B of A Did'nt sound Promising!

[majestix]

Talk with B of A today just to see how my loan Mod. was progressing, I wanted to mention how I was seeing good loan mods. online. Particular this great site, for example some getting 3.5% for the first 5yrs. He told me he has mostly seen 1/2 to 1 percent drop that will not be enough to help my situation. Does this sound right to you.

[LHarveyMadman]

That's not even remotely accurate. I and at least a half dozen other people here have gotten rates below 3.5%.

[faith]

Majestix,
Welcome to this forum!

You need to call BofA or send email to their Executives and tell them if they can help you modify your loans due to financial hardship and list the reasons why you can no longer afford the payments, maybe due to loss of income, disability, no more overtime etc. Here are their phone numbers and email address that you can use. Start calling and see what options they have for you.

Bank of America Loss Mitigation
1-800-846-222
1-800-936-6362 is for 2^nd mortgage
800 846-2222 is loss mitigation for single loans
866-300-1746
716-635-7255 is for Retention Team in the Loss Mitigation Dept

Barbara J. Desoer
President of Home Loans
barbara.j.desoer@bankofamerica.com

Bank of Americalace Corporate Center
100 N. Tryon St.
Charlotte, NC 28255
Phone: 1-704-386-5681
Fax: 1-704-386-6699

Below are the email addresses you can use to ask help for BofA

ken.d.lewis@bankofamerica.com
barbara.desoer@bankofamerica.com
colleen.haggerty@bankofamerica.com britney.w.sheehan@bankofamerica.com
nicole.nastacie@bankofamerica.com
joe.price@bankofamerica.com
keith.banks@bankofamerica.com
michael.jones@bankofamerica.com
liam.e.mcgee@bankofamerica.com
brian.t.moynihan@bankofamerica.com
amy.brinkley@bankofamerica.com
steele.alphin@bankofamerica.com
liam.e.mcgee@bankofamerica.com
bradford.r.dinsmore@bankofamerica.com michelle.shepherd@bankofamerica.com maryellen.baker@bankofamerica.com

God bless and take care

[LHarveyMadman]

I don't think it's necessary to email all those people on the list. If you actually look up their job descriptions, you'll find out that some of them are just spokespersons and have no influence on the modification process. Others are executives that are responsible only for certain regions. I believe one is an executive for global banking, which doesn't apply here.

I sent an email to just four of the people on the list - Ken Lewis, Barbara Desoer, Liam McGee, and Maryellen Baker. I got a call from B of A when Ken Lewis forwarded my message on to the loss mitigation team. The other people here who have gotten modifications similarly just sent their messages to these select individuals. This is just my opinion, but sending out a mass email with no attention to the recipients seems like a spam bomb rather than a thoughtful approach to solving your situation.

[majestix]

Thank you L Harvey&Faith. I was hoping this was not the case on 1/2% to 1% drop on a loan mod. I was wondering what should be sent to the four BofA Executives.
Just my Hardship letter or should I include any financial info. My hardship letter explains my lost of income.

Can you review my letter and tell me if I need to make any changes. This was the letter I sent to loss midigation. Thank you again.

[majestix]

Sorry can't seem to post my hardship letter?

[LHarveyMadman]

Just send the hardship letter. If they are willing to play ball, they will call you and request your financial information. Make sure you have it all ready, because they could call at any time.

[majestix]

Here is my hardship letter that I would like to send to BofA Executives, what do you think.

RE: Hardship Letter

To Whom It May Concern:
I am writing this letter to explain my unfortunate set of circumstances that have caused us to become delinquent on our mortgage. We have done everything in our power to make ends meet but unfortunately we have fallen short and would like you to consider working with us to modify our loan. Our number one goal is to keep our home and we would really appreciate the opportunity to do that.
The main reason for being late is the reduction in my income. I work in the manufacturing industry and that is one of the areas affected by the current economic crisis. My overtime income has been reduced significantly.
When we refinanced our loan with BofA we did not realize that our property tax & homeowner’s insurance was excluded from our monthly payment, sorry for our negligence in this matter. We had our adult kids move in with us to help us for awhile to keep making our payments on time. This income is no longer available to us.
We are at the point in which we cannot afford to pay what is owed to Bank of America. It is our full intention to continue paying, but at this time we have exhausted all of our income and resources and are turning to you for help.
My second mortgage is with National City, and I am trying to work out a plan with them as well, but I just received a letter stating my loan is being transferred to Green Tree Servicing as of 7/01/09, so I will continue to work on this.
We are currently working on cutting our bills, phone, cable, etc. To lower our
income to debt ratio. We have not been late or have missed any payments to date and want to keep it that way. We desperately want to keep our house. We believe that a loan modification will do just that. We want to preserve our credit and good standing with you and just need a second chance to do that.
Sincerely and Respectfully,

