Full forgiveness by BofA?

[defaultdave]

Is this real?

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".

[freedomwon]

Hi defaultdave - Another loansafe member received a similar letter. Go here REST Report "RESTReportMatters.com Forum Users and Results" & read post #2104.

Are you currently working with BofA for a DOJ mod on your first?

[defaultdave]

Hi defaultdave - Another loansafe member received a similar letter. Go here REST Report "RESTReportMatters.com Forum Users and Results" & read post #2104.

Are you currently working with BofA for a DOJ mod on your first?

Sorry. This was my situation. The ex-wife successfully negotiated a loan mod on the first almost two years ago.


Divorced: Jan 2010

First Mortgage (CitiMortgage) = $175K
Second Mortgage (Quicken>Countrywide>BofA) = $51K (debt consolidation and home improvements)
Home Value = $135K (Merced, CA)

Stopped payments: Feb 2010

Ex-wife successfully negiotates loan modification (Aug 2010) on first without my participation even though I'm the primary but no longer living there. Refuses to do anything about the second cause she says she wasn't aware it existed. Ok. Fine.

Bank Of America harassed me for about 6 months and I gladly participated. I mentioned settlement and was laughed off. I even attempted to contact them to be proactive and to let them know I wasn't blowing them off. After several wasteful conversations with several reps, I gave up. Even went to an attorney about a year ago and while he was able to prove that ex-wife signed the paperwork when we got the second, he thought maybe we shouldn't wake the sleeping giant and not pursue it any further.

30 months later and 30 missed payments, and basically nothing from B of A. Just the normal monthly bill. No calls. Nothing. My online banking account says I have a $51K balance. Pretty much in limbo here. I even bought a new car a couple of weeks ago and lowest credit score came back at 660? I had told dealer that I'd have bad credit but dealer comes back saying there were no reg flags (nothing passed 90 days on report). Huh?

[fed up with BofA]

I just received the same letter! Got my 1st loan modified through HAMP dec 2010, been fighting to get my 2nd loan modified ever since. I stopped paying on my 2nd last Oct 2011, received notice of intent a few months ago! HOPE/ MHA compliance had been instrumental in getting my 1st mod so I sought their help again. Not sure if that played a role in BofA forgiving our 2nd loan of $57k since they were put on watch & kept prolonging their response to issues of non compliance. I doubt they really would have complied with the settlemenif they weren't under the microscope. It has been a long hard fight going on 3 yrs & now I can say "hallelujah!" The sleepless nights of researching, documenting, letter writing, etc. ultimately paid off! I owe it all to the support & wealth of information on Loansafe, thank you to everyone for sharing your stories and knowledge. Good luck to everyone- use The HOPE program to do 3 way calls and stay on top of BofA and their lies. Whatever you do, keep up the fight- it is worth it in the end!

Is this real?

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".

[Cat Damiano]

fed up,


That is awesome news, Congratulations!! We are seeing a flood of these letters recently, such good news after a long fought battle for many.

[juana]

Yeah, I too got a letter a couple of days ago stating full forgiveness for the BOA second loan $88,000. I stopped paying the loan beginning of the year. The acceptance of the offer is automatic so i dont have to do anything.

But I dont really know if this is for reals yet. BOA creditor is still calling my cell phone and I am still not picking up. It seems like everyone is getting this deal all at once so I will cross my fingers and hope its true.

[fed up with BofA]

Thank you so much! Yay to everyone! Has anyone received 2 letters, principle forgiveness on 1st and 2nd loans? I still owe 450k on my first and it was just reassessed by the County for property taxes, 2012 assessment value was reduced from $445k to $390k, wondering if there is a strategic way to get that info to BofA to request principle forgiveness on the 1st since underwater $60k. Not trying to be greedy or anything but this would be the time to do it if there is a way!

fed up,


That is awesome news, Congratulations!! We are seeing a flood of these letters recently, such good news after a long fought battle for many.

[Cat Damiano]

That would be under the principal forgiveness modification and for that your first loan would have to be serviced and owned by one of the five entities named in the DOJ settlement, which is why these letters on the seconds are being generated.

