Question about the Dept. of Justice BOA Principal Reduction Settlement Program

[atmywitsend]

Hello, I just received the letter from Bank of America regarding the principal reduction. We were in a short sale and our account manager contacted us regarding our eligibility for the new program. We put the short sale on hold. Today is the 17th and they are giving us until the 31st of May to meet with them regarding applying.

My question is is there a thread devoted to this topic? Does anyone know what the income parameters are for qualification or the ratio's? I want to run the numbers before I meet with the BOA home loan specialist to turn in my documents.

I would like to read if anyone else has successfully navigated this process yet? Any info would be appreciated.

[MonaLisa]

I was just informed on Tuesday this week that the HAMP I submitted back in March has not been processed because BOA was waiting for further information about the DOJ settlement program. I was asked to send in more paperwork -- recent pay stub, bank statement, etc. -- and now waiting for my SPOC to call me this morning (made a 6:15 am phone appointment for her to call me, but she's now a few minutes late) to make sure all the paperwork was received properly so she can go ahead and submit for this program. She told me on Tuesday that everyone who qualifies to be submitted has to go through that process first before being submitted for consideration for anything else.

I'm not worrying about it much at all, as we have already committed to walking away from our house. It's about 85k underwater, so I don't see anyone making that much of a principal reduction. And, even if they did, I'm also wondering what kind if interest rate they'll offer. I've read everything I can find about this program, and I'm reading about people being offered ARM loans with interest adjustments up to 6.5% in five years. I certainly wouldn't sign anything like that. Also, our loan with Countrywide was a refi, so might not qualify in the end, although BOA certainly knows that, and I haven't found any information from any sources that mentions whether the loan can't be a refi, so we'll see.

For me, it's just another month or two of payment-free living. And then, more months as we get submitted to other programs. I'm in my 9th free month now, and feeling like it's the best thing ever!

[MonaLisa]

I would like to read if anyone else has successfully navigated this process yet? Any info would be appreciated.

Also wanted to point you here for more information about who is eligible. You can click on the BofA link on the right-hand side and read the whole judgement, including criteria: Who May be Eligible for Assistance | NationalMortgageSettlement

[atmywitsend]

Also wanted to point you here for more information about who is eligible. You can click on the BofA link on the right-hand side and read the whole judgement, including criteria: Who May be Eligible for Assistance | NationalMortgageSettlement

Monalisa, thanks for the info. We actually are underwater a lot more. We bought our home for $560k and its now worth about $410k..I guess we might be expecting a miracle, I would like them to reduce it to current market value, but that maybe asking too much. If it doesnt work out well try to short sale again, and if all else fails we are also ready to walk. I am not going to stay in a home that will take forever to get equity in.