By JacMac – Homeowner & Single Mother from New York
See her actual Loan Modification Paperwork From Countrywide Here. An incredible 5.25% 4o Year Fixed Mortgage! You don’t get to see an actual loan modifcation document often and I wanted homeowners to see for their own eyes.
JacMac - “I did not have the horrible experience that others unfortunately had and I’m not at all smug about it, I think part of the reason why is that I first went in person to a CW facility. Of course, I was already posting here so I went with ALL of my docs, tax returns, bank statements, etcetera.
The manager was able to put me in touch with a key player at Countrywide and I spoke to the Negotiator right then and there, in their office.
They faxed all 73 pages initially for me and when the fax wouldn’t go through, THEY Fed-exed.
Afterwards I documented everything twice, by fax and then certified mail. Every conversation. I called about every two or three days, and towards the end called and contacted by email the people Andrew references in his success story page.
I sent a QWR stating a number of TILA errors and also disclosed that I had filed complaints with the FTC, NYS Banking Department and the Director of RESPA in HUD.
My rate is really good, 5.25% and it’s permanent, forever.
They’re giving me until the 31st to send the docs, and sent me a FED EX envelope, to boot.
Although I am still going to go ahead and try and get them to forgive some of the debt due to TILA errors in my doc I can’t complain about my experience.
My negotiator always called back, and was never disrespectful. When I had to fax documents again, I quickly mailed certified return receipt requested.
My Negotiator kept saying “We have A LOT of docs from you!!!”
So I don’t know if it was all, a combination or some of these things that caused me to have a different experience but most certainly, with the help of Moe and all the priceless information he provided, I couldn’t have done it!!!
So thank you Moe, you’re the greatest!”
See her whole Countrywide story here (from beginning to end) and the actual loan modification here (actual paperwork from Countrywide).
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Congratulations Jac Mac.
I have been watching your fight from the background and you have given me hope, when I had none before. This only gives me more inspiration to keep fighting for my home of 23 years.
I to was a single mother and raised 3 kids on my own in this house. I was taken advanatge of on this mortgage. I screwed up, but I do not deserve to lose my home over an interest rate. Hell, I can afford my darn home, just not the stupid loan.
God has blessed you and your family Jac Mac! Hopefully, mine will be next
Awwww, Kathy!!! Thank you so much. YOu will be next. Remember think positive. It’s not just talk. It really makes a difference.
Wow, a real loan modification and a great one at that. Fugen A, good stuff right here. You single JMac, me too….. My house is geting foreclosed on and maybe we can ya know, hook up…..your a little fiesty lady…arghhhhh…I like that..but it seems you and Moe may have something going on, so I’ll respect that..but I’m jealous
You should have sued. Then they would have just settled out of court by forgiving your debt. TIL affectors and diclosure problems often lead to interest-free loans in litigation. I bet they were ecstatic about giving you the mod.
JacMac,
Sorry, but I have to be the one who questions how great this is.
A 40 year fixed mortgage is not conventional mortgage. It is a product that the lenders came up with to encourage people to buy more house than they could afford.
Also, using traditional wisdom on house buying (which I think we’ve all agreed is a good thing) you should have an annual income of at least $160,000 to cover your payments. If you do, then great.
That $3600 per month is big, and doesn’t include homeowner’s insurance or maintenance. Depending on what escrow items are, property taxes could still be on top of that too. If you can rent something acceptable for $2000 per month you could save alot of money for things like retirement, education funds for the kids and a down payment to buy later. Losing a house is painful, but so is not being able to help you children when they need it or reaching retirement age with no savings and a mortgage.
You’ve got all the number and I do not, so of course you’ll have to do the full evaluation. I’m just concerned you’re moving from a really bad situation into a less bad (but still bad) situation without fully considering things (I’m curious why the Countrywide is in such a big hurry to get you to sign, after all, it took months to get to this point). I’d suggest going to an independent financial advisor and get them to run the numbers with you. As we’ve learned, just because the lender will approve it doesn’t mean it’s a good thing.
After all that, I am still hoping that this is a good deal for you.
Hi Al,
Thanks for the well-meaning advice.
The 3600 does include home owners insurance and taxes. The actual number is 3,551 — I have a tax abatement for 15 years.
Yes 3600 is big, but now as big as 5600, and I’ve been dealing with that for a year and a half, never missed a payment, never paid late or defaulted.
It hasn’t been months since I filed for a mod — it’s only been since the end of November — they’ve pretty much completed this ON schedule, which is a lot different than what I can say for so many others who have been given the run around for months.
You’re forgetting that I own a brownstone and have rental income coming in. Putting that aside, I have something that money cannot buy, and that is strong faith.
I have never, ever been let down by my faith. Hardships I’ve faced, for sure, learned from it, grown from it, but in the end, my children and I, always been taken cared of, never wanted for anything — and the things we didn’t get it’s because we didn’t need it.
thanks again for the concern.
