BofA $25,000 Rule for Pre-Qual Success

[Medora]

Hi All,
I just learned something really valuable that I'd like to share. Hopefully it will help others from spending sleepless nights like I did last night. I mean, sleep-less!!

8am Finally got a rep with experience who INSTANTLY knew why we kept getting automatically rejected in pre-qual, despite having been pre-qualed just 2 weeks ago.

We're 11 months in arrears--due to a lot of clerical issues. The rep said: If your arrears total more than $25,000 you are automatically rejected for loan modification--unless you can offer to pay (upon approval) enough up-front money to bring your arrears under $25,000. All she did was put "$3500" in the box that says amount available to put towards the loan, which put us under the threshold.
We've now been sumitted for modification, and I'll save the one month's mortgage payment and use it towards the up front money.
Got it?
Arrears including payments and penalties have to be under $25,000 after deducting amount of "up front" money.
I really do hope this helps someone else--all we have is each other to share the real info, right?
Good luck!

[Evan Bedard]

Hi medora thank you very much for sharing this information I have not heard this before.

From my personal experience I have seen a couple homeowners that were about a year behind and one was actually 2 years behind and they still qualified for a workout plan. I wonder if this is something new...

[mgallant]

Originally Posted by Evan Bedard

Hi medora thank you very much for sharing this information I have not heard this before.

From my personal experience I have seen a couple homeowners that were about a year behind and one was actually 2 years behind and they still qualified for a workout plan. I wonder if this is something new...

First off Congrats on getting your MOD moving forward, I wish you all the luck and prayers!

Secondly, Unless they made a very recent change I would tell you BOA/CW is full of baloney! We got our approval after being 13 months behind on our payments to the tune of $49000+ and no one ever mentioned anything about not being able to work on our MOD or that we would have to pay down that amount. They added to the loan amount and gave us a 2% fixed for the remaining 27 years on the loan! It took a ton of battling 3 sale dates, 2 crappy mods and 13 months but we finally got our dream MOD thanks to NACA. Once we filed with NACA it took about 4 months to get approval!

[Evan Bedard]

Yeah see I'm not too sure thats not part of BofAs new guidelines.

Maybe you got a rep who didn't really know too much, that seems to happen quite often especially with all the new programs..

[Medora]

Hi All,
Well you know there are always exceptions to the rule, but this happened, and it was instantly fixed when she brought the total under $25000 by adding the good faith payment.
THis has to be happening to others, too.
As well as the "computer codes" issue--apparently after getting rejected, sometimes the rejection codes aren't eliminated, and trigger autiomatic reject over and over and over...
The rep today was familiar with this issue but most aren't. Even the supervisor I spoke with last night.
I am so happy to hear a good success story with Naca... that will be my next stop if this doesn't work... 2% fixed is pretty awesome! Super big congrats, mgallant!

[THANKS2U]

Originally Posted by Medora

Hi All,
I just learned something really valuable that I'd like to share. Hopefully it will help others from spending sleepless nights like I did last night. I mean, sleep-less!!

8am Finally got a rep with experience who INSTANTLY knew why we kept getting automatically rejected in pre-qual, despite having been pre-qualed just 2 weeks ago.

We're 11 months in arrears--due to a lot of clerical issues. The rep said: If your arrears total more than $25,000 you are automatically rejected for loan modification--unless you can offer to pay (upon approval) enough up-front money to bring your arrears under $25,000. All she did was put "$3500" in the box that says amount available to put towards the loan, which put us under the threshold.
We've now been sumitted for modification, and I'll save the one month's mortgage payment and use it towards the up front money.
Got it?
Arrears including payments and penalties have to be under $25,000 after deducting amount of "up front" money.
I really do hope this helps someone else--all we have is each other to share the real info, right?
Good luck!

__________________________________________________ __________________________________________________ _______________________________

FASCINATING INFO

However, I wonder if the 25,000 rule from B of A is simply ALL pure BS

I just added the your info and a longer version of this $25,000 BS ??? RULE, to the thread titled "PLEASE ONLY POST" -

It is story / post # 57

Basically puts light on is this 25,000 Bank of America rule and asks the question is it real ? -- - - Is it LEGAL ?

HUD should know ???

[hope67]

Originally Posted by Medora

Hi All,
I just learned something really valuable that I'd like to share. Hopefully it will help others from spending sleepless nights like I did last night. I mean, sleep-less!!

8am Finally got a rep with experience who INSTANTLY knew why we kept getting automatically rejected in pre-qual, despite having been pre-qualed just 2 weeks ago.

We're 11 months in arrears--due to a lot of clerical issues. The rep said: If your arrears total more than $25,000 you are automatically rejected for loan modification--unless you can offer to pay (upon approval) enough up-front money to bring your arrears under $25,000. All she did was put "$3500" in the box that says amount available to put towards the loan, which put us under the threshold.
We've now been sumitted for modification, and I'll save the one month's mortgage payment and use it towards the up front money.
Got it?
Arrears including payments and penalties have to be under $25,000 after deducting amount of "up front" money.
I really do hope this helps someone else--all we have is each other to share the real info, right?
Good luck!

I'm happy things worked out for you..

Do you know what's included in the past due amount of $25,000? Interest, penalties and escrow? I don't think they should include the amount that goes to principal, do you know if they did?

[Murray12]

Note that she says rejected for PRE-QUAL. I am guessing that just means that you can't pre-qualify if you owe so much and you have to have a negotiator look into it for you. Kind of like a credit card, Bank of America might not pre-qual me, but when I fill out an application I might be approved. THIS IS JUST A THOUGHT/GUESS BASED ON THE POST ABOVE AND NOT GOSPEL.

On the other hand it could be BS to get you to pay. These bank collection departments seem to be using the same deceitful tactics collection agencies use.

[alikeith]

Murray-
I agree! i dont know who to trust over there at BOA. You should read my posts that i recently posted. Sooo confused

[2much2pay]

Originally Posted by Medora

Hi All,
Well you know there are always exceptions to the rule, but this happened, and it was instantly fixed when she brought the total under $25000 by adding the good faith payment.
THis has to be happening to others, too.
As well as the "computer codes" issue--apparently after getting rejected, sometimes the rejection codes aren't eliminated, and trigger autiomatic reject over and over and over...
The rep today was familiar with this issue but most aren't. Even the supervisor I spoke with last night.
I am so happy to hear a good success story with Naca... that will be my next stop if this doesn't work... 2% fixed is pretty awesome! Super big congrats, mgallant!

If you recently received a notice of intent to accelerate and it has expired, the rep needs to remove that code so you could be pre-qualified. I'm not a rep but that was what happened to me. The rep was saying there were no recommendations after entering my income info. She was asking me to pay $3300 of the past due amount. Maybe the system will give her a recommendation. I told her to try entering that first and see if it will give the recommendation and I will pay. She did and it didn't do anything. Then that's when she realized she had to remove the code. I hope this helps.