Any Luck with Bank of America + Home Affordable Modification?

[beelzebub]

Originally Posted by beelzebub

Got a modification offer! They propose to reduce the interest rate from 6.675% to 4% so that the monthly payment goes from 40.6% of our monthly gross income to 36.4%. That helps a lot, but I was hoping it would go down to 31%. How do I press them (BofA) to bring it down to 31%?

I was misinformed by the rep. I called them again and they said my monthly payment would go down to 32.7%, and would jump up to 36.4% after 5 years. That's not bad at all.

Their written offer arrived by FedEx only this morning after I left for work, so I'll have to verify all this tonight. If it's 32.7%, I'm going to accept.

A nice bonus is that the loan begins Oct 1, 2009, so I don't have to make the Aug and Sep payments.

[beelzebub]

Originally Posted by dasani

Of course the lender wouldn't drop it to the lowest that you possibly can get

I guess I thought lenders that participate in the "Making Home Affordable" program must follow a predetermined protocol to bring down the monthly payment to 31%. I thought the lender must lower the interest rate (to a minimum of 2%) to lower the monthly payment to 31%. I didn't realize they could do whatever they wanted.

Once you do a loan modification ... you cannot do another one even if you find another company that can give you a better modification

Are you saying I cannot do another refinance at a later point if I do a modification now? I don't see how BofA prevent another lender from paying off the loan. I didn't see anything in the fine print but I should re-read the agreement just to be safe. In any case, I'm upside down on the mortgage, so refi isn't likely any time in the near future.

[beelzebub]

Originally Posted by dasani

that is why lenders rather talk to borrowers w/o any loan modification agency

You mean like NACA? Who else could help me?

[kcchica]

Quick question, we are with BOFA and they are having us do a 4 month forebearance period to "get us behind" on our payments. We haven't been late yet. So they want us to pay 1/2 payment for 4 months. I am guessing that you didn't have to do that? UGGHH (great for you of course).. but not sure why we can't just get a modification...

[beelzebub]

Originally Posted by kcchica

Quick question, we are with BOFA and they are having us do a 4 month forebearance period to "get us behind" on our payments. We haven't been late yet. So they want us to pay 1/2 payment for 4 months. I am guessing that you didn't have to do that? UGGHH (great for you of course).. but not sure why we can't just get a modification...

The rep said we shouldn't pay for Aug and Sep because the new loan starts Oct. I told him it makes me nervous to skip those two payments, but the rep said it won't go on my credit record. I don't know if that's the same as what you've been asked to do, but from reading about other people's modifications, it seems fairly routine to skip payments until the new loan kicks in. But I've never heard of being asked to pay just 1/2.

[Jim B.]

I am about to apply for the Making Home Affordable Modification. I am 5 months behind in payments but recent months have earned enough money to pay a good share of the money owed. I checked on the government website and we meet all the requirements for the Making Home Affordable Mod. Our home has devalued about $100,000 since December of 2007. Our payments went from $1800. to $3,000 on a payment option 5 year loan. I can afford a payment of around $2,000. My wife and I are both full time Realtors and the reason for us falling behind is the same reason the banks are having their problems. The economy and housing sales are improving and our income is better than the 1st 6 months of 2008. It was like we were unemployed, very little activity in home sales, thus just enough income to eat and pay utilities. We really need this home loan modification. I have seen several people successfully apply for the modification through NACA. Is there a cost to apply through NACA and is it best to apply on-line or call NACA? I would appreciate any tips or help that anyone can give us, including website address and phone number of NACA. Thank you in advance, we love are home and will do what is neccessary to keep it.

[aurers]

Hi everybody.

I've been trying to get a loan mod since October 2008. First I was denied b/c I wasn't delinquent. Feb 2008 I tried again and B of A said the private investors declined my application. Stopped paying June 2008. Have missed June & July payments. After talking to 4 different representatives, I kept getting declined due to the private investors decision to not participate in the Making Homes Affordable program. (My 1st and 2nd loan are with B of A, but the 1st is with private investors). On July 31st, I spoke to Jared who said the investors weren't willing to budge lower than 4%. However, that would switch my loan to pay principal & interest (I'm currently interest only ARM that adjusts next year) -- my payments would be $200+ more a month plus $375 per month for 12 months to catch up to my missed payments. I said no. I have read about other people on the different threads who have gotten both their B of A mortgages modified. That's what I'm trying to get.

