Got an offer from BOA, should I wait for NACA or take it?

[secondchances]

The offer I got from BOA was an interest rate reduction for 4 years to 3% and then at 5.2 for the remainder of the loan. Interest rate is currently at 6.75%. New payments would begin in January around $850 per month down from $1146. She said they would increase to back up to around $1000 after the 4 years. The payments include all taxes, fees, etc.

NACA submitted my offer to BOA on the 28th. Not sure if I should take the BOA offer or wait. My negotiator told me that she can't keep my file open if I am working with NACA so I need to make a decision quick!

NACA told me my payments should be around $700 including everything for the life of the loan.

Is NACA pulling through? I'm afraid if I don't take the BOA offer,
NACA will get declined. Surely they won't and get something a little better than this?

My negotiator told me that I did not qualify for the Obama plan, this was a BOA mod. Fannie Mae denied me for the making home affordable because of the value of my home. I also have PMI insurance if that makes a difference.

Hoping to hear from people that got a better deal from NACA in a similar situation.


THANKS!

[hope67]

secondchances, you should do whatever you are comfortable with. However, let me give you my opinion, this modification is a sure thing, Naca's proposal can be accepted or rejected by BOA. in other words, getting a modification from Naca is a question mark because you have no idea if BOA will accept it or not.

Good Luck, keep us posted.

[shay01]

Originally Posted by secondchances

The offer I got from BOA was an interest rate reduction for 4 years to 3% and then at 5.2 for the remainder of the loan. Interest rate is currently at 6.75%. New payments would begin in January around $850 per month down from $1146. She said they would increase to back up to around $1000 after the 4 years. The payments include all taxes, fees, etc.

NACA submitted my offer to BOA on the 28th. Not sure if I should take the BOA offer or wait. My negotiator told me that she can't keep my file open if I am working with NACA so I need to make a decision quick!

NACA told me my payments should be around $700 including everything for the life of the loan.

Is NACA pulling through? I'm afraid if I don't take the BOA offer,
NACA will get declined. Surely they won't and get something a little better than this?

My negotiator told me that I did not qualify for the Obama plan, this was a BOA mod. Fannie Mae denied me for the making home affordable because of the value of my home. I also have PMI insurance if that makes a difference.

Hoping to hear from people that got a better deal from NACA in a similar situation.


THANKS!

Well I have an FHA loan and they told me i dont qualify for the FHA-HAMP and they offered me and in house MOD but it was crappy. It only lowered my payment 130 bucks and they said that is the best they can do because i have a FHA loan they have to follow the guidelines. I was really hoping for something better but they didnt offer it and basically it was like i can take this or nothing. So i think I may be stuck....

[secondchances]

I emailed my negotiator a payroll report and asked her if it is possible that they extend the term or whatever they have to do to get my payment closer to 31% of gross as I don't think they calculated correctly.

I'm going to try and keep this on the negotiating table to see what I can get. I also requested more information from Fannie Mae as to why I was denied the making home affordable plan.

I would really like to hear from people that have had success with NACA and have similar circumstances to my own.

My negotiator said that NACA did have a special relationship with both BOA and Fannie Mae. So....

[Housebroken13]

Why the heck do they keep doing these step rate programs. They are putting everyone in ARM's... This is just going to cause another problem in a few years...

What do these agreements say will happen if you sell your home in the future?

[secondchances]

Why the heck do they keep doing these step rate programs. They are putting everyone in ARM's... This is just going to cause another problem in a few years...

Good question and I never thought of it that way before.

I'll pose your other question as well.

[nativelasvegan]

Not too bad of an offer. How close is that payment to your income? Can you afford it? Sure sounds pretty good. If you can't afford it, don't take it and consider other options, short sale, deed in lieu, foreclosure. If you can afford it, do it. The waiting game here has resulted, in many cases, foreclosure while people are in trial modifications or the forbearance agreements aka delay tactic to proceed with foreclosure.

Good luck to you. second chances. Tough decisions. I sincerely wish you the best.

[davephx]

The step rate on the inhouse is not that different from HAMP. The 5.2% maximum is the current about best rate and about the lowest in history.

NACA probably didn't take the PMI into account this makes it more messy as I think the private mortgage insurance has to be added not part of the 31% test.

So it seems this actually is a good deal in my view.

[Sunbeam]

A bird in the hand...Don't look back! Take it and run!

[lkszip]

If you can afford it, I would take it. don't wait for NACA ... lots of people are getting lost in that shuffle and you would kick yourself if you end up getting nothing from NACA ... just my 2 cents - which is all I can afford

[secondchances]

I can't really afford it though.

Something sounds fishy from what they told me. Fannie denied me because of LTV? According to the treasurey dept. website, they can't deny you based on this or did I read it wrong? Now she is saying that if she miscalculated my income, then I don't qualify at all?

I asked for something in writing to say specifically why I was denied for Making Home Affordable as again, the mod that BOA is offering is not part of that.

What does BOA stand to lose or gain by doing their own mods and not the MHA mods?

I don't have a NACA contact, just the toll free # everyone else has and was told to keep checking the website. I still think that NACA might be able to better.

Also, the lowest they can go on the MHA mod would be 2% to make it work. I think BOA doesn't want to lose money on the interest.

[caldwellb02]

I'd run the proposal by NACA and say they ned to look at it right away. When we are rushed into anything this big there are often hidden things we do not find till it's too late.

