First of all guys (everyone in this forum) thank you for helping each other and you guys are doing a tremendous job on helping people with your knowledge.
My Story:
Bought home in corona,ca for $660k with 10% down and both 1st and 2nd with BOA. Todays guestimate value of the home $ 420k. Wife lost job and my salary got reduced by 10% with no bonus and salary freeze for 3 years.
What i did so far:
Did not pay the BOA payment for the month of May 2009 but resumed payment on a late basis i.e. after the 16th and before 30th of the month in June 2009. BOA contacted me and asked me to submit the hardship letter which i did on 15th of June. When i called on 25th of June they assisgned analysts to both my loans and confirmed they received all the necessary documents. On July 2nd i received call from analyst regarding what options i had with the loan. One of the option he mentioned was 40 year loan with 3% fixed for 5 years and then resume back to 6% (my original rate on the 1st) for the remaining balance. According to BOA, they want to make sure that they leave 10% of the net income surplus with the family as savings. They have not committed anything yet but said this offer will be sent for approval first and then confirmed.
My question:
- Is BOA even accepting any principal reduction offers?
- BOA analyst mentioned that short sale will be my last resort - so why would bank end up loosing more than $200k (in my case) and not do a principal reduction of lets assume $100k and move on?
- Is the above mentioned offer good without any principal reduction?
- What are the tactics or rules to push for principal reduction?
Hope to hear from someone soon.
Thanks guys
TJ