I recieved a letter from a Bank of America about the new programs as a result of the U.S Depatment of Justice and State Attorney General global settlment.
This is what they said : we are considering your loan for relif under the terms of the settlement please be assured that we will reach you once we have detemined your eligibility.
Please can anyone tell me what those it mean?
Any body out there received the same letter,and what happend next?
Thanks for any info.
What I can tell you is BofA is sending about 200,000 letters out & staggering them over many months as a condition of the settlement. The reason BofA has given is so they can be staffed to handle the influx of paperwork & calls associated with these potential loan mods. The wording on yours is a bit different than mine. I will post the wording over here My recent letter to BofA (Part 2) as I know many members have been waiting to see it. I will try to get it posted this afternoon.
AS THE HAMPSTER WHEEL TURNS!
Originally Posted by samira
Hi there. I just found this post and wanted to let you know that I was in the process of a modification with BofA about a month ago. Two weeks ago I received a call from a representative who said my application is being closed and will be resubmitted for the DOJ settlement. I was asked to send updated paystubs, bank statements as well as the IRS authorization for this tax year. On Tuesday I received the following letter from BofA:
We are pleased to tell you that you are approved to start a Trial Period Plan for the new modification program recently introduced as a result of the US DOJ and State Attorneys General Global Settlement with major mortgage servicers, including Bank of America NA. This modification program includes significant principal reduction and an affordable monthly payment.
If you complete this Trial Period Plan by making all payments as outlined below, any past due late fees will be waived, interest and advances that we paid on your behalf will be added to your principal balance, and your loan will be brought up to date. We will then permanently reduced your principal balance by the amount of $274,440.89. [NOTE THIS IS MORE THAN HALF OF WHAT I OWE]
The trial period plan they are speaking about lists:
Payment 1 due 7/1/12
Payment 2 due 8/1/12
Payment 3 due 9/1/12
It makes clear that the payments I make during this trial period will be approximately the same I will make when I receive the modification after making the 3 payments. The amount they quote is $1000 less per month than I am making now. There were about 5 more pages which had FAQ, etc. I would post it here but I do not know how.
Hope this helps and wish you luck.
Last edited by bransmom; 05-31-2012 at 10:55 AM.
bransmom -Something about this doesn't sound right. According to the terms of the settlement, the maximum principal reduction a homeowner may receive is 100k. I'm pleasantly surprised you're getting a principal reduction of $274,440.89. Almost seems to good to be true.We will then permanently reduced your principal balance by the amount of $274,440.89. [NOTE THIS IS MORE THAN HALF OF WHAT I OWE]
But . . . every once in a while BofA needs a poster child for some good publicity. Maybe you're it!
When was the last payment you made? How long have you been fighting BofA for a modification?
AS THE HAMPSTER WHEEL TURNS!
Maybe she's a BofA rep??? Hmmmm? I agree with you Freedomwon, it does not sound right at all.
Mayela - I am not a BoA rep. I am 20 months behind on my mortgage. This was an official notification from BoA. I have been in negotiations for a modification for the past 2 years. This came directly from my BofA rep in the loan department. This is my primary residence and it is in NYC.
I also thought it was too good to be true but I had it reviewed by an attorney I work with who states that they must stand by what they have put in writing to me.
I too received a letter exactly the same as bransmom, only with a different amount of principal forgiveness. But my amount of principal forgiveness is over $100K!
I then spoke with my BofA CRM and he said that I could receive a forgiveness of "up to that amount" and when I pressed him for details regarding the rate, principal balance, etc. that they used to magically come up with my trial payment, he said he didn't have that info and that after I made my trial payments, if the mod became permanent, that info would be disclosed to me. Huh? Not to go political, but that is almost as dumb as Nancy Pelosi saying "we need to pass the bill so we can find out what is in the bill" (for those that remember that - high comedy). Lemme get this straight, you want me to send you money so that you can then tell me what the terms of those payments are?
In any event, I'm very, very curious to see how this all plays out for everyone here. I was well on my way to just walking and actually only sent in mod applications for delay purposes (HAMPster wheel tactic). Then I was surprised to see the letter from BofA saying that our trial period starts 7/1 and a permanent modification is possible. I'm really on the fence if I should even make payments, because I don't know the terms. I'm still walking unless the terms are extremely favorable to me, which I'm fearful that they will not be.
Jayguy Its seems on the up and up and plus this is part of a court ordered settlement which means they can't really screw around too much. I had an attorney review mine and it seems that it will be reverting my mortgage back to the original (same interest rate, terms, etc.) only with a reduced monthly payment (based on the amount after the principal reduction). The one thing he warned me of is that the amount forgiven might be considered taxable income in NYC. All this is discussed in the FAQ's that they sent with your letter. I actually posted a photo of the letter if you need to see it.