I emailed a bunch of B of A execs as suggested by another thread on this website and the office of Barbara Desoer (barbara.j.desoer@bankofamerica.com) contacted me. Stacy Adams contacted me today and said she is going to contact the private investors on my loan to discuss the Making Homes Affordable program.

I would highly suggest emailing the B of A execs. You have to be diligent. I've been calling, writing, and emailing B of A since October 2008 and did not start getting help until I missed my 1st payment. I will keep everybody posted on what happens with Stacy.

[Jim B.]

aurers

I would really like to get the B of A execs e-mail or postal adresses. I did the e-mail campaign Before Countrywide became B of A and it was quite successful, however several people changed offices and I no longer have good sources contacts for B of A. I would really appreciate it if you can give me your contacts... thanks Jim

[Esteban1901]

Originally Posted by Jim B.

aurers

I would really like to get the B of A execs e-mail or postal adresses. I did the e-mail campaign Before Countrywide became B of A and it was quite successful, however several people changed offices and I no longer have good sources contacts for B of A. I would really appreciate it if you can give me your contacts... thanks Jim

I send them an e-mail with my hardship letter and ask to stop the foreclosure process because I have applied and qualified for the MHAP Mod, in 24hours an executive rep. from loss mitigation contact me and reveal that I was approved for a mod to a 31% of my gross income. Good Luck


ken.d.lewis@bankofamerica.com
barbara.desoer@bankofamerica.com
barbara.j.desoer@bankofamerica.com
liam.e.mcgee@bankofamerica.com
maryellen.baker@bankofamerica.com

[aurers]

Jim B. --

Here are the emails:
ken.d.lewis@bankofamerica.com
barbara.j.desoer@bankofamerica.com
liam.e.mcgee@bankofamerica.com
maryellen.baker@bankofamerica.com

I followed up with Stacy today (from Loan Mod dept) and have not heard back from her. Hoping for the best. Good luck!

[aurers]

I got my loan modification!

Emailing Barbara Desoer was the key. She forwarded my email to Jenny Cooper (877) 776-5842 x 1511014 who then forwarded it to Stacy Adams (714) 792-4904. I got the phone call on Monday and today (Wednesday), I got my loan modified.

New terms:
40 year loan
Missed payments get added onto principal
2.375% (principal & interest) for the first 5 years
5.375% thereafter

Stacy is trying to help me out with an extension or repayment plan for my 2nd mortgage, but if she doesn't modify that one it's okay.

So for everybody reading this that is trying to get a loan modification, email Barbara Desoer (barbara.j.desoer@bankofamerica.com ) your hardship letter and somebody will get back to you. Good luck everybody!

[kcchica]

Does anyone think it would be worth it for me to email also. We have been assigned an analyst already and were given a 4 month loan forebearance (1/2 payments).. we were not behind. I have called and talked to people a couple times to double check that our paywork is complete and they have pretty much told us to just wait.. that we are in limbo. Any thoughts as to emailing Barbara Desoer, whether she could 'check' on the progress? Or is emailing her just for people that need to get hte process started?

[LHarveyMadman]

Originally Posted by kcchica

Does anyone think it would be worth it for me to email also. We have been assigned an analyst already and were given a 4 month loan forebearance (1/2 payments).. we were not behind. I have called and talked to people a couple times to double check that our paywork is complete and they have pretty much told us to just wait.. that we are in limbo. Any thoughts as to emailing Barbara Desoer, whether she could 'check' on the progress? Or is emailing her just for people that need to get hte process started?

You'd only contact her if you can't even get considered for a modification. Since your process is already started, it's probably best to work with your analyst or other B of A customer service reps.

The process takes a long time. Mine took about 6 months from first contact to final modification.

