NACA special forbearance

[tryingtostayinhouse]

Hello all.

My story is similar to a lot of those on here, although I do consider myself to be fortunate as to have a steady income and good health.

I have been reading the forums trying to get answers to my questions. To make a long story short, I bought my house in Washington for $235k, at a 7.125% fixed rate for 30 years, and I am still current. I am a single parent, and believe to be qualified for the Making Home Affordable modification plan, as my mortgage is more than 31% of my gross income. I am working with NACA and they submitted my proposal in May. Ever since then, I have had no luck with getting somebody to talk to me about the status of my file or what they have submitted to Bank of America. Just recently I found by going to the NACA website, that I was being offered NACA special forbearance for 4 months. I don't know if I should accept or not. I called NACA (3rd time since the proposal) and they said that my negotiator will have to contact me with the details.

I recently just called Bank of America retention dept, and they said that the special forbearance would be considered a partial payment, will be a negative reporting on my credit, and I will incur fees and penalties at the end of the 4 months. I asked them that I need to see this in writing, and they said that they do not usually send this in writing.

I don't know what to do, I don't know if I can get any answers from NACA or from Bank of America anymore after trying to have them explain to me for the past week.

How come when I qualify under MHA, I am getting the run around about if a modification can even be done for me? I just don't understand why NACA is submitting for a special forbearance, when it seems temporary. Please any help or answers would be greatly appreciated. I really have no idea what's going, and getting really frustrated that nobody seems to have any answers for me when I am working with NACA because I really do need somebody behind me on this. Thank you!

[Melanie702]

Originally Posted by tryingtostayinhouse

Hello all.

My story is similar to a lot of those on here, although I do consider myself to be fortunate as to have a steady income and good health.

I have been reading the forums trying to get answers to my questions. To make a long story short, I bought my house in Washington for $235k, at a 7.125% fixed rate for 30 years, and I am still current. I am a single parent, and believe to be qualified for the Making Home Affordable modification plan, as my mortgage is more than 31% of my gross income. I am working with NACA and they submitted my proposal in May. Ever since then, I have had no luck with getting somebody to talk to me about the status of my file or what they have submitted to Bank of America. Just recently I found by going to the NACA website, that I was being offered NACA special forbearance for 4 months. I don't know if I should accept or not. I called NACA (3rd time since the proposal) and they said that my negotiator will have to contact me with the details.

I recently just called Bank of America retention dept, and they said that the special forbearance would be considered a partial payment, will be a negative reporting on my credit, and I will incur fees and penalties at the end of the 4 months. I asked them that I need to see this in writing, and they said that they do not usually send this in writing.

I don't know what to do, I don't know if I can get any answers from NACA or from Bank of America anymore after trying to have them explain to me for the past week.

How come when I qualify under MHA, I am getting the run around about if a modification can even be done for me? I just don't understand why NACA is submitting for a special forbearance, when it seems temporary. Please any help or answers would be greatly appreciated. I really have no idea what's going, and getting really frustrated that nobody seems to have any answers for me when I am working with NACA because I really do need somebody behind me on this. Thank you!

Is there a hardship? Loss of income, death, divorce...etc?

[tryingtostayinhouse]

Fortunately no. I am just overextended...after I pay for my mortgage and all my monthly expenses, there is little money for groceries and gas. I have been using overdraft protection with my checking account to get through each month. I am just really looking to have a more affordable mortgage, so that I can properly take care of myself and son the way he deserves.

[helpsavemyhome]

I just received docs yesterday, to my surprise, for a Special Forbearance. Do your docs state that after the forbearance you will either 1) be required to make your regular payments 2) pay in full or 3) that you may qualify for a mod or other assistance? I have been unable to get ahold of anyone at NACA today, so I will have to try again on Monday...

[tryingtostayinhouse]

I haven't received any documents at all. It's been about one week since I received that update on my NACA account, and still no paperwork. That's why I called Bank of America and they said that they do not send out paperwork on this. That's why I'm confused if this is something that I should even be doing! The funny thing is my account with NACA was updated on September 28, 2009 saying that I was offered this special forbearance and that I should make my payment Oct 1, 2009. I've called NACA everyday since 9/28, only to be told that somebody will contact me about my proposal.

While writing this, I just received a call from Matthew M. at NACA, and he said that nobody has contacted me because my negotiator was on the tour. I explained to him my situation, and he said it would probably be in my best interest to not go through with the special forbearance plan that I've received from the bank verbally, and that he will email/mail me my proposal today that he received from BofA advocacy dept. which according to him are different terms that the information that I've been receiving from BofA. I don't know, still confused!

[Melanie702]

I'm pretty sure for the MHA you'd have to answer yes to all the questions. I don't know how to go about getting a MOD without a hardship. Maybe someone else can answer, but then again, I answered YES to all the questions and still can't get help.

[helpsavemyhome]

The docs just showed up on my doorstep yesterday...I wasn't aware that they were coming. I, too, was told that my NACA negotiator is on the tour. I had to call BofA and ask that they allow us more time to send the docs back. I don't want to sign anything until I know for sure whether NACA approves of this offer or not.

