Pay-Option Jumbo ARM

[chriskeeler]

BOA Home Loans Fed-Ex'ed us the following offer letter yesterday. We are forwarding to our attorney to start the negotiation process and will press them hard for a better offer. We got a forensic mortgage audit, and the results clearly indicate SEVERAL state and federal laws were violated:

Loan Number: xxxxxxxxxx
Dear xxxxxxxxxx xxxxxxx:

As your home loan servicer, we want to help you stay in your home and avoid foreclosure. We recently sent you information about the Home Affordable Modification Program, an initiative announced by the Federal Government to
help homeowners who are finding it difficult to make their mortgage payment. Under this program, we will review your current financial situation to determine whether we can help you modify your mortgage.

As an alternative to the Home Affordable Modification Program, we are now pleased to offer you a modification under a separate program. We have already approved you for this new loan modification program that will immediately change your outstanding principal balance and reduce the total amount due. Your participation in this loan modification program will not require that you provide us with any financial documentation or that we establish an escrow account for payment of your taxes and insurance. This modification offer involves the following:

- The unpaid principal balance on your loan is $1,527,834.67 with a total estimated delinquent amount of $57,293.80 for a total amount due of $1,585,128.47. This offer would reduce this outstanding debt to $1,188,846.47.
- Your loan will be brought current by capitalizing past due amounts (we will add all past due amounts in to the loan balance) which means you do not need to pay your past due amounts before getting your loan modified.
- Your modified loan will be fully amortizing with a fixed interest rate of 5.500% for the life of your loan which means you will be paying down the principal balance and the interest rate will never increase.
- We will reamortize your loan over a 480-month period, which will result in a remaining balance of $694,185.22 that will be due at the end of the loan term (known as a balloon payment).
- These changes to your loan term will result in a total monthly payment of $6,131.72 comprised of principal and interest $6,731.72.

There are no fees associated with this modification program. To take advantage of this program, all you need to do is call us and make your first monthly payment at the new payment amount. You must call us no later than November 19, 2009 or this offer will expire and your existing loan terms will remain in effect.

We would like to discuss the differences of each modification program with you to help you decide which program you may prefer.
Please call us today at 1,888.325.6432 to learn more about your options under these programs.

You may receive a phone call from one of our representatives to discuss the loan modification programs available to you and answer your questions. However, there is no need to wait for our call. Please call us now.

Sincerely, Ken Scheller
Senior Vice President
Home Retention Division
BAC Home Loans Servicing LP

[Woodland Hills Worrier]

I am interested in ChristineKeeler's lastest post. I read the thread back to March 2009 and then it goes dormant in August 2009 and now a new comment with an interesting offer from BofA. Do you think your attorney helped you and also the forensic accounting? Is BofA making deals when it gets pressured? The deal might reduce monthly payments and get rid of late fees, but how do you handled the ballon payment at the end. Of course, you have forty years to worry about that. Meanwhile under the current arrangement you will be paying around $3million over the next 40 years. We tend to forget that with all these compounding interest costs, a fully amortized loans ends up costing three times the purchase price for even the best loan deal. I am now upside down by $100,000 and will be 115% above original loan in about 3 years. Then my full payment will kick in and I will be able to seek a modification for my Pay Option ARM based on percent of income. Right now my wife and I earn too much to fit the settlement formula. 40 months is a long time and I expect much to happen, good or bad, I don't know. Right now with the neg am payment we are actually paying less than we normally would with a modification. So I guess we'll sit tight for a while. At the end of the day, when we have lived in our home for about 20 years which means we will have paid about $720,000 on the home, and will still probably owe another $600,000 then we may just walk away. Kids will be grown, I'll be retired, I may have another house build by then if my plan works out, and so let the bank have my home, they own it anyway. I would have paid about that much in rent and I got the tax credit all these years. Even Steven as I see it, of course I'll have bad credit but so will everyone else and lets see the banks make money then when no one uses a credit card anymore.

[hope67]

Originally Posted by chriskeeler

BOA Home Loans Fed-Ex'ed us the following offer letter yesterday. We are forwarding to our attorney to start the negotiation process and will press them hard for a better offer. We got a forensic mortgage audit, and the results clearly indicate SEVERAL state and federal laws were violated:

Loan Number: xxxxxxxxxx
Dear xxxxxxxxxx xxxxxxx:

As your home loan servicer, we want to help you stay in your home and avoid foreclosure. We recently sent you information about the Home Affordable Modification Program, an initiative announced by the Federal Government to
help homeowners who are finding it difficult to make their mortgage payment. Under this program, we will review your current financial situation to determine whether we can help you modify your mortgage.

As an alternative to the Home Affordable Modification Program, we are now pleased to offer you a modification under a separate program. We have already approved you for this new loan modification program that will immediately change your outstanding principal balance and reduce the total amount due. Your participation in this loan modification program will not require that you provide us with any financial documentation or that we establish an escrow account for payment of your taxes and insurance. This modification offer involves the following:

- The unpaid principal balance on your loan is $1,527,834.67 with a total estimated delinquent amount of $57,293.80 for a total amount due of $1,585,128.47. This offer would reduce this outstanding debt to $1,188,846.47.
- Your loan will be brought current by capitalizing past due amounts (we will add all past due amounts in to the loan balance) which means you do not need to pay your past due amounts before getting your loan modified.
- Your modified loan will be fully amortizing with a fixed interest rate of 5.500% for the life of your loan which means you will be paying down the principal balance and the interest rate will never increase.
- We will reamortize your loan over a 480-month period, which will result in a remaining balance of $694,185.22 that will be due at the end of the loan term (known as a balloon payment).
- These changes to your loan term will result in a total monthly payment of $6,131.72 comprised of principal and interest $6,731.72.

There are no fees associated with this modification program. To take advantage of this program, all you need to do is call us and make your first monthly payment at the new payment amount. You must call us no later than November 19, 2009 or this offer will expire and your existing loan terms will remain in effect.

We would like to discuss the differences of each modification program with you to help you decide which program you may prefer.
Please call us today at 1,888.325.6432 to learn more about your options under these programs.

You may receive a phone call from one of our representatives to discuss the loan modification programs available to you and answer your questions. However, there is no need to wait for our call. Please call us now.

Sincerely, Ken Scheller
Senior Vice President
Home Retention Division
BAC Home Loans Servicing LP

WOW!! they are forgiving almost $400,000, this is remarkable!

[chriskeeler]

This thread went dormant because we did not hear a peep out of BOA until the latest FedEx modification letter above. We also have not disclosed the mortgage audit results to BOA yet. BOA did not budge on the above offer which we also declined because they wanted us to agree to the "loosely" defined terms above, and make a payment BEFORE they would send out the official modification docs. Seriously? After all the lies, we are to trust you are here to help us out now? No way, I'm not buying it! Our atty was only able to speak with low-level BOA personnel anyway for the above modification offer, so there was no point in even playing that card yet. So, here we are again just sitting around waiting for BOA to get serious with this fraudulent loan.

The best part of our mortgage audit is the line that reads: "Examiner believes there is enough evidence in this file which constitutes fraud and misrepresentation that it would be grounds to render this contract null and void under both Federal and Florida law."
Have fun with this one Bill McCollum!