2nd Mortgage - Notice of Intent to Accelerate

[hope67]

My 1st and 2nd mortgages are with BOA, they sent me an offer for a trial modification for the 1st, I had asked them to modify the 2nd as well, I was told that they will look into the 2nd AFTER the 3 months trial of the 1st mortgage.!! Today, I received a Notice of Intent to Accelerate for the 2nd. I thought all foreclosure activities will cease once I'm in the trial.

I'm only 38 days late as to the 2nd, June was paid.

I'm so confused and frustrated, does anyone else have the same problem?

Any suugestions will be greatly appreciated.

[Garry]

Originally Posted by hope67

My 1st and 2nd mortgages are with BOA, they sent me an offer for a trial modification for the 1st, I had asked them to modify the 2nd as well, I was told that they will look into the 2nd AFTER the 3 months trial of the 1st mortgage.!! Today, I received a Notice of Intent to Accelerate for the 2nd. I thought all foreclosure activities will cease once I'm in the trial.

I'm only 38 days late as to the 2nd, June was paid.

I'm so confused and frustrated, does anyone else have the same problem?

Any suggestions will be greatly appreciated.

I've been reading for days now and making phone calls trying to find out how the second lien program is supposed to play out, nobody can give me an answer, they are all clueless. You would think with both loans being at the same bank you wouldn't be having this problem. I wish you luck and hope you keep us posted.

[hope67]

Originally Posted by Garry

I've been reading for days now and making phone calls trying to find out how the second lien program is supposed to play out, nobody can give me an answer, they are all clueless. You would think with both loans being at the same bank you wouldn't be having this problem. I wish you luck and hope you keep us posted.

I talked to BOA last week, they told me that they can't do anything as to the second until the 1st mortgage modification is finalized. I'm just worried because of the Notice of Acceleration. I think BOA should coordinate the modification process better than that.

I think there is good news as to the second mortgage, I'm referring to the new HAMP update on April 28, 2009.

1. Clear and Consistent Guidelines for Second Lien Modifications

1. : As with the first lien modification program, the Second Lien Program provides clear and consistent guidelines for modifying both amortizing and interest-only second liens. A lack of common standards has limited loan modifications of both first and second liens in the past, even when modifications are likely to both reduce the chance of foreclosure and raise the value of the securities owned by investors. Mortgage servicers, who should have an interest in instituting common-sense loan modifications, often refrain from doing so because of a lack of clear standards. Clear and consistent guidelines for modifications are a key component of foreclosure prevention.
2. Automatic Modification of a Second Lien When a First Lien is Modified: The Second Lien Program will facilitate automatic modification of a second lien when a first lien is modified for participating servicers, to ensure a comprehensive affordability solution for borrowers.
3. Second Lien Modification May Not Delay First Lien Modification: The Second Lien Program will be a voluntary parallel program to the first lien modification program. Modification of a second lien will not delay modification of a first lien. The modification offer for a second lien under the program will occur as soon as the second lien servicer is able to prepare the terms and contact the borrower.
4. Cost-Effective for Taxpayers: To protect taxpayers, the MHA Second Lien Program will focus on sound modifications. All the payments are designed around the principle of "pay for success." Borrowers, servicers and lenders/investors all have aligned incentives under the program to complete successful modifications at an affordable and sustainable level

http://www.financialstability.gov/do...nFactSheet.pdf

[Garry]

Originally Posted by hope67

I talked to BOA last week, they told me that they can't do anything as to the second until the 1st mortgage modification is finalized. I'm just worried because of the Notice of Acceleration. I think BOA should coordinate the modification process better than that.

I think there is good news as to the second mortgage, I'm referring to the new HAMP update on April 28, 2009.

1. Clear and Consistent Guidelines for Second Lien Modifications

1. : As with the first lien modification program, the Second Lien Program provides clear and consistent guidelines for modifying both amortizing and interest-only second liens. A lack of common standards has limited loan modifications of both first and second liens in the past, even when modifications are likely to both reduce the chance of foreclosure and raise the value of the securities owned by investors. Mortgage servicers, who should have an interest in instituting common-sense loan modifications, often refrain from doing so because of a lack of clear standards. Clear and consistent guidelines for modifications are a key component of foreclosure prevention.
2. Automatic Modification of a Second Lien When a First Lien is Modified: The Second Lien Program will facilitate automatic modification of a second lien when a first lien is modified for participating servicers, to ensure a comprehensive affordability solution for borrowers.
3. Second Lien Modification May Not Delay First Lien Modification: The Second Lien Program will be a voluntary parallel program to the first lien modification program. Modification of a second lien will not delay modification of a first lien. The modification offer for a second lien under the program will occur as soon as the second lien servicer is able to prepare the terms and contact the borrower.
4. Cost-Effective for Taxpayers: To protect taxpayers, the MHA Second Lien Program will focus on sound modifications. All the payments are designed around the principle of "pay for success." Borrowers, servicers and lenders/investors all have aligned incentives under the program to complete successful modifications at an affordable and sustainable level