[tryingtostayinhouse]

That's a good idea. What number do you call when you call BofA? I've been calling any department that I can get a hold of, and it seems to be getting me nowhere. They're either telling me that they can't talk to me because NACA is representing me, or they'll tell me something but it seems like they're bullying me around. Matthew from NACA said that the only dept that NACA deals with is the Advocacy department. Is this where you've been calling? Right now, it just seems like maybe I should just be a little bit more patient with NACA since BofA seem like they're telling me a totally different thing than what Kevin from NACA is telling me.

[helpsavemyhome]

I called 1-888-219-7773 and they are the ones who said they would note my account as needing more time so NACA can review the docs. You can also try calling 1-866-806-2434 Ext. 9556.

[franklyspeaking]

What a runaround? Keep up the fight. Maybe emailing and calling nonstop will help? What were the terms on the docs?

[davephx]

Originally Posted by helpsavemyhome

I, too, was told that my NACA negotiator is on the tour. I had to call BofA and ask that they allow us more time to send the docs back. I don't want to sign anything until I know for sure whether NACA approves of this offer or not.

Your guy was probably in Phoenix where I was all day.

In the huge intro session they made it clear that you should not get a forbearance but a modification which NACA will negotiate for you. They were also negative on HAMPS since he said a 40 year mortgage makes no sense" it is like renting" he said. I don't agree but for the most part the attempts by NACA and their in theory goals are very good. But I had mixed reactions and still in total confusion.

I will post not more in NACA Forum am exhausted at the moment.

[franklyspeaking]

Dave, You went? What happened? Did it help?

[davephx]

They're either telling me that they can't talk to me because NACA is representing me,

Just back from NACA tour in Phoenix.

I had remembered others have said this. I asked the main speaker at the huge orientation meeting about this because I was concerned about losing my Citi easy to reach people (but system is broken and Fannie huge block)

He said services should never stop talking to you directly and if they do contact us at 888-404-6222. This "should" not be happening.

Speaker was quite good as is "theory" of what NACA is doing and they are getting SOME good results.

[Melanie702]

Originally Posted by davephx

Just back from NACA tour in Phoenix.

I had remembered others have said this. I asked the main speaker at the huge orientation meeting about this because I was concerned about losing my Citi easy to reach people (but system is broken and Fannie huge block)

He said services should never stop talking to you directly and if they do contact us at 888-404-6222. This "should" not be happening.

Speaker was quite good as is "theory" of what NACA is doing and they are getting SOME good results.

Hi Dave, welcome back home! I posted this in another thread, but when you're well rested, can you help me with my questions? Thanks a lot! Get some sleep.

When you went to the Save the Dream Tour, can you tell us a little about it? Are there lenders there from BofA? Or is it just a NACA counselor you meet with? Any heads up you can give to those of us who are planning on attending future dates? I signed up for the Vegas event on the 9th. Should we get there early? Is there a lot of people? Do you take all our paperwork? We were with NACA already, and never heard from them after we submitted our financial information in April. I'm going to try them again though. Any advice you can give, is appreciated.

[davephx]

Will address more in a thread I'll start.

But briefly - Yes BofA and almost all lenders I have read about here were there... except I would up with a dunce. But the NACA folks and idea is great.

All that tons of info you put in online carefully getting everything right? You redo it all again so you can give it to the counselor Even if do on line they don't use it for the NACA counselor. You have to sit and write it all out again. AND have it online. Be sure to get your NACA ID number. If you haven't entered online you have to sit at a kossik and do it.

Likewise the hardship letter all has to be hand done again.

And all your paperwork needs your NACA ID on the BACK!

More to come

[HereinDE]

Hi tryingtostayinhouse

Your situation is very similar to my case except that my income has been reduced significantly. I was offered the same 4 months forbearance from Bank of America through NACA recently, and I discussed this offer with NACA and we decided to reject the offer, because I can not generate more income in the near future, which means "forbearance" will not help my case(I'm still current on mortgage). The forbearance is basically for those people who has temporary hardship such as unemployment or temporary income loss.. but my income loss is not temporary.
and also what I understand so far is that the forbearance may damage your credit and those amount you didn't pay during the forbearance period will be added to your principle and they may ask the total due amount all at once at the end of forbearance.
You have to think twice when you consider to accept "forbearance" especially when you're current.
Best luck!

[Melanie702]

Originally Posted by davephx

Will address more in a thread I'll start.

But briefly - Yes BofA and almost all lenders I have read about here were there... except I would up with a dunce. But the NACA folks and idea is great.

All that tons of info you put in online carefully getting everything right? You redo it all again so you can give it to the counselor Even if do on line they don't use it for the NACA counselor. You have to sit and write it all out again. AND have it online. Be sure to get your NACA ID number. If you haven't entered online you have to sit at a kossik and do it.

Likewise the hardship letter all has to be hand done again.

