loan modification initiation for a negative amortization loan

[SoCalresident]

My dad took a 5/1 arm negative amortization loan from countrywide 3 years ago at an interest rate of 8%. He lives in chicago. He needed that money for his business, (before this loan, he had a paid off house - so now he only has 1 loan on his principal residence)

With the current market down turn, he lost a big chunk of the money. He is 65, and stressing about all of this. Right now he just wants to make sure that he at least does not loose his primary residence. The principal on the house just keeps going up, and he scares that it might get out of his reach.

The loan currently has 80K added to the original loan amount.

He is current on his payments.

What is the best option for him - Loan modification or refinance.
The current loan amount is equal to the property value.

If he goes for loan modification, would the bank be willing to forgive his 80K amount and fix him to a lower payment.
His loan value to gross income is around 33%

Advice on this would be highly appreciated.

[FLgata]

Hi SoCal. Welcome to the forum. I'm sure *** will be by soon to give you some advice.

[Moe Bedard]

Hi SoCalresident,



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

You dad would need to contact Bank of America to see what options there are on the type of loan that he has............I am not sure that they will forgive the negative amortization added to the principal because that is adding up from paying less than the interest only option..........

Try calling
1.800.720.3758

to see what options there are.