BofA seems to be turning on the 2mp machine.
As a few others posted on another thread some of us got BofA 2MP papers this week.
Seems are all following 2MP. No paperwork needed to qualify just send in a Dodd-Frank Law certification that you haven't been convicted of mortgage fraud in the past 10 years.. with Fed Ex envelope to return.
3 Month trial as 2MP requires at 1%/40 years for first 5 years following the HAMP step up afterwards. All correct per 2MP requirements.
2nd went from $540 at 9.1% to about $183 for first 5 years. It does not show the past roll up amount from about 2 years of not paying but should be about about $12,000 and the payment seems about right on about $70,000 (was 60K). The rollup should be only interest not the full payment and no late payments.
Letter says will compute exact amount after trial. My 1st was Citi which was HAMPed then sold to the IBM company.
This is both good and bad news. It is nice to have it settled but the home which I love and hope to never leave is way underwater just on the 1st (Phoenix) so I doubt if they would foreclose on the 2nd even if didn't agree to terms of 2MP. It will take probably longer than my lifetime to have equity but I don't care since again I love it and only care about the payments have to make. The 1% on 2nd and 2% on first for 5 years offsets the under water equity so paying a market rate on far lower equivalent mortgage.
The problem will be in 5-10 years the step rate increases to about 5%, but both will be less than pre modified payments at highest eventual amount.
The last thing I am concerned about is "dead equity" in a home I hope to never leave or sell.
It is a Frank Lloyd Wright like design with a beautiful view of No Phoenix and mountains. Have million+ homes nearby (and across street) but mine is smaller and original cost in peak of market in 2007 of $410k and I had to go above the list price of $395k in a bidding war for it. About 2200 sq feet perfect for single old me and ideal office in home set up, 0.25 acre lot. Zillow value down to about $275k A few years ago lots across the street that are less easy to built because of slope and smaller were on market for $200k because of sweeping views. Two are still not sold and one a builder built a $1m+ home on he lives in across the street from me.
Area not good for pets - a coyote killed the prior owners dog and I hear them whaling at night but so nice and quit otherwise.