was TB&W now BofA need loan mod - Loan Modification Forum

baretta · 10-09-2009, 12:13 PM

Wow, I wish I had found this website a long time ago! I need some advice!
Here is my story in a nutshell:
I lost my job in May of 2008. My loan was with TB&W. I called them immediately as I knew there would be difficulty in paying my mortgage. They told me as long as I did not go more than 2 months behind, although I would continue to accumulate late fees, that I would be ok. So from May of 2008 until March of 2009 I continued to make a payment each month. I put everything I had towards my mortgage and so I got behind on everything else, car payments, 2nd mortgage, utilities. In March they offered me a 3 month forbearance. I used the money I would have been paying on my mortgage to get cought up on all the other bills. They told me that at the end of the forbearance I would resubmit my financials and then they would work out something with me such as a loan modification. they were very easy to work with and always helpful. Right about the time that the forbearance ended they got shut down and my loan was transferred to Bank of America. I sent what TB&W had requested to BofA. They told me I wasn't in their system yet and to wait for my welcome letter. I received the welcome letter about 2 weeks later and about 2 days after that I received a notice to accelerate. What a welcome, they sure didn't waste anytime. I called BofA and gave them my financial info and they said "they do not suggest any assistance at this time." WHAT?? At the time they siad with my current mortgage and other expenses that we were negative about $600 a month. So since then (about 3 weeks) I found a PT job making around $400 a month and got my credit union to modify my car loan payment by about $100 a month. I called them back and gave them the updated info. They said it was being reviewed but had no idea when I would hear from anyone. This was not good enough for me. I called a couple of days later because I didn't understand why the 1st time I called they were able to look at the #'s and tell me right then and there that "no, I did not qualify at this time" but the 2nd time they couldn't tell me squat. Just to wait. Good thing I did becasue the 2nd time I spoke to someone to tell them my situation had changed due to a PT job and lower car payment he had not updated ANYTHING plus they were showing my husbands gross income as being $400 more then it is. The notice to accelerate began October 8th so I guess I am now in foreclosure? I cannot sit back and wait and hope they help me. So, here are my questions:
1. My surplus of net income with my current mortgage and other expenses is now negative $57. From reading posts on the forum I see that they like you to have a surplus of around $500...which if they modified my payment by 31% of our gross income it would be about $500 less each month....so...am I in the right range or not??
2. Also, I have a federal tax lien on my home for about $10,000. I have read on the forum that they will work that into the loan and I have also read that you need to get the IRS to subordinate. Which is true? And if I do need to get the IRS to subordinate can I send the request before I get the loan mod paperwork? I see on the IRS website it takes about 30 days to process.
3. They keep telling me to keep making my payments, should I give them $ if they plan on foreclosing anyway or just put it aside to put towards the mod if I get it?
5. I have read many people's horror stories of working with their banks for months even years...I have only worked with BofA for around a month but am already past the point of the notice to accelerate and am scared to death of getting any further into the foreclosure process. I have seen how others have emailed bank execs and received quicker help. Does my situation/timeframe justify trying this option?
6. Lastly (I guess this is an important piece of info!) my loan is an FHA loan. Are they not required by law to work with you as long as you fall into the FHA guidelines?

Any advice would be greatly appreciated, I can't tell my children that they have to leave their home and friends.

ama125 · 10-09-2009, 09:16 PM

Hi and welcome to the forum. My loan was with Countrywide. I got the BofA Home Loans welcome kit two days after they sent me a notice of default...how do you like that?! Anyway, I will answer what questions I can but I am not an expert and simply do not know how to answer all of them.

1. My surplus of net income with my current mortgage and other expenses is now negative $57. From reading posts on the forum I see that they like you to have a surplus of around $500...which if they modified my payment by 31% of our gross income it would be about $500 less each month....so...am I in the right range or not??
I have read many posts showing 200 - 250 is what they like to see. This is all just based on what others have been told so I do not know if that is accurate.

2. Also, I have a federal tax lien on my home for about $10,000. I have read on the forum that they will work that into the loan and I have also read that you need to get the IRS to subordinate. Which is true? And if I do need to get the IRS to subordinate can I send the request before I get the loan mod paperwork? I see on the IRS website it takes about 30 days to process.
I have not crossed that bridge myself so I am not sure how that is handled.

