Q: I need help with the Countrywide loan modification approval process

Question: I need help with getting a Countrywide loan modification approved. What advise do you have?

Answer: You will need to prepare a loan modification request package. You want to negotiate a workout agreement with a negotiator in the Loss Mitigation Department. Countrywide calls this department the Countrywide Hope Department. Here are two contact numbers to use: 800-222-9944 or 800-262-4218.

As with most lenders, and it seems especially true for Countrywide, it will take bulldog determination, extreme patience and street smarts to fight for you loan modification if you want to keep your home at affordable payments. Call the number and request their workout package to get started.

Mike Rockwood has modified five of his own loans, including his personal residence and investment property. He has created a top-notch workbook to walk you through the steps of fighting to get the best terms on your loan modification.

Click here to get proven help with your home loan modification

Once you receive the package you want to be very thorough to complete it and meet the initial qualifying criteria, which are:

• This is the most important one: Demonstrate the ability to pay your new negotiated monthly payment.  The lender will look at your debt-to-income ratio, aka DTI.

• The type of loan: If you have one of those negative amortization loans, these types of loans are very highly likely to be approved for modification.  If you have a fixed rate loan at 6% or less, you have a very low chance of getting approved.

• Meet one of the 6 common hardships:
  1. Divorce
  2. Loss of income
  3. Reduction of income
  4. Death of spouse, co-borrower
  5. Illness
  6. Military service

• Age of the loan: Your loan needs to be at least 9 months old

• Balance sheet strength.  This is more important for recourse loans.

• Default status: The lender doesn’t want to see a BK during the life of the loan; foreclosure is not within 30 days or so

• Owner-occupied loans are the easiest to be approved and home equity loans on investment property are also getting modified

FYI: If you don’t meet this criteria for any reason, like you’re currently unemployed, so you can’t show the ability to pay even a lower monthly payment, there is a last ditch tactic that can stop a foreclosure to buy you some time, even several months. Hopefully with some more time you can be in a position to negotiate a loan mod.

These are two very important documents you will have in your package that mean approval or denial:

• Hardship letter

• Your budget: The DTI-ratio calculation, the cashflow calculation and the income must be exactly what the lender is looking for to meet their guidelines.

Here’s 5 tips we learned from our loan modification coach that were really helpful:

1. Transfer your liquid assets out of your savings and checking accounts or certificates of deposit that you have with the lender you’re trying to negotiate with such as Bank of America, Chase Bank, Wells Fargo.  This prevents them from using those funds as leverage on the loan.  And don’t close the accounts, just empty them.

2. Expect to initially get turned down.  It may take 2, 3, 4, 5 times before you get approved.  If your package is bullet-proof, it is likely some stupid mistake on the lender’s part like an error in their calculations.

3. If you’re getting turned down, call back at least 5 times and talk to a different rep and make slight changes each time you call.  For example try changing the amount you have available for repayment by $300 to $500 or increase your income slightly.

You’re trying to figure out in this roundabout way what is the cause of the turn down.  When you do this, it gives the rep a reason to go into your file.

4. If you’re not getting anywhere with the rep, ask to speak to their supervisor/manager.  If their supervisor is not available to talk right then, ask them to call you back as soon as possible.  Get a name if you can.  If you have to follow up you have a specific person’s name to ask for.

5. Make sure you show positive cash flow on your budget.  Forget about trying to get approved with negative cash flow.

These are just some of the great strategies we learned to use to negotiate a home loan modification.

Before completing and sending in a loan modification package, you may want to obtain some coaching to combat the stall tactics banks/servicers are using to cut to the front of the line of other applications and get approved faster

Click here to get proven help with your home loan modification

Homeowners – Need Some Sound Advice?

Get Out of Debt Workbook Seasoned debt expert shares several little known but highly effective techniques guaranteed to get you out of debt fast – no matter how much you currently owe.

Stop Foreclosure Get more help on fighting to stop a foreclosure with one of 7 options. For example, if a loan modification is not an option learn about a little-known government program that will stop a foreclosure in less than a day without an expensive attorney. Also get the latest foreclosure news around the country, read Q&As and other resources. Legally Restore Your Credit If you are visiting this blog, you likely have mortgage lates, which are a big blemish on your credit report. Once you resolve your mortgage situation, you can legally remove those mortgage lates and all derogatory credit from your report without having to hire an expensive attorney or credit repair service.

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