Recieved Offer From BoA/Countrwide...Need Advise

[FeelingBlu]

My first post and I would like to thank everyone on this forum for their advise and valuable info.

We received an offer from BoA/Countrywide today for a loan modification. It's a 40 year loan, 2.0% fixed for 2 years and the loan rate with gradually increase for the next 5 years to 5.125% and thereafter remain fixed at that rate for life of the loan. Late interest payments and fees were tacked into the loan.

The problem, BoA only modified the 1st mortgage and we still have an equity line with BoA which we asked to include, but was informed they would only work with the 1st. We are 100K underwater if the 2nd mortgage is included. We received this offer by going through Barbara and the home retention division. They have called us and said that we need to accept the offer ASAP. The expiration date is on Sept 9th.

We are also working with NACA and the final paperwork was submitted last week. NACA is combining both mortgages. We were informed it will take 30-60 days to get a response. We are now 5/6 months behind on our mortgage payments. We do like the BoA offer, but no reduction because it doesn't include the 2nd mortgage.

My question: If we sign on the offer, will BoA still negotiate with NACA? If NACA is able to negotiate better terms, can we sign the NACA offer after we agreed to this offer? If we wait for the NACA offer, it might not arrive in time.

Your advise would be greatly appreciated.

[Evan Bedard]

Hi feelingblu welcome and thank you for joining.

We are also working with NACA and the final paperwork was submitted last week. NACA is combining both mortgages. We were informed it will take 30-60 days to get a response. We are now 5/6 months behind on our mortgage payments. We do like the BoA offer, but no reduction because it doesn't include the 2nd mortgage.

My question: If we sign on the offer, will BoA still negotiate with NACA? If NACA is able to negotiate better terms, can we sign the NACA offer after we agreed to this offer? If we wait for the NACA offer, it might not arrive in time.

First off I would have to say that is a great modification and I do not see any way it could get better.. The lenders are not offering principle reductions and I have never seen any modification result into a 1st and 2nd mortgage being combined...

Have you ever considered trying to settle the mortgage for maybe 10-20% of the remaining balance? You may want to try that or have NACA work on modifying the 2nd loan as well.

[MAXIE19]

Hi Evan:

I would also like to know the answer to the posed question. Granted the subsequent modification offer may not get better, but if it does, can a borrower already on a trial plan abandon an earlier offer from the lender if a better offer comes along from NACA.

[MAXIE19]

To be specific, say the NACA offer comes in at 2% for life of the loan (which a lot of people on this forum have reported getting through NACA) as compared to the offer from the bank with the step rate. Can the borrower change course mid stream? Thanks.

[unsettledinpurgatory]

I was told by NACA and BofA that if I accepted an offer, it would stop all other negotiations. However, if for example you get the MHA trial period and then aren't offered a permanent mod after 3 months, you can go back to NACA.

Good luck!

[Garry]

It doesn't sound like thats a trial offer Maxie. It sounds more like he did not qualify for the MHA program and the bank is offering another deal. In his case it might be smart to take it. He can always file for bankruptcy on the second if it's the only way out.

[Garry]

Originally Posted by Garry

It doesn't sound like thats a trial offer Maxie. It sounds more like he did not qualify for the MHA program and the bank is offering another deal. In his case it might be smart to take it. He can always file for bankruptcy on the second if it's the only way out.

Just so you understand, if it was an actual MHA offer they wouldn't be telling him they can't help with the second. The MHA program also has a 2nd lien program.

[rkel11]

Fellingblu,
Thats a good offer.! They usually won't do 1st and 2nd at the same time. After you complete 1st then they may mod. 2nd. They did both of mine and I did not get MHA mod. Just make sure you stay intouch with them and keep calling.
Good Luck....

[helpsavemyhome]

FeelingBlu, is the "Barbara" you are referring to Barbara Desoer?

[windyCA]

FeelingBlu,

Let NACA know about CW/BoA's offer and ask if they can re-negotiate a better term for you, before the expiration date. Have NACA negotiator call your negotiator in BoA as soon as possible.

[FeelingBlu]

Originally Posted by helpsavemyhome

FeelingBlu, is the "Barbara" you are referring to Barbara Desoer?

Yes, I emailed Barbara Desoer and she assigned me to one of her agents.
We decided to take the offer from BoA and try to work on modifying the second. We have an appointment with the notary on Saturday. I will keep everyone posted if I have any success with the second.

Evan and everyone on this forum was one of the few positives in our lives the last 4 years. We've already lost a lot and the last thing we wanted to lose was our home. Many thanks.

[FeelingBlu]

Gary, no trial period. They started me with a 2% and gradually increase the rate to 5.125% over 5 years and it will remain @ that rate for remaining term of the loan. The payments and terms were reasonable.

[kapsarchana]

FeelingBlu,
You said you are 5-6 months behind on mortgage payment. Did you get notice of default from BofA after you fell behind by 3 months? Did falling behinf for this long crate any obstacles for you?

I am kind of in the same boat for over 9 months. My loan owner is Fannie Mae and I was still denied MHA mod recently. I therefore emailed Barbara D. and got a call from her office from someone by the name Steven Nielsen. He asked to fax all the docs again and said he will have a negotiator assigned to my file within next 2-3 business days. I am currently 60 days behind and have been advised by my agent to not fall behind more than this. Is it fateful or helpful while undergoing mod to fall behind by more than 60 days?

Originally Posted by FeelingBlu

My first post and I would like to thank everyone on this forum for their advise and valuable info.