3. They keep telling me to keep making my payments, should I give them $ if they plan on foreclosing anyway or just put it aside to put towards the mod if I get it?
That is a tough call and either way, you could be taking a gamble. Pay and no mod, now you're out that money. Don't pay and you have no guarantee that they will work with you. Many have been told to keep paying whether on a trial period or a forbearance.

5. I have read many people's horror stories of working with their banks for months even years...I have only worked with BofA for around a month but am already past the point of the notice to accelerate and am scared to death of getting any further into the foreclosure process. I have seen how others have emailed bank execs and received quicker help. Does my situation/timeframe justify trying this option?
It certainly can't hurt to try and push things along. Just keep in mind that there is no guarantee, even if you do get that call back in 24 hours.

6. Lastly (I guess this is an important piece of info!) my loan is an FHA loan. Are they not required by law to work with you as long as you fall into the FHA guidelines?
I don't believe they are "required" by law to do anything for loan modifiations. For the most part, it is voluntary. As for FHA, I have posted the links to the FHA HAMP guidelines. It is a much more restrictive program to get into than regular HAMP. See these threads for more info:

Help please! Asking for a 2% loan? What are the qualifications?

Fha- help please

Good luck to you!

Garry · 10-10-2009, 03:10 PM

FHA-HAMP is definitely more strict, but it is a better program than the regular HAMP if you can get on it. I also think you should contact HUD, I know there are more options for the FHA loans. FACT SHEET: FHA TO PROVIDE ADDITIONAL MORTGAGE ASSISTANCE TO STRUGGLING HOMEOWNERS

baretta · 10-10-2009, 03:35 PM

I have called HUD and they saent my financial info to BofA. I was inquiring about he fha mha loan mod and they said I should qualify. I guess I am a little confused about the difference between that and FHA HAMP?

daglo · 10-10-2009, 03:42 PM

Quote:

Originally Posted by baretta

I have called HUD and they saent my financial info to BofA. I was inquiring about he fha mha loan mod and they said I should qualify. I guess I am a little confused about the difference between that and FHA HAMP?

HUD is great. They submitted my papers to Indy Mac and followed them through, calling once a week for updates. They did this from March through September until I finally got the mod. It seemed like when I submitted my papers, I would have to re-submit so many things "that weren't received". When my HUD counselor did, nothing was lost. Our loan was not a FHA. We received a HAMP.

baretta · 10-10-2009, 04:17 PM

What number do you have for HUD? They haven't really done much for me but maybe I am being impatient. My biggest problem is that I was working with Taylor Bean and Whitaker for over a year and now I have to start over with BofA and I am already in foreclosure after only being with them a month. I need help fast!

baretta · 10-19-2009, 06:13 AM

So I e-mailed Barbara Doeser at the OOP on Thursday around 3:00 and by Friday at 10:00 I got a phone call! I of course wan't here, but I will be calling them back today and see what they say! I also filled out all my info on the NACA website and signed up for a workshop....wow their website is awful! I lost half of what I was typing and couldn't get back to re-enter it. I called them and they said they could fix it at my counseling appt. Anyway...wish me luck!

ama125 · 10-19-2009, 06:41 AM

Quote:

Originally Posted by baretta

So I e-mailed Barbara Doeser at the OOP on Thursday around 3:00 and by Friday at 10:00 I got a phone call! I of course wan't here, but I will be calling them back today and see what they say! I also filled out all my info on the NACA website and signed up for a workshop....wow their website is awful! I lost half of what I was typing and couldn't get back to re-enter it. I called them and they said they could fix it at my counseling appt. Anyway...wish me luck!

Glad to see you got a call back. They've been good about contacting people after sending an email, but what happens after that is a big mystery. You'll get assigned a negotiator, but how long it takes for he/she to actually open and start to work on your file is unknown. Your status online will reflect a time period of around 30 days for them to "review" your request and will list not to call before a specific date.