[Riley18]

Hello,
I too have been trying to get BoA to process my loan for Obama's plan. I actually started contacting them last November - the loan modification office. I waited for months and heard nothing. They do not want to even talk to you unless you are behind in payments. Then in March when the HAM loans came out I tried to get info from the bank. I got nowhere until I contacted my state senator's office. For my trouble I got turned down in one quick phone call because they said I would not qualify because the loan to value was not at 105% or better. Then on July 1st when the Senate added 20% more to the loan to value I contacted the bank yet again. Since that date I have again waited because they claim to not yet understand how to complete the modifications at 125% of loan to value.
I have been through all the "wait for an analyst to review your file stuff" and for me personally, I have never yet spoken to an actual "analyst". I would not hold my breath.

I would love more information from someone who actually got an HMA application from Bank of America. Right now the person I am currently trying to work with has told me I will have to pay $400 for an application fee and also pay closing costs again. I have not read anything about this on LoanSafe.

Thank you

[aurers]

Riley18 --

I was like you. I started my process in October 2008, but was able to make payments so B of A didn't give me the time of day.

I suggest working with a FREE counseling service:
Consumer Credit Counseling Service :: Debt Management Services :: Consolidate Debt
1-800-308-2227

They will keep you on the phone for an hour, but they look at all your finances and discuss your hardship, as well as put together a game plan to help your correct your finances.

However, after working with the credit counseling service I still kept getting denied by B of A. That's when I emailed the B of A execs. I emailed them everyday for 3 days. That's when they forwarded my email to loss mitigation and I got a phone call. My analyst is Stacy Adams. Per Stacy, B of A is only applying the Making Homes Affordable program to Fannie Mae / Freddie Mac loans. But she was still able to modify my loan with my persistent calling (I left messages twice a day).

Paying somebody is throwing money out of your pocket. You have to be persistent and find a support group (like the loansafe.org community or family / friends) because it is one tough battle. And I highly suggest MMI. Even the Today show said that B of A is the worst at helping customers with loan modifications, only approving 4% of them. It is advised to get somebody on your side to help. But don't pay. MMI submitted my loan mod application and talked me through everything for free. I know it sounds like a lot of work, but in the end it was worth it.

Good luck.

[Riley18]

Originally Posted by aurers

Riley18 --

I was like you. I started my process in October 2008, but was able to make payments so B of A didn't give me the time of day.

I suggest working with a FREE counseling service:
Consumer Credit Counseling Service :: Debt Management Services :: Consolidate Debt
1-800-308-2227

They will keep you on the phone for an hour, but they look at all your finances and discuss your hardship, as well as put together a game plan to help your correct your finances.

However, after working with the credit counseling service I still kept getting denied by B of A. That's when I emailed the B of A execs. I emailed them everyday for 3 days. That's when they forwarded my email to loss mitigation and I got a phone call. My analyst is Stacy Adams. Per Stacy, B of A is only applying the Making Homes Affordable program to Fannie Mae / Freddie Mac loans. But she was still able to modify my loan with my persistent calling (I left messages twice a day).

Paying somebody is throwing money out of your pocket. You have to be persistent and find a support group (like the loansafe.org community or family / friends) because it is one tough battle. And I highly suggest MMI. Even the Today show said that B of A is the worst at helping customers with loan modifications, only approving 4% of them. It is advised to get somebody on your side to help. But don't pay. MMI submitted my loan mod application and talked me through everything for free. I know it sounds like a lot of work, but in the end it was worth it.

Good luck.

Thanks so much for taking the time to respond to me. Yesterday I went to the NACA website and completed their application, and got the first available phone appt. on August 17th. I had gone to CCC a few months ago and they said they would forward my info to BofA. The thing I don't get is I never even got any official rejection. What is MMI? I admire your tenacity with contacting them all the time. I will be emailing them now as well.
Thank you.

[aurers]

Riley18 --

MMI is Money Management International
1-800-308-2227

I got their number from the Making Homes Affordable website. They are with the HOPE line. After working with them, they submitted my loan modification application. On top of that, I emailed the B of A execs my hardship letter. Try them out. Their service is free.

Good luck!

[luvmyhorse]

I must be the only person out there in my situation. I can't find any information on getting a modification if your income is TOO LOW. My principal balance in 383,000 and my gross last year was 42,000. Does anyone know if I will automatically be denied? BTW I am still currant and have good credit.

