Back at it - NACA and BofA - Mortgage Forum

luisren · 03-21-2010, 10:19 AM

I got a mod with NACA's help back in July of 09. Unfortunately, I was laid off in Sept. 09 which resulted in a 2/3rds reduction of our income. My spouse, a school teacher, continues to work full time and I am collecting unemployment until I find another job. I started the mod process again back in September 2009 and was given a 3 month SFB that started in January. Initially I was given the impression that the investor of my loan would not deal with unemployment hardships at all. After my most recent conversation with my negotiator I was given the impression that they may work with my unemployment after all, worst case scenerio, another SFB term. At this point I would like to know if anyone is in my same predicament and actually got a mod. I know its mostly up to the lender/investor but why even ask for my unemployment continuation docs? I also provided the servicer with the results of the unemployment tool that shows I could continue to receive benefits till March 2011 if needed.

Home Value: $219,00 (zillow)
Loan Amt: $305,000
Current APR: 5% (27 years left)

Current Mort Amt: $2,040
Currently mort. payment is 51.5% of our monthly gross income and 73% of our net (including unemployment).

We would be able to afford 31% without a problem but are seriously considering walking away given the loan to value difference.

Evan Bedard · 03-22-2010, 06:47 AM

Hi luisren,

It is difficult to get a modification while on unemployment but it is possible. so are you saying the you just started another SFB with BofA?

Quote:

We would be able to afford 31% without a problem but are seriously considering walking away given the loan to value difference

This is one of the most common reasons why people are deciding to walk away from their home. But this should definitely be a last option until you have exhausted all others..

luisren · 03-22-2010, 08:43 AM

Quote:

Originally Posted by Evan Bedard

Hi luisren,

It is difficult to get a modification while on unemployment but it is possible. so are you saying the you just started another SFB with BofA?

Thanks for the reply.. I just ended a SFB (Jan - March.) The negotiator's first words when we started our conversation last week were hinting towards another SFB setup. I asked why we were not being considered for a perm. mod when I know a few others have gotten mods based on one income. He then asked me how long I was eligible to receive unemployment for. I referred to the unemployment tool that gives an estimation of how long one may be able to receive unemployment and he asked me to fax him the screen shot. He says, contrary to what he told me back in January, it won't hurt to try to push a mod with unemployment income being considered. Worst case scenario sounds like another SFB. Still, with things looking they way they are in this area we may simply push for foreclosure. We can rent twice the home for half of what we currently pay in mortgage in the same area. I must add that NACA has been of little help this time around. Between not getting calls back and NACA's response of "they won't mod with unemployment," when I know others have gotten mods, is making us think its just not meant to be.

Evan Bedard · 03-22-2010, 09:27 AM

I believe they keep pushing a SFB for temporary assistance until you are employed once again.. Make sure you lety them know that you do not want another forbearance because it will more than likely not get you anywhere. I think it is very wise of you that you have a backup plan just in case things do not work out with the mod.

wattsm · 03-22-2010, 09:36 AM

Even if they don't want to take your unemployment into account, it sounds like your family does have a stable income from employment with your spouse. Even if you're spouse is at a base, entry level teacher's salary, I would think they would be able to come up with a payment that is 31% of the income... 2% fixed for 40 years would do it. A $300,000 loan at 2% for 40 years would be only about $900 a month, before taxes and insurance. And they do take into account the existing interest you've paid on your loan, so even though you owe them over $300,000, that won't necessarily be the figure they use when the come up with your new payment. So don't give up yet... they don't like to deal with people who have nothing but unemployment income, but it doesn't sound like that's the case for your family.

luisren · 03-22-2010, 10:07 AM

Quote:

Originally Posted by Evan Bedard

I believe they keep pushing a SFB for temporary assistance until you are employed once again.. Make sure you lety them know that you do not want another forbearance because it will more than likely not get you anywhere. I think it is very wise of you that you have a backup plan just in case things do not work out with the mod.

Thanks Evan - will do..

luisren · 03-22-2010, 10:10 AM

Quote:

Originally Posted by wattsm

Even if they don't want to take your unemployment into account, it sounds like your family does have a stable income from employment with your spouse. Even if you're spouse is at a base, entry level teacher's salary, I would think they would be able to come up with a payment that is 31% of the income... 2% fixed for 40 years would do it. A $300,000 loan at 2% for 40 years would be only about $900 a month, before taxes and insurance. And they do take into account the existing interest you've paid on your loan, so even though you owe them over $300,000, that won't necessarily be the figure they use when the come up with your new payment. So don't give up yet... they don't like to deal with people who have nothing but unemployment income, but it doesn't sound like that's the case for your family.

Wattsm - you hit the nail right on the head! Yes, I've been saying exactly that for at least 5 months now. We can afford a 2% on a 30 or 40 on my spouses' income alone. This way we are not setting ourselves up to fail if I don't get a job before employment runs out.

luisren · 03-23-2010, 04:10 AM

I told my servicer that I am not interested in another SFB and hinted towards forbearance as an option we could live with. Our loan to value to is ridiculous at this point. They are now asking for new budget information that they've never asked me for in the past. Hope that's a good sign. Fingers crossed that bags won't need to be packed.