This according to BofA:

If your loan is eligible, you may be offered a trial payment plan that reflects a principal reduction that makes the monthly payment more affordable. The outstanding loan balance may be reduced to an amount equal to the current value of the home. You must successfully complete the trial payment period on time before the loan is permanently modified.

Among other criteria:

• you must be at least 60 days delinquent as of January 31, 2012 as well as at the time your loan is evaluated for the modification.
• you must owe more on your mortgage than the value of your home.
• your loan must be owned by Bank of America or held by a mortgage investor that has delegated authority to Bank of America.
• you must have a contractual monthly payment for principal, interest, property taxes, hazard insurance and any applicable homeowner association fees totaling more than 25 percent of your gross household income.

If your loan is not owned by Bank of America or another participating investor, it will not be eligible for the program. 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.


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]

Looks like the BOA creditor didn't get the memo.

Regardless, give it 30 days which I assume when the acceptance kicks in. Or you can tell him to piss off.

Yeah, I too got a letter a couple of days ago stating full forgiveness for the BOA second loan $88,000. I stopped paying the loan beginning of the year. The acceptance of the offer is automatic so i dont have to do anything.

But I dont really know if this is for reals yet. BOA creditor is still calling my cell phone and I am still not picking up. It seems like everyone is getting this deal all at once so I will cross my fingers and hope its true.

[fraudfighter]

Hey there all, long time reader (since at least 2008) - first time poster. I usually never post but I thought I'd do so today for two reasons:
1. To share a personal triumph with my personal situation
2. Give some hope and reassurance to others in my situation.

I bought in 2006 (almost at peak price), zero down (I know, I'm an idiot) for $526k. 1st with Chase at $420k and 2nd with National City at $106k. A few months later I refinanced the 2nd for a lower rate and to pay for some repairs and taxes - $150k with Countrywide. Of course that became BofA. House was (and is) worth about $350k. I stopped paying on the 2nd in September, 2010. I applied for a modification in Dec, 2010 and was rejected in Feb 2011. I was just biding my time to see if I could settle the 2nd eventually.

Then this week I got this:



Needless to say I am elated, nervous, excited and trepidatious all at once... I was not expecting it and am still waiting for official verification.
I've read the letter about two dozen times as this point. It forgives the entire balance and means that my family and I are staying in our home for years to come!

[GAmom]

We got the exact same letter! extinguishing our HELOC of 34K, i really hope this is for real.

IS there anyway to get documents so they can't put a lien on the property etc? I would love to hear if anyone gets more info from BOA making this seem more real. We didn't apply for this, or have been in any negotiations. the bottom of the letter does say "we are required by law to inform you that this communication is from a debt collector"

[defaultdave]

Your $143K is the highest I've seen so far. Congrats. This is truly a gift but a hard lesson.

Hey there all, long time reader (since at least 2008) - first time poster. I monitor this and other forums since I work in the industry and never post but I thought I'd do so today for two reasons:
1. To share a personal triumph with my personal situation
2. Give some hope and reassurance to others in my situation.

I bought in 2006 (almost at peak price), zero down (I know, I'm an idiot) for $526k. 1st with Chase at $420k and 2nd with National City at $106k. A few months later I refinanced the 2nd for a lower rate and to pay for some repairs and taxes - $150k with Countrywide. Of course that became BofA. House was (and is) worth about $350k. I stopped paying on the 2nd in September, 2010. I applied for a modification in Dec, 2010 and was rejected in Feb 2011. I was just biding my time to see if I could settle the 2nd eventually.

Then this week I got this:



Needless to say I am elated, nervous, excited and trepidatious all at once... I was not expecting it and am still waiting for official verification.
I've read the letter about two dozen times as this point. It forgives the entire balance and means that my family and I are staying in our home for years to come!

[defaultdave]

It's legit. Someone called that the number on the letter and they confirmed it was real. Then again, I'll believe when I no longer see it with my Online Banking statement and it's off the credit report..

We got the exact same letter! extinguishing our HELOC of 34K, i really hope this is for real.

