6.75%

[moyerfamily6]

So, it looks like BoA home loans is going to retructure my loan and give me a 6.75% for the life of the loan. That is a 1% drop and gets me out of the ARM.

I am wondering if I should reject it and try for a better interest rate.

What do y'all think?

Thanks,

J

[ama125]

If that's affordable for you and you are happy with those terms, then you could take it and try for another mod later. I would ask though what other mods you are eligible for (did they review you for HAMP?). HAMP might be a better option, but could change the length of your loan. I would try to do a comparison and see which is better in the long run.

[sahm2two]

Getting out of an ARM...I would go for it!

[moyerfamily6]

I am sorry but what is HAMP.

I agree getting out of the ARM is ideal and great but I don't want to take the first choice if there are better options.

Thanks,

[ama125]

Originally Posted by moyerfamily6

I am sorry but what is HAMP.

I agree getting out of the ARM is ideal and great but I don't want to take the first choice if there are better options.

Thanks,

Home Affordable Modification Program...part of Obama's Making Home Affordable Program (MHA). You can read all about it on this thread... PLEASE ONLY POST - Articles, Official Letters, Testimony, Rules and Regs. Moe - perhaps a Sticky is in order ?

It is a step rate (your interest could be reduced to as low as 2% for five years and then increase 1% each year until it reaches a cap). If you are eligible for it, it may be better for you, but again, it could mean a 30 or 40 year term. So you would have to figure out. See the info on the NPV test and use that as a guide. It is a lot of information to digest. If you're rate is going to reset soon, then you may want to just take the offer. Are you behind in payments or current? They are not really working with people that are current (though they should be according to the guidelines).

[moyerfamily6]

Thanks, I will read it.

I am behind only because I knew it would speed along the restructure.

[babsy]

How many months are you behind. I believe you should be at least three months behind to get a better offer.

[alikeith]

the amount of months you are behind has nothing to do with getting a better offer.

[Housebroken13]

Reject it! They can do better!

[scarylarry]

I personally don't think it is a good offer, but every one's circumstances are different.
After 5 months of trying to get a loan mod with C/W & B of A, they are finally trying to "prequalify" me for the HAMP mod.( I had been told several times lately that I don't qualify for HAMP) It slipped yesterday in one of my calls, they told me that they did not even look at me in March when I applied because I was current , now I am 4 months behind and they seem to be trying harder to make a decent loan mod.
Yesterday morning one of their reps told me rudely that I don't qualify for HAMP (because I wasn't Fanne or freddie) and to quit wasting my time and just let their "in house mod" go through.
They told me yesterday afternoon that now they have to look at every loan mod application for eligibilty for the Making Homes Affordable Program and that I was now reviewed for Pre-qualification .
good luck

[ama125]

Originally Posted by scarylarry

I personally don't think it is a good offer, but every one's circumstances are different.
After 5 months of trying to get a loan mod with C/W & B of A, they are finally trying to "prequalify" me for the HAMP mod.( I had been told several times lately that I don't qualify for HAMP) It slipped yesterday in one of my calls, they told me that they did not even look at me in March when I applied because I was current , now I am 4 months behind and they seem to be trying harder to make a decent loan mod.
Yesterday morning one of their reps told me rudely that I don't qualify for HAMP (because I wasn't Fanne or freddie) and to quit wasting my time and just let their "in house mod" go through.
They told me yesterday afternoon that now they have to look at every loan mod application for eligibilty for the Making Homes Affordable Program and that I was now reviewed for Pre-qualification .
good luck

Maybe someone has finally blown the whistle on them! They have been reviewing and offering people their in-house mods and not even bothering to review cases for HAMP (and despite requests for it!). They are just hoping people will take their ridiculous first offers and go away! I am not going ANYWHERE I can tell you that! Imagine if you walked into a car dealership and requested to see car X, but the dealer kept showing you car Y and Z and telling you that's all we're going to let you have. This is all such BS!!!!

[moyerfamily6]

At the moment I am working with NACA. I am waiting to hear from my negoitiator to go over the proposal. Maybe, the interest rate is better but the BoA rep said it was 6.75 but could not see th rest of the new terms.

I am currently 4 months behind and probably soon to be 5. They actually have a full months in partial. I dind't know they hold all payments while going through the mod.

Should I ask NACA to put me in for the HAMP? Or deal directly the BoA?

[priscilla]

6.75 is the interest rate I currently have. I have been fighting with them to give me a modification. Moyerfamily6, you sacrificed your credit to get a mod. I would suggest you fight for a lower rate than 6.75. Remember that, being behind on your mortgage has brought your credit rating low. So you need to pay the mortgage comfortably so you can save money to pay cash for things in the future. Since there will be no more credit to rely on.
But hey, that is just my opinion.

[Garry]

Originally Posted by moyerfamily6

Should I ask NACA to put me in for the HAMP? Or deal directly the BoA?

I would be curios to hear what NACA says about helping you get in the MHA program. I just read a post a day or two ago that they may actually start doing this.

[alikeith]

At least you got your rate lowered. I didn't. Maybe that is based on what is considered an affordable payment based on your income???

[moyerfamily6]

maybe...I know my arm was at 7.9 and then would adjust to 14%. Once NACA did their calculation and based the mortgage payment off 31% of my gross, the payment would be about 2600 per month...I guess I will see what the negotiator has to say.

So, NACA doesn't to the MHA?