Need advise on re-negotiating BofA offer

[Larry2630]

the following info has been posted in another thread but decided to start a new thread. i started my loan mod process with naca on 4/7/09 and my documents were submitted the same day. here are the details of my existing loan:
CURRENT PROPERTY VALUE = 316K
1st loan: orig balance is 552k with monthly payment of $2817.50 - interest only. interest rate is 6.12% fixed for 7 yrs then adjustable - now on 3rd yr.
2nd loan: orig balance is 134K with monthly payment of $1012.85 interest only. interest rate is 8.125% fixed for 7 yrs then adjustable - now on 3rd yr.
tax & ins payment: $730 (we pay 1.85% for prop tax including community facilities district fee). total monthly payment is $4560.35 (interest only + tax & ins).

missed july payment and will miss aug payment as well. on 7/28/09 i received an email from carrie crawford and janice rucker regarding bofa's proposal which will start on 9/1/09. the proposals are as follows:
1st loan payment will be $2963.98 PITI. interest rate is 2% fixed for the remainder of the loan.
2nd loan payment will be $580.77 P&I. interest rate is 1% fixed for 5 yrs then 3.25% fixed for the remainder of the loan. monthly payment after 5 yrs will be $697. total new montly payment starting 9/1/09 will be $3544.45
AMOUNT OF MONTHLY SAVINGS = $1015.90

these figures weren't the ones that naca propose to bofa. naca proposed a payment of $3088 PITI fixed for the life of the loan for both loans which is 31% of our gross income ($456 less). i talked to janice rucker and asked her to re-negotiate the terms to bring the payments down but she said that bofa denied it (this all happened on 7/28/09). she replied to me less than an hour of my request. i accedpted the offer on 7/28/09.

i need some advise. though this offer is a great deal, i'm thinking of appealing to david leighton to bring down our total payment to 31%. i know may of you will think that i'm greedy but we have some very important financial obligations to care of. my husband pays child support in the amount of $616 per month until his daughter finishes college (just graduated from hs). i currently pay $320 per month for PLUS loan (parent loan for undergrad students) for my daughter's college. every semester the payment amount increases as the loan amount increases (has 3 more yrs to go). my monthly payment is due to increase by $100 by mid fall. the $456 difference will be a very big help for us.

do you guys think that this is a reasonble appeal? is it okay to send david leighton an email regarding this? please i need some input. thank you all!

[alikeith]

Did they say why they would not go down to 31%?

[Evan Bedard]

Hi larry2630,

do you guys think that this is a reasonble appeal? is it okay to send david leighton an email regarding this? please i need some input. thank you all

You can try but I believe that is the lowest that they can possibly drop your payment too.

The only thing left they can do is a principle reduction, but that is very very rare and I have only seen maybe a couple

[NeedHelpwCW]

I truely think you are crazy! 2% fixed for the remaining of the loan is a GREAT modification. There are so many out there that wants to be in your shoes!

If you are pursuing to get your payments to the 31% benmark, then they will probably set you up for the Obama's Making Home Affordable modification plan. That is probably the only way to get you down to your 31% benchmark.

I hope you realize that under that plan, a portion of the principal will be in forbearance. Now, I don't think they know what to do with the forbearance amount yet... whether to have interest accured or not. But that amount (with or without interest) will be a balloon payment at the end of your 30 year laon term.

I have not read any posting stating that they were successful with principal reduction (or forgiven).

My modification offer thru NACA was 2% fixed as well and I took it. The new payment is greater than my 31% income as well. I know that 2% was the lowest that BofA offered and I ran with it. I ran the numbers (through loan amortization tables) for my loan and I was better off with the fixed 2% for life verus the Obama MHA in terms of total interest for these two types of loans. And this was with no interest added to the forbearance amount! I would save $120,137.81 in interest!!!

If you decide to pursue with the 31% payment... you have to take the chance of re-starting the process again... who know how long it will be this time around.

Any way you choose, let us know how it goes.

[alikeith]

The balloon payment on the Principal Forebearance under MHA is Interest free.

2% is great though..... SAving over $1000 a months is quite substantial.

[NeedHelpwCW]

Her $1,000 of saving should be great since the original loan was INTEREST ONLY and the new payments are PRINCIPAL & INTEREST.

[alikeith]

Agreed!

I got a mod that went into eff 03/01/09, under the COuntrywide Attorney General Settlement. Its interest only then goes to 8% after 10 yrs. Needless to say, i am applying for MHA. I would like to get a fixed rate thats lower, and closer to the 31% of my income.

[CW California]

Of course the lowest the Obama mod goes is 2% and that is only for 5 years. It's a step rate after that.

[alikeith]

I know..... Being locked in at 5.5 is better then 8 though. Some people have gotten 2% for the life. Maybe i will get lucky.

[Larry2630]

thank you all for your input. appreciate a lot. now just waiting for the documents.....

[laurap]

Hi Larry2630,
Did you get 2% for 30 year or 40 year term?. My case also in the same
situvation they gave me an offer and i rejected it. It was way above 31%.
Could you calirify will the 31% match will it support both first and second or just the first +ins+tax+hoa?.

Thank you very much.