IS there anyway to get documents so they can't put a lien on the property etc? I would love to hear if anyone gets more info from BOA making this seem more real. We didn't apply for this, or have been in any negotiations. the bottom of the letter does say "we are required by law to inform you that this communication is from a debt collector"

[fraudfighter]

It's legit. Someone called that the number on the letter and they confirmed it was real. Then again, I'll believe when I no longer see it with my Online Banking statement and it's off the credit report..

That's my feeling on it... although I emailed a source in BofA's Fraud Department and he is running down the truth for me... I'll post if it's confirmed or unconfirmed.

Here's hoping...

[illstay]

That's my feeling on it... although I emailed a source in BofA's Fraud Department and he is running down the truth for me... I'll post if it's confirmed or unconfirmed.

Here's hoping...

Wow, you guys that have gotten that letter, that is SO GREAT! I'm SOOOOOO envious, but at the same time elated that these are being given out. I hope that this takes a load off of the shoulders of many families.

[xevets]

We got the exact same letter! extinguishing our HELOC of 34K, i really hope this is for real.

IS there anyway to get documents so they can't put a lien on the property etc? I would love to hear if anyone gets more info from BOA making this seem more real. We didn't apply for this, or have been in any negotiations. the bottom of the letter does say "we are required by law to inform you that this communication is from a debt collector"

Yup I got the same letter total forgiveness of 46,000... Havnt paid the second in over a year, stopped payin on the first 7 months ago.. Whats funny is when I was trying to negotiate a deal on my second BoFa pretty much told me flat out "WE WILL NEVER SQUASH YOUR SECOND LIEN" < Yes my rep was yelling at me! I told him its so far underwater its pretty much unsecured debt and promptly told him to pound salt and hung up it was the last conversation I had with those criminals. I for one cannot wait to see some perp walks, the major banks have ruined the lives of so many innocent americans I'm at a loss for words, all I know is Karma awaits. Did they not realize the power of human suggestion? The people who were takin advantage of have made this happen period, just through thought process alone it was enough to take these institutions to thier knees... They are done put a fork in em.

[srebecca]

I received the same letter forgiving my 2nd 3 days ago. However, I am still fighting to get my first modified. My 2nd is owned by B of A. My first is serviced by B of A, but was securitized with Wells Fargo as the trustee. An escalated modification request was submitted at an outreach event a week ago, but from my understanding my first doesn't qualify under the DOJ settlement.

[nw10986]

I too received the same letter stating full forgiveness of 168,000 on my home equity loan. I think it is strange considering that I am in foreclosure with my first mortgage which was initiated by the investor, BONY Mellon by the way. I thought that any leins would get wiped out automatically when it gets sold through foreclosure, so why would they even bother to wipe this out now? Hmm I wonder what BOA has up their sleeves? Considering I was turned down numerous times for a mod and most recently for doj mod because "it is not in the best interest of the investor to modify" Could it be all the complaints I filled against them through my senators and the occ that they are finally going to do something to help? I am keeping my fingers crossed

[Lapri]

If the 2nd is forgiven under to the DOJ settlement, do you think that will diminish (if not wipe out) the chance of getting the principal reduction on the 1st under the DOJ settlement?

We got the same letter on 2nd (they call it home equity loan but it's actually the purchase money 2nd), we've been negotiating in vain for the mod on the 1st, which is owned by BofA. I'm a bit suspicious that by getting the 2nd forgiven, we won't get the principal reduction on the 1st...

[nw10986]

I really hope that is not the case. I hope they will do both because I am way over $400,000 upside down on the first mortgage. I have been fighting to appeal their decision on my denial for the doj on my first. Has anyone here had their first and second mortgage principal reduced?

[Cat Damiano]

I received the same letter forgiving my 2nd 3 days ago. However, I am still fighting to get my first modified. My 2nd is owned by B of A. My first is serviced by B of A, but was securitized with Wells Fargo as the trustee. An escalated modification request was submitted at an outreach event a week ago, but from my understanding my first doesn't qualify under the DOJ settlement.

srebecca,


If you first is serviced through BofA and owned by WF it should qualify for the DOJ settlement. Please keep us posted on how it goes.

