Anyone get the "Workout Status: Canceled" on BofA Website?

[mswilla]

I have been trying to get a modification since the end of last year. I finally went to NACA for help. They submitted my restructure proposal to B of A on April 29th. Yesterday I emailed Barbara Desoer because the status on their website had not been updated since 2/17/09. David Eberhard called me soon after the email and said the proposal had been sent to Fannie Mae and they were waiting for a response. He said it would be either an acceptance, decline, or counter-proposal and to wait 30 days.

Today I went to the B of A website and my workout status says "Canceled"!!!

I am frantic. What could have happened? Has this happened to anyone else? I have been waiting for months and it seemed so close. What can I do now??

Anyone with any thoughts PLEASE help.
Thank you.
Willa in California

[Edteach]

Dont believe the website. Mine said canceled 2 months after I returned my loan mod docs. I called in and they told me, yes your canceled. I push the rep and they dig deeper into the file and say, oh wait you do have a loan mod. Now the website shows an approval letter dated in May, 2 months after the loan mod was returned. I never received this letter.
There is also some confusion over the AG loan mod they put me in for that I was declined for. I was approved for the Freddie Mac one instead, but the declined AG mod showed on the webstie.
Its a mess over at CW, but I believe it will work out in the end.

[cobra]

Willa;

Call David back ASAP. Also as Edteach said, the website is not always accurate.
However...for your peace of mind, I'd be calling David now.

Cobra...NACA mod approved 5/29

[mswilla]

Thank you.
I did call David and he was very nice and helpful, even though he could not give details because of their agreement with NACA. He assured me I should not worry about the information about the status. Edteach was right...the information was inaccurate. I made a phone appointment with NACA and will follow up with them.
Thanks, again, for your help.
Willa

[ItsJustMe]

I have the same message on my account today! On the phone waiting for NACA right now......

[ItsJustMe]

Ours is for real. Our income is too low. Fannie Mae denied us

They are going to contact the negotiator and Fannie Mae and see if anything can be done

[j-nice]

Itsjustme, I am so sorry to hear this...this is my big fear. I have Fannie Mae and my income is very low too. I am bringing home approximately $2-2500 per month (net, it varies because I am on commission). My current mortgage payment on the 1st with CW is $1471 without taxes and insurance. NACA is requesting $938 with taxes and insurance...I don't know how they will get there without a principle reduction. If you don't mind will you share with me what your income and payment are?

[ItsJustMe]

Sure.

Take home is $6500. Our current mortgage is $2900 (1st and 2nd). 2nd is $800 (have negotiated to $555, but was $800 for proposal). Car payment is $333. CC payments are $900 (minimum). Mod was for $1200 w/would have included significant prin reduction - w/hopes that they would come back at 2% w/out prin reduction.

[sarge]

That's 2 now. Elena7077 was notified of the same thing.

[j-nice]

Holy smokes...take home pay is $6500 and YOU don't make enough money???? Am I missing something here? I am not yelling at you, it's the idiots at Fannie Mae who make absolutely no sense. They are now owned by the government and have a contract with NACA to work out modifications...you would think you would at least qualify for the Obama plan if you don't qualify for NACA's. Shoot if $6500 take home is not enough then my $2500 is toast!

[ItsJustMe]

Especially considering the fact that we have very little set expenses. My husband is a government employee, so no large insurance or medical bills or deductables. Just our regular ol living expenses.

[j-nice]

When I originally started working with NACA back in February they did not include my credit card debt ($55K) or my second mortgage with National City. I have told them all along and included in my hardship letter that I will be filing chapter 7 this year. My income dropped over 60% in the last year (auto sales 22 years in Michigan). I have a feeling I will be denied as well. My game plan if that happens is to forge ahead with the bk to get the idiot collectors off my butt and then re-applying for a mod at a later date when my income was up a little.

Will NACA be able to submit another proposal for you once the bk is complete?

[ItsJustMe]

Also wanted to add info on our loan for the benefit of those reading.

5 years into 30 year fixed mortgage at 5.35%

Upside down on home - but only on 2nd mortgage (and only maybe $50K under water).

Never late on a payment ever. Two different mortgages w/CW (previous and this) over 10 years of CW payment history w/never a late, ever, until last month.

