Loan Modification Forum - LoanSafe.org - View Single Post - Bank of America loan mod -SUCCESS!!

LHarveyMadman · 12-23-2008, 10:32 PM

Hi Hoping,

I'll have to check what numbers I gave them - they're in my office and I won't be back in until Monday - but I'm fairly certain that I had a surplus in excess of $200 with my current payments.

The issue that I was facing was an ARM reset of my interest-only loan that would have started to include principal payments amortized over 25 years instead of 30. Based on my index and margin, at the time my loan modification was first considered, I was facing a payment increase in excess of $1500. Even though the reset was still a couple years away, I had real concerns about my ability to either afford the payment or refinance the loan because of the tightening credit requirements. Obviously, this concern was valid to them, because they agreed to modify my loan.

Ironically, if my ARM were to reset right now, it would go down to about 4.75%, because the LIBOR has dropped along with short-term interbank lending rates across the world.

I never had to call any of the executives. About a week and a half after my email went out, I got a call from an analyst who took my information and guided me through the initial phases. Unfortunately, she is no longer working in the loss mitigation department, so I cannot refer you to her.

Good luck with your endeavors.

12-23-2008, 10:32 PM	#33 (permalink)
LHarveyMadman Senior Member Join Date: Oct 2008 Location: California Posts: 554 Nominated 0 Times in 0 Posts TOTW/F/M Award(s): 0	Re: Bank of America loan mod -SUCCESS!! Hi Hoping, I'll have to check what numbers I gave them - they're in my office and I won't be back in until Monday - but I'm fairly certain that I had a surplus in excess of $200 with my current payments. The issue that I was facing was an ARM reset of my interest-only loan that would have started to include principal payments amortized over 25 years instead of 30. Based on my index and margin, at the time my loan modification was first considered, I was facing a payment increase in excess of $1500. Even though the reset was still a couple years away, I had real concerns about my ability to either afford the payment or refinance the loan because of the tightening credit requirements. Obviously, this concern was valid to them, because they agreed to modify my loan. Ironically, if my ARM were to reset right now, it would go down to about 4.75%, because the LIBOR has dropped along with short-term interbank lending rates across the world. I never had to call any of the executives. About a week and a half after my email went out, I got a call from an analyst who took my information and guided me through the initial phases. Unfortunately, she is no longer working in the loss mitigation department, so I cannot refer you to her. Good luck with your endeavors.