Full forgiveness by BofA?

**oozze** · 07-30-2012, 11:59 AM

Hi GAmom,
I can still see both accounts (1st and 2nd) details online

**seven** · 07-30-2012, 12:05 PM

This is great wish they would do the same for 1st then we all can celebrate.

**fraudfighter** · 07-30-2012, 03:50 PM

Originally Posted by GAmom

well i can see the amount on my account still, but when i try to click on it and look at the details, it says its not available....anyone else experiencing this? I view this as promising

I can get details on my other 2 accounts. I really feel there must be some more paperwork though somehow. I expect to get some after the 30 day window too. Now off to research the tax implications. Please keep updating thread!

GAmom: I'm not a tax professional but I do know that I was able to avoid taxes on the debt forgiven in connection with the foreclosure sale of a rental property by declaring insolvency. It was a pain and I did it with the help of a CPA but it basically amount to this: If your net worth is less than zero on paper (so all your assets are washed out by debt - including mortgage debt) on the date the debt is forgiven then you don't have to pay income taxes on forgiven debt.

I'm sure there's more to it than that but that is how my CPA explained it to me. I was fortunate(???

) enough that my properties were far enough underwater that they killed my net worth on paper and I didn't have to pay taxes on the debt that came on the 1099-C. As I understand it the property the debt is associated with is counted into your equation. Might be worth looking into, especially since it is a good idea to have documentation to prove your net worth should the IRS come a knocking for an audit in a couple of years. My CPA made me pull statements for every thing (401k, savings, credit cards, life insurance, cars, etc.) from the month of the foreclosure and provide him copies so that he could sign off on it. Apparently it is a red flag for an audit so you want to make sure you have a leg to stand on.

Good luck!

**GAmom** · 07-31-2012, 08:34 AM

yeah, i was thinking i was in the clear with the debt forgivness act or whatever, BUT the thing is we turned this property into a rental property in March. So now its not my primary residence....so i guess i will have to crunch the insolvency #s. I am pretty sure we are insolvent since the house we bought was 100% financed. BUT i am now thinking i will have to get a CPA to do my taxes this year. Hope i can work it out.

Anyone else forgiveness on a rental property? Now that this debt is forgiven keeping this property as a rental is MUCH more viable. This keeps it off the foreclosure market which benefits all.

**juana** · 08-01-2012, 12:05 AM

Southerncalresident. U said u negotiated your first loan with AHMSI and they were easy to work with. Can u tell me what kind of deal they gave you? I am about to start a HAMP mod on my first loan with them and was wondering if its even worth the trouble because my interest for the first loan is only 3.9%. thanx if u can share.

**idaho spud** · 08-01-2012, 06:00 PM

I received the same letter killing my 2nd for $48k...it was awesome...but only after 2+ years of trying to do mod with BofA and being told 3 times I was declined because of "NOT RECEIVING REQUESTED DOCS"....HUH???? I had a personal 1 on 1 rep whose job it was to make sure I turned in ALL of the needed docs before they would turn it over to underwriting....goes to underwriting and denied for lack of docs....3 TIMES...actually first time was me talking to every idiot in their system when I called them. Anyway this latest attempt was thru the Fannie Mae Mortgage Help Center in Sacramento...I had to find out they existed on my own because the bank would never tell anyone about them. I knew that this way the bank could not get away with 'missing docs' excuse. I received a trial mod that drops my payment from $1450 a month to $911 based on 'the value of my home'. Just made the 2nd payment of 3 today. But how they know the value of my home is beyond me and the final terms of the mod were never listed so I am not sure what the end result will be here. Seems like the 'value' payment completely matches up with the 1/3 of our monthly gross income...which is why I thought that going thru the FM help center was doing the trick...but it may have just been the timing with this DOJ settlement thing...which I know nothing about. Sorry for the wordiness to get to a few points I want to make
1)I still think that the Fannie Mae Mortgage Help Centers are the way to go for anyone who has a FM backed loan and needs help. They are WWWWAAAAAYYYY easier to talk to than any bankster and I fealt a lot less pressure dealing with them.
2)The 'BIG BANKS' will be proven criminals in the future and it appears that this is even starting to happen now. You can say people this and people that...but in the end you have to ask who benefited the most by all of this crap going on....it wasn't really the us.
3)It's funny how when banksters get into trouble and something like a DOJ settlement comes about...there is NEVER an admission of guilt in any way....and the penalty becomes a 'PROGRAM' that they are offering out of the kindness of their hearts because they are our friends and are there to help us...YEAH RIGHT!

