Advice on BofA offer

[huntkamry]

Hello everyone, about a year ago I was offered a proposal from Countrywide, although the rates were good, I could not afford the payment for the long term. I decided to hold tight and see what happened , and with the Obama plan Countrywide stopped all contact with me. I contacted NACA and started the process of modification, I was turned down in August. Today NACA contacted me to tell me BofA offer. My Question to the Helpful Americans at Landsafe is: Is their any bargaining after their proposal offer? the offer is still too expensive for me to handle over the long haul, I had told Carrie @ NACA that I have $7000. to put towards payment to try to get payment down she figured it out on 1st loan and it would be about $40.00 a month cheaper, also I asked her if they can extend my loan, I thought the $ would show good faith that I do want to keep my house. she also informed me that they offered me interest only for 5 years and then rates would go back up to the current interest rate of 8.75% on 1st and 11.25% on 2nd and would be able to try modification after 5 years. Any formula I might use to get payments down close to $1200.00 monthly? to be able to make it. I called NACA and talked to Carrie Crawford.
Thanks in Advance for any suggestions or comments. Pat
FOLLOWING NACA EMAIL

Carrie @ NACA here.
Bankof America has completed the review of your file, and have proposed the following offer:

1ST MORTGAGE

New Rate: 4.125% Fixed for the remainder of the loan

New Principal and Interest: $1046

New Principal and Interest + Taxes (this is the total monthly payment amount): $1240


2ND MORTGAGE:

New Rate: 2.0% Fixed for the remainder of the loan

New Principal and Interest: $436

Please let NACA know your decision on this offer as soon as possible. You may reach me back at 901/348/0115 or call 888/404/NACA


Thankyou.


Carrie Crawford, NACA HomeSave
ccrawford@naca.com

[joanne]

I'm a little confused. Based upon the email from Carrie, the payment includes principal, interest and taxes. In addition, the interest rates have been lowered and are fixed for the life of theloan.

What are your original interest rates and payments?

[hope67]

Originally Posted by joanne

I'm a little confused. Based upon the email from Carrie, the payment includes principal, interest and taxes. In addition, the interest rates have been lowered and are fixed for the life of theloan.

What are your original interest rates and payments?

I'm confused too, the offer per the email is fixed for the remainder of the term, and it is a great offer!

[CinFL]

Wow, that is a super offer! You are within $40 of your target payment amount and this includes your property taxes PLUS it appears you don't have to pay in the $7K so will have that to help you make your payments over time. If you want to keep your house, I would jump on it. Then I would check into whether your property values are accurate and if they are too high, I would appeal them. That will help lower your total payment. Good luck!

[Evan Bedard]

Hi huntkamry that is an excellent offer and lowered your interest rate a significant amount! Both loans are fixed for the life of the loan! I do not see them offering anything better. They lowered your first by a whole 4% and you 2nd by almost 9%...

[huntkamry]

thanks for the advice I also think this is a great offer, but the $1240 plus the $436. is still to much for me to handle over the long term. I am looking for any bargaining chip that is why I offered the $7000I am hoping they'll extend the terms as that will lower my payments some. Pat

[Housebroken13]

Why didn't they subordinate the second mortgage?

[panther]

I don't think you will get anything better than what they offered. You have a great deal. If this is not affordable then you should move because the interest rates are great and they didn't extend your loan. People would kill for these terms.