Any Luck with Bank of America + Home Affordable Modification?

[beelzebub]

Hi Everyone,

Has anyone had any luck (or not) in getting "Home Affordable Modification" (aka "the Obama Plan") done with Bank of America? We're about to call and ask B of A to consider our case for mortgage modification, but I would like to gather some info on people's experiences.

We bought our house in 9/2007 for $327,000, using a loan program offered through Acorn Housing + BofA. This special 40 year mortgage let us put 3% down but avoid private mortgage insurance. The loan is interest-only for the first 10 years with a interest rate of 6.75%. Our current monthly payment is about $2150, which includes interest & tax (but no principal and insurance). After the first 10 years, the loan adjusts by requiring $200 extra to cover the principle.

The mortgage payments went from 30% of our gross income to 45% when my wife became pregnant and had a very tough pregnancy. I've been moonlighting to keep the mortgage payments current, but I don't think I can keep it up indefinitely. I'm hoping the Obama Plan will bring down the payments to 31%, but it sounds like some people are getting rejected by BofA? Why?

-BLZB

[LHarveyMadman]

When I called B of A last week to check on the status of my modification, I believe that the automated message said that B of A was starting to implement the plan. Admittedly, I didn't listen to the exact details because they did not apply to my situation.

First things first, get all your financial information together. Income information, other debt obligations (e.g. student or car loans), monthly expenses (diapers, groceries, phone, utilities, etc. - pretty much anything that you pay for). Be prepared to give that information over the phone. Don't exaggerate your expenses - if you report expenses that results in too high of a deficit, you may be denied.

Your story sounds like a good one for a modification. You have an interest-only ARM at a rate that is considerably higher than prevailing conforming rates. There is a good chance that your loan is owned by Fannie or Freddie.

One missing piece to your story is that you did not mention what the current market value of your home is. If, by some stroke of good fortune, your home's value has increased and you have about 20% equity, then you might be told to do a conventional refinance. I'm guessing that you don't have that kind of equity after having owned your home for less than two years.

The number that I always called for B of A is 800-846-2222.

[beelzebub]

Originally Posted by LHarveyMadman

if you report expenses that results in too high of a deficit, you may be denied.

What is "too high?" Anyone know?

Originally Posted by LHarveyMadman

One missing piece to your story is that you did not mention what the current market value of your home is.

We're waaaay underwater/upside down. We bought the house for $327k, and I think it's worth about $250k.

-BLZB

[beelzebub]

I just called Bank of America and applied for the Home Affordable Modification program. They said I need to draft a hardship letter (among other things). Do you have any advice for drafting a good letter? What are the necessary elements? What tone should it have? People who have written successful letters -- would you care to share them with me?

Thanks.

[Moe Bedard]

These are what most lenders consider to be generally acceptable hardships....

1. Loss of job or reduction in income
2. Death of the homeowner, spouse or family member
3. Illness of homeowner or family member
4. Divorce or separation
5. Forced job relocation by employer
6. Adjustable rate reset-payment shock

The best way to set up a hardship letter..........

* First, describe the hardship and the circumstances that caused it
* Explain what steps have been taken to correct the situation
* Provide the lender with your plan to get back on track and stay there
* Assure the lender that you are a responsible homeowner who just needs a second chance and that you are very motivated to save your home.


Examples of a Hardship Letter

[sb1805]

I am also interested in applying for the Home Affordable Modification through BofA...do I just need to call the number above? Or is there some other procedure.

Also, I've tried to find the email addresses of the execs referred to by LHarvey, but haven't been able to. Can someone please point me in the right direction or provide me with the names/addresses?

Thank you!

[LHarveyMadman]

Here's the link to the email addresses:

Bank of America loan mod -SUCCESS!!

If you fit the basic criteria for modification on the Making Home Affordable website, then you can try calling the number above. Like that same website says, be patient. And I will add, be understanding of the person on the other end of the phone.

[sb1805]

Thank you!

[beelzebub]

Originally Posted by sb1805

I am also interested in applying for the Home Affordable Modification through BofA...do I just need to call the number above? Or is there some other procedure.

Also, I've tried to find the email addresses of the execs referred to by LHarvey, but haven't been able to. Can someone please point me in the right direction or provide me with the names/addresses?

Thank you!

I just submitted to BofA, so I can tell you from my experience. Let me know if you learn anything different.

