Need Advice on loan modification!

[mgarcia]

Greetings!! I’m new to the forum and hope you can answer my questions.

Here is my story.

I bought my house in August of 2005 for 450,000, I put a down payment leaving my loan balance at 350,000. I later refinanced leaving my loan balance at 370,000 with a 5 year ARM at an interest rate of 5.75% with PITI payments of $2310.00. The current market value of my house is $250,000 which leaves me underwater. My husband and I are self employed and have been for the past 10 years, I also have a part time. Our current situation is that our income has significantly been reduced and we’re having a hard time keeping up with our mortgage. We have tried numerous times calling Band of America to get a loan modification but they keep telling us we don’t qualify because our interest rate has not adjusted and because we have not been late yet in our mortgage. Reading this forum we decided to give NACA a try. However they require that we only have one house in order to help us. We have two properties one property is under my name only (primary residence) and the investment property is under my husbands’ name only. NACA will find out we have a second property because that will show in our tax returns.

Our current lender is Bank of America previously Countrywide. Our investor on the loan is fannie mae.

Here are our questions:

Do we still qualify for NACA?
Do we have to be late in order to get a modification?
If bank of America doesn’t want to help me and NACA cant assist me, what are my other options?

[Moe Bedard]

Hello and welcome to the community!

There have been homeowners and member here on LoanSafe that have received help under the plan that were not yet late on their mortgage. However, we have also seen A LOT of members get denied for not being late. It seems like that do not tell you that is why, but our hunch based on many of these denials seems spot on.

NACA will help you with your primary, but not on a second home or investment property is what i understand. So they should be able to help on your primary and on your 2nd home, you may be on your own or you can hire an experienced attorney.

NACA has their own contracts with these lenders and also can submit under the MHA Obama plan.

I hope this helps clarify a few things for you and please keep us posted on your progress.

[mgarcia]

Yes, but my understanding is that NACA will help you only if you have one property. They will not help people with more than one property.

True or not true?

[kr1959cw]

Originally Posted by mgarcia

Yes, but my understanding is that NACA will help you only if you have one property. They will not help people with more than one property.

True or not true?

my understanding is you can only own one property. I am in that boat, even though about to foreclose on one of them. I have had to deal with BOA one on one because we did not qualify for NACA due to my other property. In your case I would sure check into it.