[jmayflower55]

I sent my first request for modification to BOA on March 22, 2009. I included all requested documents Income/expense and explanation of circumstances leading to our inability to pay. I followed up every week with loss mitigation and was told to please be patient. In April we were notified by mail from the Home Retention Group, on BOA letterhead, that BOA was extending an offer to us for modification of our Fannie Mae Pool loan with BOA, our loan met the criteria for HAMP (Home affordable modification Program). I called the number on the notice and they also took my information again verbally. Then we started getting automated phone calls indicating that we should have received a FedEx with the modification packet by this time. I called BOA and Home Retention Group and BOA Loss Mitigation and told them we hadn't received anything. They said they had no record of my ever submitting our modification information . This was May 4th. I resubmitted our financial information to the operator and I call virtually every day to check on the statis. I have faxed, express mailed, called and pleaded with anyone who would listen stating that our loan is now in serious delinquency and I desperately need information about wether we will qualify for modification or if we need to prepare for foreclosure. No one would even offer to take a look at our application. I was told this past week that it may take another 4 weeks for a response. By the time they respond the loan will be thousands more in arrears. I told BOA that I take full responsibility for our situation, I am not whining. We want to fulfill our obligation under our mortgage contract with them and are willing to accept ANY modification terms that reduces our payment and gets us back on track. Not one person has responded. We are 4 months since we first applied for modification. I hope you have more success. Best of Luck.

[faith]

Majestix,
Your letter looks good, but take out the part about your children moving in and no longer available to help you. You don’t want them to think about anything else in this matter.

Make sure your hardship letter explains your hardship like due to loss of income, sickness, family issues, and the circumstances that caused it. Explain what steps have been taken to correct the situation. Provide the lender with your plan to get back on track and stay there. Assure the lender that you are a responsible homeowner who just needs a second chance and that you are very motivated to save your home.

Here are the guidelines for the modification, payment and the gross income criteria >>

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

Information and guidelines for the new modification program dated March 4^{th c}heck your eligibility>>

Making Home Affordable - Home Affordable Modifications


Naca https://www.naca.com/refinance/refinanceTenStep.jsp

Below is the link for Success stories of all the lenders, please click on it and read you might get some helpful tips and ideas on how to deal with BA.

http://www.loansafe.org/forum/success-stories-homeowners-who-fought-back-won/

God bless

[faith]

Mayflower55
I am sorry to hear about BA, you need to call, call call, email, email BA to get the result that you want. As Moe always says, the Squeaky wheel gets the grease so don't lose hope and keep asking, it's only through asking you will get the result that you want.

Send your financial hardship letter and request to the email addresses below, one member in this forum did just that, and he got the attention he needed and his loan mod request was apprpved.

Bank of America Loss Mitigation
1-800-846-222
1-800-936-6362 is for 2^nd mortgage
800 846-2222 is loss mitigation for single loans
866-300-1746
716-635-7255 is for Retention Team in the Loss Mitigation Dept

Barbara J. Desoer
President of Home Loans
barbara.j.desoer@bankofamerica.com

Bank of Americalace Corporate Center
100 N. Tryon St.
Charlotte, NC 28255
Phone: 1-704-386-5681
Fax: 1-704-386-6699

Below are the email addresses you can use to ask help for BofA

ken.d.lewis@bankofamerica.com
barbara.desoer@bankofamerica.com
colleen.haggerty@bankofamerica.com
britney.w.sheehan@bankofamerica.com
nicole.nastacie@bankofamerica.com
joe.price@bankofamerica.com
keith.banks@bankofamerica.com
michael.jones@bankofamerica.com
liam.e.mcgee@bankofamerica.com
brian.t.moynihan@bankofamerica.com
amy.brinkley@bankofamerica.com
steele.alphin@bankofamerica.com
liam.e.mcgee@bankofamerica.com
bradford.r.dinsmore@bankofamerica.com michelle.shepherd@bankofamerica.com
maryellen.baker@bankofamerica.com

God bless and take care
__________________

[LHarveyMadman]

majestix and jmayflower, like Faith said, you need to be all over B of A like flies in the potato salad. Early in the process, I called them at least every other day, and even when my mod was on its way to being finalized, I called them at least once a week for updates, even though there were none to be had from January through April.

