Bank of America Starts Mortgage Reduction

[shobam]

will others follow suit?

Bank of America Starts Mortgage Reduction Effort - Yahoo! Finance

[Evan Bedard]

will others follow suit?

Bank of America Starts Mortgage Reduction Effort - Yahoo! Finance

Hey Shobam,

These principal reductions are apart of the national mortgage settlement in which five of the top mortgage servicers are participating including BofA, JPMorgan Chase, Citi, Wells Fargo, and Ally/GMAC.. You can find additional information on the settlement in the posts below:

How the National Mortgage Settlement Is Being Applied | LoanSafe

http://www.loansafe.org/forum/wells-...tion-faqs.html

[rosalinda]

To be eligible for the principal reductions, however, homeowners will have to meet certain criteria, including: having a loan owned or serviced by Bank of America; owing more on the mortgage than their property is worth; and being at least 60 days behind on payments as of the end of January.

[norcalmama]

I had an appointment w/ a local BofA representative yesterday and he advised me that this was happening but also advised me that if you were declined for any type of modifacation then the above pricipal reduction program would not be offered .

[TomEason]

Hi shobam

I don't know whether other lenders will join the settlement or not. Thus far, according to the media, none have done so.

[TomEason]

norcalmama

Thanks for your post.

I believe that local BOA rep, with whom you met, is misinformed.

I happen to know someone who had been previously denied a mod who has been proffered a National Mortgage Settlement principal reduction mod. Needless to say, he's very happy about it!

[NewbieFed]

norcalmama

Thanks for your post.

I believe that local BOA rep, with whom you met, is misinformed.

I happen to know someone who had been previously denied a mod who has been proffered a National Mortgage Settlement principal reduction mod. Needless to say, he's very happy about it!

This sounds like big news. Let's hear more about it and the amount of reduction being offered. I was underling a temporary in-house modification and when it came to signing the documents, BofA would not send me my documents until a drafted a letter declining any federal assistance. I was also told that if I did not like the in-house mod, they would continue working with me to find a better program. When I asked for that in writing, they refused to provide it and I in turn, did so.

[Evan Bedard]

This sounds like big news. Let's hear more about it and the amount of reduction being offered. I was underling a temporary in-house modification and when it came to signing the documents, BofA would not send me my documents until a drafted a letter declining any federal assistance. I was also told that if I did not like the in-house mod, they would continue working with me to find a better program. When I asked for that in writing, they refused to provide it and I in turn, did so.

Unfortunately, these banks always refuse to provide information or status updates in writing unless it is a default notice or you have officially been approved/denied for assistance.. I'm also very interested to see how this program plays out and the size of principal reductions the participating lenders offer..

[Ladybug]

I wish I could qualify for something. I understand you had to complete your (3) months of trial payment when I did and all I got (2) weeks ago was a letter indicating that the only thing I qualify for was a Deed In Lieu. So I think someone is pulling people leg (This is just a old saying).

[Evan Bedard]

I wish I could qualify for something. I understand you had to complete your (3) months of trial payment when I did and all I got (2) weeks ago was a letter indicating that the only thing I qualify for was a Deed In Lieu. So I think someone is pulling people leg (This is just a old saying).

All you received was a letter stating you should apply for a deed in lieu after completing the 3 trial period payments? Your lender should have either sent you an approval or denial letter and if you were denied for permanent assistance they should have listed the reason why..

[freedomwon]

I happen to know someone who had been previously denied a mod who has been proffered a National Mortgage Settlement principal reduction mod. Needless to say, he's very happy about it!

Tom, do you happen to know how much of a principal reduction was given? If I recall, there is a cap on how much of a reduction will be offered. Also, people are told in a letter they meet the criteria for the AG settlement & are "invited to apply". It's all the same hoops to jump through for a modification.

[TomEason]

Hi freedomwon

I don't yet have that info, but will inquire. Neither had I heard the specific contents or wording in the letters.

It would be very unfortunate if there's an application and lengthy processing and underwriting time!

[freedomwon]

Hi freedomwon

I don't yet have that info, but will inquire. Neither had I heard the specific contents or wording in the letters.

It would be very unfortunate if there's an application and lengthy processing and underwriting time!