[ItsJustMe]

Originally Posted by j-nice

When I originally started working with NACA back in February they did not include my credit card debt ($55K) or my second mortgage with National City. I have told them all along and included in my hardship letter that I will be filing chapter 7 this year. My income dropped over 60% in the last year (auto sales 22 years in Michigan). I have a feeling I will be denied as well. My game plan if that happens is to forge ahead with the bk to get the idiot collectors off my butt and then re-applying for a mod at a later date when my income was up a little.

Will NACA be able to submit another proposal for you once the bk is complete?

We have been waiting to file because mod is complicated (likely not to happen) during BK. NACA (at first phone appointment) said we would submit this way and if rejected we would re-submit w/out the CCs (phone agent said this is what NACA will probably do - will know w/in 72 hours). NACA (1st appointment) said that if re-submitted you do not have to wait out w/other mods again, you are considered first. Hopefully this is true.

If we are denied again, I guess we will go ahead w/the BK and hope to mod after it is over. How does that work, though? I assume we have to come up w/mortgage money for the BK to let us keep the house, no? I have no idea. I'm not going to bug the BK attorney will my questions until after my 72 hours is up and I (hopefully) know what is going on w/NACA and CW. I just end up more confused when we discuss the 'what ifs'.

[j-nice]

Itsjustme, I understand your frustration...gosh your situation sounds so similar to mine. I have a 30 year fixed at 6.5% with CW and have been with them for the most part of my 12 years in the home and never late until this month (just can't pay it). I am not sure what state you are in but I have spoke with bk attorneys in Michigan and they tell me they do not recommend re-affirming the mortgage debt in chapter 7 unless you knew beyond a shadow of a doubt you were never going to default on the mortgage. In order to do a mortgage modification you must re-affirm the debt with the modified mortgage, but it is a longer process because you have more red tape to go through with your attorney, NACA, and CW's bk department. From what I understand that once you file bk your mortgage company is under no obligation to ever report as being paid on time to the credit bureaus. As far as filing and keeping the home, you must be current at the time of discharge (or relatively current) because the mortgage company can start foreclosure proceedings on you as soon as the discharge if you are 60 days late (with no protection for you from the courts). So the idea of purposely getting behind to get the mod is not an option for me.

I hope you get a better response within the next 72 hours, I really do. It just doesn't make sense that they said No.

[sarge]

ItsJustMe,

I have to ask a question. Has your income changed that much? If not, then I would think there was some predatory lending going on because you could not have afforded the payment in the first place. Just doesn't make sense to me.

[ItsJustMe]

We are in CA. So - as far as the BK and keeping the house is concerned - you are saying we need to be current to keep the house (at time of discharge)? It wouldn't be an option to try to mod after the BK is final? Hopefully they'll consider the figures (finances) without the CC payments, then.

Sarge: ITA. I obviously take so much of the blame for getting ourselves into the situation, but at the same time, who in their right mind would lend us this kind of money???? Our mortgage was high in the first place (take hom about $6K, mortgage $2500). Our house just happens to be a money pit. Took out some money (50K IIRC) and refied our 2nd (HELOC) into a 25 year conventional for a larget balance. Our income then was exactly what it is now. It went up a lot from there (I was working) and has since come back down (I'm not working). Our credit card bills were obviously not what they are now (didn't have any) and we didn't have a car payment. But so far as just the income and mortgage - they were exactly the same at the time of the 2nd (but a bit higher than when we got the 1st and original purchase 2nd).

[dthom]

Wow

ItsjustMe
I saw your post earlier, but this is scary for us. I don't know that we will get approved now, as NACA is asking for a prinicpal reduction along with interest rate reduction to 3%. Our income is only about $2500 now, down from around $4000 before husband lost his job. We have 30yr fixed at 8.25%. Payment is $1513 inc. PTI and PMI. 2 months behind now. Our investor requested info in middle of May, and still has not come back with a decision. Our account still shows "No workout for this account"
Hopefully NACA can get them to reconsider their decision. Your story and Elena's story are so similiar to so many of us here. Almost all of us have had some sort of loss of income, now I am afraid we will be denied too. Then what, we have missed two payments, one I was told not to make a partial by CW rep, and this month they refused my payment because we are with NACA. I have only $1000 set aside but need over $3000 to become current. I know if we don't get the modification we will lose our home for sure. Could never make up full amount of missed payments.
First many of us were denied because we weren't behind on payments, even though many of us could see the downfall coming,(job loss, lack of consistent hours etc etc),now to be told not enough income. If we all had our jobs, we would have enough income and would not have asked for help. Ahh, the CW/BofA dance around and around we all go. Really stinks!