http://www.financialstability.gov/do...nFactSheet.pdf

That's the way I read it also, my first is with BofA and my second is with Chase. I've just started my trial period with BofA, and I can't get a straight answer from anyone as to what to do about the second other than what you just posted. I've came to the conclusion that I will not deal with Chase and will not enter any agreement or start making payments to them, if I lose the house, that's life I guess. The way I read it, the second will be forced to comply if the first is modified.

[hope67]

Originally Posted by Garry

That's the way I read it also, my first is with BofA and my second is with Chase. I've just started my trial period with BofA, and I can't get a straight answer from anyone as to what to do about the second other than what you just posted. I've came to the conclusion that I will not deal with Chase and will not enter any agreement or start making payments to them, if I lose the house, that's life I guess. The way I read it, the second will be forced to comply if the first is modified.

I agree Garry, meanwhile what should we do when we are presented with a notice of intent to accelerate from the 2nd? I mean can they bypass the 1st mortgage and set a sale date? Is that possible?

[Garry]

Originally Posted by hope67

I agree Garry, meanwhile what should we do when we are presented with a notice of intent to accelerate from the 2nd? I mean can they bypass the 1st mortgage and set a sale date? Is that possible?

I can't answer that one, hopefully someone will chime in and help the both of us. I think the problem is that very few people have made it to this stage of the game. I would try not to get to stressed out, I think your lucky that both loans are with the same bank and hopefully one hand just doesn't know what the other is doing.

[hope67]

Originally Posted by Garry

I can't answer that one, hopefully someone will chime in and help the both of us. I think the problem is that very few people have made it to this stage of the game. I would try not to get to stressed out, I think your lucky that both loans are with the same bank and hopefully one hand just doesn't know what the other is doing.

Yep, I'm sure this is the case "one hand doesn't know what the other is doing" I mean this is the common practice in BOA, if one hand will one day know what the other is doing, we will be witnessing a miracle!!

[ama125]

Originally Posted by hope67

Yep, I'm sure this is the case "one hand doesn't know what the other is doing" I mean this is the common practice in BOA, if one hand will one day know what the other is doing, we will be witnessing a miracle!!

I, too, have two mortgages, and both with BofA as servicer. I actually received my monthly statements today. The first was very non-confrontational, but the second one sounded very threatening to me. It just made me laugh. Don't they realize if they foreclosed on me that the second holder gets absolutely not a dime!? It takes me back to the week I got my very first foreclosure notice (the act 91). Two days later I got my welcome kit from BAC Home Loans Servicing, LP. Ahh, yes, that one really got me!

[rkel11]

The I to A letter is computer generated automatically and really not that serious. I have seen people get them over and over again with nothing further happening. If you are in a workout then you will be fine. It's just another example of the right hand not knowing what the left hand is doing.

[HereinNY]

Don't panic over the intent to accellerate...I had one and it just passed by as many people on this site would tell you..

[hope67]

Originally Posted by ama125

I, too, have two mortgages, and both with BofA as servicer. I actually received my monthly statements today. The first was very non-confrontational, but the second one sounded very threatening to me. It just made me laugh. Don't they realize if they foreclosed on me that the second holder gets absolutely not a dime!? It takes me back to the week I got my very first foreclosure notice (the act 91). Two days later I got my welcome kit from BAC Home Loans Servicing, LP. Ahh, yes, that one really got me!

The market value of my home is down by about 80%, it's about $200,000 less than what I owe on the 1st mortgage. I'm not sure what they were exactly thinking when they sent me this notice to accelerate?!

[hope67]

Reading the responses about those notices makes me feel a bit better. Thanks.

[sandyg]

Originally Posted by hope67

Reading the responses about those notices makes me feel a bit better. Thanks.

Hope, I have a 1st and 2nd also. It is true if you are under a mod they will postpone any sale date. They did with me.

But, you are a long way off with the I to A letter. They send these out just in case you do not qualify for a mod and they end up having to foreclose in the end.

If you get a mod on the 1st you will end up with one on your 2nd as others have told you.

Plus the 2nd has no power to foreclose on you. They could only get a judgment on you for the amount owed and then try to collect it.