Originally Posted by Larry2630

the following info has been posted in another thread but decided to start a new thread. i started my loan mod process with naca on 4/7/09 and my documents were submitted the same day. here are the details of my existing loan:
CURRENT PROPERTY VALUE = 316K
1st loan: orig balance is 552k with monthly payment of $2817.50 - interest only. interest rate is 6.12% fixed for 7 yrs then adjustable - now on 3rd yr.
2nd loan: orig balance is 134K with monthly payment of $1012.85 interest only. interest rate is 8.125% fixed for 7 yrs then adjustable - now on 3rd yr.
tax & ins payment: $730 (we pay 1.85% for prop tax including community facilities district fee). total monthly payment is $4560.35 (interest only + tax & ins).

missed july payment and will miss aug payment as well. on 7/28/09 i received an email from carrie crawford and janice rucker regarding bofa's proposal which will start on 9/1/09. the proposals are as follows:
1st loan payment will be $2963.98 PITI. interest rate is 2% fixed for the remainder of the loan.
2nd loan payment will be $580.77 P&I. interest rate is 1% fixed for 5 yrs then 3.25% fixed for the remainder of the loan. monthly payment after 5 yrs will be $697. total new montly payment starting 9/1/09 will be $3544.45
AMOUNT OF MONTHLY SAVINGS = $1015.90

these figures weren't the ones that naca propose to bofa. naca proposed a payment of $3088 PITI fixed for the life of the loan for both loans which is 31% of our gross income ($456 less). i talked to janice rucker and asked her to re-negotiate the terms to bring the payments down but she said that bofa denied it (this all happened on 7/28/09). she replied to me less than an hour of my request. i accedpted the offer on 7/28/09.

i need some advise. though this offer is a great deal, i'm thinking of appealing to david leighton to bring down our total payment to 31%. i know may of you will think that i'm greedy but we have some very important financial obligations to care of. my husband pays child support in the amount of $616 per month until his daughter finishes college (just graduated from hs). i currently pay $320 per month for PLUS loan (parent loan for undergrad students) for my daughter's college. every semester the payment amount increases as the loan amount increases (has 3 more yrs to go). my monthly payment is due to increase by $100 by mid fall. the $456 difference will be a very big help for us.

do you guys think that this is a reasonble appeal? is it okay to send david leighton an email regarding this? please i need some input. thank you all!

[Larry2630]

Originally Posted by laurap

Hi Larry2630,
Did you get 2% for 30 year or 40 year term?. My case also in the same
situvation they gave me an offer and i rejected it. It was way above 31%.
Could you calirify will the 31% match will it support both first and second or just the first +ins+tax+hoa?.

Thank you very much.

hi laura,

according to the email from carrie & janice - for the 1st loan it will be 2% for the remainder of the loan. per my understanding it will be for the next 27 yrs because we are on our 3rd yr paying the mortgage. i will contact naca on monday to verify if this new loan will be for 30 or 40 yrs. naca's proposal was 31% but bofa gave me 35% for both 1st & 2nd loan. and yest this includes principal, interest, tax, & insurance.

[kura52]

Hi there. I was wondering if you got your mod on your own by contacting CW/BOA, or did you go through NACA? If you did not go through NACA, I am just curious why? It sounds like from what I have been hearing on this forum that they could get you the mod you (and all of us) are looking for...2% for the life of the loan. I was first told by BOA that I did not qualify for a mod....but then, when I pushed them and faxed articles along with information from there own web site regarding the AG settlement, they then stated i DID qualify...Now i am waiting to see what the offer is. I'm nervous about what they will offer, and if it is a bad offer, I will then go thru NACA.....and half wondering if I should just contact NACA NOW.....if anyone out there on loan safe reads this and has an opinion about this, I am listening!!!

[Larry2630]

Originally Posted by kura52

Hi there. I was wondering if you got your mod on your own by contacting CW/BOA, or did you go through NACA? If you did not go through NACA, I am just curious why? It sounds like from what I have been hearing on this forum that they could get you the mod you (and all of us) are looking for...2% for the life of the loan. I was first told by BOA that I did not qualify for a mod....but then, when I pushed them and faxed articles along with information from there own web site regarding the AG settlement, they then stated i DID qualify...Now i am waiting to see what the offer is. I'm nervous about what they will offer, and if it is a bad offer, I will then go thru NACA.....and half wondering if I should just contact NACA NOW.....if anyone out there on loan safe reads this and has an opinion about this, I am listening!!!

hi kura,

yes, i did go thru naca. did not even try to go directly to cw/bofa. i've been reading posts here before i started my mod process and learned a lot of horrible & stressful stories about cw/bofa so i decided to start my process as smoothly as possible. attended the naca 2 hr workshop, met with naca counselor, documents submitted to cw/bofa the same day that we met with counselor, then about 20 - 25 follow ups with naca, and now mod was approved after almost 4 months. now just waiting for the documents to sign and new payment is effective 09/01/09.

[kura52]

Thanks Larry for the reply. Can i ask what BOA was willing to agree to for the terms of your mod? Also, were you current on your mortgage and did you have a hardship, or was it strictly pushing them to get you out of a pay option arm? thanks so much.
Kura52 also known as denise.

[kura52]

Larry, I apologize for NOT reading carefully. I see you did get a 2% deal. Awesome! I would jump to the roof tops if that is what i happen to get!

Kura52 AKA Denise

[unemployedinaz]

I am happy for you and jealous of your 2% rate. However, please be sure that they are not extending your loan out to 40 years. In my case, they lowered my interest to 5.25% and extended my loan an additional 13 years! (I had 27 left to pay). I will be rejecting this offer. I would be happy with the 2% interest drop and the $300/mo less payment, but to add arrearages to back end with 13 years more interest is just not feasible or smart. ugh!