So, we FINALLY got the modification offer today after about 18 months of dealing with BOA... lost paperwork time and time again, negotiators quitting, emailing the OOP repeatedly, etc. You know the drill.
My husband had lost his job 18 months ago and we entered into the trial program which was supposed to take 3 months (laughable). We made each and every payment of $1600 for 18 months. So, after all this time, we get the letter today and the in-house modification terms are:
Old Payment: $2101
New Payment: $2079
Old Rate: 7.3%
New Rate: 7.250%
Old Balance: $223,000
New Balance: $238,000
PLUS the loan is now extended for FORTY (yes, 4-0) years!
We have until March 19th to decide what to do. I am sick over the whole thing. What should we do? Of course in the 18 months, my husband found a new job ($20,000 paycut from the time we bought the home). So, the newest round of paperwork had new income. I am sure that was a factor. Had I know what we were in for 18 months ago, we would have NEVER gone down this road.
I feel like we have NO choice, but to accept the offer for fear of this dragging on for more months or even foreclosure due to the $15,000 past due.
Here are some of my questions...
How did our balance go up by $15,000?! I understand that by paying the trial payment there was a shortfall of $500 each month, but I just don't get it.
What about our credit for the past 18 months while they dragged this out? BOA has told us they will go in and make it current as mentioned in the original trial letter. Has this happened for anyone?
This has got to be the worst modification I've seen on here.
BIG THANKS in advance for all your help and advice!