Also, I kept fairly detailed notes of each call - the number called, the date and time of the call, and the name of the analyst with whom I spoke. That way, if I was told something that didn't jive with what I understood, I could always refer to a specific call on a specific date.

It's easy to be frustrated in this process - believe me, I certainly was - but despite my irritation at times, I was always polite to the analysts, even if I felt that the service wasn't quite up to snuff. These reps are overworked and underpaid cogs in the B of A wheel, and they're doing their best with guidelines that are continually shifting. Furthermore, each situation is different, and they aren't always able to apply blanket rules across the spectrum.

Good luck!

[jmayflower55]

Thank you both for your kind response. Yes I do keep detailed notes on each call and to whom I spoke about what and when. I printed out from th "Making Home Affordable" website supplemental directive 09-01. This is the program outline which is meant for Loan servicers not borrowers. I did however use their guidelines to asess the probability that we may be offered modification. The only thing I had a problem applying was the NET PRESENT VALUE TEST, the results of which provide the loan servicer with a positive or negative that gives the lender/investor disgression as to whether modification will be offered on severely delinquent loans. If I knew how to apply this NPV TEST to our property and loan it might reveal our chances for a modification offer. Can anyone explain the NET PRESENT VALUE TEST? Thank you again. Jan

[faith]

Jmayflower55,

Participating loan servicers will be required to use a net present value (NPV) test on each loan that is at risk of imminent default or at least 60 days delinquent. The NPV test will compare the net present value of cash flows with modification and without modification. If the test is positive, meaning that the net present value of expected cash flow is greater in the modification scenario, the servicer must modify absent fraud or a contract prohibition.

Parameters of the NPV test are spelled out in the guidelines, including acceptable discount rates, property valuation methodologies, home price appreciation assumptions, foreclosure costs and timelines, and borrower cure and redefault rate assumptions.

Servicers will follow a specified sequence of steps in order to reduce the monthly payment to no more than 31 percent of gross monthly income -DTI. The making home affordable mortgage modification sequence requires first reducing the interest rate (subject to a rate floor of 2 percent., then if necessary extending the term or amortization of the loan up to a maximum of 40 years, and then if necessary forbearing principal. Principal forgiveness or a Hope for Homeowners refinancing are acceptable alternatives.

The monthly payment includes principal, interest, taxes, insurance, flood insurance, homeowners association and/or condominium fees. Monthly income includes wages, salary, overtime, fees, commissions, tips, social security, pensions, and all other income. The program will share with the lender/investor the cost of reductions in monthly payments from 38 percent DTI to 31 percent DTI.

Servicers that modify loans according to the guidelines will receive an up-front fee of $1,000 for each modification, plus pay for success fees on still-performing loans of $1,000 per year.

Homeowners who make their payments on time are eligible for up to $1,000 of principal reduction payments each year for up to five years. The program will provide one-time bonus incentive payments of $1,500 to lender/investors and $500 to servicers for modifications made while a borrower is still current on mortgage payments.

The program will include incentives for extinguishing second liens on loans modified under this program. No payments will be made under the program to the lender/investor, servicer, or borrower unless and until the servicer has first entered into the program agreements with Treasurys financial agent.


Source:
U.S. DEPARTMENT OF THE TREASURY

[LHarveyMadman]

To understand the NPV test, the important thing to realize is that it is test for the bank to determine which option would lead to a better outcome for the bank, not the borrower.

The easiest way to understand this is by setting up two scenarios, to illustrate a positive NPV and a negative NPV test.

For both scenarios, assume that the borrower is in financial hardship and is unable to afford the loan payments and will go into foreclosure without a modification. These are highly simplified - no situation is going to be as basic as these - but I'm laying these out just to provide a very basic illustration.