I would have all your questions prepared for your first contact with your negotiator:
who owns the loan?
how long is the turn around from submitting a proposal to getting an approval/rejection?
if approved, how long should it take to get the mod implemented?
will there be a trial period involved?
if there is a trial, what would prevent you from getting it made permanent other than failing to make the trial payments on time?
if there is a trial period, how are those payments applied? are they held in a suspense account?
if you are rejected the first time, can you re-apply with a new proposal and/or what other options are available?

That's all I can think of for now. Good luck to you!

baretta · 10-21-2009, 07:27 AM

Well I called barabara and amother gut (couldn't catch his name on the message...sounded like Neil?) on Monday. Had to leave a message for Barbra (go figure) and I couldn't even leave a message for the other guy...it just said he is unavailable and sent me back to the main menu. Of course it is now Wednesday and I have not heard back so I guess I will call again today. On another note, was looking at my account online and although they don't have time to get my loan modified they did have time to actually INCREASE my payments beginning in December (perfect timing) by over $100 because they say I need to have 16% reserves in my escrow account. And under Homeowners insurance it says I HAVE NONE!!! Can they do that??? Stop paying my Homeowners insurance because I am behind???

baretta · 11-05-2009, 10:59 AM

So I got a call back from Mercy (ha, thought it was Marci...when she told me her name was Mercy I thought it might be a good sign!) She assigned an executive negotiator named Amy Deaton to my case (anyone herad of her?). She called yesterday. I have an FHA and asked to be reviewed for FHA HAMP, I qualify for the front end and back end DTI but my amount which would need to be deferred in a partial claim is $5000 more then the maximum allowable amount so she said if I can come up with the $5000 that she could pre-qualify me. Anyone have any advice? I don't know how I could come up with the $5000, maybe ask my parents but I don't want to do that and then end up not getting approved! She said there are no other options for me either??? I am worried I will come up with the $5000, make my trial payments and then get denied! I am specifically worried about 2 things...one is that we have a federal tax lien on our home-the taxes are in a non collectable status and I have read that the IRS will subordinate for a mod or refinance. The 2nd is that we have student loans that are in forbearance, will they count those in my back end DTI? I asked her these questions and she just kept saying "this is a new program, I don't know" UGH! Maybe they need to do some training on the new programs!
ANY THOUGHTS??

davephx · 11-05-2009, 12:06 PM

$5000 is above WHAT "maximum allowable"

Ask maximum allowable WHAT?

Is the back payments $5000 more than the $20,000 at least for GSE's but I don't know what they are talking about with FHA. You have to know why you don't qualify before you can evaluate next step.

Just guessing if its the tax lien, 2nd etc. Can you ask for a supervisor, or call back and see if get someone smarter!

b_amagirl · 11-05-2009, 12:27 PM

Quote:

Originally Posted by baretta

On another note, was looking at my account online and although they don't have time to get my loan modified they did have time to actually INCREASE my payments beginning in December (perfect timing) by over $100 because they say I need to have 16% reserves in my escrow account. And under Homeowners insurance it says I HAVE NONE!!! Can they do that??? Stop paying my Homeowners insurance because I am behind???

Baretta
this happened to me too when BOA took over my account from TBW. they sent me a letter stating that my homeowner's insurance would be $1600 even though...the insurance company mailed a copy of the policy a month before showing it having been paid and it only cost around $800. The best thing to do in that case is get a copy of your policy and fax it to them... i think you can updated on the website/phone. good luck..

baretta · 11-05-2009, 01:28 PM

davephx,
I don't know what the rules are for the regular HAMP but for the FHA HAMP in order to get your paymetns down to the 31% they do a partial claim and the max allowable principal deferment is 30% of what your principal balance is less any past due...so in my case that amount is $5000 less then what I would need to have deferred in order to get my payments down to 31%. AARGH it is so confusing! I feel like I know way more then they do! So I think I understand why I don't qualify and supposedly coming up with the $5000 would allow me to qualify, I just worry that after I do that they will find another reason to deny me!

davephx · 11-05-2009, 01:33 PM

Yes unfortunately that makes sense. The 30% max is in regular HAMP also and it use to be if over $20,000 had to resubordinate 2nds. But new directive dropped that just need title insurance but don't fully understand.

baretta · 11-09-2009, 10:19 AM

What about this...couldn't the number I need to have deferred change based on what interest rate they are using? She told me that for FHA HAMP they use the current rate (is that 4.8 now?) and from what I can tell they are using 5.5..hmmmm...

