Homesafe Forberance Modification offered by BOA today

[pwrought]

I was offered a 2% for 5 years. My payments will be the same as what I was paying in the beginning. It is not affordable. Taxes and insurance will be included in this. If I count the taxes included I would say I am saving $150, but the payment is still not affordable.
I asked if I would get any principal reduction and was told no. My principal increased about $11,000 with all the late fees and payment. No mercy I guess.
Should I accept this offer? Any suggestion?
I hate this offer, but this is the only thing they gave me after 9 months of fight and getting denied. Help?

[hope67]

Originally Posted by pwrought

I was offered a 2% for 5 years. My payments will be the same as what I was paying in the beginning. It is not affordable. Taxes and insurance will be included in this. If I count the taxes included I would say I am saving $150, but the payment is still not affordable.
I asked if I would get any principal reduction and was told no. My principal increased about $11,000 with all the late fees and payment. No mercy I guess.
Should I accept this offer? Any suggestion?
I hate this offer, but this is the only thing they gave me after 9 months of fight and getting denied. Help?

What would the interest be after 5 years?

I would say you accept it, then you can always try to apply for another modification thru Naca, I mean if it is possible.

I'm not sure if we can reapply again for a loan modification once we accept one. I hope someone would shed some light on this.

[mimirayo]

This is a hard one. I've never heard of someone getting 2% and it only reducing the payment by 150.00. It comes down to "It's not affordable". It was my impression that the mods were supposed to be between 31-38% of income.

It's hard to say and hear, but if it's unaffordable, that's what it is. You can approach the lender with different numbers or a plan that is affordable, but you will never get a better interest rate. It comes down to "scraping by" to make the payment and possibly default causing even more fees and possibly foreclosure, or walking away.

[cjbory]

PW was probably paying a interest only loan with no escrows. The bank probably lowered the interest to the minimum (2%) but added principal and escrows so the payment end up been the same.

[Housebroken13]

PW - 2% for 5 years is the best I've seen around here, that's what I'm shooting for.

I would take it if I were you. Then continue to fight or hope they introduuce some new legislation

I've never heard of the Homesaver Forbearance modification? I do know that you were in a HomeSaver Forbearance agreement like me. I am going into my 3rd month, and making my 3rd payment today.

Did your forebearence agreement term end yet?

My 1st Mod with Countrywide only brough my rate down to 4.75% for 1 year and then it went back to 6.75% at the 3rd year so that was a bad mod.

[j-nice]

pwrought-I am confused...I thought you said BAC was foreclosing on you after you went through the special forbearance program with them?? How did this offer come about? I am glad things are turning around for you and hope this will help you stay in your home. Can you give us the details about how this offer came to be???

[pwrought]

I called BOA yesterday and asked the customer service (retention / collection depto) if I had to make my forbearance payment because I decided to put my home on the market (short sale) as my loan modification was getting to nowhere.
I was told that I did have to make a payment because my loan was in a final stage to qualify to a loan modification and if I don't pay, I would be out of the program and in case my house do not sell (short sale) I probably would have the opportunity to deed and lieu without any deficiency judgment in the future.
I asked what kind of modification they would offer and the lady from BOA said that my financial was tight, but I could afford a payment of $1050 per month which was the same I was paying (interesting only and not escrow in the past). Now the $1050 would include tax and insurance. She didn't explained anything really well, but she told me that it would be a 2% fixed for 5 years. She told me to wait for the FEDEX paper to come in about a week or so.
Not sure if she was bullshit me so I called again and talked with another representative from BOA who told me the same thing.
My real state agent told me that this offer is not good because my home is so upside down ($160,000) and the bank did not offer any principal reduction instead my I will have my principal increased by $11,000.
This is my second payment with my Homesafe plan.

PS:"PW was probably paying a interest only loan with no escrows. The bank probably lowered the interest to the minimum (2%) but added principal and escrows so the payment end up been the same."