Scenario #1: The borrower is in a hard-hit area, with loan balance of $500,000 at 7% and a market value of $250,000. If the bank lets the home go into foreclosure, it will lose a lot of money, because it will recover only half of what the borrower owes. If they reduce the borrower's interest rate to 3% and the borrower can afford the loan, then the bank doesn't lose any money and continues to collect interest and principal payments. The NPV test is positive, in favor of modification.

Scenario #2: The borrower lives in an area that has not seen a price decline, and owes $500,000 on a home worth $550,000. The interest rate is 7%, but the borrower can't refinance because he's been late several times in the last couple years. The bank looks at a possible modification with an interest rate of 3% and compares it to what would happen if the home went into foreclosure. Because the home value exceeds the loan balance, the bank stands to recover its entire investment. If the money it stands to collect with a modification is less than what they would recover in foreclosure, then the NPV test is negative, and the bank is under no obligation to modify the loan.


Things get more complicated if there is PMI in place, because even under scenario #1, if the home goes into foreclosure the bank would collect an insurance payment from the mortgage insurance company that would offset part of their loss. This offset would be used in the NPV test.

[faith]

Here are also the examples of ways the Home Affordable Modification Plan can help make your mortgage affordable. These are examples and are not intended to indicate the exact results you can expect if you qualify for this plan.
GMI is Gross Monthly Income
PITIA is Principal, Interest, Taxes, Insurance and Association Fees
DTI is Debt to Income Ratio

GMI	$ 4,000.00
31% GMI (Target Monthly Payment)	$ 1,240.00
Loan $200,000 @ 7.5% 30 years	$ 1,398.43
Taxes and Insurance	$ 250.00
PITIA	$ 1,648.43
Modify rate to 4% to achieve a DTI of appx 31%
Modified Rate to 4%:	$ 954.83
Taxes and Insurance:	$ 250.00
New Payment	$ 1,204.83
Savings	$ 443.60
Example 2: Rate reduction and extending term of loan to 35 years to achieve 31% DTI
GMI	$ 3,000.00
31% GMI (Target Monthly Payment)	$ 930.00
Loan $200,000 @ 7.5% 30 years	$ 1,398.43
Taxes and Insurance	$ 250.00
PITIA	$ 1,648.43
Modify rate to 2%. Modify term to 35 years to achieve a DTI of appx 31%
Modified Rate to 4%:	$ 662.53
Taxes and Insurance:	$ 250.00
New Payment	$ 912.53
Savings	$ 735.90
Example 3: Rate reduction, term extension and principal forbearance to achieve 31% DTI
GMI	$ 4,500.00
31% GMI (Target Monthly Payment)	$ 1,395.00
Loan $450,000 @ 9.0% 30 years	$ 3,620.80
Taxes and Insurance	$ 250.00
PITIA	$ 3,870.80
Modify rate to 2%. Modify term to 40 years
Modified Rate to 2% for 40 years:	$ 1,362.72
Taxes and Insurance:	$ 250.00
New Payment	$ 1,612.72

Because lowering the rate to the maximum floor of 2% and extending the terms of the loan to 40 years still does not achieve the desired DTI of 31%, the lender, at its discretion can elect to forgive or forebear a portion of the principal to achieve the 31% DTI. In this example the lender elects to forbear $75,000 of the principal which would be due as a balloon payment at the end of the term of the loan or if the home were to be sold. This is not expected to be a common practice and would most likely be used in an instance where the borrowers suffered a loss of income and the home suffered a sharp decrease in value.

Modified Rate to 2% for 40 years calculated on $370,000			$ 1,135.60
Taxes and Insurance			$ 250.00
New Payment			$ 1,385.60
Savings			$ 2,485.20

[ugh_2009]

I have an NPV test example that was orignally downloaded from www.efanniemae.com (it's really just an excel file). I can't seem to be able to attach it to a post, anyone know how to do that or is that feature disabled?

[majestix]

Thank you, Faith,LHarvey. All your input and information is very much appreciated. I know this forum has helped me very much as well as a lot of people.

I will try to keep you informed as I progress through this difficult situation Thanks again, and thank you mayflower55 for your input as well. Hopefully we all will get through this together.

[majestix]

I recently revised my Hardship letter so I can send it to BofA Executives. I am ready to send the letter just would like to know is there any statement I should put in with the letter or just send the letter. Here is my revised letter hope this looks better.

