Fast Track Loan Modification

Homeowner has a 3year ajustable I/O payment at 5.95%.  The loan adjusts 7/1/08 to 8.99% and the I/O option is over. She called Countrywide 3 months ago to explain that her payment is going to jump from $1500 to $1900 and she can’t afford it. They told her she was calling tooo soon. 

She called today to try and submitt a package for modification. Countrywide told her it would take them 4 weeks to assign to a negogiator and another 8 to 10 weeks to get the Mod done.

Can I as a Loan Modification Specialist get Countrywide to rush it up if I submitt a clean package and stay on them. I know they will modify her for 5 years to 5.95%.   

She has never been late but probably will not be able to make that 7/1 payment unless I can get this done for her.  Her financials seem to work and she has a hardship that she is coming out of. 

Thanks so much for any help you can offer!!! PS: Countrywide told her she has to be patient because they are busy helping people already in foreclosure.  What a joke that is!!!!

Sincerely,
Roben

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Hi Roben,

Countrywide should not have told her that she was calling too soon. 

Assuming the LTV of the first mortgage is above 97% and her credit score is below 660 and less than 10% higher than at origination, she fits into Segment Two of the American Securitization Forum’s streamlined guidelines where “servicer/borrower communication should begin 120 days prior to the initial reset”.  

Current is defined as “not more than thirty-days delinquent”, so if she was to miss her July payment, she would still fit into Segment Two. 

This would qualify her for “fast track” loan modification where “the interest rate will be kept at the existing rate, generally for five years following the upcoming reset”.

It has been reported that lenders have been snail mailing loan modifications to borrowers and the ASF guidelines provide for the lender’s assumption that the borrower has accepted the modification if they make two payments under the modified plan.

My suspicion is that if she missed her July payment, they would modify her loan terms and calling twice a week until then would be helpful.

Thanks for the questions and hope this helps.

Paul