**oozze** · 08-03-2012, 11:27 AM

Originally Posted by GAmom

well i can see the amount on my account still, but when i try to click on it and look at the details, it says its not available....anyone else experiencing this? I view this as promising

I can get details on my other 2 accounts.

Anyone else experiencing this?

**Garybaldi** · 08-03-2012, 01:47 PM

Originally Posted by oozze

Anyone else experiencing this?

Mine is still there as active.
Has anyone, who has their 2nd in the DOJ program, had theirs taken off or received additional paperwork?

**GAmom** · 08-06-2012, 08:10 AM

Originally Posted by Garybaldi

Mine is still there as active.
Has anyone, who has their 2nd in the DOJ program, had theirs taken off or received additional paperwork?

My account is still showing but when i try to click on it to go to detail i get this message now:

Your request can't be completed:

This account is not available for online access or payments. Please call 1.800.669.6607 for account information.

They won't even accept payments now!

**Sac2010** · 08-07-2012, 08:25 AM

Happy to report we got the FedEx letter stating our 2nd mortgage ($35K balance) is fully forgiven! Wow, what a relief!
We now have the bigger fish to fry (1st mortgage, $300K balance). We are being reviewed for the DOJ Settlement. Home current market value is about $165K . . .

**Cat Damiano** · 08-07-2012, 09:02 AM

Wow, Sac2010, that is really great news Congratulations!!! I do hope that the DOJ Settlement comes through for the 1st, Good Luck!

**Sac2010** · 08-07-2012, 09:27 AM

Originally Posted by Cat Damiano

Wow, Sac2010, that is really great news Congratulations!!! I do hope that the DOJ Settlement comes through for the 1st, Good Luck!

Thanks Cat! Thanks for being a good source of info for everyone here . . . Best wishes to you as well!

**oozze** · 08-07-2012, 02:41 PM

I forwarded the letter to my CRM since 2 weeks ago. He just called me to verify the letter is not a joke and my 2nd will be extinguished!
I just need to keep the letter as proof.

I cant wait to celebrate when i got my 1st permanent and 2nd one removed!!

**Sac2010** · 08-08-2012, 04:15 PM

Has any one who received total forgiveness on their HELOC got denied for DOJ principal reduction on their 1st mortgage?

We got total forgiveness on our BofA HELOC and currently being reviewed for DOJ settlement for our 1st mortgage.

**cheri** · 08-08-2012, 10:42 PM

Originally Posted by freedomwon

If you take a look around on the threads, you will see not only are lots of folks receiving total forgiveness on their 2nds' but many are receiving very large principal reductions on their 1st. This has been happening over the past 5 days or so. These are specifically related to the DOJ settlement. Some have also reported the principal reduction brings them down close to market value of their property.

It's exciting to see this happening for so many folks after years of fighting BofA.

I received the forgiveness letter a few weeks ago on the 2nd, but today I got a bill for it again? I am guessing this is just a robo letter ?

**oozze** · 08-09-2012, 12:10 PM

Originally Posted by cheri

I received the forgiveness letter a few weeks ago on the 2nd, but today I got a bill for it again? I am guessing this is just a robo letter ?

Cheri,
someone mentioned that the turn around about 45 days.
I am also received a statement for my 2nd....showing xxx amount do at this date, and xxx amount after 15th.
past due. xxxx amount.

**GAmom** · 08-10-2012, 06:43 AM

Originally Posted by oozze

Cheri,
someone mentioned that the turn around about 45 days.
I am also received a statement for my 2nd....showing xxx amount do at this date, and xxx amount after 15th.
past due. xxxx amount.

I also recieved a bill this month on my HELOC. I am guessing its just the mismangement of the billling department. It says very clearly in the letter that any amount you pay toward this loan will only reduce the amount that is forgiven. I just threw it away like all the others. I can't even make a payment toward that account online, so not sure what would happen if i sent in a check, NOT that i have any intention of doing that.

**defaultdave** · 08-10-2012, 09:50 AM

I received my bill too. I think it's safe to say the 45 days is a guesstimate. The date on my letter is 07/23/2012. I'll repost when I get some kind of confirmation that the foregivness is official and is off the books. If anyone gets a confirmation, I think we'd all be interested and would ask that you tell us about it.

