Need BoA Loan Modification Advice

[icemanu]

Hello all,

I bought a home back in 2007, with 6.625% APR Fixed for 30yr. I lost my job back in 2008 after which I started working fulltime in my old business which was doing OK, but due to economic downtrend the profit margin have been drying up pretty fast. I haven't been in default yet on my loan and nearly used all my savings for staying on current with payment.

Currently, my monthly mortgage payment comes up to $1900 with gross income of $3000 per month. Also to reduce my other monthly expense, I asked my son to move in with us. Loan is from FREDDIE MAC.

Here is the rough draft of my hardship letter so far, your advice would be greatly appreciated.

To Whom It May Concern:

I am writing this letter to explain my current financial situation, as I am afraid that I would not be able to keep paying the mortgage and become delinquent on the mortgage payment in the coming months. To date I have made the mortgage payments on time and wish to continue to do so. I have exhausted all of my cash reserves that helped me to keep our mortgage payments current along with the taxes and insurance for the past 1 year, hence turning to you for your assistance.



In March 2008, I lost my job and since I was not able to find a job, I decided to work full time in partnership on a business venture in which I have been involved since 2006. My annual income during 2007 was 75k, however in 2008 my income shrank to 45k. Currently, my monthly income from my business venture is $3000 per month plus profit from business is shared at the end of the year among myself and my business partner. Due to current economy downtrend, sales originating from the business have decreased substantially in year 2009. We are exploring other means to bring in additional income to sustain. Currently, my monthly deficit hovers around $600. Refinancing to get a lower APR to reduce my monthly mortgage payment is not possible as the property value is below 20% of the current loan amount.


I have been meticulously sticking to a monthly budget and carefully planning to save every penny so that I could pay all the bills. I also had my son to move in with us so that he could share some of the expenses with us. In addition, I handed over my new car to my son, who is paying the Auto loan on it.


We very much want to keep our house as we love the neighborhood. We believe that a loan modification will do just that. We want to preserve our credit and good standing with Bank of America and seek a second chance to do that. Please consider us a candidate for a loan modification.


Thank you in advance for your time and consideration in this matter.

Thanks.

[Moe Bedard]

Hi icemanu,


Welcome to the forum and thank you for joining............


The letter is good just as it is.

[icemanu]

Originally Posted by *** Damiano

Hi icemanu,


Welcome to the forum and thank you for joining............


The letter is good just as it is.

Hi ***,

Is it Ok to send the above hardship letter to all BoA executive email address posted in this forum : Ken lewis, Liam, Maryellan and Barabara; all at Once.

What should be the subject line - Any other info to be added in the letter apart from Loan Number and Loan Details.

Thanks.

[LHarveyMadman]

I sent my letter to all at once. However, that was before the new Obama plan was in place. You could try calling the loss mitigation number (800-846-2222) and see if you can make any headway there.

Still, sending in the letter can't hurt.

[icemanu]

Originally Posted by LHarveyMadman

I sent my letter to all at once. However, that was before the new Obama plan was in place. You could try calling the loss mitigation number (800-846-2222) and see if you can make any headway there.

Still, sending in the letter can't hurt.

I have called that number two weeks back and they followed up with a letter asking for a Hardship letter only.

So is it Ok to send the Email and actual post to BoA.

Thanks.

[Dan Bailey]

icemanu,
Sending your hardship letter to every contact you can is a good idea

[Hillsdale]

My subject was: Loan modification request-from a customer
or something similar

[icemanu]

Thanks for all the advices. I just send the email to all execs. Keeping my fingers crossed.

Just out of curiosity, When can I expect to hear from them? Are they fast in responding to emails ?

[LHarveyMadman]

I heard back in about a week. I think others have seen similar turnaround times as well.

[Hillsdale]

icemanu,they called me the next day! Make sure you stay close to your phones (they called me at home), because if you have to call them back, it might take a while, they don't pick up always.

Make sure you have your financial spreadsheet in front of you, they took my info over the phone

[icemanu]

I have send the Email to all execs and also faxed all the documentation required + Hardship letter to Loss Mitigation Team too.

Eagerly awaiting their positive reply for now.

[icemanu]

I got a callback from BoA for taking all financial spreadsheet info, they told me the guy who handles freddie mac loans will give me a callback beginning of next week.

Does the success rate for mod anything to do with Freddie Mac? Or does that explicitly depends on BoA and luck factor?

[icemanu]

As per BOA, I just got prequalified for the loan Mod according to the letter.

I am not too sure what prequalified means though. Can it be :
-- I will surely get some kind of adjustment ?
OR
-- I just cleared the first stage for the loan mod.

[LHarveyMadman]

Originally Posted by icemanu

As per BOA, I just got prequalified for the loan Mod according to the letter.

I am not too sure what prequalified means though. Can it be :
-- I will surely get some kind of adjustment ?
OR
-- I just cleared the first stage for the loan mod.

I would vote for the latter possibility. Nothing is guaranteed until the ink of the signatures are dry on the final paperwork.

In the meantime, I recommend that you keep following up with B of A to check the status of your modification. You might feel like you're being a pain in the a-- (that's how I sometimes felt), but just be polite and thorough and make sure that you know what's happening each step of the way.