And all your paperwork needs your NACA ID on the BACK!

More to come

Thanks, Dave. Have a good night, looking forward to hearing your post tomorrow.

[HereinDE]

Hi tryingtostayinhouse

You situation is very similar to my case expect that my income has been reduced significantly. I was offered the same 4 months "special forbearance" from Bank of America through NACA recently.
The reason I got the forbearance instead loan mod is that my investor, Fannie Mae denied my loan mod application.

"Forbearance" is usually offered when there is temporary income loss or unemployment, so this is basically temp. fix not permanent. Also if you sign on the offer and make partial payments of 4 months, your credit may be damaged even though the bank promise you that they block your credit during the period.
And also they may ask you to pay those amount due all at once at the end of forbearance or it will be added to your principle. So if you're current like me, you have to think twice.

I discussed with NACA and we decided to reject the offer since I can not generate more income in the near future.

I wish you best luck

[helpsavemyhome]

Originally Posted by franklyspeaking

What a runaround? Keep up the fight. Maybe emailing and calling nonstop will help? What were the terms on the docs?

Frank, I am going to continue to call and email nonstop til they get tired of me...lol The terms of the forbearance are three payments of $1000 then they will 'decide' if they want to give us a mod or not. I spoke with they guy in Advocacy today and he said if we sign the docs our file will be sent to the investor to try to make the payment $1000 for the life of the loan. We'll see what NACA says, once I get ahold of someone.

[helpsavemyhome]

dave, yes, after waiting on hold with NACA for over an hour, I found out that I couldn't reach my negotiator because she's at the tour. Figures, huh? It's interesting that NACA would say that forbearances aren't the way to go because that's what they sent a bunch of files of people on these boards to be considered for.

[Melanie702]

Originally Posted by helpsavemyhome

dave, yes, after waiting on hold with NACA for over an hour, I found out that I couldn't reach my negotiator because she's at the tour. Figures, huh? It's interesting that NACA would say that forbearances aren't the way to go because that's what they sent a bunch of files of people on these boards to be considered for.

helpsavemyhome, yup, most people are submitted for a forbearance from NACA. We were, but we never heard from them again, so we dropped them. I am going to Save the Dream Tour though next week. Do you know of anyone who's gotten approved for a MOD after the forbearance trial? I've been waiting for SandyG to post, but haven't seen her.

[helpsavemyhome]

Melanie, I have read quite a few posts from people who are currently in forbearances and from what I've heard, some of them are offered another three months of forbearances while BofA continues to work on their files.

We are already 13 months behind, so as far as the forbearance impacting our credit, it won't matter much (in our situation). I'm just worried about what they will offer after the forbearance. If we have to go back to our regular payment amount or have to pay a lump sum, then the forbearance was a waste because we had a reduction of income and a medical hardship.

[j-nice]

Originally Posted by helpsavemyhome

Melanie, I have read quite a few posts from people who are currently in forbearances and from what I've heard, some of them are offered another three months of forbearances while BofA continues to work on their files.

We are already 13 months behind, so as far as the forbearance impacting our credit, it won't matter much (in our situation). I'm just worried about what they will offer after the forbearance. If we have to go back to our regular payment amount or have to pay a lump sum, then the forbearance was a waste because we had a reduction of income and a medical hardship.

helpsavemyhome-I am worrying about this as well. I have made two payments on my 4 month forbearance plan, which David L referred to as a "performing forbearance" per Fannie Mae. The docs I signed don't say anything about being offered a permanent mod at the end of the 4 months which means come January 10th BofA would want approximately $10K from me which I certainly won't have. I don't understand why NACA is telling people not to accept forbearances when they are submitting so many?? I went online this morning and completed the new Financial Hardship Worksheet...it can't hurt, right? I would much rather them start looking at my situation now and possibly coming up with a better solution like a permanent mod, possibly the MHA. I am so confused and scared that at the end of this forbearance I am screwed....and I still need to file chapter 7!

[helpsavemyhome]

j-nice, I know exactly what you mean...we will be screwed too, if they decide to come after us for the $26k that we owe in back payments after the three months are up. If we could afford that, none of us here would be asking for help, ya know?!

I'm curious what NACA will do if after the three months BofA comes up with some outrageous amount to pay...I'm thinking they can just re-submit and ask them to take another look??

How did things go with your surgery?

[j-nice]

help-thanks for asking, the surgery went well but it is a slow and painful recovery. I had frozen shoulder and the doc manipulates the shoulder and did a complete scope of my rotator cuff. I have had to go to physical therapy 5 days a week starting the day after surgery...talk about painful. This health issue hasn't even been brought into my hardship picture yet. I am hoping by Thanksgiving I will be back to normal.

My biggest concern with NACA is that once I re-submit my information after the third payment it will turn into another 6 month waiting period with them. David Leighton was the only one I felt confident could get things moving and keep them moving and now he is gone...very disappointed and concerned about that. I am curious to see what happens with the online application I did today. Like everything else I am sure it won't get looked at!