I walked away,I want to sue BOA,any advice
jayguy0710 - Thanks for chiming in about the letter you received. This is very interesting that you too received a letter offering more than 100k principal reduction.This has always struck me strange. Who signs up for a negotiated agreement without knowing the terms? That's not how the bank does business when negotiating a lease for office space. Nor is this how the bank does business when they fund a loan. Terms are clearly defined before entering in an agreement. It should be no different with a loan modification.he said he didn't have that info and that after I made my trial payments, if the mod became permanent, that info would be disclosed to me.
That is not contractual but a very loosely worded statement by BofA. Perhaps they are referring to the "earned principal forgiveness" that you receive so much per year for 5 years IF all payments are made on time. If that's the case, BofA takes a gamble & bets something will change in the homeowners circumstances that prevents them from adhering to the terms of the agreement.I could receive a forgiveness of "up to that amount"
It's not sounding like the principal reduction is an immediate write down or reduction in the amount owed.
bransmom - On the trial amount you will be paying, does it include taxes & insurance? I'm still concerned that there's been a play on words regarding your principal reduction. I don't doubt you've been offered one, but exactly how it will get factored in to your final mod offer is still unclear.
BofA has been known to ignore or circumvent many court orders. This is nothing new but the screws got a a little tighter. BofA has a judgement against them in Ca. & AZ for former countrywide loans. BofA is in contempt of court for ignoring the judgement.plus this is part of a court ordered settlement which means they can't really screw around too much.
AS THE HAMPSTER WHEEL TURNS!
Thanks for your comments freedomwon - I appreciate them.
To your point about taxes/insurance, my CRM wouldn't answer that question either. I tried to do some rough calculations because I knew the payment and I knew the amount of alleged principal forgiveness and I knew the approximate amount of outstanding principal (principal plus back payments plus escrow shortage) and I wasn't quite able to figure it out. They are either using a really, really low interest rate (1.5% or 2%) and including escrow in the trial payment, OR they are using a much much much higher interest rate and not including escrow. If the trial payment I received does NOT include escrow, then I want no part of any mod they'd give me, even if does include principal forgiveness.
Bottom line, I'm struggling with whether or not to throw $4,500 at them (the 3 trial payments) and "see what happens". I don't expect you all to make that decision for me, haha! Just talking out loud I guess, they sure did throw us a curve ball here and I'm seeing if it makes financial sense to mod.
Last edited by jayguy0710; 05-31-2012 at 03:16 PM.
jayguy0710 - I think it's a real tough call & only one you can make. The good part is you have some clear boundaries on what will work for you! On the one hand, it would be great if this truly worked out & your payments included taxes & insurance & you get significant principal reduction on the front end (not some program where it's earned over a long period of time). On the other hand, you throw $ at them in hopes it becomes permanent only to find out later you "took the bait" & the mod doesn't go through with the terms you needed. It's so hard to trust after all the "bait & switch" so many of us have been through. Good Luck with whatever decision you make!
AS THE HAMPSTER WHEEL TURNS!
No BofA actually had to give MORE in principal reductions than the other banks, I believe it was because of the Mackler Whistler Blower
part of the settlement. That was something that showed that BOA was screwing home owners and the government and tax payers on HAMP, and it was very deliberate and came from the "top".
I do not think that the amount they quoted me includes my taxes and insurance. There is a paragraph in the FAQ's that makes me think it is not. That's fine with me because the monthly amount is still much lower than what I was paying in the monthly amount before.
Like Hopeful said - I think I might have gotten this offer because I got screwed not only by Countrywide but by BoA when I first enrolled in the HAMP - I was paying an interest only payment that was going to increase yearly. The first payment was only $100 less than what I was paying before and over the course of the years my interest only payments were supposed going to be more than my original mortgage payment with taxes and insurance included. This is when I started fighting with BofA to change the type of program I was in or revert back to my original mortgage. This was 2 years ago. In the beginning I was trying to make my monthly payments to BofA but then instead of paying them I put the payments into a separate account. I would re-submit (3 times in total and 3 appeals) all the applications they asked of me and within 24 hours of submission I would get denied. I spoke to credit counselors, a few attorneys and they all said the same thing - how can it be reviewed within 24 hours? No one could explain to me why I was denied. Finally this last application I submitted (back in March) was rolled over into this DOJ program. As per BofA records I am 21 months behind on my mortgage but they never filed a lis pending in NY nor did they start any type of foreclosure proceedings. I really think that if I could see my BofA file I bet they there is something there that BofA screwed up on.