First, fill out the "Personal Budget Worksheet" on this page:
http://www.bankofamerica.com/loansan...al-difficulty/

Then call Bank of America 800-846-2222. Don't enter your social or loan number because if you do, they'll see that you're current, and will kick you over to the wrong department. When you get to a real person, tell them you want to apply for the "Home Affordable Modification Program." They first ask you some preliminary information, including budget numbers (which is why you filled out the above form, so that you can read off it). Then they'll ask for a fax number so they can fax the application form. (BTW, I got a free fax number from eFax.com. It's free to receive faxes).

If the 800 number doesn't get you people who can do the modification, call their regular number: 716-635-2251.

Then you fill out the application, include a hardship letter, and proof of income (e.g., most recent paystub) and fax all that in. Then you call back in a week just to make sure it's been entered into their system (they call it "setting up" the application). Once it's been set up, it still takes a few more weeks to have an analyst look at the modification application. They said their backlog is about a month right now.

-BLZB

[rjatl]

I just called Bank of America yesterday to discuss any options. They informed me that I was in "pre forclosure" but there was no sale date. I asked if there were any options available to me other than a repayment plan, as I'm struggling with the current 2800 a month payment let alone adding another 1000 on there for a number of months. They talked about thie Home Affordable Modification Program. He asked me questions about my expenses, income etc, and I need to fax my pay checks, tax returns and letter of hardship to them. I did ask him in the meantime if I could make a payment (perhaps next week when I get paid) he mentioned they most likely wouldn't take a payment since I was in pre forclosure. I wonder why? if I could afford to pay a month's right now...they wouldn't want that? Additionally, he informed me they need about 30 days to review. What happens in the meantime? Is the house still in foreclosure status? or pre foreclosure? Do I just wait on pins and needles? I really want to keep this house...and honestly if my payment could go down to around 2000 a month I could most definatly do it. I'm not sure if anyone has any success with this program as of yet since it's new...but I'm hopeful...nervous but hopeful

[beelzebub]

Originally Posted by rjatl

... They talked about thie Home Affordable Modification Program. ...

Hi,

I can only comment on the Home Affordable Modification program. According to the govt website makinghomeaffordable.gov the government sponsored plan is available only to those who are current on their payment. It sounds like you've missed some payments already? I think that disqualifies you for the government plan. I suggest you go to that website and look over the requirements. (Pretty simple). I suppose a bank is free to do whatever they want to work out a solution with a borrower.

Good luck,

-BLZB

p.s. Just out of curiosity, where is your house? (city, state)

[rjatl]

interesting....since that is specifically the program he told me that he thought I qualified for. he referred me to the United States - Department of The Treasury - Homepage and told me I could look up the details of the home affordable modification program which I did...and it looked like it was what he described....
I'm in Atlanta, Ga.

[Hopefull2009]

Originally Posted by beelzebub

Hi,

I can only comment on the Home Affordable Modification program. According to the govt website makinghomeaffordable.gov the government sponsored plan is available only to those who are current on their payment. It sounds like you've missed some payments already? I think that disqualifies you for the government plan. I suggest you go to that website and look over the requirements. (Pretty simple). I suppose a bank is free to do whatever they want to work out a solution with a borrower.

Good luck,

-BLZB

You don't need to be current to be modified under a MHA modification. You need to be current to take advantage of the refinance portion that is under the plan. Modification is for those at risk of foreclosure, including behind in payments.

[rjatl]

thank you Hopefull2009. I wanted to make sure I didn't mis understand what they told me on the phone, not what I read on the website. I gathered all the information together this morning, just need to write up the hardship letter and fax it all in. I would like to at least make a payment this week, but the representative told me most likely they would not accept it since it was in pre-foreclosure. I hope that we can work out something, I really don't want to lose my home...and this is just so embarassing to me how I got here....

[ncadena222]

I just rec'd by fed ex on Sat the packet for the MHA mod plan. They outlined my 3 month trial payment and was very shocked to see it was a payment we could afford. I am just now hoping and praying to see if they will accept it. I have read on several other sites that if you make your 3 month trial payments you are locked in you just can not be one day late. Anyone yet rec'd the packet from BofA and sent it in and made their payments and was accepted or denied?