CJBOY HOW DO YOU KNOW THAT? DO YOU WORK FOR BANK OF AMERICA? I HAVE BAD FEELING THAT THE BANKS READ EVERYTHING FROM THIS SITE. NO JOKE. I NEED TO BE CAREFUL ABOUT WRITING MY OPINIONS HERE.

[pwrought]

Housebroken 13:The homesave forbearance modification is the same as the homesave forbearance agreement that we both have. Also if I accept this modification, I will not be able to try for modification in 1 year time ( as BOA representative explained to me). I am in my second payment now.

jnice: Yes you are right about they try to foreclose on me. I still have the notice of default, but I called fannie mae ( the number is in the first page of the forbearance agreement) and spoke with them for 1 hour trying to cancel the sale date that BOA told me it would be. It is cancel, but I still have a notice to intent to accelerate my foreclosure and a notice of default recorded with the recorders office ( not sure my real state agent found it somewhere and told me).

mimirayo: I do not know what they are offering. I was told that it is the making home affordable plan modification. Not sure.
I will get a 2% for 5 years and after the 5 year ONLY GOD KNOWS what will happen.

My suggestion: Call those BOA suckers everyday and twice ( in case you get someone rude). They will get tired of you and get something done. I also told them that I slept on the line to talk with the banks in the Save the Dream Las Vegas NACA. With no success. Waited all day and the banks left before I get the chance to finish with the NACA consultation. Was the worse experience in my life I can tell you for sure. Just tired of this problem that I am facing now in my life. I worked so hard to buy this home with $30,000 down payment. Now I am losing my primary home and having to rent a room in my friends house. My credit is destroyed and my job demoted me to part time after 6 years of hard work. I do not see any future here in Las Vegas. My 401K is down more than 60%. I also have a $10,000 credit card bill to pay because I used my credit card to pay my mortgage for 4 months and my A/C unit broke during the 110 F summer that cost me another $4000 to get a new one. They left me homeless, poor, low income, no health insurance and super depressed to the point of not sleep and lost 30 pounds. My doctor ( that I pay out of my pocket) is so worried that he told me to walk away.
The best for all of us is to walk away guys. WALK AWAY...

[Housebroken13]

PW - I am confused. Did you agree to a mod and have made two payments on it?

Or are you 2 months into a forbearance? They are two different things.

I'm assuming you completed a forbearance, and are now in a mod that you do not like correct?

[cjbory]

Originally Posted by pwrought

PS:"PW was probably paying a interest only loan with no escrows. The bank probably lowered the interest to the minimum (2%) but added principal and escrows so the payment end up been the same."

CJBOY HOW DO YOU KNOW THAT? DO YOU WORK FOR BANK OF AMERICA? I HAVE BAD FEELING THAT THE BANKS READ EVERYTHING FROM THIS SITE. NO JOKE. I NEED TO BE CAREFUL ABOUT WRITING MY OPINIONS HERE.

No I dont work for no bank. I have friends that are on the same boat as you are. Interest only loans with no escrows, once they try to do a mod, and the bank includes the escrows plus principal they stay with the same payments even with a 2% interest mod. I am here just like you trying to save my home.

[BadBobMo]

cj got this right also (Just as a sample)31% of $3,500 is not much of a O.A. drop on a total mortgage payment. All you have to do is run your own numbers.

[pwrought]

I stopped to pay the forbearance and I am not taking this modification too. No principal reduction I cannot stay. I put my house on the market. Lets see what happens. I will be here killing time until the end when they make me homeless. I am feeling so bad about the situation, but no choice for me. I cannot afford a payment of $1050 and principal of $230,000 when my neighbor brought his home for $70,000. It just do not make sense.

[Housebroken13]

pw - One more question.

What were the payments on your forbearance, and what are your payments in the modification?

Thanks.

[pwrought]

forbearance =600,00
modification =1050

I am not even talking about my second mortgage of 200 dollar. Forget about it. I am heart broken. No principal reduction = another foreclosure home for BOA to worry about later.