If I got a job moonlighting and could get my income up would they consider 2 paystubs or are they mostly going to use the tax returns?

[aurers]

luvmyhorse--

When I did my credit counseling, my counselor told me that my monthly budget could only be short 2% or less. So if your current income is able to afford your monthly mortgage, then you have no worries. You just need to find a hardship and stick to it. I would highly recommend working with a FREE credit counselor to determine where you're budget is at in relation with your mortgage. Good luck!

[luvmyhorse]

My monthy budget is probably 50% or more short. I earned gross 42 last year and my mortgage is 2500 a month. And I am 40 thousand in debt. That is my worry. Will they decline me because I don't earn enough, even though I am still currant and I have had excellent credit for over 30 years.... If I got a modification I may be able to hold on for another year or so until the market turns so I can sell. If not it is only a matter of months before I have to walk. My house has been on the market for a long time. I won't do a short sale because I think it is a ridiculous scam to save the banks.. They still destroy your credit, so if I am going to destroy my credit I may as well wipe out all my debt at the same time. In fact it makes more sense to go bankrupt and keep the house and still try to sell it. But before I go that route I am wondering if there is a chance I will get approved for a modification. I can't seem to find anyone who is in my situation.

[luvmyhorse]

will going to mmi or another one of the free credit counsling places like hope harm your credit?
Anyone know?

[bittersweetme]

Originally Posted by kcchica

Quick question, we are with BOFA and they are having us do a 4 month forebearance period to "get us behind" on our payments. We haven't been late yet. So they want us to pay 1/2 payment for 4 months. I am guessing that you didn't have to do that? UGGHH (great for you of course).. but not sure why we can't just get a modification...

KCCHICA,

I also was told to pay 1/2 for 60 days until they knew what they were doing with people who were current. It was never mentioned that it was to "get me behind" I don't want to be behind, hence going through this now. I was told nothing would be reported on my credit... is this the same thing they told you? Hmmmm , guess when I receive it I will SCRUTINIZE the paperwork. My cousin is a real estate lawyer, maybe she will look at it and let me know.

[LHarveyMadman]

Originally Posted by luvmyhorse

I must be the only person out there in my situation. I can't find any information on getting a modification if your income is TOO LOW. My principal balance in 383,000 and my gross last year was 42,000. Does anyone know if I will automatically be denied? BTW I am still currant and have good credit.

If I got a job moonlighting and could get my income up would they consider 2 paystubs or are they mostly going to use the tax returns?

Even before MHA existed, people were getting denied if their monthly deficit was too great. MHA's goal is to get a borrower's front-end DTI to around 31% (which includes principal, interest, property taxes, homeowners insurance, and association fees). There is a 2% interest rate floor on MHA modifications. If reducing someone's rate all the way down to this floor still can't reach that 31% goal, then seems likely that the modification will be denied.

Your prinicipal balance is $383,000. If this were amortized over 40 years at 2%, your monthly payment for principal and interest (not including taxes and insurance) would be $1160. This already represents 33% of your monthly gross income. Assuming that your taxes and insurance add $200 a month to your housing expenses (a very conservative, very low-ball estimate), your front-end DTI is already 39% - far above the goal. Unfortunately, there is no way for your loan to be modified in a way that it can be affordable in the eyes of the government.

Even if your interest rate were reduced to 0% for 40 years, your DTI would still be 33%.

[luvmyhorse]

I know that is why I am wondering if I get a moonlighting job, will they consider that income, even though it won't be on my tax return?

And what sense does this make? I have more chance than anyone of defaulting? Even lowering my payments to 50% would give me a chance of hanging on another year or 2 until the market improves.

[LHarveyMadman]

"I know that is why I am wondering if I get a moonlighting job, will they consider that income, even though it won't be on my tax return?"

Without a proven, guaranteed future stream of income, it is unlikely that the lender will consider moonlighting income at this juncture. Even when trying to qualify for a new loan, any self-employment or nontraditional income requires a two-year history of steady earnings.

"And what sense does this make? I have more chance than anyone of defaulting? Even lowering my payments to 50% would give me a chance of hanging on another year or 2 until the market improves."

That would assume that the lenders use sensible logic. We all know that's not usually the case.