**fraudfighter** · 08-13-2012, 02:43 PM

Originally Posted by GAmom

I also recieved a bill this month on my HELOC. I am guessing its just the mismangement of the billling department. It says very clearly in the letter that any amount you pay toward this loan will only reduce the amount that is forgiven. I just threw it away like all the others. I can't even make a payment toward that account online, so not sure what would happen if i sent in a check, NOT that i have any intention of doing that.

I just received a statement last Friday... showing over $28k in past due payments

It is still under the 30 day window so I just shrugged it off. I fully expect to get one in September too. I hope/figure that by October (45-60 days) it'll be sorted out and I'll get some additional communication. I will post if/when that happens.

**defaultdave** · 08-13-2012, 03:28 PM

Update: One thing I didn't mention is about 2 days prior to the forgiveness letter, I received a different letter from BofA stating that I qualified for a loan modification for the same loan principle. I basically assumed that I qualified for both program and that the forgiveness would trouble the loan modification program. Well. Today I received another letter from a "customer service manager" stating how she was her to help and that there were several programs available to assist me in paying off this loan.

I went ahead and decided to call. I talked to a rep about the conflicting letters and she did in fact state that the "forgiveness" would trump anything else and that I was not required to do a thing. Other than if I decided to not take BofA up on the forgiveness. After all this, I did ask when this forgivness might become official and she stated that BofA was shooting for Mid to Late September to resolve the entire thing. She said it wasn't a guaranteed that this is when it would be official but that is what they were shooting for.

**fraudfighter** · 08-13-2012, 07:58 PM

Originally Posted by defaultdave

Update: One thing I didn't mention is about 2 days prior to the forgiveness letter, I received a different letter from BofA stating that I qualified for a loan modification for the same loan principle. I basically assumed that I qualified for both program and that the forgiveness would trouble the loan modification program. Well. Today I received another letter from a "customer service manager" stating how she was her to help and that there were several programs available to assist me in paying off this loan.

I went ahead and decided to call. I talked to a rep about the conflicting letters and she did in fact state that the "forgiveness" would trump anything else and that I was not required to do a thing. Other than if I decided to not take BofA up on the forgiveness. After all this, I did ask when this forgivness might become official and she stated that BofA was shooting for Mid to Late September to resolve the entire thing. She said it wasn't a guaranteed that this is when it would be official but that is what they were shooting for.

Excellent information... right in line with my expectations too.

**Garybaldi** · 08-14-2012, 09:34 AM

Originally Posted by defaultdave

Update: One thing I didn't mention is about 2 days prior to the forgiveness letter, I received a different letter from BofA stating that I qualified for a loan modification for the same loan principle. I basically assumed that I qualified for both program and that the forgiveness would trouble the loan modification program. Well. Today I received another letter from a "customer service manager" stating how she was her to help and that there were several programs available to assist me in paying off this loan.

I went ahead and decided to call. I talked to a rep about the conflicting letters and she did in fact state that the "forgiveness" would trump anything else and that I was not required to do a thing. Other than if I decided to not take BofA up on the forgiveness. After all this, I did ask when this forgivness might become official and she stated that BofA was shooting for Mid to Late September to resolve the entire thing. She said it wasn't a guaranteed that this is when it would be official but that is what they were shooting for.

What was not a grantee? the timing or the entire forgiveness program?

**fraudfighter** · 08-14-2012, 09:36 AM

Originally Posted by Garybaldi

What was not a grantee? the timing or the entire forgiveness program?

I got the impression it was relative to the timing...

**creditscoreworrier** · 08-21-2012, 02:56 PM

We just got a letter yesterday saying that BofA gave us a full forgiveness of our 2nd Home Equity Loan ($162,000!) Signed the paperwork and Fedex'd it back to BofA. Called them today to verify that it was true and spoke to the manager who said that our account showed a zero balance! We qualified for a loan mod (HAMP) thru Countrywide about 6-7 months ago. We owe $300K with them--our house is up for sale at $600K---life is finally looking up.

**defaultdave** · 08-22-2012, 11:55 AM

Originally Posted by Garybaldi

What was not a grantee? the timing or the entire forgiveness program?

Sorry. The timing of when the official forgiveness of my account would occur

**defaultdave** · 08-22-2012, 11:57 AM

Originally Posted by creditscoreworrier

We just got a letter yesterday saying that BofA gave us a full forgiveness of our 2nd Home Equity Loan ($162,000!) Signed the paperwork and Fedex'd it back to BofA. Called them today to verify that it was true and spoke to the manager who said that our account showed a zero balance! We qualified for a loan mod (HAMP) thru Countrywide about 6-7 months ago. We owe $300K with them--our house is up for sale at $600K---life is finally looking up.

