Advice please!!! Drowning fast with underwater mortgage!

[mickandvick]

I have a $700,000 1st with BofA (originally CW) that according to BofA qualifies for the national global settlement. I also have a $150,000 second with PNC. The fair market value on my home is currently $433,000, underwater is an understatement. Prior to the global settlement I was told by the bank that we did not qualify for any modification since my home is not a fha, fannie, freddie. I have never been delinquent on either loans. It is my understanding that I will not qualify for a principal reduction since I have never been late and the interest on a refi dosen't appear to be that great of an offer either. My husband will be forced out of his job in 2014 receiveing only half pay which will not cover the mortgage payment. We would love to keep our home since we built it ourselves in 2003. I wouldn't think that BoA would like the home back with it being so underwater. If the bank is unwilling to write down some of the principle or give us a very low interest rate we will be forced to walk away. Does anyone have any advice as to what we can do in order to keep our home? Are there any loan mods for our situation? Your help and advice would be greatly appreciated!

[capote203]

Presently, it seems that BofA will not modify if you are not 60 days late...

[mickandvick]

I guess I will have to be patient and wait to hear from B of A. and hope for a miracle. If I stop paying now, it is my understanding that I would not qualify for any of the national settlement as in order to get a principle write down I had to be delinquent before 1/31/12 ( so that's off the table). To get a refi, I need to be current with no delinquency.

[Evan Bedard]

Since you are current on your payments why not inquire about a refinance? I'm not sure what your current interest rate is, but today's market rates are very low (around 4%). Even though you are underwater it would not hurt to inquire about the Home Affordable Refinance Program (HARP 2). Here using the thread below you will find a member by the name of Erik Sandstrom, he is an expert when it comes to HARP and knows all the ins and outs of the program..

http://www.loansafe.org/forum/refina...arp-2-now.html

[mickandvick]

Hi Evan, It is my understanding that the HARP and HARP2 are only for mortgages backed by Fannie or Freddie which mine is not. B of A is the lender and servicer. They took over the jumbo loan from Countrywide. Please let me know if I am mistaken.

[Cat Damiano]

Hi mickandvick,



Yes, you are correct about the refinance eligibility requirements being loans that are GSE loans which mean backed by Fannie Mae and Freddie Mac. However, NOT having loans by either one of them or FHA does not make you ineligible for a HAMP modification. So if that is what you are being told, I would suggest you escalate your file to the executive team to straighten that out.

Here is the number;

1-704-386-5687

[mickandvick]

Thanks Cat, I will certainly look into that! I really appreciate your advice.

[mickandvick]

Cat, If you were in my shoes, would you wait to hear form BofA regarding the national settlement and their offer? If I inquire about the Hamp modification, will I become ineligible for the national settlement? When I contacted B of A. the gentleman I spoke with indicated that I would probably do much better with the national settlement and to wait. What is your take on this?

[Cat Damiano]

Were you speaking with someone at the executive team from the number I posted? The Q&A about the settlement from BofA is located here;

Modification, Refinance, and Short Sale Program Enhancements | Bank of America


I know some members are already learning if they are in fact eligible by contacting the executive team, so that may give you your answer if they are able to let you know.

[CalOkie]

Were you speaking with someone at the executive team from the number I posted? The Q&A about the settlement from BofA is located here;

Modification, Refinance, and Short Sale Program Enhancements | Bank of America


I know some members are already learning if they are in fact eligible by contacting the executive team, so that may give you your answer if they are able to let you know.

Be vigilent!!! I contacted the executive team who gave me a new rep who could not tell me for certain if I am eligable for the Nat'l Mortgage Settlement REFI (not to be confused with the modification portion of the Nat'l Mortgage Settlement). It looks like they are doing the principal reduction and forgiveness first and then deciding what to do for refi'ers.

[mickandvick]

Thanks for the advice. I will be contacting the executive team this morning to see if they can give me information about my eligibility. I will post what I find out.

