We finally have achieved success. For background, we stopped paying in January of 2009. We have submitted our mod package at least half a dozen times and were denied each time. The Bank finally filed a foreclosure action (we live in Florida=judicial action required). In Florida you are forced to mediate the case if the property is your primary residence. The Bank actually came through at mediation.
We owed $320,000 on our home (one mortgage) and our payments were $2489.00 per month (6.75%). After the mod, which was finalized yesterday, our payments have dropped to $1469.89. The interest rate will be 2% for the first 5 years, increasing one percent each year after that until it reaches a max of 5.35%. The term was increased to 39 years. The Bank added the delinquent amount to the principle for a grand total now of $350,000.
We could be more happy. Just wish they had done this 12 months ago and saved us the additional principle.
On a side note, we just settled $27,000.00 in credit card debt with BOA for $4200. Around 15%. Workouts are out there. Just keep trying.
I'm a lawyer here in Florida and I can tell you from experience, the best chance to get a mod from the bank is at mediation as part of the foreclosure action. I know that's not an option for all states, but if you live in Florida, mediation is your best bet. Whew!