Loan Modification INCREASED my monthly payment

[turbobricks]

Help help help.

I have been reading up on this board for months, and now it is time to post up for some help. First off, you guys are awesome, and I am very glad that there is a source like this on the interweb.

Briefly:
-I have a 10 year ARM (30 yr loan), 3 years into the loan now. ~$419,000 at 6.25%. Delinquint for 6 months.
-Second (HELOC) at 6.25% at $65,000.00. Current.

-Have been contacting back and forth with BofA, did a loan Mod application, and 2 weeks ago got a loan mod letter in the mail, it took all my missed payments + late fees and added to the principal of the loan, making the principal $433,000.00, and demanding a payment by October 2, 2009.
-This took my payment from $2,100.00 to around $2,300.00.

-No Notice of Default has been filed on the property and I am not sure what to do now. I have not accepted to loan mod, and dont want to, as clearly I was unable to make the $2,100 payment, so I wont be able to make the $2,300. (That is an interest only payment)

What should I do now???

[art4ari]

It seems like they gave you about 4% or so interest...

If you cant make the payment, you shouldnt take it. It will only get you further into trouble right?

On the other hand, I would try to contact them and see the possibilities to forbear part of the principal into a ballon payment. Good luck... keep us posted.

[CW California]

Originally Posted by turbobricks

Help help help.

I have been reading up on this board for months, and now it is time to post up for some help. First off, you guys are awesome, and I am very glad that there is a source like this on the interweb.

Briefly:
-I have a 10 year ARM (30 yr loan), 3 years into the loan now. ~$419,000 at 6.25%. Delinquint for 6 months.
-Second (HELOC) at 6.25% at $65,000.00. Current.

-Have been contacting back and forth with BofA, did a loan Mod application, and 2 weeks ago got a loan mod letter in the mail, it took all my missed payments + late fees and added to the principal of the loan, making the principal $433,000.00, and demanding a payment by October 2, 2009.
-This took my payment from $2,100.00 to around $2,300.00.

-No Notice of Default has been filed on the property and I am not sure what to do now. I have not accepted to loan mod, and dont want to, as clearly I was unable to make the $2,100 payment, so I wont be able to make the $2,300. (That is an interest only payment)

What should I do now???

Sounds like bofa is jerking you around. You could try contacting the BofA President's office barbara.j.desoer@bankofamerica.com with your concerns and maybe they will assign you a better negotiator or many on this site have had luck by going thru NACA. I have a jumbo subprime too and was able to get a modification thru NACA at 2% fixed.

[helpsavemyhome]

BofA did the same thing to me...that's why I had no choice but to contact NACA.

[Melanie702]

They offered me a MOD once where the payment was higher, and they offered me one the other day where the payment was lowered by $58. I called OOP again, and I'm being reviewed again. Supposedly there's an offer where it lowered my payment by almost $500, just waiting to call BofA to see if it's true or not. Do not take it! They can do better than that. They told me they couldn't do anything. A LIE!

[turbobricks]

Alright, I called up BofA, and they told me to re-start the entire loan mod process from the beginning. New hardship letter, 2 months bank statements, pay stubs, tax forms, lovely. Took 4 months to get a response last time, wonder how long this will take.

So I got all the paperwork together, faxed it to them - Then emailed Barbara and attached everything in .pdf in the email.

Who else should I send this to...

[Cassietw]

You will probably get a response from that email in 24 hours or less.

Good Luck!

[spoken4angel]

When we got our letter from BofA and seen exactly what you are talking about (missed payments added and new higher payment)

The rep I talked to said this

"thats what a loan modification is, it doesn't do anything to change the terms of your loan, just to get you current"

In a nut shell they bring you current and you are going to be back in the same boat. If you couldn't make the payment before then how do they expect you to make it when its higher?

I find it stupid that they ask for all this financial information with your paychecks, bank statements and your expenses and then say "OH YEAH you can definitley swing just a little more each month" Seriously it is a big joke. I gave up after wrestling with them for 8 months and turned to NACA. My counselor said to call back in 40 days so I would suggest turning to NACA.

[turbobricks]

Originally Posted by Cassietw

You will probably get a response from that email in 24 hours or less.

Good Luck!

You were not joking!

I got a call from a BofA Rep (Tony Heigel), said the letter I sent to Barbara was forwarded to him - talked to him for about 20 minutes, said that he will be the direct contact now through BofA - He will be getting my file to a negotiator as one had not been assigned yet.

Sounded pretty promising, at least I have someone I can talk to at BofA - That and it wont take 90-120 days like last time to get a real MOD.

He also mentioned that BofA reviewed my account on September 1 for Foreclosure but decided to delay it and review it again at a later time.

Well, at least something is happening - Thanks for the suggestions + your help!