Posted by PJM/MI on 8/1/07 12:12pm
Msg #203216
Countrywide
CW is implementing a new program to help their bo's. If someone is on foreclosure with CW, they are going to be re-writing the loan with a 30 yr note instead of foreclosing on the bo.
Hopefully, work will pick up.
Right now CW is soliciting lo's to help with this.
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Reply by Dorothy_MI on 8/1/07 2:38pm
Msg #203250
Pam, I've done several of these for Country Wide as well as Washington Mutual. Seems someone is finally getting smart and doing "Modifications" to existing loans. Sometimes the time is lengthened, but mostly I see going to a fixed rate with sometimes the first 5 years, interest only. I think the rationale is that by lowering the payments, they still get their interest, they don't have the cost of foreclosure, nor the property on the liability side of their books. The borrower is able to make the payments, at least for the interest only part and at that point feel things will have turned around enough that they can either refinance or start making the interest and principal payments. Most of my borrowers save $200 - $500 per month. Now for the bad news. Because these are only 5 - 15 pages long, one notarization, they will not pay the regular signing fee. The docs go to the borrower, you show up and usually it is only one notarization, put the docs in the supplied envelope and drop it off at the nearest drop location.
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Reply by Shawna Owens on 8/1/07 4:07pm
Msg #203268
You know that sounds great, but with the market the way it is, CW isn't cutting loans unless your credit score is a 680 or above.. And if you are in Foreclosure, which brings your credit score down, how do they work that.
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