10-09-2009, 12:13 PM	#1 (permalink)
baretta Senior Member Join Date: Oct 2009 Posts: 54 Nominated 0 Times in 0 Posts TOTW/F/M Award(s): 0	was TB&W now BofA need loan mod Wow, I wish I had found this website a long time ago! I need some advice! Here is my story in a nutshell: I lost my job in May of 2008. My loan was with TB&W. I called them immediately as I knew there would be difficulty in paying my mortgage. They told me as long as I did not go more than 2 months behind, although I would continue to accumulate late fees, that I would be ok. So from May of 2008 until March of 2009 I continued to make a payment each month. I put everything I had towards my mortgage and so I got behind on everything else, car payments, 2nd mortgage, utilities. In March they offered me a 3 month forbearance. I used the money I would have been paying on my mortgage to get cought up on all the other bills. They told me that at the end of the forbearance I would resubmit my financials and then they would work out something with me such as a loan modification. they were very easy to work with and always helpful. Right about the time that the forbearance ended they got shut down and my loan was transferred to Bank of America. I sent what TB&W had requested to BofA. They told me I wasn't in their system yet and to wait for my welcome letter. I received the welcome letter about 2 weeks later and about 2 days after that I received a notice to accelerate. What a welcome, they sure didn't waste anytime. I called BofA and gave them my financial info and they said "they do not suggest any assistance at this time." WHAT?? At the time they siad with my current mortgage and other expenses that we were negative about $600 a month. So since then (about 3 weeks) I found a PT job making around $400 a month and got my credit union to modify my car loan payment by about $100 a month. I called them back and gave them the updated info. They said it was being reviewed but had no idea when I would hear from anyone. This was not good enough for me. I called a couple of days later because I didn't understand why the 1st time I called they were able to look at the #'s and tell me right then and there that "no, I did not qualify at this time" but the 2nd time they couldn't tell me squat. Just to wait. Good thing I did becasue the 2nd time I spoke to someone to tell them my situation had changed due to a PT job and lower car payment he had not updated ANYTHING plus they were showing my husbands gross income as being $400 more then it is. The notice to accelerate began October 8th so I guess I am now in foreclosure? I cannot sit back and wait and hope they help me. So, here are my questions: 1. My surplus of net income with my current mortgage and other expenses is now negative $57. From reading posts on the forum I see that they like you to have a surplus of around $500...which if they modified my payment by 31% of our gross income it would be about $500 less each month....so...am I in the right range or not?? 2. Also, I have a federal tax lien on my home for about $10,000. I have read on the forum that they will work that into the loan and I have also read that you need to get the IRS to subordinate. Which is true? And if I do need to get the IRS to subordinate can I send the request before I get the loan mod paperwork? I see on the IRS website it takes about 30 days to process. 3. They keep telling me to keep making my payments, should I give them $ if they plan on foreclosing anyway or just put it aside to put towards the mod if I get it? 5. I have read many people's horror stories of working with their banks for months even years...I have only worked with BofA for around a month but am already past the point of the notice to accelerate and am scared to death of getting any further into the foreclosure process. I have seen how others have emailed bank execs and received quicker help. Does my situation/timeframe justify trying this option? 6. Lastly (I guess this is an important piece of info!) my loan is an FHA loan. Are they not required by law to work with you as long as you fall into the FHA guidelines? Any advice would be greatly appreciated, I can't tell my children that they have to leave their home and friends.