Interesting. I dont recall anyone here having to sign something and send it back in. The verbage basically said that no response means an acceptance of the forgiveness. Can I ask what you signed? No one I know can any paperwork that called for a signature.

**creditscoreworrier** · 08-22-2012, 12:29 PM

Originally Posted by defaultdave

Interesting. I dont recall anyone here having to sign something and send it back in. The verbage basically said that no response means an acceptance of the forgiveness. Can I ask what you signed? No one I know can any paperwork that called for a signature.

We had to sign the original letter stating that we accept the "forgiveness" and that we understand that there may be something on our credit report stating "loan not paid in full." We had 30 days to sign and return the letter---it included a prepaid Fed Ex envelope.

**MAMASITA** · 08-22-2012, 01:07 PM

I am almost 3 yrs behind on my second with B of A. Hope to receive a forgiveness letter for 97 k on second. Does anyone know how they determine who gets the letter of forgiveness. Is it random? My first is with B of A seviced by Seterus. I am current on my first. Congrats to those who received the letter.

**Garybaldi** · 08-25-2012, 08:33 AM

Originally Posted by MAMASITA

I am almost 3 yrs behind on my second with B of A. Hope to receive a forgiveness letter for 97 k on second. Does anyone know how they determine who gets the letter of forgiveness. Is it random? My first is with B of A seviced by Seterus. I am current on my first. Congrats to those who received the letter.

Your home equity loan or line of credit may be eligible if it is owned by Bank of America or another participating investor. You will be notified by mail if you are eligible for a principal reduction. If you want more information about your potential eligibility, you can call 1.877.488.7814 (Mon-Fri 8am-12am ET, Sat 8am-8pm ET, Sun 3pm-12am ET).

**defaultdave** · 08-26-2012, 08:55 AM

Originally Posted by MAMASITA

I am almost 3 yrs behind on my second with B of A. Hope to receive a forgiveness letter for 97 k on second. Does anyone know how they determine who gets the letter of forgiveness. Is it random? My first is with B of A seviced by Seterus. I am current on my first. Congrats to those who received the letter.

I too didnt pay my loan for 2.5 years but I think you need to consider some things. Did your 2nd originate with B of A? My was originally with CountryWide. Is your home underwater? Mine is extremely underwater and is located in one of the hardest hit areas, for home prices, in the nation. Which is Merced County, CA. Those facts alone, I believe, put me in line for this forgiveness. I think several other here can validate that they filled the same criteria as I did. Good luck either way.

**defaultdave** · 08-26-2012, 09:06 AM

Originally Posted by creditscoreworrier

We had to sign the original letter stating that we accept the "forgiveness" and that we understand that there may be something on our credit report stating "loan not paid in full." We had 30 days to sign and return the letter---it included a prepaid Fed Ex envelope.

Your letter is little different then the forgiveness letter than the one, and I think the rest, I received. There was no pre-paid fedex envelope nor anywhere asking for a signature. There was also no wording about "loan not paid in full" on my credit report. It specially said that the loan would report as "Paid in Full". Sounds like you may have a different scenario just by the fact that BofA is already telling you you have zero balance? Congrats regardless.

**beechamp** · 08-27-2012, 08:39 AM

How did this happen? Did you stop paying on your second? We stopped paying on our second about 5 months ago. We have not spokent to anyone at BofA but they keep calling and sending letters. A day ago, a man came to our house and was taking pictures of our home and cars. The letter was a contact letter that said BofA sent a field representative in order to communicate with us. Do we call BofA now? Im wondering how we get a settlement below on our home equity account. We are underwater in our home, but current on our first mortgage. Any help would be appreciated. Thank you!

Just receive a FedEx from B of A stating the following:

"We are please to inform you that we have approve your home equity account for participation in a principle forgiveness program offered as a result of the Dept of Justice and State Attorneys General global settlement with major services, including BofA, NA."

"You will receive a full forgiveness of the remaining principle balance of $51K on your home equity account. Then means that you no longer owe this amount, and we will also waive any outstanding fees and interest accrued."

"Your acceptance of this offer is autmatica unless we hear from you".

