[LHarveyMadman]

From the modification program guidelines:

"For borrowers with a Back-End DTI of 55% or higher, the servicer must inform the borrower of the availability and advantages of counseling and provide a list of local HUD-approved counselors. The servicer must provide the borrower with a letter stating that counseling is a requirement of the modification terms. This letter may be required by counselors in order to begin counseling. The modification will not take effect until the borrower represents in writing that he or she will obtain counseling."

So, it sounds like B of A is going to make HUD counseling a prerequisite for your modification. It also sounds like you might need a letter from B of A before you can make contact with a counselor. This seems like a minor hurdle - all you have to do is agree to counseling and that should be enough to start your modification process moving forward again.

With regard to your credit card payments, B of A might pull your credit report and see what your minimum credit card payments are. So you might not be able to hide this information. Unless you have a lot of credit card debt, the minimum payments should not be a huge factor. If you do have high credit card debt (I'm not saying that you do), then you really need to work with that HUD counselor to figure out why you are having problems living within your means.