my recent modification attempts, investor info

[ccsint]

Hi all,

I wanted to post my recent updates on my conversations with CW (now BoA).

Situation: Current on my 80/20, budget showing -300/month, additional expenses looming, 200K underwater.

I tried to qualify for the government program, but due to my 80/20 scenario, the Homeowner Retention rep had to put me on hold to see if I could still qualify. He seemed to indicate that if you met the requirements on the website, then you essentially would qualify for the plan. Unfortunately, I didn't have all my finances together for that call, and ended up calling back. The second representative took all my information, then informed me that I didn't qualify.

The interesting thing was that she indicated that BoA was sending out packets to all homeowners starting May 1st, which would include who is the actual investor on my mortgages. I thought this was interesting since they've been withholding this information in the past. She seemed to imply that certain investors were not participating. This was also strange, since I thought the whole point of the government program was to streamline the qualifications process.

After the call, I got frustrated and called an attorney. They strongly implied that the banks are still not working with mortgage holders who are current. They strongly hinted (but did not directly tell me) that I should go 30-60 days late before they begin the process. I'm leaning this direction; just wanted to see if anyone had a good reason for me to try and continue to stay current.

[chrisb]

Hi,
I too am current with my mortgage but struggling as my wife lost her job back in March. I am working with NACA now, and I believe that BoA will not prioritize your case until you are behind. This month will be my first time I will not pay, because I simply cannot afford it. Hopefully they approve my file soon.

[Evan Bedard]

Hi all,

When BofA took over CW recently they will now no longer offer any special assistance to borrowers who are current. They consider being current no hardship and will deny any request for assistance. You two stay strong while fighting for your home!

[j-nice]

Evan, if you don't mind would you please explain this ridiculous rationale? Do you work for BoA? Have you been through the modification process yourself? Trying to stay current is a characteristic of a responsible homeowner. The proof of a hardship is in the numbers. Homeowner's are draining their life savings, 401Ks, and maxing out credit cards to stay in their homes. I don't know what your personal situation is but I find it offensive that you are discouraging people from hopes of a mod if they are current on their mortgage!

[Andrew]

Evan does not work for BOA, but has worked as a processor working countrywide files. He is correct regarding the current status on borrowers. When you do think about it, it does make sense from the lenders view. We can continue to collect full payment on a loan at so and so rate why would we want to make their payment less. But seriously every modification is based on a case by case basis. Regarding the hardship and so on. I dont agree with the being current idea regarding BOA, but that is being done. And no where did he discourage anyone. Please refrain from personal attacks towards members.

[15119DOVE]

CW has said the same to me before when we started in Dec 2008, now 120days with naca and 60days behind on payments but no update yet...

[j-nice]

Late or not late, the squeaky wheel gets the grease!

[rozuki]

I was told by numerous CW reps the same thing. You will not get anywhere if you are current! Only those at least 60 days late will get a decent loan mod. In other words, take the hit on your credit rating (which winds up costing you in other areas) and then maybe we will help you.

I don't know why they promote the "call us if you have a hardship" line. I have two hardships and called months before I knew it would affect my ability to pay my usurious mortgage every month. Got nowhere with CW.

As of Fri, I am 3 months late....still no word on my NACA submission on 4/17.

[slateman100]

The thing I don't get is that you can't really just "stop paying." I mean, they have your financials, and if you are not paying on purpose, won't they know? I undertstand the plight of those that can't afford to pay, but this doesn't help those who could stay current for a while and only get screwed later when their ARM changes or whatever.

[pyeatpr]

Originally Posted by Evan Bedard

Hi all,

When BofA took over CW recently they will now no longer offer any special assistance to borrowers who are current. They consider being current no hardship and will deny any request for assistance. You two stay strong while fighting for your home!

Just out of Curiosity, when BOA states on their web site "Our Commitment to supporting the Making Home Affordable Program" what do they mean? I know the MHA program touts how you do not have to be behind to qualify for a modification. I am assuming since the program is volunatary, BOA can make up the rules as they go along.

[ccsint]

Originally Posted by slateman100

The thing I don't get is that you can't really just "stop paying." I mean, they have your financials, and if you are not paying on purpose, won't they know? I undertstand the plight of those that can't afford to pay, but this doesn't help those who could stay current for a while and only get screwed later when their ARM changes or whatever.

Good point. I think you have to be able to reasonably show that your monthly inflow is less than your outflow due to normal expenses. To that end, i've accelerated some work around the house and taken out some additional financing over the past 6 months, only to ensure that my budget can't be questioned. These expenses would have happened soon anyway, and it's a shame that they won't assist those who need help but are still current TODAY.

I have to agree with Evan - CW appears to not want to assist ANYONE who is still current, even if you show that you are negative each month.

I am close to going late and using an attorney - I will post once I make a final decision.

[CW California]

Has NACA had luck getting modifications with BofA with people who are current?

[CW California]

Originally Posted by Evan Bedard

Hi all,

When BofA took over CW recently they will now no longer offer any special assistance to borrowers who are current. They consider being current no hardship and will deny any request for assistance. You two stay strong while fighting for your home!

Hi Evan
How do you know they will now no longer offer any special assistance to borrowers? Is this some kind of meeting they had or?.....

[ccsint]

Hi all,

I've made a decision to not make this month's payment in order to expedite a mortgage modification. I've dipped into my savings once recently to pay the bills, and put together budgets showing a negative each month, and gotten nowhere thus far. That said, I'm planning on using a law/modification firm, and hoping to stay between 30 and 60 days late (not 90) during the process.

Some questions for the masses:

1) If my payment is due June 1st, then it is 30 days late on July 1st, and 60 days late on August 1st. Making a payment after August 1st should keep me from going 90 days late, correct?

2) What kind of impact will being 30-60 days late on my mortgage have on existing credit cards and balances? Any real life experiences out there?

3) Anyone think I'm making a mistake? I've never been late in my life..and we're going to ding myself and my wife's credit.

Thanks for your help,

ccsint

[e56046]

Originally Posted by slateman100

The thing I don't get is that you can't really just "stop paying." I mean, they have your financials, and if you are not paying on purpose, won't they know? I undertstand the plight of those that can't afford to pay, but this doesn't help those who could stay current for a while and only get screwed later when their ARM changes or whatever.

Slateman:
This response is the greatest wisdom I have read yet. After the borrower sends in all of their financials, they got you; they know exactly what you can and cannot afford. I don't quite understand how the investor losses in a forThis is the logic I place on the Home Affordable Refinance Plan, if a borrower owes more than 105% and can provide that difference, why would the investor agree? The borrower has already admitted that they can come up with a substantial amount of cash, why wouldn’t the investor just leave the terms as they are and bleed the borrower dry until foreclosure?

[e56046]

I don't quite understand how the investor losses in a foreclosure, they already have the down payment, and are able to resell the recovered asset at their leisure. On another note, is it true that if the loan has PMI that Freddie and Fannie require the loan go through the existing servicer?fficeffice" />>>
Regards, >>