[ItsJustMe]

I still can't believe this is happening. Flat out denied. It's funny, they offered to let us refi for 1% reduction in interest. But we don't qualify for a mod. Ridiculous. And it's not even like the countered w/something. Stretching out the terms or anything. It was a big fat denied. It's almost laughable. We're willing to pay as much as humanly possible. We're asking them to make the mortgage as affordable as they possibly can and we're willing to work our asses off to make it happen, but they won't even consider a slight payment reduction???? We either pay our full amount or foreclose. Obviously, they've seen our finances LOL, they know we can't pay the full amount. You'd think they'd be willing to make it more affordable so that we at least have a chance.

I just don't understand. It doesn't make sense at all. I'm so hoping that NACA is able to work something out. Stretch the damn mortgage to 40 years for all I care. Just help us figure out a way to afford the payments.

[windyCA]

ItsJustMe,

I just don't understand, maybe I am missing something. You have 6500 take home income, subtract 2900 mortgage, 333 car loan and 900 credit card payment, you still have about 2400 disaposalable income for your living (food, utilities, clothes, etc), I think your financial situation is way better than a lot of us here, why they said your income is too low?

A little confused.

[ItsJustMe]

I'd love to know the same thing LOL. There is a chance that they are calculating our income at $5500 a month, because of the way my DH is paid. I'm hoping this is the case, but not counting on it. He doesn't work a standard 5 day work week and pay wise that translates to a 6 week (3 paycheck) 'cycle' with one low ($2600) and one high ($3600) check, and one right in the middle (just over $3K). The original stubs calculated our income at $6500, and they've recieved two stubs (a low and high) since.

Like I said. We have almost nothing deducted by way of taxes, because w/our large mortgage we don't need to pay in much. So our gross is not much higher than our net. We also pay nothing for our health insurance ($70 union dues, though), don't pay into state disability or SSI. We do have a car payment ($333) and what I would consider high auto insurance ($180 a month). Other than that, just normal bills.

Oh, and the current mortgage is actually $3100 - I automatically think $2900 because it was for so long, but escrows went up.

[mswilla]

I was not denied by Fannie Mae, but they did not accept the restructure proposal as submitted by NACA. Instead, they are offering to keep the interest rate as is, tack the past due amount on to the current loan, and actually raise my monthly payments by about $115. Now, this puts me even further over the 31% cap on gross income than I was before, and I couldn't pay that.

I got in this mess due to a dramatic drop in income like most people here. I don't see how raising my payment will help. However, I'm afraid to turn it down as I am almost 10 months behind on my payments, now. Fannie Mae already got paid back for defaulting mortgages like mine in the bailout, but I'm afaid they'll still take my house unless I agree to their terms.

Has anyone turned down an offer from Fannie Mae and gotten a better one?

Good luck all.

Thank you.
Willa

[sarge]

I swear that sounds like a lot of the offers CW/BofA has come back with on their own.

[ItsJustMe]

I called NACA again today. Crying of course, because that's what grown ups do....LOL. I was calling to ask if we could lower the car insurance, get rid of phone and cable and any other 'luxury' type expenses, etc to make it work.

He put me on hold for 25 minutes (I think he was afraid of the women who couldn't even get out her street address through the sobs LOL).

He said that my file was sent back to CW already. He said not to worry yet. That NACA is still 'confident we can make this modification work'.

He asked me if I got a package from my lender today????????? He made it seem like I should be expecting something. Do they send out big fat denied letters? LOL

I check my online account ALL DAY LONG. Still a big fat cancel. Hopefully it will go back to mod in process (or whatever it used to say).

[mswilla]

ItsjustMe,
The guy I talked to yesterday about my status saying "canceled" told me this was just the result of "housecleaning" and was made in error. He said they clean up files and when they come across older ones, they get marked "canceled", but this will adjust itself over a few days and be corrected. He said under normal circumstances, we would never see this stuff. I hope this is the case for you.
Good luck.
Willa