[freedomwon]

I received the same letter forgiving my 2nd 3 days ago. However, I am still fighting to get my first modified. My 2nd is owned by B of A. My first is serviced by B of A, but was securitized with Wells Fargo as the trustee. An escalated modification request was submitted at an outreach event a week ago, but from my understanding my first doesn't qualify under the DOJ settlement.

I believe you received the letter forgiving your 2nd because it is both owned & serviced by BofA in their portfolio. Your first, however, is serviced by BofA, but owned by Wells. Under the terms of the settlement, I see it as a loophole for the loan to NOT QUALIFY for the DOJ settlement. Even though both BofA & Wells are participating in the settlement, it is specific to the loan being both serviced & owned by the same bank.

If something has changed to these settlement terms I'm not aware of, please post.

[oozze]

I really hope that is not the case. I hope they will do both because I am way over $400,000 upside down on the first mortgage. I have been fighting to appeal their decision on my denial for the doj on my first. Has anyone here had their first and second mortgage principal reduced?

I am sorry to ask but if you are so much upside down, close to 1/2 mil. why do you want to keep your home?
I dont they Bank will reduce it that much unless your home was 2 million dollar home...that my opinion only though...
PLease dont take it personally.....
For me, If I lose 50&#37; of my home I would have let it foreclosed.

[oozze]

I just want to add that I also receive this exact letter on my 2nd...

I mentioned this letter to my CRM yesterday..He was a surprised as me when I told him.
Then, I asked if he is seeing any notes/letters about it on my 2nd.
But, he cant find anything in the systems.

I hope it is just too early to check.
The letter is dated Jul 23rd, received via FedEx Jul 23rd evening.
I checked on Jul 26 2012 evening...

Please update if you guys hear anything. Someone posted it will take 45 days to see it.

[freedomwon]

I really hope that is not the case. I hope they will do both because I am way over $400,000 upside down on the first mortgage. I have been fighting to appeal their decision on my denial for the doj on my first. Has anyone here had their first and second mortgage principal reduced?

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.

[Lapri]

I believe you received the letter forgiving your 2nd because it is both owned & serviced by BofA in their portfolio. Your first, however, is serviced by BofA, but owned by Wells. Under the terms of the settlement, I see it as a loophole for the loan to NOT QUALIFY for the DOJ settlement. Even though both BofA & Wells are participating in the settlement, it is specific to the loan being both serviced & owned by the same bank.

If something has changed to these settlement terms I'm not aware of, please post.

It looks it may qualify, although I can only say about loans owned by BofA. Our loan is owned by BofA but is going to be transferred to another servicer. BofA people have told us as long as the investor is BofA, the loan is eligible for DOJ settlement even if it is serviced by someone else. Check out BofA Q&A on DOJ settlement, under "principal reduction: Modification, Refinance, and Short Sale Program Enhancements | Bank of America

[freedomwon]

Lapri - Thanks for posting that. Here's the details:

Which customers will be eligible for principal reductions?
Among other criteria:

• customers must be at least 60 days delinquent as of January 31, 2012 as well as at the time the loan is evaluated for a principal reduction modification.
• customers who owe more on their mortgage than the value of their home.
• customers must have 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.
• customers must have a loan owned by Bank of America or a loan held by a mortgage investor that has delegated authority to Bank of America.

As the saying goes, the devil is in the details. The last bullet point is what gives some hope, but could very well be deceptive in the wording. For all we know, BofA may be the only investor that BofA has delegated authority to. LOL

We will have a much better idea 30 days from now when some of these DOJ mods become permanent. Let's all keep a watchful eye & see what happens!

[cheri]

I received the same letter forgiving my 2nd 3 days ago. However, I am still fighting to get my first modified. My 2nd is owned by B of A. My first is serviced by B of A, but was securitized with Wells Fargo as the trustee. An escalated modification request was submitted at an outreach event a week ago, but from my understanding my first doesn't qualify under the DOJ settlement.

I am in the same situation, been trying to Modify our 1st loan since 2009, we are in review in underwriting right now for an Inhouse Mod, we didnt qualify for DOJ but our 2nd was eliminated by DOJ ? we paid 455.000, in the peak of the Market in 2005, home is now worth 220.000, no down payment, interest only loan. almost 2 years behind BofA servicer and Wells Investor, but I think Wells sold our loan? But its not Fannie Mae. they erased 48,000, we are very grateful and praying to hear something soon on the modification and that it is an affordable payment for us.