10-09-2009, 09:16 PM	#2 (permalink)
ama125 Senior Member Join Date: Jun 2009 Location: Reading, PA Posts: 1,495 Nominated 0 Times in 0 Posts TOTW/F/M Award(s): 0	Re: was TB&W now BofA need loan mod Hi and welcome to the forum. My loan was with Countrywide. I got the BofA Home Loans welcome kit two days after they sent me a notice of default...how do you like that?! Anyway, I will answer what questions I can but I am not an expert and simply do not know how to answer all of them. 1. My surplus of net income with my current mortgage and other expenses is now negative $57. From reading posts on the forum I see that they like you to have a surplus of around $500...which if they modified my payment by 31% of our gross income it would be about $500 less each month....so...am I in the right range or not?? I have read many posts showing 200 - 250 is what they like to see. This is all just based on what others have been told so I do not know if that is accurate. 2. Also, I have a federal tax lien on my home for about $10,000. I have read on the forum that they will work that into the loan and I have also read that you need to get the IRS to subordinate. Which is true? And if I do need to get the IRS to subordinate can I send the request before I get the loan mod paperwork? I see on the IRS website it takes about 30 days to process. I have not crossed that bridge myself so I am not sure how that is handled. 3. They keep telling me to keep making my payments, should I give them $ if they plan on foreclosing anyway or just put it aside to put towards the mod if I get it? That is a tough call and either way, you could be taking a gamble. Pay and no mod, now you're out that money. Don't pay and you have no guarantee that they will work with you. Many have been told to keep paying whether on a trial period or a forbearance. 5. I have read many people's horror stories of working with their banks for months even years...I have only worked with BofA for around a month but am already past the point of the notice to accelerate and am scared to death of getting any further into the foreclosure process. I have seen how others have emailed bank execs and received quicker help. Does my situation/timeframe justify trying this option? It certainly can't hurt to try and push things along. Just keep in mind that there is no guarantee, even if you do get that call back in 24 hours. 6. Lastly (I guess this is an important piece of info!) my loan is an FHA loan. Are they not required by law to work with you as long as you fall into the FHA guidelines? I don't believe they are "required" by law to do anything for loan modifiations. For the most part, it is voluntary. As for FHA, I have posted the links to the FHA HAMP guidelines. It is a much more restrictive program to get into than regular HAMP. See these threads for more info: Help please! Asking for a 2% loan? What are the qualifications? Fha- help please Good luck to you!

10-10-2009, 03:10 PM	#3 (permalink)
Garry Senior Member Join Date: Aug 2009 Posts: 1,156 Nominated 0 Times in 0 Posts TOTW/F/M Award(s): 0	Re: was TB&W now BofA need loan mod FHA-HAMP is definitely more strict, but it is a better program than the regular HAMP if you can get on it. I also think you should contact HUD, I know there are more options for the FHA loans. FACT SHEET: FHA TO PROVIDE ADDITIONAL MORTGAGE ASSISTANCE TO STRUGGLING HOMEOWNERS

10-10-2009, 03:35 PM	#4 (permalink)
baretta Senior Member Join Date: Oct 2009 Posts: 54 Nominated 0 Times in 0 Posts TOTW/F/M Award(s): 0	Re: was TB&W now BofA need loan mod I have called HUD and they saent my financial info to BofA. I was inquiring about he fha mha loan mod and they said I should qualify. I guess I am a little confused about the difference between that and FHA HAMP?

10-10-2009, 04:17 PM	#6 (permalink)
baretta Senior Member Join Date: Oct 2009 Posts: 54 Nominated 0 Times in 0 Posts TOTW/F/M Award(s): 0	Re: was TB&W now BofA need loan mod What number do you have for HUD? They haven't really done much for me but maybe I am being impatient. My biggest problem is that I was working with Taylor Bean and Whitaker for over a year and now I have to start over with BofA and I am already in foreclosure after only being with them a month. I need help fast!

10-19-2009, 06:13 AM	#7 (permalink)
baretta Senior Member Join Date: Oct 2009 Posts: 54 Nominated 0 Times in 0 Posts TOTW/F/M Award(s): 0	Re: was TB&W now BofA need loan mod So I e-mailed Barbara Doeser at the OOP on Thursday around 3:00 and by Friday at 10:00 I got a phone call! I of course wan't here, but I will be calling them back today and see what they say! I also filled out all my info on the NACA website and signed up for a workshop....wow their website is awful! I lost half of what I was typing and couldn't get back to re-enter it. I called them and they said they could fix it at my counseling appt. Anyway...wish me luck!

