department so that they can get my financial information.

Today, the manager of the department told me she'd call and give me the number to Jerry Durham, who heads the Home Retention Program. When I didn't hear from her by noon (about four hours later), I took a walk -- fifteen minutes, and I was at her office.

She smiled, but I don't think it reached her eyes. I want her to know if she doesn't call me back I WILL be at her office and can be there in minutes.

She called the Loss Mitigation Department for me right then and there in her office and has committed to fax all the documents that need to be sent for me. She's also offered to look over my loan documents for me. The manager of the office seems sincere but I am jaded.

The loss mitigation department lady told me that they called in the morning and spoke to a Mister -- I cut her off and told them there WAS NO MISTER. I told her I have zero interest in playing phone tag with anyone and would be doing all of the paper work in office at the center. Hopefully this will turn out to be a smart decision. I'm keeping my fingers crossed for myself and for all of us struggling to end this nightmare. Anyone have any suggestions as to exactly what financial information I should bring with me to the meeting on Friday. I own a S Corporation, so I don't have my 1099s for 2007 yet -- only what's been deposited in my business accounts can be shown by way of bank statements.

I also have two tenants, so I can show the income from the rental units but other than that, I have no pay stubs or anything like that.

By: Moe

Moe — Thu, 22 Nov 2007 03:48:03 +0000

Thats great news. I would love to hear from you via email and maybe you can post some helpful advice to readers on the blog in regards to loan modification and loan workouts.

By: Moe

Moe — Thu, 22 Nov 2007 03:45:40 +0000

I truly do not think that anyone understands about predatory servicing and what these servicers are doing to borrowers.

I know you at MSfraud have covered this extensively and would love to maybe collaborate on some future posts about this very issue.

By: anonymous

anonymous — Thu, 22 Nov 2007 00:55:50 +0000

I personally did loan modifications for Aegis Mortgage Corp. prior to filing for BK. I myself took into consideration location of borrower, type of income and earning potential. Borrowers were thankful for the modification and could afford what we gave them, most times it was at or below their start rate.We tried to right a few wrongs done at origination. I think if a modification would work than why not do it. I pumped out over 200 loan modifications per month in our department. There are some mortgage companies already doing workouts, but more should join in.

By: Markie

Markie — Wed, 21 Nov 2007 23:40:45 +0000

Good Luck to HIM! He needs to think about Plan B, OR F for Fraud, IE Predatory Lending and Predatory Mortgage Servicing.