Two homes and the Making Home Affordable Program.

[Harasboa]

I just called BOA and gave them all of my income/expense information over the phone to try to get a loan modification. The representative informed me that I didn't qualify for any programs, including the Making Home Affordable. She stated that even though Freddie Mac owns my loan I don't qualify because I own another home (which I don't make money off of, mortgage higher than rental income). I missed my first payment this June, and was informed not to make a partial payment. What should my next steps be? Should I give up?

[Evan Bedard]

Hi Harasboa please do not give up. Here is a link to the MHA and HAMP programs guidelines:
http://www.treas.gov/press/releases/...es_summary.pdf

http://www.treas.gov/press/releases/...guidelines.pdf

Also here is an email address that has helped many homeowners in the forum get started with their modification with BofA:

Barbara J. Desoer
President Home Loans and Insurance
Bank of America
100 North Tryon St.
Charlotte, NC 28255
barbara.j.desoer@bankofamerica.com

[Harasboa]

Evan,
Thank you for your response and contact information. When I send an email to the contact person you gave me, what should I include in the email? Do they want this letter to be very specific.... meaning should it include very specific income and expense numbers? Should this email be my official "hardship letter?"
I appreciate any information you have for me.
Thanks

[LHarveyMadman]

For most of us who dealt with B of A , we didn't include too much specifics about our financial information in the original hardship letter. It's important to have it all ready if/when you do receive a call.

I sent my email message to Ken Lewis, Barbara Desoer, Liam McGee, and Maryellen Baker. My case got forwarded to the Loss Mitigation folks by Ken Lewis's office.

Could you sell your investment property? If I had an investment property that was losing money, my first thought would be to unload it. It would ease my cash flow problem, and if I had equity in the property, it would give me a nice cushion in case of financial stress. Of course, if you're upside down on the investment property, then it's not straightforward, but if you could unload it in a short sale you'd still put an end to your negative cash flow.

[Harasboa]

I am upside down on my rental property about 90,000 +. I'm not sure of the specifics of a short sale (do you owe differential of sale/loan) so haven't thought of persuing that option yet. If worse comes to worse though, it will definitely have to go because I will lose rental before losing my primary residence. I was current on both properties until June. I missed my first payment on my primary residence (rental still current). I choose to pay rental over primary because I figured I had a better chance of getting modified. Do they modify rental properties if they are negative cash flow?