I recently got a letter. I'll post the exact wording over here sometime tonight My recent letter to BofA (Part 2)

[tmc1128]

HERE IS THE LINK TO READ ABOUT IT: Bank of America Offers Principal Reductions to 200,000 Homeowners - Yahoo! Finance

GOOD LUCK TO EVERYONE! I AM STILL FIGHTING.. NOW I AM TALKING WITH THE SERVICER... WE ONLY GOT BEHIND AFTER CARING FOR 6 OTHER PEOPLE IN OUR FAMILY. YOUR MOMS, AND OUR SON WITH 3 KIDS UNDER AGE 5 FOR THE PAST 5 YRS. THEY MOVED OUT IN THE PAST YR. BUT WE USED EVERYTHING TO KEEP THE HEAT ON AND FOOD, UTILITIES...
LETS ALL HOPE FOR THE BEST...

[byonush]

I have been getting conflicting information. Bank of America is my servicer and Bank of New York Mellon is the investor. I was told that because Bank of America does not own my loan I am not eligible. I spoke to another attorney yesterday that told me not to expect them to work on better terms during court mediation and that I should file chapter 7 now that way the money I save now until the foreclosure they will be unable to touch as well as not be able to come after me for the deficiencies of the mortgage.

[tmc1128]

Here is the link about this new program with BOA: Bank of America Offers Principal Reductions to 200,000 Homeowners - Yahoo! Finance

In the article, it states that some of the reductions could be as high as $100,000. good luck to everyone.. we are still fighting and now talking with the servicer

[Housebroken13]

If your loan is a Fannie or Freddie owned loan you are not eligible for this from what I understand. But guess what a home on my street comparable to mine just sold for $105,000 LMAO! I owe $275,000 on my home.

[tmc1128]

yes, because the head person for them has not agreed to the prinicple reduction yet, even though he has been bombarded by everyone to sign and do it... It is so frustrating , we owe 250,000 on our house and it was just appraised for only 126,000. house down the street has been empty for over 2 yrs, falling apart and they have it listed at 97,000. WHY ARE THE BANKS SO STUPID.. WORK WITH THE HOMEOWNERS, THEY WANT TO KEEP THERE HOUSE...

[TomEason]

byonish

I bet the attorney with whom you spoke yesterday is a BK lawyer who does nothing but BKs, and it was no doubt a free phone consultation. Well that lawyer rendered bad advice. Most lawyers just don't get it.

You need not file BK in order to sock away savings. Saving the $$ and putting the saving somewhere out of reach is easy.

The general rule is this. Use BK only as a last resort after all other options have failed and you need the protection of the BK court. And don't file until the very last moment, i.e. when a judgment creditor is about to enforce that judgment by trying to locate and attach your assets.

[NewbieFed]

I have been getting conflicting information. Bank of America is my servicer and Bank of New York Mellon is the investor. I was told that because Bank of America does not own my loan I am not eligible. I spoke to another attorney yesterday that told me not to expect them to work on better terms during court mediation and that I should file chapter 7 now that way the money I save now until the foreclosure they will be unable to touch as well as not be able to come after me for the deficiencies of the mortgage.

byonush, understand your frustration. When I started all of this some of the denial received were:

Your loan is not a FMAE or FMAC and therefore you do not qualify.
Your loan is not owned by BoFA but by an investor, we only service it and therefore you do not qualify.

Now, I expect to be told something else as a denial. If this National Mortgage Settlement thingy is the latest and greatest, they can't tell me I don't qualify as my loan is not a FMAE or FMAC. It's an investor loan and I thought BofA bought these from Countrywide or am I crazy to think this? How can BofA continue to be so slimy and get away with this? I know they are stringing all of us along so they can maximize their profits by receiving financial rewards from the federal government, correct?

[freedomwon]

Here's a protest in NY about their foreclosure practices. It also shows a quick glimpse of the letter that got mailed out to 200,000 homeowners. Annual Shareholder meeting in Charlotte, NC to take place today. About 1,000 protesters will march there today as well.

Bank of America protesters arrested in NYC - Yahoo!

While it came as a surprise that I received the letter myself, I'm over 300k upside down, so the principal reduction may be more helpful in other parts of the country or for those that DID NOT buy at the very peak of the market.

