We are stuck in a situation with a bad loan (interest only at 5.5 for an underwater first home ) and unsure on what to do. My husband lost his job and we have been making it by on one check. When he lost his job BOA was uninformative and advised us their best advise was to short sale.
I thouht he would find a job soonl; A couple months later we have not fallen behind on payments yet but know the funds will run out. The unemployment has now cut off and we are on one salary alone with no job in sight. To make matters worst my car is at the end of its life and more money is being invested in it than a used car payment would be.
Stuck in this predicament but with some savings left we called BOA again and were advised if we had more than 3 months of house payments in the savings we would not be considered. Furthermore they advised if we bought a car regardless of type and they saw in our history we would be declined for a modification?
The rep said all else falls into the qualifications minus our liquid assets?Any advise. Can they decline us if we have liquid assets equal to about 4 months? As an alternative if we use some for the car can they then decline us then too?