It’s good to hear this is going to work out and that you’ve looked at the big picture. I’m hoping everyone getting a loan mod will take some time and consider what they’re offered.
And don’t forget to keep chasing after the fraud.
JacMac
Thanks for sharing your story,it has taught me a thing or two.
JacMac, my only concern would be the choice of any amortized product, interest only is the way to go, to be on the save side one should get into a long term interest only for 10 years if possible. Historical data shows that homes nearly double in value every ten years, it also tells us that people refinance every 5-7 years for different reasons. Have you ever wondered why you pay more interest in the early years versus the later years? It’s because the lenders know you’ll end up refinancing. Furthermore trapped equity has no rate of return, its like putting money into savings account at 0% percent interest rate or burry it in a tin can in your backyard. I am a certified mortgage planner and wealth strategist. What I do is teach people how to become their own banker using mortgages and tax arbitrage as a tool, it is what the government has designed for us but it seams only the super wealthy are taking advantage of it. Think of it like this, if you have a lets say a 6% interest only mortgage and you are in a 30% tax bracket your effective rate is somewhere around 4% if you then invest the difference you otherwise sink into the brick and mortar of your home and earn a conservative 8% compound interest tax free and when you harvest the money in the future i.e. retirement the money is also not taxed, how powerful do you think that is. As an example a 100,000 investment (principal investment is not at risk like the stock market) over 30 years will be worth about 1.3 million dollars the monthly earnings on this investment is between $5000 to $7000 tax free. All the while you also still own your home and yes it will appreciate over time. The numbers used are just examples; great things can be achieved with less. The misleading part is that people think that the money they sink into the home is earning a rate of return, it is not. A home appreciates or depreciates regardless of how much money I sink into it. A couple other items to remember is that homes with equity are foreclosed on much quicker then homes 100% leveraged. Why you ask? Simple who has the risk you or the lender? You guessed it the lender, what a beautiful thing…. I have also been negotiation loss mitigations/mods for clients and those that have never missed a payment and are highly leveraged have the best chances in my opinion. Now that doesn’t mean anyone not falling in that category cannot be helped, they can too. Having said all that I am in favor of equity acceleration for the purpose of equity repositioning but not for simply paying off a home and I have a tool I use saving clients hundreds of thousands in unnecessary mortgage interest charges, without any changes to my clients current life style. So yes you can have your cake and eat it too. Each client is different and not all strategies fit all people, that’s why it is key to work with professional that understands all facets of all strategies and can show different examples on how they work for the individual. Remember mortgage interest deduction is powerful it should never be overlooked, combining that with other tax advantaged investment strategies and what you end up with is truly amazing. Oh, I would not pay any attention to anyone telling you to rent, they obviously don’t understand how money works (most people are not fiscally literate to no fault of their own, they just haven’t been taught) and that preferred debt, meaning mortgage debt if properly managed it the key to true wealth. I have been in the mortgage industry for the 18 years and most recently left Countrywide Home Loans to launch my own company Dollar Destination LLC, if you or anyone else would like to know more about me or my company check out my website at http://www.dollardestination.com any questions email info@dollardestination.com or if you are looking for assistance with loan modifications I am available. All the best to you as well I am glad you got a solution you are happy with, however, if you can switch it into an interest only then your golden.
Gabrielle,
Here we go again. Ok, please look house price in 1989 and in 1999 and show me the doubling. Stop BSing an pushing people into debt holes. I understand your compensation depends on how much of debt crack you peddle but at very least suspend your ice-selling-to-eskimo crap on this site.
JacMac, congratulation on your make sense fixed rate mortgage loan mod. Hopefully you are not going to dig yourself deeper down the road. 5.25% is pretty hard to beat and I imagine refiing into lower rate won’t be possible.
ameriquest is now citilending at least mine is and they are not easy to get intouch with and have there own agenda to foreclose have a company like meridian realty kleen them up and put them back on the market for the magic no. of 239,000 no auction just private behind the scenes presales and private auctions are going one right from preforeclosurebut it is the lawyers that do shady things for these big lender and should be held accountable i personally am going into foreclosure with a ever increasing mortgage and i had filed bankruptcy and made it even worse to really afford all the crazy amount to pay totally not sensable in any way the system is set up that if your credit rating is low because you already connot afford what you got credit on then you usually pay double for your loan making it harder for thelower rating person to be held down by societies standards our government new and is crooked and bankruptcy lawyers are scammers to get you to fail if they can mine did and is going to be investigated when i sue good credit or bad we still have rights i know take a deep breath but i”m just saying wow!
Alan, thank you — I appreciate it. You may not believe me, but I’ve never been in a debt hole in my life. I’m really happy with the rate and can now sleep at night without worrying about the mistake I made in signing onto that toxic loan.