Located in CA
Bank Of America originated with Countrywide in 2005
Currently $300,000 underwater
Haven't paid since June 2011
Received fedex letter June 11, 2012 stating we were eligible for DOJ offer.
Just wanted to let those who are searching for information on the DOJ settlement offers we received a letter via Fedex on June 11th. We were approved for Hamp modification last year that consisted of a doable payment but it also included a balloon payment of $140,000 (the current market value on our home is $190,000). That was just not an option for us so last June we decided on starting our strategic default. In January of this year Bank of america offered us an in house modification that was $800 more per month than the Hamp offer. I didn't learn about the DOJ settlement until the end of April and I of course called our assigned BofA Negotiator immediately. She called a few days later and told us we were eligible and gave us a list of a few more documents to fax to her. In the meantime I also called the general 800 number listed on the DOJ website they stated if we were eligible we would receive a letter within 60 to 90 days. In the meantime we have also received a notice of intent to accelerate. My negotiator has assured me the filing of the NOD will be postponed. On monday we received an automated message from BofA saying to expect a fedex package. We received the letter the very same day. I thought it was going to be the actual DOJ modification offer but it was just an official letter stating that we were eligible and to call to make an appointment with an in person representative located in our area. When I called to make an appointment she gave me a whole list of documents to bring (just like the Hamp application). However, when I inquired about the settlement guidelines and the status of our July NOD timeline she was surprised and asked if our letter had National Mortgage Settlement written on it. I told her yes and our document requirements went from 11 items to only 4. We didn't even have to bring in a recent bank statement. She stated that not alot of people are getting the DOJ applications. I am trying so hard to remain completely skeptical, but I can't help but let my hopes get up just a little. It is confusing to me because according to my assigned negotiator we have officially applied a month ago, however we have officially applied again today as well. I will update here as soon as I hear anything else. I was wandering if anyone has received the acknowledgment of eligibility and applied to only be denied later?
Sac42375 -What were the 4 items that were required. It's possible your reduction in required paperwork may have nothing to due with "National Mortgage Settlement" written on it & more to do with BofA already had updated documents from you since you just re-applied for a loan mod 30 days ago. Could it be that you're under someones wing at BofA that's actually organized????she was surprised and asked if our letter had National Mortgage Settlement written on it. I told her yes and our document requirements went from 11 items to only 4.
AS THE HAMPSTER WHEEL TURNS!
I to received a call from BOA CSM indicating that I will receive a letter shortly concerning the New Trial Payments I cant wait to see what exactly they are talking about. He didnt give out any details. I will keep everyone posted on my situation.
Hi all,
I too rec'd the paperwork for the "US DOJ and States Attorneys General global settlement." It says I meet the criteria and need to apply for the program.
Although I'd love to have a principal reduction, I'm leery of the outcome if I apply. Our loan originated with Countrywide in 2006. It's a traditional 30-year fixed. When we ran into financial trouble, we went through NACA and rec'd a 2% interest modification fixed for remainder of loan (down from 6.75). We're in AZ and are over $150K underwater.
Since the NACA mod has been a great deal, we don't want to screw that up by applying to this offer and getting a deal that's not as good. Although we're still 2 months behind, our financial situation has improved quite a bit. We're trying to settle on old debts and getting ourselves caught up. I'm afraid by supplying new financials to BofA they may believe we make too much money and we'll not only not qualify for the DOJ mod but may also lose our existing 2% mod through NACA.
Any thoughts or suggestions? I hate to go through the mod process again since it was a horrible experience last time. But, I don't want to leave money on the table either!
Thanks.
Hello Freedomwoman: I didn't even think about that, but you are probably right. I like many others here have been fighting this battle for over 2 years and about 7 months age we were assigned a negotiator who has been very on top of our case. I actually think she is doing the best job she can fore us. However, just because I trust her does not mean I trust Bank of America and I have told her that. The only documents we had to bring to our meeting with the B of A in person rep were a RMA, Hardship letter, and a list of our monthly expenses. She didn't seem to be very well informed about the details of the settlement at all. Surprise Surprise
SBCABLE? Were you behind in payments by the January 31st, 2012 cut off date? If not I do not think that you will be eligible for the principal reduction. From what I have read if you were not at least 60 days late by that date you will only be offered a lower interest rate that will bring your payment down to not more than 25% of your gross monthly income.
I did not receive a letter, I was called after I called them, they assigned a rep and she is working with me, I mailed my docs a little over a week ago. We are waiting to hear something.
