Would like to modify with BofA

Arrby · 01-15-2009, 08:38 AM

Have a 30 yr. fixed loan w/BofA, 6.875% interest, $313K bal., starting mtg. was $318,500 (took out loan 7/07), payments $2535/mo. House is in the panhandle of Florida, and from what I am finding out, I'm upside down. I have also called BofA and they told me the value of my house is too low, or they have sent me on a chase calling all kinds of numbers. I have not defaulted on any payments nor have been late, but I would like to lower my payments (via interest rate).

I have called several banks and can not refi - because of my Loan to Value. So I would like to know if modifying my loan with BofA is possible or am I fighting a battle? Don't have the time to put towards the battle on the phone, full time student and husband is full time military (he has enough on his plate).

Also, several so called "loan modifiers" have called me and say that they will contact the bank, but want money up front, they say to put it on a credit card (have too much debt with card), don't have that kind of money to find out that I am not elligible for mod.

Do I have to go into debt to get out of debt?

Any help/advice is greatly appreciated.

Moe Bedard · 01-15-2009, 09:06 AM

Hi Arrby,

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

The modifications given are up to the investors on the loan and are given in situations of hardship.............if your investor is FannieMae or FreddieMac.........they are looking to modify loans that are 90+ days in default or in foreclosure for right now.

What you would need to do is to contact BofA loss mitigation and see what options the investor on your loan has and if you meet the criteria to be eligible for a modification.
Bank of America
Loss Mitigation
1-800-936-6362

Arrby · 01-15-2009, 09:53 AM

AND B OF A IS ASKING FOR ANOTHER HANDOUT

Just spoke with BofA at the 800-936-3623. Surprised that I only waited a minute with them. Gal on the phone was very helpful and understanding (wow! finally a human being)

Asked her about the hardship letter, she stated that BofA does not want to see a negative number at the end of the month. But they don't want to see a $1000 left over either. She noted please list any debts, loans, monies in, food, utilities - including cell phone bills. I know, it is time consuming and may take a weekend. State in the letter why for the hardship - they don't want to hear - because the house is not worth what I paid for it. It if it a curtailment in income - note it, or because of an increase in payment - note it. Which are both my reasons. After you have financials together, call 800-846-2222. This is also the number you call to find out who your investor is too according to BofA.
Will keep you posted as to the outcome.

Moe Bedard · 01-15-2009, 10:09 AM

Here are examples of hardship letters to help you write yours.......

Examples of a Hardship Letter

LHarveyMadman · 01-15-2009, 10:50 AM

Arrby, the fact that you have gotten that far is good news for you. Recently, other folks have mentioned that they haven't gotten anywhere when cold-calling the Homeownership Retention team, especially when they are current with their payments (like you). This is a good sign. The analyst that you were working with also gave you some very good advice about what to include in your hardship letter. You have gotten farther than the vast majority of people out there who are current with their loans, so try not to be too cynical for the rest of the process. And be prepared to wait, because B of A is getting thousands of calls a day.

Note about the "increase in payment" - they are talking about an increase in your mortgage payment, which you cannot claim since you have a fixed rate loan already.

Arrby · 01-15-2009, 11:05 AM

The increase that I am talking about is, that when I closed on my house, the title company did not submit the correct tax info to the bank, they submitted taxes on "un-improved property" house was just a yr. old. So when my taxes came due in 11/07, guess what, my taxes were adjusted and my escrow was $2500 short. I am still paying the escrow build up. So this has been a mess since day 1. I wish I could have gone after someone for that mistake.

Arrby · 01-15-2009, 11:08 AM

Sorry, I forgot to say "Thanks for the info". It really is appreciated. I am going to work on the letter this weekend. Hopeful to get action from B fo A, but if you don't try, you won't know.

LHarveyMadman · 01-15-2009, 11:46 AM

Quote:

Originally Posted by Arrby

The increase that I am talking about is, that when I closed on my house, the title company did not submit the correct tax info to the bank, they submitted taxes on "un-improved property" house was just a yr. old. So when my taxes came due in 11/07, guess what, my taxes were adjusted and my escrow was $2500 short. I am still paying the escrow build up. So this has been a mess since day 1. I wish I could have gone after someone for that mistake.

I understand. It's not really increase in payment (you were required to make the payment all along), but rather an unexpected shortfall due to a mistake by the title company. You might be able to claim that when you agreed to purchase the house, the good faith estimate of property taxes was incorrect and you based your purchase decision on the lower number. That sounds valid to me.

Like I said, compared to most you are in pretty good shape. Just make sure that your income/expense balance is reasonable. If, from the numbers that you submit, B of A thinks that you wouldn't be able to afford the payments with a modification, then your request may be denied. That is because they will conclude that regardless of whether you get a mod or not, you'll still be at risk for default.

I think they're trying to get people's cost of owning the home (i.e. principal, interest, taxes, and insurance, or PITI) to around 35% of gross (not net) income. Before my mod, my PITI represented about 41% of gross; after my mod, it was down to about 36%.

sticky619 · 03-15-2009, 10:47 PM

Hi, the information you provided is very helpful. I too am current with my payments but is looking at the option of loan modification. My situation is as followed:

2003 Purchased home: loan 80/20 ARM (three names on loan) amount $374K
2005 Refinance: $380K, fixed 30 years @5.25% ( dad and I are on the loan); we currently owe $361K and current on payment ($2,098/mo).
Today: Dad is working two jobs and we are paying for the mortgage. I was single at the time when I bought the house with my parents. We thought that everyone was going to live together. initially the adult siblings were helping with payments but now they moved out. so it is down to me and my dad. and my dad is now tired to work two jobs. I got married and has two kids of my own. My dad wants to get out of the loan. I wanted to refinance but i don't think i would qualify for a loan to cover what i owe on the house since it has depreciate a bit.

I highly need some advice. With my two kids and the house and other expensive I would be really behind. and on top of that we are having another baby in June. When I submit my financial statement, should I include my husband income too? I understand I need to submit my dad's income since he is part of the loan.

Thank you!