[Concerned.in.Temecula]

As most of us here that post I am desperate. He have a 5-1ARM, neg am loan that originated with Countrywide, now BofA. Back when the first settlement with Countrywide took place I contacted the AG and they responded and shortly after BofA VP contacted me. We were current on our loan at that time and was told by this VP that"although he wouldn't recommend it BofA really only started work outs with loans that were at least (30) days behind. Received request from BofA for us to submit our financial records. We opted not to proceed at that time because (1) my husband was considered self-employed and (2) didn't want to get caught in "we''ll give you a trial mod, accept payments, then disqualify you for whatever reason and then start foreclosure" track.
Well we are today behind due to the economy. We tried NACCA's program but because we have a super jumbo and they were ill equipped to address the issue. After meeting with the BofA negotiator at the SD workshop we were told that it had to be referred to the "back office" for consideration and that we would be contacted by BofA. Long story short we are attempting to modify through a company here in CA and after submital to BofA their response is that on 3/19/2012 (which we never received) we were denied any sort of modification because our property is vacant and that there is construction on the property. We have lived in this home since our purchase in 2006. Always principal residence. One would summise that if the payments aren't being made that the bank would get involved so why waste money on construction, which there is none going on!!!
As many our home is worth one half of what we paid. 1.4 then 5.5 now. We put down $350,000 so we had every intention of staying here. We are desperate. Because we had to dissolve our corporations we need to file BK because with the corps came personal guarantees but we only want to do that at this time as a 11th hour save.
It has been a horrific year and a half and I am not ready to move. Please I need help. I have been following this whole banking, mortgage ordeall for years and it seems that the more I read the more confused and despondent I become. We live in southern CA, a non-judicial foreclosure state and doesn't seem to be any expert legal help that isn't so far out there in fees that is available.

Ps. I did send a QWR to BoA and basically their written response was that I was not entitled to that information. I responded to ReconTrust within (2) days of the NOD for verification of debt, they responded by sending copies of the recorded documents and that if we had a problem with the terms, etc with our loan we shouldn't have signed them!!!!
Can anyone help me????

[mickandvick]

Hi Concerned,
Don't give up! The National Mortgage Settlement that BoA agreed to might really help you since you are behind on your mortgage. If your loan is owned and serviced by BoA and is not a Fannie, Freddie, or Fha, it is my understanding that you would be eligible for a principle reduction and/or refi under the terms of this agreement. You may want to call the executive team as recommended by Cat in a prior post and see if you qualify for the mortgage settlement. I will post what I find out from them after I call this morning.

[Concerned.in.Temecula]

Thank you so much for your response. I am sure that we would most likely fit into the program, It is owned and serviced by BofA. It is just that BofA is saying they will not reopen the file because we do not live here.....property is vacant--it is not! Should I call myself even though we have a loan mod company working for us. Not real warm and fuzzy about too many organizations out there right now including this organization. Desperate times lead to desperate measures....Most will tell anything, promise the moon, take your money and say "Oh well we tried. We have a sale date as May 7, 2012.

[mickandvick]

If your home is owner occupied, I was told you would qualify. I would call the executive team and if you get the same garbage that they have been giving you for loan modification, then I would contact the Attorney General's office and get them involved. Afterall, the AG is supposed to have assigned someone to oversee the settlement process and make sure it is carried out as agreed.

[mickandvick]

Hi Cat, Thank you for the advice. I contacted the executive team and explained my situation. They immediately assigned a gentleman to start a file on my case. I was quite surprised that they moved so fast as I had called BofA customer service several times before with absolutely no help. Maybe this loan being almost $400,000 underwater had something to do with it. I again explained my situation with him and he stated that my mortagage may be in imminant default and would like to find a solution, possible refi, mod, and/or principle reduction. He stated that he would need additional financial information from me and set up a telephone appointment for Friday. My question is: Should I be cautious about what and how much information I should give him and also do you know what financial information he will be asking for? I already stated to him that with the payment, Tax, Ins, and Income on this loan alone, I was at 33% but that in 2014 it would be somewhere around 62% due to my husband being forced out of his job. Thanks again Cat for your very helpful advice. Do I need to let him know about my husbands 401K?

[Cat Damiano]

They will see the deductions for the 401k in the pay stubs that they will ask for as part of the process. With the payment being at 33 percent, you will have to see what they are able to do. There is an RMA that is filled out for a modification and what is needed is located under the document submission tab in the following link as well as what to expect through the process;

Bank of America Home Loan Modification | Bank of America

[mickandvick]

Thanks Cat for the information.

[mickandvick]

Hi Cat,
As I stated, I was to have a phone appointment on Friday with someone from the executive team at 2:00 to discuss our situation. Well, Friday came and went with no call. I called again but with no answer and left phone messages. Is this where the roller coaster ride and fun begins? It was my understanding that BofA was going to address the Countrywide mortgages first that are underwater and/or in imminent default and meet the criteria for the AG National Settlement. Has anyone heard any news if BofA has in fact started to respond to anyone who meets the National Settlement requirements?

