my bofa story - not good so far

[jz-sm-ca]

first off, this is a great forum and lots of great info, wish I had found this earlier. I'll make my story as short as possible, we're in the greater San Diego area, bought in Jul 2007 for 740k, 1st at 592 (5 yr ARM with no interest 6.125%, 2nd at 74k (30 yr, 9%). got CW for both through the builder, offering more incentives for CW and thought I could sure re-finance for a much better deal within 2 yrs.
Got sick last Nov with hospital and was bound to bed/home for 2 months and also diagnosed with Diabetes with complications. then mid March broke my right foot (Dr prognosis 6 months + for recovery), so I cannot drive. My wife has been taking care of me at home first and now drives me to/from work 3-4 days a week. we have 2 kids in middle school so she can't find a job to accommodate our needs. Needless to say that without 2nd income and medical bills I had to max out my CCs and take a personal loan too.
I was lucky in that my employer allowed me to work from home and has been very accommodating/understanding. I was not even on short-term disability.
Back in dec/Jan I first contacted CW because I was starting to have trouble paying the mortgage but they told me because I was not behind they could only "help" us by splitting the the one month payments over the next 3 months, I was within the 15 days "grace period" and borrowed some money from my father-in-law to cover.
But in Jun it was at a point where I just couldn't come up with the money anymore and stopped paying mortgage, now Jun/Jul payments have been missed.
I called CW but they told me that I would not qualify for the "make home affordable" as my mortgage/income ratio would be below 31% (even though my 1st, property tax, hazard and HOA make ~ 40%) and that I could get a forbearance plan. But that only pushes out the payments and will not make the mortgage affordable for me. I've asked several of the cust. svcs WHY I don't qualify for a mod but I don't get an answer. And reading from the many examples here I am not convinced at all that I will be able to negotiate on my own.

I see only 2 options for me, either a loan mod + forbearance or I need to get out of the house and rent something more affordable.

I followed the advice by many here and have an appt with NAAACA tomorrow morning, hoping that they can help.

Some questions
From what I understand they can only help with the 1st, should I continue paying my 2nd? both mortgages are BofA ... and, should I continue to pay my HOA? my property tax is covered thru Nov 30 ...

Thanks so much for listening and this great forum!
--jz

[jz-sm-ca]

Thanks CalOwner, interesting, I shall keep that in mind ...
I should have probably added that the house was purchased brand-new and that there is still construction going on the the neighborhood. While I paid 740k (666k total debt with 1st/2nd) today's value is probably more in the 600k range (same model home is offered for 680k right now and probably going for no more than 650k so I figure my house would sell for even less.
Actually begging another question, would an appraisal help at this point?

[Cassietw]

Hi jz-sm-ca, welcome to the forums!

I have been on the forums since Feb 09. I highly recommend giving NACA a shot. I am working with NACA. My mod is still pending but there are many people here in the forums who have been helped and who have received awesome restructures. Just make sure you tell NACA everything and they will do everything they can to help you. Depending on who your investor is, could depend on how fast or slow the restructure process is. (my observation)

I wish you the best of luck! Keep us updated!

Cassie
Tujunga, California

[CW California]

jz-sm-ca
Some people have been successful thru modification with NACA of modifying both loans when they are with the same lender. That is one of the occasions that we have seen NACA help with both the 1st and 2nd.

[CalOwner]

Sorry I accidentally deleted my post! Wanted to edit it. I just wanted to state that I learned under CA law that there are protections in non-judicial (out of court) foreclosures for purchase money loans when the house is owner-occupied. In this case, there shouldn't be an obligation to pay if the balance of the loans exceed the proceeds the bank gets from the sale of the property. You may qualify for that exception. But again, an attorney is helpful with these questions should you have to go down that path. Sorry to hear about your situation and best of luck to you.

[Moe Bedard]

Thanks for joining the community jz!

An appraisal will may do some good now, but you may want to save that money by using a real estate agent. You could have a Realtor prepare a comparative market analysis and that is almost like an appraisal.

Paying your second is up to you. But they are in 2nd position and do not have much of a leg to stand on. I think NACA can rework both loans if you qualify.

Your HOA is in very last position, but they can foreclose also. This is a judgment call. Maybe ask them for a few month break while you save your home?? Just a thought

[jz-sm-ca]

thanks for all your replies and advice, will keep all in mind on this journey.
Had my first meeting with NACA today, they want more info of course but will provide and meet again on friday, we shall see where we go from there.

And an ironical email today, from BofA saying Thanks for talking with one or our service reps, pls fill out this survey ... the guy was all but helpful, it was an automated call we received that claimed to be from the home retention team (I think it was from the debt collect dept). he asked about payments and when I will make them again, when I asked for his name and dept he said that it is an internal dept with no name, he told me again that I would not qualify for a mod, so I asked (again) why, and his response was "why are you trying to be difficult, we are only trying to help ..." and then he transferred me and the call was dropped ...

[rozuki]

Stick with NACA ...don't bother talking with CW/BofA....they will not be helpful in any way...

Rozuki~ approved 2% fixed for life of loan thanks to NACA!

[Moe Bedard]

Good news jz! Just stick with NACA but make sure to keep on top of all parties. Meaning trust but verify because people do make mistakes and you can get lost in the system.

The squeaky wheels get the loan mods. Please keep us posted!

[jz-sm-ca]

update: I had my 2nd session with NCA today, I had submitted all of the required documents (and some more) through their website (Thanks for all the useful postings here that describe what is needed so that I was prepared), they confirmed today that they have everything and they are ready to submit to bofa ... very impressed since my first contact was only last sunday night ... I shall follow-up next week and ensure that they indeed submitted.
They reviewed my entire financial situation and are basically asking bofa for a new monthly payment of my 1st of ~ 1400 (vs 3000), they did not give me the exact breakdown and of course we'll have to wait what bofa will have to say. They said give them at least 30 days ...
I am very happy with NACA thus far, of course bofa can still decide something else but I am sure that I would have not been able to pull all of this of in this timeframe all by myself.
I will keep you posted on status.
Thanks agin so much for all of your help and support.