[tmc1128]

this is from the article about the new settletment: If it is Fannie or Freddie you are not eligible. Here is what it says,
Bank of America services one million of those loans, but many of them are owned by Fannie Mae and Freddie Mac. Their regulator, Edward DeMarco of the Federal Housing Finance Agency, has yet to agree to principal reduction in loan modifications, despite harsh criticism from some lawmakers on Capitol Hill and increasing pressure from the White House.
I think Mr DeMarco needs help to change his mind and agree to this... If people are willing to pay to stay in there homes or have them stand empty for years at a time...

[byonush]

Correct he is a BK attorney that supposely does foreclosure as well. Currently have a Walmart CC that has 500 and Visa that has 500 a childrens clothing store CC that has 600 2 car loans that total 750 a month a personal loan that is 105 a month and a couple student loans from my wife. I did speak to him on the phone for a few minutes and he immediately said how much do you really want to keep your house? He suggested Chapter 7 right from the beginning but had me come in for a free visit to make sure I qualified. Suggested again that both my me and my wife file right away because if I waited until the last minute I would have to claim all of the cash stored away in a safe at my house and the courts would want it. He explained that I would have to disclose all my assets and that I would be signing under pergery of law and that he wouldn't be able to sign it knowing I had put cash away during the months of not paying.
The only reason I was even looking at Chapter 7 from the beginning was for when it does go to strict foreclosure that they could not come after me for the deficiency. I just spoke to my wife after your comment and we both agreed we are not going to proceed with that step just yet and would wait to see how it plays out. We have not received a notice of default only a notice of intent to accelerate 1 year ago. The only thing that has changed recently was MERS signing my mortgage to Bank of New York Mellon. I feel that only having a couple thousand in credit card debt would not be beneficial to file yet. I think the only time it would be worth it is if the bank comes after me for the deficiency.

[byonush]

Just to quickly note my mortgage is not owned by Freddie or Fannie.

[TomEason]

Hi byonush

Thanks for your post.

This statement is a reason a consumer may not want to disclose everything to a lawyer

He explained that I would have to disclose all my assets and that I would be signing under pergery of law and that he wouldn't be able to sign it knowing I had put cash away during the months of not paying.

Since lawyers are "officers of the court", it's recommended that consumers be cautious what they share with their lawyer.

That said, I'm glad to hear you and your wife have decided to wait.

Good luck!

[Hopeful In Hawaii]

I have been getting conflicting information. Bank of America is my servicer and Bank of New York Mellon is the investor. I was told that because Bank of America does not own my loan I am not eligible. I spoke to another attorney yesterday that told me not to expect them to work on better terms during court mediation and that I should file chapter 7 now that way the money I save now until the foreclosure they will be unable to touch as well as not be able to come after me for the deficiencies of the mortgage.

Here is their news release

Bank of America Corporation | Newsroom | Bank of America Extends Modification Offers Under Global Servicer Settlement

The wave of mailings beginning this week will reach a broader base of customers who may be eligible for this principal reduction program. The letters provide each homeowner with a description of the program and an invitation to provide financial information to begin the review process.To be eligible for this program, a homeowner must meet certain criteria, including:

• Owes more on the mortgage than the property is worth today.
• Was at least 60 days behind on payments on January 31, 2012.
• Has a contractual monthly payment for principal, interest, property taxes, hazard insurance and any applicable homeowner association fees totaling more than 25 percent of gross household income.
• Has a loan that is owned and serviced by Bank of America, or serviced for another investor that has given the bank delegated authority to do such modifications.

( Ok, you can bet if the investor is not BOA they will tell you your investor will not allow it. )

Under the terms of the government settlement, the bank will strive to provide an affordable payment to qualified under-water homeowners by first reducing the principal balance to as low as 100 percent of the current property value, then lowering the interest rate and forbearing additional principal, as necessary, to reach the target payment. The settlement terms require a final calculation to determine that the cost incurred by the mortgage investor to modify the loan does not exceed the expected loss to the investor if it goes to foreclosure instead, commonly known as positive net present value.

How interesting since "the investor" is them! That also means you need a positive NPV, the thing they continue to manipulate! You have to apply and do the loan mod dance all over again , do trial payments etc.

[Hopeful In Hawaii]

BTW, BOA always was more likely to do loan mods when THEY were the investor,
they had skin in the game.

