My wife and I received a letter (FedEx) from Bank Of America telling us that due to a settlement with the government, we qualified for a loan modification. We have never been late on a payment, no issues with worrying about our payments or a hardship, and the reason we qualified is apparently because we are underwater on our loan, and this is to reduce the rate. After doing research into Home Loan Modifications, I started to get a little queasy. From what I read, the home loan modifications CAN hurt your credit (my wife and I have extremely good credit and work hard to keep it that way!)
I called bank of america, and was told that our credit would take a hit, until I pointed out that on the back of the letter we received it said we would NOT have our credit affected, we would not have to pay any closing costs, and would not have to go through any trial payment period. All that would happen is that our rate would drop from 6.25 to around 4.00... They asked me about the FedEx (tracking?) number and when I told them it started with DOJ they sent me to a different number. I spent the 25 minutes on the phone with a representative, who asked my permission to check my credit, after explaining that even the credit check would not affect my credit. He checked my credit rating (He was very impressed!) and we set things in motion. He sent the form, my wife and I filled it out, and sent it back to him (The form was us giving our permission to get our 2011 tax info). Because we obtained the loan before getting married, my wife's last name on the loan is different than what it is now. I was informed that we would need a picture ID (expired passport would suffice) when the notary came out to our place.
I then received an email from another rep who would be working on our case. She informed me that since my wife's last name was different on the loan from what was being requested for taxes, if I sent my tax return from last year to them it would speed up the process.
I guess my real question, before I send off my tax return, is "How legitimate is this"? All the email correspondence has been marked as sent from BofA, and the emails address is "email@example.com" but I just wanted to check and see what people thought (I need to send the tax return today)
Thanks so much for reading through my long winded post!