We received an offer from BoA/Countrywide today for a loan modification. It's a 40 year loan, 2.0% fixed for 2 years and the loan rate with gradually increase for the next 5 years to 5.125% and thereafter remain fixed at that rate for life of the loan. Late interest payments and fees were tacked into the loan.

The problem, BoA only modified the 1st mortgage and we still have an equity line with BoA which we asked to include, but was informed they would only work with the 1st. We are 100K underwater if the 2nd mortgage is included. We received this offer by going through Barbara and the home retention division. They have called us and said that we need to accept the offer ASAP. The expiration date is on Sept 9th.

We are also working with NACA and the final paperwork was submitted last week. NACA is combining both mortgages. We were informed it will take 30-60 days to get a response. We are now 5/6 months behind on our mortgage payments. We do like the BoA offer, but no reduction because it doesn't include the 2nd mortgage.

My question: If we sign on the offer, will BoA still negotiate with NACA? If NACA is able to negotiate better terms, can we sign the NACA offer after we agreed to this offer? If we wait for the NACA offer, it might not arrive in time.

Your advise would be greatly appreciated.

[Garry]

Originally Posted by FeelingBlu

Gary, no trial period. They started me with a 2% and gradually increase the rate to 5.125% over 5 years and it will remain @ that rate for remaining term of the loan. The payments and terms were reasonable.

That's what I thought, thank you for clarifying. And I agree, I think it was a very fair offer. It must feel good to be able to put this behind you, I'm happy for you and wish you the best of luck on the second! I'm sure they will do something.

[Garry]

Originally Posted by kapsarchana

Is it fateful or helpful while undergoing mod to fall behind by more than 60 days?

If they had a valid reason for denying the MHA mod and you are sure you don't qualify for one, I think you would be playing with fire to go more than 60, they just might call your bluff and foreclose. If your so upside down that you just don't care, then I guess it's your call.

[FeelingBlu]

Originally Posted by kapsarchana

FeelingBlu,
You said you are 5-6 months behind on mortgage payment. Did you get notice of default from BofA after you fell behind by 3 months? Did falling behinf for this long crate any obstacles for you?

I am kind of in the same boat for over 9 months. My loan owner is Fannie Mae and I was still denied MHA mod recently. I therefore emailed Barbara D. and got a call from her office from someone by the name Steven Nielsen. He asked to fax all the docs again and said he will have a negotiator assigned to my file within next 2-3 business days. I am currently 60 days behind and have been advised by my agent to not fall behind more than this. Is it fateful or helpful while undergoing mod to fall behind by more than 60 days?

kapsarchana, when we were behind by more than 60 days, BoA refused to take our partial payment and demanded payment in full or they will start the foreclosure process. There was no way we could pay the full amount and received the notice of default. Founded this forum, contacted Barbara and was able to get the MOD.

Read everything on this forum. There are lots of valuable information. Keep on fighting and don't give up my friend.

[ramoss]

Has anyone been able to renegotiate an offer for a loan modification? Ive been waiting on an loan modification, began the process and was told to pay 31% of my income which brought me to an $1800 monthly payment instead of $3300.
Just as I got paperwork for a trial for 3 months which then stated a payment of $2500 for for the next 3 months, I then get laid off from my job. I am not able to make the payments for this amount.
Im wondering if I should call them and let them know I got laid off or should I go ahead and continue to make the payments I was making of $1800 and let them know that this is the payment I can afford and hope that they will renegogiate.
My loan is with Bofa and my second is with GMAC which also made me an offer of a reduction of $180. I cannot make the payments on the offer and I cannot speak to anyone to negogiate these loans. Im told that basically they have offered me the best deal. I cant get anyone to talk to other than the reps and they have no say on your loans. Any suggestions on how I should proceed?

[Garry]

I don't know what to say myself. If your on a MHA mod trial theres a fair chance they will re-verify your income after the trial period. With that big of a discrepancy in your wages they will most likely either start the trial period over again with a new payment amount or dis-qualify you totally. I'm no expert this is just an opinion.

[ama125]

Originally Posted by ramoss

Has anyone been able to renegotiate an offer for a loan modification? Ive been waiting on an loan modification, began the process and was told to pay 31% of my income which brought me to an $1800 monthly payment instead of $3300.
Just as I got paperwork for a trial for 3 months which then stated a payment of $2500 for for the next 3 months, I then get laid off from my job. I am not able to make the payments for this amount.
Im wondering if I should call them and let them know I got laid off or should I go ahead and continue to make the payments I was making of $1800 and let them know that this is the payment I can afford and hope that they will renegogiate.
My loan is with Bofa and my second is with GMAC which also made me an offer of a reduction of $180. I cannot make the payments on the offer and I cannot speak to anyone to negogiate these loans. Im told that basically they have offered me the best deal. I cant get anyone to talk to other than the reps and they have no say on your loans. Any suggestions on how I should proceed?

So, you sent them money BEFORE they sent you any paperwork? I was once told to do this (by a HUD counselor acting on my behalf). I refused until I had it in writing (which never did happen). Since you just got laid off, you could request a forbearance with reduced or zero payments. Someone just posted a similar story yesterday to which I responded with several options (Laid off while on forbearance). It's hard to say what the bank will do, but eventually, with no income, you will not be able to make payments. Telling them now may be the best route to take, especially if you can't make the payments. You can only get into the MHA program once. If you take it now and fail to make those payments, they will not offer it to you again. Is it the MHA program that you received or one of their own in-house mods? Do post what you are able to find out. Best luck to you!