BAC offering me a choice of MHA or direct with investor mod?

[jojolala]

Has anyone received a call like this?

I've been waiting for mod payments for about a month. On payment forbearance for about 11 months.

I called my OOP contact this morning after spending too much time this weekend on the forum and reading all the reports (Fannie Mae Announcement 09-30 & National Consumer Law Center October Report).

The BAC negotiator (different from OOP contact) called me back in just a couple of minutes and asked me if I wanted to cancel my MHA trial mod and go directly with the investor. I was at a loss as to how to answer because I don't know what either of these mods will look like. She said that direct from Fannie I could expect a stepped interest rate. That still doesn't tell me a lot and having to make a decision on the spot I opted to stay in the queue for the MHA mod.

I told her that I'm really hoping for a principal reduction, and she of course told me I was out of luck. I replied that I'm hopeful that that will come soon.

After thinking about it, I emailed her with the Fannie Mae PRP announcement and asked her if that is what she is referring to... haven't heard back from her yet.

They are asking me if I want vanilla or chocolate, and I want strawberry. Thanks in advance for reading my posts and offering your insights or comments.

[Evan Bedard]

Hi jojolala,

I told her that I'm really hoping for a principal reduction, and she of course told me I was out of luck. I replied that I'm hopeful that that will come soon.

After thinking about it, I emailed her with the Fannie Mae PRP announcement and asked her if that is what she is referring to... haven't heard back from her yet.

They are asking me if I want vanilla or chocolate, and I want strawberry. Thanks in advance for reading my posts and offering your insights or comments

Getting a principle reduction is ver very rare and I have maybe seen only 6 in the past two years, and half of them were from Wachovia. I believe she was asking if you wanted to continue for a MHA modification or if you wanted to go for a regular in-house mod. In many cases the in house mod seems to be better because you get to avoid the trial period. You will find many homeowners here who have completed the trial but very few have acheived a permanent mod..

[jojolala]

Originally Posted by Evan Bedard

Hi jojolala,

Getting a principle reduction is ver very rare and I have maybe seen only 6 in the past two years, and half of them were from Wachovia. I believe she was asking if you wanted to continue for a MHA modification or if you wanted to go for a regular in-house mod. In many cases the in house mod seems to be better because you get to avoid the trial period. You will find many homeowners here who have completed the trial but very few have acheived a permanent mod..

So are you saying I can get a fast mod or a slow mod?
I know there have not been principal reductions to date... but do you think that will come next?
Thanks Evan.

[Evan Bedard]

Well there are really no fast modifications. No matter which route you choose to pursue you will be required to go through the entire process. We are hoping to see more principle reductions but we feel it is unlikely. Who knows when the market will turn around and house prices go back to normal..

[jojolala]

Originally Posted by Evan Bedard

Well there are really no fast modifications. No matter which route you choose to pursue you will be required to go through the entire process. We are hoping to see more principle reductions but we feel it is unlikely. Who knows when the market will turn around and house prices go back to normal..

Thanks again Evan, We have been in the process for 11 months, so I know there is no short modification and I guess my question would be better placed with my negotiator. I got the impression she was offering this to me because she could not give me a solid answer on when I would get my MHA loan papers.

Regarding principal reduction topic, will these sort of observations ever gain momentum and become grounds for mandated change?:
From the Introduction of the National Consumer Law Center report (pg viii) it is suggested:

"4. Provide for principal reductions in making Home Affordable and via bankruptcy reform.

Principal forgiveness is necessary to make loan modifications affordable for some homeowners.
The need for principal reductions is especially acute—and justified—for those whose loans were not adequately underwritten and either: 1) received negatively amortizing loans such as payment option
adjustable rate mortgage loans, or 2) obtained loans that were based on inflated appraisals. As a matter of fairness and common sense, homeowners should not be trapped in debt peonage, unable to refinance or sell.

The Making Home Affordable guidelines should be revised so that they at least conform to the Federal Reserve Board’s loan modification program by reducing loan balances to 125 percent of the home’s current market value. In addition, Congress should enact legislation to allow bankruptcy judges to modify appropriate mortgages in distress."