We received our letter in March for up to a $333,000 reduction! Our payments were scheduled:
4/1
5/1
6/1
We have been going through this since June of 2009. We have been postponing our sale date since Dec. 2011. I've always called on a weekly basis and kept notes on all conversations. I feel like after all the approvals and denials we are finally getting to the finish line.
I did my ususal weekly call to BofA regarding any update on the Global Settlement. This is what I got
1. Final court approval done
2. They are waiting on state by state approval
I live in California. Anyone know if this state has been approved? I call every week since I received the letter on 4/26/2012.
What also concerns will they really reach out to me. I am not behind on my payments. The investor is BANA LAS HFI 2ND LIEN HELOANS
Congrats to all of you, I am happy for your good news and hope I will be getting off the gerbil wheel myself soon.
Sac42375 -Yes, I was behind in payments at that point. My last payment was Sept '09. I too have been fighting this beast for a long time!Were you behind in payments by the January 31st, 2012 cut off date?
AS THE HAMPSTER WHEEL TURNS!
Can anyone who rec'd a letter post any phone number that are listed with Bank Of america? I'm interested in trying to do a refi with the mortgage settlement and the CRM that I was assigned to at BofA knows squat about it and keeps passing me the Global settlement number. I'm hoping i can get someone to talk to about this!
Hi Bernmollevie - Phone numbers listed on the letters are in direct correlation with the service center in the county closest to the homeowners. BofA has opened 50 of these service centers in 25 states that have been the hardest hit.
You could always try calling the following:
Bank of America Office of the President - You can escalate your case to the OOP
877-498-7226 (phone #)
BofA executive team
1-704-386-5687
Have you tried either of these numbers?
AS THE HAMPSTER WHEEL TURNS!
Hi - Can you please post a copy of the letter?
Housebroken13 - Here's the key points from the letter BofA sent:
You meet the criteria to apply for a new federal government modification program. Qualifying customers may reduce their monthly payment by an average of 35 percent.*
Time is limited. Please call us as soon as possible to learn more about this program.
Letter goes on to say: We are pleased to tell you that you meet the criteria required to apply for a new modification program recently announced as a result of the U.S. Department of Justice and State Attorneys General global settlement with major servicers, including BofA, N.A. We encourage you to apply since this modification program could provide qualified customers significant principal reduction and reduce monthly payments by an average of 35 percent. *
Additionally, if you qualify for this modification, any past due late fees will be waived, interest and advances that we paid on your behalf will be added to your principal balance, and your loan will be brought up to date.
To apply for this modification program, please make an appointment to meet with a home loan specialist at the (your nearest city or county) Customer Assistance Center as soon as possible, but no later than (30 day deadline goes here).
The letter continues on from there. The jest of it is you need to apply for the program. If BofA does not hear from you by the deadline date in your letter, they will continue normal activities for collecting past due loan payments.
The asterisk (tiny print at bottom of page) says the following:
The estimate of the monthly payment reduction percentage was calculated using the average monthly payment before modification and the potential average monthly payment post modification for customers who are eligible for a modification under this settlement. Not all customers will be eligible for a principal reduction and/or payment reduction; however you must provide us with the documentation requested to see if you qualify.
Letter continues on to say that BofA is working with a third party company, Home Retention Services, Inc. & they are a licensed debt collector. There is an enclosure from them that has a number of disclosures, one of which is the validity of the debt. If you do not dispute the validity of the debt, it will be assumed to be correct. It also shows a dollar amount needed to bring your loan current.
This is no different than applying for a modification! Sounds like more lip service & BofA has provided yet 1 more layer of corporate insulation by "hiring a third party debt collector".
AS THE HAMPSTER WHEEL TURNS!
I live in CA, in Los Angeles county.
Faithfulfighter, Thank you so much for the information and Congratulations!!!!
You can go here Customer Assistance Centers | Bank of America Put in California from the drop down menu & then select the city closest to you. Once selected you will see a phone number & address for the customer assistance center.
AS THE HAMPSTER WHEEL TURNS!
hello,
i have the same letter, with the reduction, but my letter does not say "up to" the amount it specifies the amount, so i am definitely going to hold them to it.. i have been battling with them for over 4 years now, so imagine how many payment im behind in. the trial payments are still a bit higher than i would like for them to be, but it beats having to move and so on and so forth. my trial payments started 6/1/2012, the letter came unexpectedly, well about a week after they had requested for us to send in updated pay stub, irs form and i think that was it. i dont have the letter in front of me but the reduction was for over 300K, i did see that they would report that amount to thE irs in the form of 1099 something or other, so trying to see how to avoid that IF a permanent mod is granted.. any ideas out there?
