Hi everyone –
I had posted once before regarding our hell with BoA but as with everyone, things have changed 10 times over since then. So, first, quick backstory –
Things began going downhill for us in 2008 when my husband and I were both laid off. He is a Union electricianand with the economy the way it’s been, it’s been a bumpy road. I was out of work from May 08 to Sept 08; Mike was out from July 08 to Sept 08. We tried for a modification but our paperwork was lost….twice. By the time things got on track, we were both working again and we made too much money.
In July, 2009, Mike was laid off again. I was working as a paraprofessional in ourschool district so did not get paid from 6/30 to 9/15. Our only income was Mike’s unemploymentcheck. Tried again for a mod, again it was a mess. It seemed I was emailing the OOP once a week for a year. Mike wentback to work in Oct, 09. In January,2010 we were offered a forbearance – putting our past due amount back onto our loan. Again, since we were both working, we did not qualify for a mod. We took this as at least it was something that helped.
We almost….almost!...made it through 2010 fully employed. But, Mike was again laid off mid-December 2010. We knew this time it would be a very long haul, as he signed into the Union hall on page 40. Unemployment and my salary were not going to cut it so we went to see a lawyer who had helped my sister with a mod. With our situation and debt, he first recommended Chapter 7 bankruptcy. We really did not want to go this route, but in the end, it’s what we did.
In July, 2011 Mike decided he could not go through thi semployment roller coaster anymore and he took a job outside of the Union Hall, working for the county. The good news is steady employment, the bad was a 40% salary cut. Even after the bankruptcy and with a mod, things will still be tight for us.
This is where things stand now – our bankruptcy was discharged in January, and we did reaffirm our home. We have a first mortgage with BoA for $299,000 (the house valued 6 months ago for $270,000). We also have a second mortgage for $75,000 but on the advice our attorney, we stopped paying that almost a year ago. He feels they will settle with us. (Sorry – I’m a little confused about the rest of this). Our second mtg is with BoA but now it is with Old Republic (??) We get the random letter and phone call from them, but that’s really all. Their last settlement was for $54,000. The lawyer feels they will go lower (when and if they do, we would have to take a withdrawal from Mike’s annuity – we do not have the money to pay that).
We now want to start the mod process with BoA for our first mortgage. With what our income is now, we are at 38% with our mortgage payment. They will not speak to us, though, until they receive the discharge of our bankruptcy from the courts. It ha sbeen a month and they said it could take up to a year!! We had been two months behind (since early last year), but still making payments – we decided not to pay this month’s payment, putting us 3 months behind, hoping they would deal with us – but, no,we still get directly transferred to the bankruptcy department. We feel like everything is in limbo and have no idea what to do from here. Getting through the bankruptcy was a huge load off, but what will happen with our home is still hanging over us. We hadn’t planned on using the attorney for the mod, but now we are wondering if we should? We don’t know if we should be paying the mortgage or not – and we feel like we are playing chicken with the second mortgage – that one really has us confused on what to do. Bottom line is that with the salary cut, we cannot afford the first and second mortgage as the payments stand now. We really need help with both. Any advice on how to proceed from here? Four years of stress over all of this has definitely taken its toll on us....
Thanks so much.