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[Confused in CA]

I have a B Of A loan and a 2nd on our property. We purchased at the height of the market and are roughly $110,000 underwater. Unfortunately my loan is not owned by Freddie or Fannie and thus we have not been eligible for the government programs. Roughly 30 months ago we submitted a request for a modification. After a lengthy review I was told that we did qualify for a hardship but our lender (Wells) would not agree to a modification because we continued to make payments (we pulled money out of retirement to stay current). This confused me due to B of A handling our loan, however they stated they are not the lender.

We have come to the point where we are stressed to make the monthly payments and don't know if we should continue to throw good money after bad. We have put our name on the waiting list for the DOJ settlement and are hopeful that the process begins soon. We are still current and have never missed a pyment. My friend stated that we should hold out and keep making payments because we may be eligible for a refinance under the DOJ settlement. Should we continue to hold out, or is better to stop making payments. We have tried to be diligent in making our payments but feel as though they will not work with us because we continued to pay. Any advice would be very appreciated. Thank you.

[Evan Bedard]

Welcome and thanks for joining the community.

Even though your mortgage is not backed by Fannie Mae or Freddie Mac that definitely does not mean you cannot qualify for a loan modification as both BofA and Wells Fargo participate in the Home Affordable Modification Program (HAMP). BofA should have first reviewed your account for this program when you applied for a modification.

I would not waste your time waiting for an answer on the DOJ settlement because one of the requirements for this program is that BofA owns and servicers your account, which in your case Wells Fargo owns the loan and BofA is the servicer. You can find more information about the DOJ settlement using the following link:

Modification, Refinance, and Short Sale Program Enhancements | Bank of America

As part of the settlement, we plan to introduce an interest rate relief program that will enable customers to take advantage of lower interest rates if, among other factors, they:

• are current on their mortgage
• owe more on their home than it is worth
• have loans owned and serviced by Bank of America