I rec'd the letter also. I'm meeting with a BofA rep in two days. How can I not think it is BS? My last payment was two years ago and those were 5 payments towards a trial mod that ended up being a permanent denial. I was then offered some other crap would increased my payment by $100's more than my original mortgage payment.
So, my big question is what makes me part of the 200,000 people that BofA is reaching out to. I mean, there are millions out there with the same set of circumstances as me. I guess I'm asking - - since the letter says "You meet the criteria to apply . . ." what is that criteria??? Could it be that I have PMI insurance on my mortgage and they will get some $ from that, or that I'm self-employed or what?
Did you receive a permanent modification since you've completed the trial payments?
Also, for those that turned in their documents, how long after did you guys get a reply for trial payments?
This was exactly what I was speaking about several months ago concerning the settlement. I spoke with a BOFA rep today and was told the highest principal reduction this person had seen was over $300,000. I'm in the midst of sending in my documentation for the 10th time. I've been at this since November 2009 and it looks like this could finally be the opportunity of a life-time. It is scary as it is unbelievable there's a possibility of knocking off a large percentage of one's principal while at the same time reducing one's interest rate and forgiving all monies owed in arrears. Good luck to everyone and keep the information flow going.
Hi I met today with a BofA representative in Ontario, CA. My goal was to speak face to face with a representative in regard my eliigibility for the DOJ settlement. I have been dealing with a HAMP since February of 2012. My account manager is located in Texas. I live in California. Before this meeting I was denied twice for HAMP because a: I was current with my loan and b) I did not meet the 31% debt ratio required for the HAMP. Last time I spoke with my account manager (last week) she told me BofA was still evaluating my eligibility for DOJ. The BofA rep. told me today I was already denied, although never officialy notified, because the investor, Wells Fargo, did not include our loan among the ones it approved for the DOJ settlement. He did not elavorate about the specific reasons. BofA is our servicer, Wells Fargo is the owner of the loan, Our loan balance is close to 300K, the FMV of the house is 180K. Our loan is a traditional with 5.75% interest. The only offer BofA gave us was a short sale or relocation assitance. We want to keep our house. My understading the 31% ratio is not a factor to qualify for the DOJ. I think i meet all the criteria of the DOJ. What should I do? Should I contact Wells Fargo?
Thanks.
playamendoza - I can tell you exactly where the problem lies with the DOJ settlement. BofA will only modify those loans that are both owned & serviced in their own portfolio. If they service it but don't own it, it doesn't meet the criteria for the DOJ settlement. And here's the real kicker! Wells Fargo has the same criteria for their own loans. It must be serviced & owned in their own portfolio. So if one bank is the servicer & another is the owner, it doesn't meet the qualifying criteria. Nevermind the fact that both banks are participating in this DOJ settlement. You'd think logic would dictate they could find a way to cooperate with one another on this.
What brilliant mind came up with this piece of criteria to begin with?
AS THE HAMPSTER WHEEL TURNS!
Thanks freedomwon for responding. It is indeed very frustrating. I was thinking that if both ends were part of the settlement they would work it out. Can they swap the loans? Should we contact the DOJ directly?
Playamendoza - If it were me, I’d write a letter & send it to the following:
BofA, Wells Fargo, Ca. AG, & the OCC. I would also file a complaint with the OCC which you can do online https://appsec.helpwithmybank.gov/olcc_form/ Once you file a complaint, you will receive a case number.
In the letter, and complaint form for the OCC, be sure to specify that both banks are participating in the DOJ settlement; however, BofA (your loan servicer) has indicated that Wells Fargo (the investor) DID NOT submit your loan to the database for the settlement.
Certainly don’t do anyones job for them by spelling out that your loan is not owned & serviced in the same banks portfolio. Just give the reason BofA provided you above when sending in your complaint.
AS THE HAMPSTER WHEEL TURNS!
I met with BofA rep on Friday. This was after I was solicited by a FEDEX letter and snail mail letter about being part of the 200,000 DOJ settlement cases. My loan is serviced by BofA and, yes, you can say it is owned by BofA (via Countrywide) but it is part of Bank of NY (BONY) investor groups. The BofA rep I met with said he and the other reps were never told what the qualifiers are to be part of this. He has no idea and neither do I. Just gonna keep my fingers crossed. And my toes also!
I was also told that once you are given the opportunity for the 3 trial payments and you make them on time then BofA cannot change their minds like they did with the HAMP trial mods.
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