Seeking Loan mod advice fortrial with BoFA 1st and 2nd

[SteveO]

I have a home in Southern Calif. - original loan $437,500K with BoFA, plus a 2nd for $48K (also with BoFA). The home value through comp sales of the exact same tract home is $234k - $245k.

Received a Fedex for a modification - filled out the paperwork and they sent me a trial payment plan. I'm considering sending in the my first payment at the end of the month to start BUT I just received 1 day ago another fed-ex for a trial payment plan for the 2nd Mortgage - I can barely afford the 1st trial plan ($2185/Mo), and there is no way I can add an additional $235/Mo - If I could, I could rent a house that was 1000 Sq-Ft larger!

My question is - although both loans are with BoFA, should I just focus on getting the 1st modified? Then worry about the second? My concern is that since both loans are with BoFA, the second might have an impact on getting a final modification on the first.

Thanks in advance,

Steveo

[Cat Damiano]

Hi SteveO,


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


What type of modification is this a HAMP or an inhouse modification? With the modification trial, the payment should be within 31 percent of your gross income for HAMP and inhouse is usually pretty close to that. What percentage of your gross income does the trial payment amount to?

[SteveO]

Thanks for responding to my post - The modification for the first is a "DOJ settlement" modification from BOFA - The payment is at 33% of my GMI. I assume this is part of HAMP program. I did go through a trial last year and was accepted for a modification but I didn't take it as it didn't make financial sense.

This time around BoFA is offering to drop the principle to $304K from $437K - Even at that reduction the house would still be 15-20% under water (comp sales in recent months - $230K - $245K)

I suspect that since the house is majorly underwater, the 2nd loan would not bother to forclose on the 1st?

However, I am still concerned that since both loans are owned by BoFA, that would affect the loan mod process on the first. The only reason I am concerned is because I got that second set of papers from BoFA for a loan mod trial on the second.

Should the course of action be to just work on getting the first permanently modded then later down the road try to settle on the 2nd?

Thanks for any insight,

Steve

[Cat Damiano]

If you are not current on either loan what most members that want to keep the home are doing is to get the first lien modification in place and then working on the second lien via the strategy thread here;

Strategy for Settling Your 2nd