Loans, Debt & Credit - View Single Post - BOFA Loan Mod Approval Letter! Quick question??

nativelasvegan · 11-05-2009, 07:12 PM

I am to understand that the balloon of $235,000 is a good deal? How do you figure that?

A verbal agreement is worthless. The statute of frauds requires every agreement to be in writing. Sorry, don't have much faith in the banksters these days. Sure your monthly payment might make a difference but the balloon is what would scare the hell out of me. What sweeties. If you paid off your loan in 25 years you owe $235,000. How about a program that amortizes the loan at 40 years with no balloon? What is the balloon at the end of a 40 year term?

I understand your goal is probably to stay in the house now at an affordable payment. So is mine. What are your long term goals? If the monthly payment is your only concern and you choose to stay only a few years and sell when the market stabilizes (my opinion 10+ years before that happens), then it is a good deal.? Balloon still scares me. It will have to be paid even if you refinance or sell.

You mentioned "I want to see the modification agreement but they insist I make the first payment by the 19th of this month ..." You are correct that good business practice would lead one to believe that you actually sign something that has the terms in it instead of relying on a verbal agreement.

Please know that the opinions on this forum are just that, opinions. Keep your post up and after you read a lot, you will be in a better, educated position to make a good choice. Good luck.

11-05-2009, 07:12 PM	#3 (permalink)
nativelasvegan Senior Member Join Date: Sep 2009 Posts: 1,123 Nominated 0 Times in 0 Posts TOTW/F/M Award(s): 0	Re: BOFA Loan Mod Approval Letter! Quick question?? I am to understand that the balloon of $235,000 is a good deal? How do you figure that? A verbal agreement is worthless. The statute of frauds requires every agreement to be in writing. Sorry, don't have much faith in the banksters these days. Sure your monthly payment might make a difference but the balloon is what would scare the hell out of me. What sweeties. If you paid off your loan in 25 years you owe $235,000. How about a program that amortizes the loan at 40 years with no balloon? What is the balloon at the end of a 40 year term? I understand your goal is probably to stay in the house now at an affordable payment. So is mine. What are your long term goals? If the monthly payment is your only concern and you choose to stay only a few years and sell when the market stabilizes (my opinion 10+ years before that happens), then it is a good deal.? Balloon still scares me. It will have to be paid even if you refinance or sell. You mentioned "I want to see the modification agreement but they insist I make the first payment by the 19th of this month ..." You are correct that good business practice would lead one to believe that you actually sign something that has the terms in it instead of relying on a verbal agreement. Please know that the opinions on this forum are just that, opinions. Keep your post up and after you read a lot, you will be in a better, educated position to make a good choice. Good luck.