[Menlo]

That is great..Also i am new to this site and I have no idea how to start a new thread can you let me know Thanks!!!

[freedomwon]

That is great..Also i am new to this site and I have no idea how to start a new thread can you let me know Thanks!!!

Click on Forum in the upper left of your screen. Then scroll through the different forums & find one that fits your scenario & click on it such as Bank of America Home Loans Once you arrive there, up towards the top left you will see + Post new thread. Click on it to begin your 1st post.

[SouthernCalResident]

I received the same letter for 110K forgiveness. This was a Home Equity second loan. I successfully negotiated my first with AHMSI last year. I was impressed by how easy AHMSI was to work with. I had not addressed the second with BofA but was about to start the process!

Does anyone know if California Franchise Tax Board and the IRS are going to forgive the capital gains taxes "when debt is forgiven in connection with a foreclosure prevention transaction" for tax year 2012?

[Garybaldi]

I received the same letter for 110K forgiveness. This was a Home Equity second loan. I successfully negotiated my first with AHMSI last year. I was impressed by how easy AHMSI was to work with. I had not addressed the second with BofA but was about to start the process!

Does anyone know if California Franchise Tax Board and the IRS are going to forgive the capital gains taxes "when debt is forgiven in connection with a foreclosure prevention transaction" for tax year 2012?

I got a forgiveness letter of 144K, best letter I ever received. I heard IRS has a exception to these write downs for homeowners but don't know the details. Need to consult with a taxman.

[fraudfighter]

That's my feeling on it... although I emailed a source in BofA's Fraud Department and he is running down the truth for me... I'll post if it's confirmed or unconfirmed.

Here's hoping...

I received confirmation from Bank of America's Fraud Department - it's real.

[Cat Damiano]

Thank you for checking that with your sources, to help yourself and the members here, fraudfighter, we really appreciate it.

[oozze]

I received confirmation from Bank of America's Fraud Department - it's real.

Wish there is a like button here!!
Thks fraudfighter...
As of today, 2nd loan still in my bofa account though...1 week after receiving letter.

[oozze]

I got a forgiveness letter of 144K, best letter I ever received. I heard IRS has a exception to these write downs for homeowners but don't know the details. Need to consult with a taxman.

I think there is way out...but please update the forum after talking to your taxman...
Mortgage Workouts, Now Tax-Free for Many Homeowners; Claim Relief on Newly-Revised IRS Form
extended to Fy 2012.

[freedomwon]

Wish there is a like button here!!
Thks fraudfighter...
As of today, 2nd loan still in my bofa account though...1 week after receiving letter.

Hi Oozze - you can go to fraudfighters post & under the icon, you can click on the star. You can do that for any member who's been helpful to you.

[oozze]

FreedomWon...COOL!!!!!!
I wished I knew this before...lol!
I owed alof of stars to alot of posters (you, cat, tom, evan and etc....)

[fraudfighter]

Wish there is a like button here!!
Thks fraudfighter...
As of today, 2nd loan still in my bofa account though...1 week after receiving letter.

Happy to spread the joy this letter has brought me

I haven't received a statement or any letters since but it's still showing on my account too, I would imagine its going to stay that way for a while:

At least 30 days in case someone is crazy enough to decline and then 2-3 weeks for them to complete their internal process (whatever that entails, I'm still refusing to call within the 30 day cancellation period - call me paranoid).

I don't expect to see a change on the website or a credit report until at least October. I've set aside a bottle of champagne I got for my birthday for the day it disappears.

Good luck!

[GAmom]

Happy to spread the joy this letter has brought me

I haven't received a statement or any letters since but it's still showing on my account too, I would imagine its going to stay that way for a while:

At least 30 days in case someone is crazy enough to decline and then 2-3 weeks for them to complete their internal process (whatever that entails, I'm still refusing to call within the 30 day cancellation period - call me paranoid).

I don't expect to see a change on the website or a credit report until at least October. I've set aside a bottle of champagne I got for my birthday for the day it disappears.

Good luck!

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!