Am I eligible for a loan mod?

[julie]

My first loan is with BofA (investor is Fannie Mae), my debt to income ratio is just around 31% or so, and the home value on Zillow (which is what BofA uses) is just above what I paid for the house when I bought it.

So you'd think I'm not eligible.

And yet the rep who's supposedly in charge of my file (whatever his title is, some guy who loves to read screen prompts such as "thank you for being a valued customer"), has asked me to send in a request for a loan mod, so I sent the budget he asked for, including how much rent I pay, etc. but I don't doubt they factor that in ? The real home value is much below what has been reported to Zillow because of blatant disclosure misrepresentations which I found out later because I had hired the home inspector that the lending broker works with (duh, talk about learning the hard way). In short, the house has some serious structural issues, chemical contamination from a longstanding CDL, a leaky roof, no heat, and currently no plumbing. I'm already renting somewhere else after draining my resources with costly structural repairs, and I could afford to pay for more repairs (and eventually live in the home) only if I got a loan mod.

The rep calls me at home every couple of days when I'm at work, and leaves canned messages that say nothing, so basically I do not have a response from BofA.

I would like to know whether BofA would consider a loan mod, or not, because I have a reputable contractor who can shore the house to prevent collapse, but it's not cheap and I will only engage the funds if BofA says OK to a loan mod.

Any thoughts? If I was a younger person I wouldn't give it a second thought (I have a non-recourse loan and I'm not attached to the house), but I'm over 50 so I won't get to buy another house if I walk away, and so I'm still waiting. If they will consider a loan mod I have all the papers ready for the Assessor's office to review the property value, but if they won't there's no point going into it . . .

[Evan Bedard]

I would like to know whether BofA would consider a loan mod, or not, because I have a reputable contractor who can shore the house to prevent collapse, but it's not cheap and I will only engage the funds if BofA says OK to a loan mod.

Any thoughts? If I was a younger person I wouldn't give it a second thought (I have a non-recourse loan and I'm not attached to the house), but I'm over 50 so I won't get to buy another house if I walk away, and so I'm still waiting. If they will consider a loan mod I have all the papers ready for the Assessor's office to review the property value, but if they won't there's no point going into it . . .

Honestly, it is really impossible to tell whether or not the bank is going to approve the loan modification as even borrowers in the same position often times get different answers. But I would definitely wait until a decision is made on the modification before forking over any money to have the home repaired. I notice you said you were paying rent, are you a co-borrower on the property?

[julie]

Honestly, it is really impossible to tell whether or not the bank is going to approve the loan modification as even borrowers in the same position often times get different answers. But I would definitely wait until a decision is made on the modification before forking over any money to have the home repaired. I notice you said you were paying rent, are you a co-borrower on the property?

Hi Evan,
I’m not surprised, since I was getting different answers from talking with different reps. Somebody told me that if the County reassesses my house at its current market value, then the Bank might work with me? Not, I was the only borrower. I had to move out because the chemicals were affecting my health. (I was tired of living without hot water anyway, let alone no heat. I do appreciate comfort.) Yes, I’ll wait to spend money . . . and focus on my job for a change -- with all the attention I devoted to the house I was in danger of loosing it . . .

[Evan Bedard]

What state is the property located in Julie? With so many improvements needed to be made and the condition of the property affecting your health, is it really worth all the hassles trying to maintain the home? I assume you are spending quite a bit of money managing the mortgage payments and maintaining rent payments elsewhere..

[metsfan]

My wife and I received our chapter 7 discharge within the last few weeks. In between the 341 meeting and the discharge, my mortgage went from BOA to Select Portfolio. Our mortgage is $339K, and my house was appraised at $300K. Because of our bankruptcy, would we have any chance to refinance or get modification help? Thank you.

[Evan Bedard]

My wife and I received our chapter 7 discharge within the last few weeks. In between the 341 meeting and the discharge, my mortgage went from BOA to Select Portfolio. Our mortgage is $339K, and my house was appraised at $300K. Because of our bankruptcy, would we have any chance to refinance or get modification help? Thank you.

Welcome and thanks for joining metsfan.

Yes, a loan modification after bankruptcy is most definitely possible and we have many members here who have successfully been able to do so. If you type in "loan modification after bankruptcy" in the google search bar at the top of the page and you will find many discussions here on this topic.