But if they are supposted to ask investors, who is paying for the Principal reductions?
I thought this was part of the settlement and that is where their part of their 11 Billion obligation is going?

If so, it should not matter what investors allow, because BOA would be paying for it.
But that does not seem like the case, so what exactly are they "paying for" ?

How is this different than what they should have been doing all along other than changing the "waterfall" method?

[sonickitty]

When news of this deal with the banks came out, I read something that said they would be giving modifications and principal reductions to people who were CURRENT on thier payments but severely UNDER WATER on thier mortgages. Now, there is this business about having to be more than 60 days late!!!??? What about those of us using savings to stay current and haven't yet defaulted yet? WTF?!

To be eligible for the principal reductions, however, homeowners will have to meet certain criteria, including: having a loan owned or serviced by Bank of America; owing more on the mortgage than their property is worth; and being at least 60 days behind on payments as of the end of January.

[StrategicDefaultInWA]

Sonic, the truth of the matter is that they are banking, pardon the pun, on people just like you to bleed yourselves dry while they reward those that don't deserve it. My advice is to stop paying them and start paying yourself.

[norcalmama]

norcalmama

Thanks for your post.

I believe that local BOA rep, with whom you met, is misinformed.

I happen to know someone who had been previously denied a mod who has been proffered a National Mortgage Settlement principal reduction mod. Needless to say, he's very happy about it!

Thank you so much Tom, I am learning this as I read thru the posts . That same rep also told me that no one from this point besides him will be calling me and that the "in house mod' is the only one he sees maybe as being available to help us. He was definitely not wanting to listen to or see all the notes and calls I had been on in the last 3 years and in fact said that I may not be so honest and that I am lucky that there may still be hope.. grrrrrrrrr insulted I walked out and said no more

As I have given up hope based off that reps words... I get a call from the HOMEOWNER Retention department yesterday on my home vm... I call it back today and of course get her vm - but its the same story ..just when I get my mind wraped around the bank taking my house they start all over with the calls that they can help...

Reading about the Nationwide Mortgage Settlement .. We are prime candidates .. we had a countrywide loan before it was sold to BofA, we fell behind due to loss of income and we do not have a Fannie mae or other type loan.. We qulaify ..now to get someone to actually see that and HELP us in the right direction before the latest sale date is a whole other strory..

Thanks to all of you for posting and sharing stories and insights

[TomEason]

Hi norcalmama

Thanks for your post. I can certainly relate to your frustration!

I might suggest you call the number BOA has established for info and help about that settlement. I don't happen to have it in front of me at the moment; it's listed on the Nationwide Mortgage Settlement site.

[norcalmama]

Hi norcalmama

Thanks for your post. I can certainly relate to your frustration!

I might suggest you call the number BOA has established for info and help about that settlement. I don't happen to have it in front of me at the moment; it's listed on the Nationwide Mortgage Settlement site.

Thanks Tom. I found it.. I will call and see what happens ! Cant hurt ..

[Ann Gonzales]

Hi Evan: A couple of years back I got some valuable information that helped me get my HAMP government modification with B of A on my Countrywide mortgage from this forum. That was a blessing. So now I am trying to get a Principal Reduction for my condo since I already have the HAMP (paying on it for 2 years now). I had to file Chapter 13 to strip my second mortgage that B of A sold to Green Tree because Green Tree would not work with me what so ever. I also have been unemployed for 4 months now and doing all I can to keep my condo. Laid off twice in a year's time. Payments are current. Cannot get mortgage assistance from Keep Your Home California because of Chapter 13. It is just about paid off. I continually get the line that B of A will contact me, and that B of A is waiting for more info from the Courts on the settlement which is B.S. My attorney has already received a letter from B of A notifying him of my request for a Principal Reduction so B of A is aware of my request for a Principal Reduction. I understand since I already qualified for the HAMP I would be eligible for the Principal Reduction since my property is now over $100,000 underwater.
Do you know of any contacts at B of A that are working on Principal Reductions, especially within their Bankruptcy Dept where I make my monthly payments. Unfortunately, Barbara Desoer (President, Home Loans) is retiring and the loan officer who handled my HAMP is no longer in Loan Modifications. I am in California. Thank you, Ann Gonzales