RE: Hardship Letter

To Whom It May Concern:
I am writing this letter to explain my unfortunate set of circumstances that have caused us to become delinquent on our mortgage. We have done everything in our power to make ends meet but unfortunately we have fallen short and would like you to consider working with us to modify our loan. Our number one goal is to keep our home and we would really appreciate the opportunity to do that.
The main reason for being late is the reduction in my income. I work in the manufacturing industry and that is one of the areas affected by the current economic crisis. My overtime income has been reduced significantly. When we refinanced our loan with BofA we did not realize that our property tax & homeowner’s insurance was excluded from our monthly payment, and this kept compounding our problem. Sorry for our negligence in this matter.
We are at the point in which we cannot afford to pay what is owed to Bank of America. It is our full intention to continue paying, but at this time we have exhausted all of our income and resources and are turning to you for help. My second mortgage is with National City, and I am trying to work out a plan with them as well, but I just received a letter stating my loan is being transferred to Green Tree Servicing as of 7/01/09, so I will continue to work on this.
We are currently working on reducing our monthly bills. To lower our Income to debt ratio. So with a loan modification we will be able to keep our home. We have not been late or have missed any payments to date and want to keep it that way. We desperately want to keep our house. We believe that a loan modification will do just that. We want to preserve our credit and good standing with you and just need a second chance to do that.
Sincerely and Respectfully,

[faith]

[quote=majestix;101422]I recently revised my Hardship letter so I can send it to BofA Executives. I am ready to send the letter just would like to know is there any statement I should put in with the letter or just send the letter. Here is my revised letter hope this looks better.

RE: Hardship Letter

Your letter is good but here are some more tips about writing a hardship letter
and also the link you can check the example hardship letter in this forum.

link:
http://www.loansafe.org/forum/loan-modification/135-examples-hardship-letter.html


Some more tips:
1) Write down every idea that pops in your head about why you can't afford your house. Why are you having financial difficulties. Loss of job, medical bills, increased property taxes, child's college education tuition, divorce, credit card debt, etc. Write every possible thought that has any affect on your financial situation or your wanting to get a loan workout. It doesn't matter what you write down. Don't think too much, just write whatever pops in your head. Sit and write until you have at least 5 ideas. If you don't have 5, you're thinking too much. Just write whatever pops in your head.

2) pick the most obvious ones that have the most affect on your financial situation and ability to make payments on the home. Look at the list as if you were Countrywide, or Washington Mutual, or your specific bank. Which hardships would you look at as the most crucial? Once you select 3 or 4 hardships, focus on them and explain exactly why they are affecting your ability to make payments on the loan. (For example: I was laid off on Sept. 27 and as a result, my monthly income has decreased by $2,100.)

3)Rule # 1, make your hardship letter less than one page paragraph form. Loan workout department reps look through many letters. They don't want to be reading a novel to find out why you can't afford your mortgage payments.

4) Line 1: At the top of the hardship letter type your bank's name that you are requesting the loan workout from. Line 2: put their address. Line 3: type their phone number and fax number. Skip a space. Line 4: type the date. Line 5: type "RE: Request for Loan Workout - (Your Loan # and Property address). Skip a line and start your letter with: "Dear (Bank's Name) Representative

5) Mention what change took place why you can no longer afford your payments. Keep it brief and simply let them know that some change happened between the time you bought the home and now which has affected your ability to pay your mortgage loan. Ex: "There has been significant changes in in my financial situation since I purchased my home in October 2001

6) 2nd paragraph: State why your area is bad. Ex: "My property is located in ______ town. The taxes have increased, property values have declined, there are 5 foreclosures on my street, etc." List any bad circumstances for your specific location that support your case for a loan wor

7) List any of the following and explain using details and specific numbers as best as you can.
• wrong doing by mortgage loan broker, bad adjustable mortgage loan on the property.
• hardships (income I depended on is no longer available, increased bills, inability to work due to health or disability, etc. - from your brainstorm list).


8)Final paragraph: Clearly state that you "cannot pay" and need to negotiate a loan workout. You don't have any other options available. Leave your contact info or your agent's contact info if they require further information.

Sign, date, and give to your lender or bank.

Thanks,