Hello, new member here.
My wife and I purchased our home at probably the worst point before the housing market crashed. We have a BofA loan that was handled through the Acorn program (40 year, 10 year interest only) that we really want to try and modify. I've been getting mired in all the information online and I'm not able to get a clear picture of what I should do next.
Our fixed interest rate is 6.5% and we haven't even broken past the first 10 year interest only period. I'm really hoping to refi our house to lower our rate to something around 3.5% to 4% and to move to a standard 30 year fixed, but there are some special notes about our situation. We have not had an appraisal but online estimators show the home value somewhere around $105-115k and the current tax assessed value is $125k. We currently owe $216k on our mortgage.
Over the course of the loan (6 years so far) we have paid $10k towards principal and never missed a single payment. The problem is that my wife is now disabled and no longer working, and we also had a child. It's become increasingly difficult to have any extra money once the payment comes out and uses 57% of my paycheck. Here's what I see as the sticking point...
A couple of years ago, my wife's father inherited a large some of money that he gifted to her to avoid losing medi-cal for her aging and sick mother that he was a 100% caretaker for (last year, her mother past away). This is now sitting in an account under my wife's name, but it's not our money. Do any loan modifications allow for the mortgagee to have a large bank account? I assume this answer is no, and I'm looking for advice on how we should proceed with the account. Should we remove the funds and close the account for a few months before applying for a modification? Have you ever heard of this type of situation before?
I'm just so fearful at this point because our actual bank account continues to become smaller and smaller. Just last month we had to replace our AC unit on our house and now have less than $2500 to our name. If anything happens, we're going to be in dire straights.
Any help would be very appreciated, I still hope there's some way I can modify my payment or my interest rate or both.