[minknmelissa]

It isn't to bad of an offer I was offered a few terrible offers from bank of america then I was offered MHA took my money then denied me so went with naca and I was given two offers that would have me paying 40 less a month then i pay now. But I denied the offer twice and the third was 2.85 for the life of the loan which i took. It was very nerve wracking and confusing. I have to tell you though I did accept the mha first and if they wouldn't have been so dishonest I would have the MHA. I would say if the mod offered is affordable for you take it. I new for sure my offers weren't but if it is take it and be thankful its over.........

[secondchances]

Well, these mods aren't exactly affordable when 31% is approximately $600. I have got them in a corner I believe having caught them in a lie; they said I was denied by Fannie Mae for the MHA which I believe is BS. I have asked for the proof in writing twice now in the last two days.

I believe that BOA is trying to do their own mod first so that they can continue to get the most return for their money being the servicer. Screw me, its still all about the all might dollar.

[ama125]

I don't know if this will assist you or not, but there is a new HAMP directive (effective 1/1/2010 but servicers are encouraged to start doing this now). Essentially, it requires written notices with details be sent to borrowers when they get denied. Maybe you can use this for some leverage in getting a written answer...https://www.hmpadmin.com/portal/docs...cer/sd0908.pdf. Maybe you can send them a copy of this. Also, I would call Fannie Mae 800-732-6643 and see if they can explain.

[hope67]

Originally Posted by secondchances

I can't really afford it though.

Something sounds fishy from what they told me. Fannie denied me because of LTV? According to the treasurey dept. website, they can't deny you based on this or did I read it wrong? Now she is saying that if she miscalculated my income, then I don't qualify at all?

The only possibility I can think of where the LTV could cause your application to be denied is when your NPV test result is negative. So if your NPV test is negative and the LTV is below 100%, for example the LTV is 95%, you will not qualify for HAMP.

[ama125]

This may also assist you since your loan is with Fannie: https://www.efanniemae.com/sf/guides.../2009/0931.pdf
It includes updates and clarifications pertaining to HAMP that BofA may not even be aware of yet.

[secondchances]

Well my negotiator called and is going to rework the modification. She told me that she no way was anyone forgiving principle; that is an option they are all trying to avoid.

I thought they could not deny if the NPV test was negative. I am so confused. But she is reworking my mod. So we will wait and see. I should know by next Wed.

[nmwadam]

Originally Posted by secondchances

Well, these mods aren't exactly affordable when 31% is approximately $600. I have got them in a corner I believe having caught them in a lie; they said I was denied by Fannie Mae for the MHA which I believe is BS. I have asked for the proof in writing twice now in the last two days.

I believe that BOA is trying to do their own mod first so that they can continue to get the most return for their money being the servicer. Screw me, its still all about the all might dollar.

Seems how this is a credit determination, don't they legally have to give us a written denial as to why and based on what factors. Shouldn't we all be able to sue them for not following the FCRA?

[secondchances]

Seems how this is a credit determination, don't they legally have to give us a written denial as to why and based on what factors. Shouldn't we all be able to sue them for not following the FCRA?

I am sure there are going to be alot of law suits once this is over but not sure under the FCRA. People are going to try and sue if they are denied and it is determined they meet the guidelines. If my home fails the NPV test, I want to see the paperwork.

My negotiator did say that the banks are not going to do anything that will cause them to lose money. She said if they did, they would go bankrupt. I almost laughed. If it were not for the bailout, they would be bankrupt!

My advice is to keep a paper trail and an email trail and record conversations if possible. A BOA employee hung up on me once for recording the convo. If you notice, they are not recording convos when we call in. My negotiator called me on the phone rather than answer any questions via email. This stuff does not go unnoticed. I would keep a call log and notes of every phone call and carry it with you at all times.

[davephx]

Originally Posted by secondchances

I am sure there are going to be alot of law suits once this is over but not sure under the FCRA. People are going to try and sue if they are denied and it is determined they meet the guidelines.

Unfortunately a lawyer that does lots of mods says we have no standing to argue this. The agreements are between the Treasury and servicers. We are not part of it and we have no legal recourse. We have no "right" to have a modification. Failure to follow directives are only a legal issue between Treasury and servicers. And no enforcement provision in the law only oversight.

[hope67]

Originally Posted by secondchances

I thought they could not deny if the NPV test was negative.

Here are the guidelines:

Can the HAMP modification be pursued if the NPV result is negative?

For non-GSE loans, a servicer is not required to offer the HAMP modification on a loan where the NPV result is negative, but it may do so at its discretion. If the NPV is negative and the servicer chooses to modify the loan, any principal forbearance amount may not reduce the interest-bearing principal to less than 100 percent of the mark-to-market loan-to-value (LTV) ratio.
For mortgages serviced on behalf of a third party owner or investor (including any securitization trustee) for which the modification result is deemed negative, however, the servicer may not perform the modification without express permission from such owner or investor (or securitization trust).

[secondchances]

Thank you. I went back and read that. Apparently, I had NPV confused with LTV. I understand now.

[secondchances]

BOA just came back with another mod offer that is MHA and that is for 2% interest for 5 years and then 5.2% for the remainder of the loan.

I accepted.

[KFish]

That sounds like a good offer. Congrats!