"Also, once we forgive the remaining balance on your home equity account, we will report to the major credit bureaus that your account was paid and closed".[/QUOTE]

**Cat Damiano** · 08-27-2012, 09:03 AM

Originally Posted by beechamp

How did this happen? Did you stop paying on your second? We stopped paying on our second about 5 months ago. We have not spokent to anyone at BofA but they keep calling and sending letters. A day ago, a man came to our house and was taking pictures of our home and cars. The letter was a contact letter that said BofA sent a field representative in order to communicate with us. Do we call BofA now? Im wondering how we get a settlement below on our home equity account. We are underwater in our home, but current on our first mortgage. Any help would be appreciated. Thank you!

Just receive a FedEx from B of A stating the following:

"We are please to inform you that we have approve your home equity account for participation in a principle forgiveness program offered as a result of the Dept of Justice and State Attorneys General global settlement with major services, including BofA, NA."

"You will receive a full forgiveness of the remaining principle balance of $51K on your home equity account. Then means that you no longer owe this amount, and we will also waive any outstanding fees and interest accrued."

"Your acceptance of this offer is autmatica unless we hear from you".

"Also, once we forgive the remaining balance on your home equity account, we will report to the major credit bureaus that your account was paid and closed".

[/QUOTE]

beechamp,

Did you receive a letter as well or are you asking how the other members are receiving these letters?

**beechamp** · 08-27-2012, 09:13 AM

no, no letter. I guess Im asking what process people went through to get to this point with BofA. We have not paid our second mortgage for several months and just got a letter handed to us at our door from a NCCI field representative who also took pictures of our cars and house.

**Cat Damiano** · 08-27-2012, 09:17 AM

Originally Posted by beechamp

no, no letter. I guess Im asking what process people went through to get to this point with BofA. We have not paid our second mortgage for several months and just got a letter handed to us at our door from a NCCI field representative who also took pictures of our cars and house.

They are receiving these letters as a part of the National Mortgage Settlement and their second liens would be owned and serviced by BofA. You can call to check if you are eligible, but most will just receive a letter such as this.

This is what is on the BofA website;

Your home equity loan or line of credit may be eligible if it is owned by Bank of America or another participating investor. Freddie Mac, Fannie Mae, the Federal Housing Administration (FHA) and the Veterans Administration (VA) are not participating in the programs provided under the settlement. Customers whose loans are owned or insured by one of those entities are not eligible for relief through these programs.

If you do not know whether or not your loan is owned by Bank of America or another participating investor, please call us at 1.877.488.7814 (Mon-Fri 8am-12am ET, Sat 8am-8pm ET, Sun 3pm-12am ET).

**kjb120169** · 08-27-2012, 02:48 PM

Got my first modified 3 months ago...then got the same fedex letter today,,,,but i was forgiven $202,200.24 on my second mortgage....God is been good..to us

**indeep1959** · 08-27-2012, 03:38 PM

Also got this letter today, forgiving my 130k home equity loan at 11% from Countrywide, back in the day.
Went 46 months without paying it.
Thank God!

**suzinbaltimore** · 08-27-2012, 03:53 PM

Got mine today!!! No more second mortgage! $47k wiped away a year to the day that I stopped making payments!! Woo hoo!!

**defaultdave** · 08-27-2012, 08:19 PM

Originally Posted by beechamp

How did this happen? Did you stop paying on your second? We stopped paying on our second about 5 months ago. We have not spokent to anyone at BofA but they keep calling and sending letters. A day ago, a man came to our house and was taking pictures of our home and cars. The letter was a contact letter that said BofA sent a field representative in order to communicate with us. Do we call BofA now? Im wondering how we get a settlement below on our home equity account. We are underwater in our home, but current on our first mortgage. Any help would be appreciated. Thank you.

[/QUOTE]

It was a random act of kindness by BofA.

They sent the letter out of the blue. All I know is I didnt pay for 2.5 years. If your only 5 months behind, either you aren't part of this "forgiveness" wave and they'll get you on the next round. Or, you just might not be eligible. I guess you could contact them. Good luck.

**mevans** · 08-27-2012, 08:33 PM

i got a perm mod (from 7.7 adj. to 4.25 fixed for 25 yrs. ) but they didn't reduce principal.
and my payment is higher than ever!
i accepted, but can barely afford it.
i started out only about 80k underwater, now I'm like 150k underwater
loan just got sent to SPS.
and i have a 2nd to pay still...