10-21-2009, 07:27 AM	#9 (permalink)
baretta Senior Member Join Date: Oct 2009 Posts: 54 Nominated 0 Times in 0 Posts TOTW/F/M Award(s): 0	Re: was TB&W now BofA need loan mod Well I called barabara and amother gut (couldn't catch his name on the message...sounded like Neil?) on Monday. Had to leave a message for Barbra (go figure) and I couldn't even leave a message for the other guy...it just said he is unavailable and sent me back to the main menu. Of course it is now Wednesday and I have not heard back so I guess I will call again today. On another note, was looking at my account online and although they don't have time to get my loan modified they did have time to actually INCREASE my payments beginning in December (perfect timing) by over $100 because they say I need to have 16% reserves in my escrow account. And under Homeowners insurance it says I HAVE NONE!!! Can they do that??? Stop paying my Homeowners insurance because I am behind???

11-05-2009, 10:59 AM	#10 (permalink)
baretta Senior Member Join Date: Oct 2009 Posts: 54 Nominated 0 Times in 0 Posts TOTW/F/M Award(s): 0	Re: was TB&W now BofA need loan mod So I got a call back from Mercy (ha, thought it was Marci...when she told me her name was Mercy I thought it might be a good sign!) She assigned an executive negotiator named Amy Deaton to my case (anyone herad of her?). She called yesterday. I have an FHA and asked to be reviewed for FHA HAMP, I qualify for the front end and back end DTI but my amount which would need to be deferred in a partial claim is $5000 more then the maximum allowable amount so she said if I can come up with the $5000 that she could pre-qualify me. Anyone have any advice? I don't know how I could come up with the $5000, maybe ask my parents but I don't want to do that and then end up not getting approved! She said there are no other options for me either??? I am worried I will come up with the $5000, make my trial payments and then get denied! I am specifically worried about 2 things...one is that we have a federal tax lien on our home-the taxes are in a non collectable status and I have read that the IRS will subordinate for a mod or refinance. The 2nd is that we have student loans that are in forbearance, will they count those in my back end DTI? I asked her these questions and she just kept saying "this is a new program, I don't know" UGH! Maybe they need to do some training on the new programs! ANY THOUGHTS??

11-05-2009, 12:06 PM	#11 (permalink)
davephx Senior Member Join Date: Jul 2009 Posts: 1,170 Nominated 0 Times in 0 Posts TOTW/F/M Award(s): 0	Re: was TB&W now BofA need loan mod $5000 is above WHAT "maximum allowable" Ask maximum allowable WHAT? Is the back payments $5000 more than the $20,000 at least for GSE's but I don't know what they are talking about with FHA. You have to know why you don't qualify before you can evaluate next step. Just guessing if its the tax lien, 2nd etc. Can you ask for a supervisor, or call back and see if get someone smarter!

11-05-2009, 01:28 PM	#13 (permalink)
baretta Senior Member Join Date: Oct 2009 Posts: 54 Nominated 0 Times in 0 Posts TOTW/F/M Award(s): 0	Re: was TB&W now BofA need loan mod davephx, I don't know what the rules are for the regular HAMP but for the FHA HAMP in order to get your paymetns down to the 31% they do a partial claim and the max allowable principal deferment is 30% of what your principal balance is less any past due...so in my case that amount is $5000 less then what I would need to have deferred in order to get my payments down to 31%. AARGH it is so confusing! I feel like I know way more then they do! So I think I understand why I don't qualify and supposedly coming up with the $5000 would allow me to qualify, I just worry that after I do that they will find another reason to deny me!

11-05-2009, 01:33 PM	#14 (permalink)
davephx Senior Member Join Date: Jul 2009 Posts: 1,170 Nominated 0 Times in 0 Posts TOTW/F/M Award(s): 0	Re: was TB&W now BofA need loan mod Yes unfortunately that makes sense. The 30% max is in regular HAMP also and it use to be if over $20,000 had to resubordinate 2nds. But new directive dropped that just need title insurance but don't fully understand.

11-09-2009, 10:19 AM	#15 (permalink)
baretta Senior Member Join Date: Oct 2009 Posts: 54 Nominated 0 Times in 0 Posts TOTW/F/M Award(s): 0	Re: was TB&W now BofA need loan mod What about this...couldn't the number I need to have deferred change based on what interest rate they are using? She told me that for FHA HAMP they use the current rate (is that 4.8 now?) and from what I can tell they are using 5.5..hmmmm...

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