[LHarveyMadman]

ncadena222, the MHA plan is too new know the answer to your question. The 3 month trial period is a new feature that is mandated by the government plan. Those of us who received modifications before this plan went into effect did not have any trial period to fulfill.

The MHA plan only went into effect 2 months ago. Anyone who received a modification from B of A under the new plan has not yet fulfilled the 3 month trial period. But if it is really an MHA modification, then there should be no reason why your modification would be denied, as long as you make your trial payments on time and as long as you didn't commit fraud (e.g. claimed that your investment property was your principal residence) when you applied.

[beelzebub]

Originally Posted by Hopefull2009

You don't need to be current to be modified under a MHA modification.

Thank you Hopefull2009. I stand corrected.

Rjatl, sorry for the misinformation, and good luck you.

-bLzb

[beelzebub]

Just called BofA to check the status of our application. They said they assigned an analyst on May 29. But it takes another 3-5 weeks (I think?) for the analyst to reach any conclusions. So it took 3 weeks and a day for them to assign an analyst once they received my faxed-in application.

Now we're waiting with bated breath....

[rjatl]

beelzebub,
I'm hoping that's the case with mine also. She did tell me it was in review now...and I'm assuming it took awhile to get there hence the attorney letter I received yesterday. Probably a timing issue....though still kind of upsetting! I have a 3pm phone appointment with NACA again today...as I faxed them the letter of intent as well as the auction notice...so want to make them aware. Once I speak to them I'm going to contact the attorney who sent the letter...there is some disconnect between them and CW/BOA.
Here we go!

[beelzebub]

Originally Posted by rjatl

beelzebub,
I'm hoping that's the case with mine also. She did tell me it was in review now...and I'm assuming it took awhile to get there hence the attorney letter I received yesterday. Probably a timing issue....though still kind of upsetting! I have a 3pm phone appointment with NACA again today...as I faxed them the letter of intent as well as the auction notice...so want to make them aware. Once I speak to them I'm going to contact the attorney who sent the letter...there is some disconnect between them and CW/BOA.
Here we go!

I'm a little confused about your situation. What exactly is the "attorney letter" you're talking about? You got a letter from BofA's attorney because you missed some payments?

[rjatl]

beelzebub,
yes..I was 3 months behind when I contacted NACA. I completed everything with them on May 21st and they told me they would submit my file. I had called BOA first week in June, but they didn't have it in their system. Yesterday I called again, and was informed that they had the modification and it was under lender review and there was NO SALE date in their system. However yesterday, I also received a letter of intent to foreclose and a letter telling me the sale date of the house. It was dated June 5, so I'm assuming it was a timing issue with BOA. I just spoke with NACA again a few minutes ago and she said she would fax and email that letter to my BOA negotiator also. I'm also going to follow up with the attorney now also...but NACA said to sit tight...I should be fine.

[Esteban1901]

Hi all,

Thanks all of you for sharing !

I was trying to applied for the MHAP Mod since early March with no success. Finally on early May and after hours on the phone doing ridiculous budget numbers they faxed me the application for the MHA Mod, and I've faxed them back all the information requested.
I've just talk to a BofA Rep and told me on May 30th they assigned me a person who is going to work with my file. Is going to take up to 4-6 weeks for them to contact me again. I'm going to follow up very close every week or two my case.

[beelzebub]

I just called BofA again to check the status. The rep said my file had been assigned to someone named "Brant" (?) but there were no notes in my file, implying he hasn't really looked at it. It's been almost 7 weeks since I submitted.

The rep recommended calling back in a week to check the status. She said at that time "we" can send an email to the analyst. I don't want to do anything to annoy the analyst. But the longer I wait, the higher our credit card debt goes. I don't know at which point you give up and just default on a payment. My credit card company is probably happy to let me run up my debt for another 10 years.

[beelzebub]

Originally Posted by beelzebub

I just called BofA again to check the status... The rep recommended calling back in a week to check the status.

Called again today and the rep said because it has been over 30 days since an analyst has been assigned to my case, she will put in a request to expedite the analysis of my case. She said the analysis should be completed by July 9, so I should call back on July 10.

I was impressed by the rep providing a hard deadline for the completion of analysis. We'll see if they really live up to it.

[beelzebub]

Originally Posted by beelzebub

Called again today and the rep said ... the analysis should be completed by July 9, so I should call back on July 10.

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%?