Home affordable plan BoA

[sobie46]

Hello all. I am trying to be a DIYer. My wife and I bought toward the top of the market in San Bernardino County, CA. In dealing with these people this is what we explained as a hardship.office
1) Wife took a different job to reduce Childcare expenses, but this job change is a cut in pay
2) Overtime hours are being reduced in my job, and this is a way we supplement our income to make ends meet.
3) 25K in Credit card debt
4) 25K in Student loan Debt
5) In the 3rd year of a 5/1 ARM
6) Total principal is 585K house value is about 400K.

On the first attempt I received the usual run around. Finally someone agreed to accept my finances verbally. In this they told me not to count Overtime in my income. After a 30 min review the loss mit person said I did not have enough surplus at the end of the month to offer me a solution.
I waited a month readjusted my finances and had a pay raise and retried. Again the same run around blah blah blah, and finally someone said I qualify for a possible work out and sent me a package of info to fill out and forms that need to be submitted.
The material was sent in and received on Dec 26, 2008. I had not heard anything, so I call in mid Feb to seek info. I was given more run around and told someone should call you in 3 weeks. Once again no call, I call again on March 5 and talked to a very helpful CSR and said she would get someone to contact me soon. Sure enough someone contacted me then next day and said sorry you do not qualify for a work out on your second mortgage. I explained that I was seeking help with my first mortgage. She stated that she was assigned to the second and would now deal with the first. I explained that I was seeking a long term solution to our hardship, which included a rate reduction, principal reduction etc. She stated that she would contact me the fallowing week. She called back to inform me that after reviewing my file I don’t qualify for a work out. She explained that no matter what she used for income (base or base+OT) We either fall too short or have too much at the end of each month to offer any type of work out.
This lady stated that we need to have 10% of income left after the loan mod each month? What is she talking about?
Where can I go from here? Do I wait anther month or so and try again? What type of formula is BofA using to calculate the loan mods and Income stuff.
Our loans are both owned by BofA and not any other investor
Moe or *** please chime in with advise....Thanks

[Moe Bedard]

HI sobie46,


Welcome to the forum and thank you for joining............

what they are looking at with the modification program guidelines that were announced on March 4th is to work to lower a mortgage payment on a first mortgage that is over 31% of gross income..............and bringing it to the 31% target.........by going through a series of steps to get there.

this is what they are looking at to begin with...........

Front-End DTI is the ratio of PITIA to Monthly Gross Income. PITIA is defined as principal, interest, taxes, insurance (including homeowners insurance and hazard and flood insurance) and homeowners association and/or condominium fees. Mortgage insurance premiums are excluded from the PITIA calculation.


here are the guidelines in full for the new program............they are working to implement it shortly............
http://www.treas.gov/press/releases/...guidelines.pdf


If this is the only property that you own..............you may want to check into NACA...........they work with BofA to negotiate low fixed rate modification solutions...........they are a HUD approved counseling agency and their Home Save modification services are free........here is the link to the info................
https://www.naca.com/refinance/refinanceTenStep.jsp

[sobie46]

So last week I was trying to work with bofA on a Mod, but the lady told me that we did not qualify. (shocking) This was our 2nd time and same result. We were told the 1st time we did not have enough surplus. This time we have too much. So here is the facts.

1st of $585K 5.875 5/1 IO loant due to reset in 02/12
2nd of $63K with a 7.13 PI loan
I belive with our income and mortgages, insurance, and taxes were are at about 33-35% of our income.

We are unable to refi because of being upside down.
we are not behind and dont plan to be.

We are worried what the rates will be when it does reset.
We also have a 2nd propety

What are other otpions that we have and what is the sucess rate or possibilites of getting something done with our situation?

SOmeone please help us

[gray517]

you may qualify for the new govt plan, *** posted links with information about it above, Countrywide aka BOA is participating in the new plan

[sobie46]

*** will they be using FHA loan limits or will it be up to the 729,000?

What is a guess as to when this program will be off and running? Thanks for the replies.

[Moe Bedard]

Here are the qualifying terms for the modification...................


• The home must be an owner occupied, single family 1-4 unit property (including condominium, cooperative, and manufactured home affixed to a foundation and treated as real property under state law).

• The home must be a primary residence (verified with tax return, credit report, and other documentation such as a utility bill).

• The home may not be investor-owned.

• The home may not be vacant or condemned.

• Borrowers in bankruptcy are not automatically eliminated from consideration for a modification.

• Borrowers in active litigation regarding the mortgage loan can qualify for a modification without waiving their legal rights.

• First lien loans must have an unpaid principal balance (prior to capitalization of arrearages) equal to or less than:

o 1 Unit: $729,750
o 2 Units: $934,200
o 3 Units: $1,129,250
o 4 Units: $1,403,400

[sobie46]

When you say they will go implamenting shortly is there a target date?

Thanks once again for this site and the help you and Moe do on here.

[Moe Bedard]

Bank of America has the information regarding the Home Affordable Modification and the contact numbers to apply here.............
Bank of America continues to lend and invest

[sobie46]

Now what if My first mort. paymnet I/O, taxes and insurance is boarderline at like 32%. Are they going to reduce it down alittle?

Do they take into consideration that the 1st mort. payment is I/O and not PI?

[Moe Bedard]

You would need to ask them this question as the new payment would be amortized to include PITI as a part of the modification.............so they may base it on that payment.

[sobie46]

Hello all. I was looking at some the guidlines under the new home affordability program. BoA called me and told me I do not qualify because my loan is not with in the freddie and fannie loan limits nor is it owned by them. My questions are

1) The guidelines do not stated this so what is going on?
2) How do I find out who my investor is?

[pyeatpr]

Were they refering to the refinance or modification part of the plan?

[jorgerodr]

This is part of Bank of America press release.
In its first wave, Bank of America will be able to serve the majority of eligible homeowners whose mortgages are serviced by Bank of America or Countrywide and who do not have mortgage insurance on their current loans. Additional borrowers will be included as systems become operational.

Eligible homeowners may benefit from refinancing under the plan because of historically low interest rates coupled with guidelines designed to provide increased flexibility:

Increased loan-to-value ratios
No mortgage insurance required on loans that did not previously carry mortgage insurance
No minimum credit score

I called yesterday and if you don't have great credit score the rate for the refi is higher. So minimum credit score means the rate = score. I was told 6.625 and I have 6.875...What a joke...

[mrheberman]

I have a question, Maybe someone has an answer for me. We were told that we have been approved for a loan MOD through CW. Also we are waiting to her from NACA regarding their loan MOD. We have been going through this for 2 years all together. We are currently in chapter 13. CW has called our attorney to remove the arears from our BK. My question is this. We haven't seen any details of either MOD but since they have received our financials my husband was laid off. End of Feb. Do we tell anyone or do we wait to see what the amount of the payment will be? I don't want to jeopardize our chance of keeping our home.
Thanks

[sobie46]

Any one with advice please chime in. I've posted a couple of times and have gotten great advice, but am unable to get any where with BoA. Recently I inquired about the home affordability plan and was told that I do not qualify because Freddie or Fannie does not own my loan. Is this a requirement for the loan mod under the Obama plan? Anyone please help.fficeffice" />>>

[sobie46]

Also how can I find out who my investor is on my loan?