Gabrielle,
Just a guess, but all your financial education was provided by Countrywide. A lot of these companies are very talented at providing bad training and making it look golden. If you’re taking out IO loans then you are renting, except you get the priveledge of paying property taxes, maintenance and home owner’s insurance. And as Alan pointed out, you’re not likely to get many customers off this site as we’re either here because we’re in trouble from crap IO type loans or are horrified by the damage they’re causing.
IO loans = buying more than you can afford. Pure garbage.
Al and Alan, gotta go with you on this one – IO????
No, that’s a trap, a debt trap.
Thanks Brenda!
mortgage brokers made a killing, putting people in these sub prime loans. They should be, thrown in jail and be forced to pay back the homeowners money.
I agree with you, Richard, some SOME of the mortgage brokers are criminals, CRIMINALS — but get ready to get jumped on en masse as they rush to defend themselves.
JacMac/Richard,
I’m a broker and let me lend a little light on who should go to jail first. And yes, JacMac is right; you will be attack for your comments before the day is over.
Get ready
You have to jail the source. Wall Street, then the Banks/Lenders, then the brokers and maybe some consumers. It goes down hill. Richard you have to be cognoscente on using that broad statement. For the brokers who outright committed fraudulent acts……..yes they need to go to jail and some are and will. But you have to appreciate the ones who are originating per guidelines, these bad deals. They won’t ever go to jail nor will they be responsible for buying the loans back. For mortgage bankers, the rules are slightly different and they are responsible to some degree for the deals they originate.
Brokers don’t create the rules, they execute them. For that you won’t ever see a broker go to jail because the guidelines have been approved far up the latter before they reach the streets.
The violators are the ones who created income, i.e. w-2 and fake check stubs. Mind you, this should not be mistaken for stated deals. Two different problems.
However, the sad part is that bad advising and suggestions won’t incriminate a broker or a mortgage banker. As it stands brokers are protected by not having a fiduciary relationship with the borrower. It sounds crazy but I can suggest to you whatever and if you do it and it doesn’t work out, then oh well. I don’t agree with it. Not because it\’e2\’80\’99s not a legal rule but its bad for general business.
You also have to appreciate that with the bad products, comes the borrower that wants more than what they can afford and won’t settle for anything less. The industry’s biggest problem is who’s to blame; the product that can legally give the borrower what they want or the borrower not heeding good consul and taking the crazy deal.
Go to the 60 minutes website and view last Sunday\’e2\’80\’99s telecast on the mortgage crisis. They have two couples facing a losing situation on their homes. Who should go to jail on these two deals?
The first couple didn\’e2\’80\’99t read anything nor double check the information they were told or signed at the closing. The husband went as far as to say he didn\’e2\’80\’99t even consider the note adjusting because he wasn\’e2\’80\’99t paying attention to his paperwork. Never mind what the L.O. may have told him, he didn\’e2\’80\’99t even try to protect himself. At the closing table they saw the change up on the paperwork and signed it anyway. They wanted what they wanted. Everyone is wrong here including the borrower.
The second family admitted to knowing exactly what they were doing. They knew exactly what the loan terms were and since the market values went down and paying the note made no sense to them, they said f**k it and will just walk away from the house.
Mind you, they told the reporter that they could afford the note and wasn\’e2\’80\’99t late on the bill. They just didn\’e2\’80\’99t like that their value diminished. Are they wrong? Yes. They wanted what they want and since they couldn\’e2\’80\’99t get it they will walk. The L.O. got them what they wanted but the market changed. Should they go to jail? They knowingly reneged on an agreement they can afford. They just don\’e2\’80\’99t like the outcome. So who is to blame?
I’d say if the industry manipulated the market to create false values than they are to blame. Paying a half a million dollars for a 1850 square foot home is STUPID, from my financial perspective anyway. So I bought one, in Southern California, as an investment as I only planned on holding on to it for 5 to 7 years TOPS! This whole thing was misleading and I feel subject to a CRIMINAL ACT. I need to vacate this website I suppose, because I certainly ain’t paying 500 grand for a house that’s going to be worth 350k next year. THAT IS STUPID! But then again, I guess buying the damn thing to begin with was also. Although, I knew I could afford a 5 -7 year ride in this loan I did not invest or save as heavily as I would have because I thought I would end up with the accruity on my APPRAISED asset at the end of the deal. Even if the market went flat, I would have at least broke even. Subsequently, I have paid twice as much to RENT from Wall Street over the last four years than I would have to just have rented.
Now my credit is RUINED, I may owe these idiots 100 Grand or more for THEIR mistakes. Even if I’m partially to blame, I’m ready and willing to take my share.
This is a fiasco.
Can you tell I’m angry as hell!
Well, I guess I’m gonna go and continue on my free ride – ya right!
By the way, I’ve never been late on my mortgage payment, or any other payment for that fact. I’ve been trying to call my mortgage company for the last four months – relentlessly. They don’t return my calls and they don’t answer my letters – they send my replies to contact their loss mitigation department – who also doen’st answer my calls or my letters.
I have a feeling they’ll be calling now, because I’m not sending them another dime.