[Cat Damiano]

Unfortunately there are thousands of homeowners that reach out to the OOP from that contact information we post so every once in a while something like this happens but normally they are very responsive. Were you able to get in touch with someone this morning?

[mickandvick]

UPDATE DOJ Settlement!!! Please needing advice!

Hi Cat, I finally heard from the exec. team member, Philip. Set up another appt. for the following Friday. Received call as planned. I explained in full the situation and hardship. I gave him the $400,000 amount we were underwater on our home. I expained that my husband would be losing his job June 30, 2014 and the his income would be reduced by 57%. I stated that he could verify this information with the DOT. He stated that he understood the situation and that we would most likely be eligible for a principal reduction since we are in imminent default. I explained that we have never been late on payments and that it was my understanding that we would not qualify for a principle reduction under the DOJ settlement. He stated that according to their guidelines, you had to be in dafault as of January 31, 2012 or in imminent default. He had me FAX over a harship letter, taxes, payroll stubs, and bank statements. Philip called me a week later. He stated that he was leaving on vacation and would not be returning to the office until May 30th. He said our file was still being worked on and that another gentleman, Curtis would be contacting me within 2 days to go over the principle reduction and/or refinance information that they had received from the investor. Two weeks went by with no call from Curtis. On June 1st, I finally received a call from Philip. He stated that Curtis who was supposed to contact us, had told him that he had tried several times to reach me. I told him that I have been patiently waiting to hear and that no one had called. He then stated that were eligible for the DOJ principle reduction since we were not in default and that the imminent default was 2 years out. I told him that the imminent default is now! I can not wait 2 years for a solution, I need it now. I can not sell my home and I can not afford the payments. He stated that I should call the refi. dept. and ask about the DOJ refi program. The guy who answered in the refi dept was so poorly trained that he did not know anything about a DOJ/Global settlement. The refi. guy transfered me to someone else. The 2nd refi officer looked up my file and said that there were no notes posted about anyone by the name of Curtis anywhere on the file. Philip was either lieing to me or the file is inncorrect. All of the corospondence I have had with Philip or anyone else except for Curtis was noted. She also stated that she would put us on the list to see if we were eligible for the DOJ refinance. I stated that this would be the 5th time that I have been put on the list and that I had already been told that I am eligible. She stated that I would receive a letter stating my eligiblility. I am now back at square one. What would you recommend I do now? My husband thinks we should stop making the payments and hope they will work with us.

[Cat Damiano]

If you stop making the payments then you would be ineligible for the refi part of the program, and since your payment currently is at 33 percent of your current gross income, this may be the only part of the program that will be able to give you relief prior to your husband being laid off two years from now as that wouldn't be considered a hardship now.

[mickandvick]

Hi Cat, I agree that my husband has not lost his job yet, but it is definite without a doubt and can be confirmed by the FAA. In the wording of the National Settlement for the principle reduction it states that you must be delinquent as of 1/31/2012 or in imminent default. Unless BoA can refi my loan at a 2% interest rate, then there is no way I can make the payments with my husbands income being reduced by 57%. My current 33 percent would jump to 67%. When I innitially spoke with the exec. rep. he totally agreed that I should receive a principle reduction based on the imminent default wording. If BofA can't reduce the interest through a refi. or the principle so that I can stay in the house the next 30 years, I will need to walkaway as I can't even sell the house with it so underwater. With the 1st and 2nd, I owe $850,000 on a house where the fair market value is now $438,000. If I stop paying, I don't know what the timeline would be for foreclosure but at least I would have a lump sum of money to help me start over. I guess my only option is to continue to pay until I hear from BofA on the refi, portion of the settlement. Have you heard how long it is taking for BofA to contact those who are eligible for the refi.? Do you advise any other additional route I should go to pursue the refi? Would it be worth sending an e-mail to the CEO or contacting my Attorney General regarding the immenent wording and the denial on the principle reduction?
Thanks so much for all your help and information.

[Cat Damiano]

Unfortunately with the refi, the rate wouldn't be at 2 percent as that is the floor rate for a modification. Here are members that were discussing the DOJ refi;

National Mortgage Settlement Underwater Refi for BofA in California

Nat'l Mortgage Settlement - Refinance