Bank of America loan mod -SUCCESS!!

[LHarveyMadman]

Originally Posted by dee-fresh

Any thoughts on what leads to the "no" from the investor? Just been tying to figure out why they would rather have me foreclose/walk away instead of a mod?

That seems to be the trend, so what is their advantage to having so many foreclosures? Does the Investor have some sort of insurance hedging his investment? Can't figure it out.

The basic question that the investor will ask is this: which option will earn or save us the most money - modification or foreclosure?

Here's some very simplified examples of how a person's situation might lead to different answers to the question.

1) A borrower is no longer able to afford his payments. He owes $500,000 on a home now worth $300,000. His interest rate is 6.5%. If the home goes into foreclosure, the lender/investor will lose $200,000. If the lender/investor grants a modification with a new interest rate of 3%, they won't lose any money, but will have to accept the lower interest payments.

2) A borrower is no longer able to afford his payments. He owes $500,000 on a home worth $700,000. His interest rate is 6.5%. If the home goes into foreclosure, the lender/investor will be able to recoup every last penny that is owed once the foreclosed home is sold. They can then re-lend that money to another person at prevailing interest rates, which are around 5%. A modification would require an interest rate of 3% to make it affordable to the borrower. If you were an investor, which option would you choose - an investment that gives you a 3% return, or one that gives you a 5% return?

The smart thing for the borrower to do in situation #2 would be to sell the home. A lot of homeowners, however, are intent on saving their home, and may futilely pursue a modification despite the fact that the odds are against them.

[dee-fresh]

Thanks Lharvey. So I guess the real question will become how much my home is worth now. I owe just above 600, so for the first time I have to hope that my home is actually worth less than I owe...pretty crazy.
Anyway, thanks for the reply.

D-

[kathowen5]

Hi -- I am currently working w/my lender Countrywide, which is now BOFA for loan modification for 3 months now. The process has been really slow and I just signed up w/NACA yesterday and have a phone consultation w/them on 9/2/09. In February 2008 we had our loan modified and basically all they did was add our late payments to the end of our mortgage and our pymnts went up. Needless to say, financial situation got worse and in August of 08 we filed Ch 13 bankruptcy, which at the time our mortgage payments were caught up and was not included in the filing. We are now 5 months behind again and the lender just filed a motion with the court to have the mortgage released from the bankruptcy and I am guessing to start the foreclosure process. Can anyone tell me if they will modify our loan a second time? Is NACA who I should be working with? We are financially secure now able to make a payment, but we do not have enough cash to catch the loan up. What do you suggest? I want to keep my house. Please help, I am a wreck.

[alikeith]

Kathowen5-
They will modify more then once. I have had 2 mods with Countrywide now BOfA. They say i have had 3 but i haven't. I am now working on another mod and am just waiting for approval. Stay positive. it can and will happen.

[dee-fresh]

Any thoughts on how much "less" a house is worth in foreclosure vs regular sale? I can see recent sales on Zillow, and using the cost per square ft I think I can get relatively close to what mine would go for, but that is not what the Investor would see...correct? Wouldn't they be getting the foreclosure amount, not necessarily the market?

If so, do you think there is a percentage I could use...like my place might list for 600ish if I was to try to sell, but if it was a foreclosure that number would be more like...

[kathowen5]

How do I get ahold of Stacey that everyone has had success with modification?

[kathowen5]

Originally Posted by alikeith

Kathowen5-
They will modify more then once. I have had 2 mods with Countrywide now BOfA. They say i have had 3 but i haven't. I am now working on another mod and am just waiting for approval. Stay positive. it can and will happen.

Thanks, can you forward me any names of people you have worked with at BOFA? I would love to work with people that you have had success with.

[kathowen5]

Originally Posted by alikeith

Kathowen5-
They will modify more then once. I have had 2 mods with Countrywide now BOfA. They say i have had 3 but i haven't. I am now working on another mod and am just waiting for approval. Stay positive. it can and will happen.

One more ?, was your loan backed by Fannie or Freddie Mac? Ours is. Thank you again.

[ugh_2009]

Originally Posted by dee-fresh

Any thoughts on how much "less" a house is worth in foreclosure vs regular sale? I can see recent sales on Zillow, and using the cost per square ft I think I can get relatively close to what mine would go for, but that is not what the Investor would see...correct? Wouldn't they be getting the foreclosure amount, not necessarily the market?

If so, do you think there is a percentage I could use...like my place might list for 600ish if I was to try to sell, but if it was a foreclosure that number would be more like...

It depends on the location. The servicer will use something called "REO stigma" to estimate how much less the house will be worth in a foreclosure. The FDIC NPV test has it at 20% but I can't tell you if this is a typical number or not.

[Garry]

Originally Posted by LHarveyMadman

2) A borrower is no longer able to afford his payments. He owes $500,000 on a home worth $700,000. His interest rate is 6.5%. If the home goes into foreclosure, the lender/investor will be able to recoup every last penny that is owed once the foreclosed home is sold. They can then re-lend that money to another person at prevailing interest rates, which are around 5%. A modification would require an interest rate of 3% to make it affordable to the borrower. If you were an investor, which option would you choose - an investment that gives you a 3% return, or one that gives you a 5% return?

The smart thing for the borrower to do in situation #2 would be to sell the home. A lot of homeowners, however, are intent on saving their home, and may futilely pursue a modification despite the fact that the odds are against them.

I owe $131,000. on my first and the house at present is worth a little under 200k, I'm on the MHA mod trial. Keep fighting!

[LHarveyMadman]

Originally Posted by Garry

I owe $131,000. on my first and the house at present is worth a little under 200k, I'm on the MHA mod trial. Keep fighting!

I'm stunned to hear that with a LTV of less than 70% that you would have been considered for any MHA program at all! For people who have nearly 30% equity, I figured they would automatically be told to seek a conventional refinance. After all, the MHA program is intended for those who have no other options for relief, and you clearly had other, easier options.

Also, it seems like the most logical option within MHA would have been the refinance program, not the modification program.

[beelzebub]

Originally Posted by dee-fresh

Good morning everyone, first timer here. I was wondering, of anyone here that has received a mod, are any of your loans NOT backed by Fannie/Freddie?

I got it modified, and mine was not owned by Fan/Fred and it was not jumbo.

[CouldaWouldaShoulda]

Hello. I've been lurking on this site for a while as well. Here's the sitch: BofA is our investor and servicer. We have a 40 year fixed at 6.875%, 10 years interest only. Loan originated in 8/07 for $500K (jumbo -- to wit, not Fannie or Freddie). Balance is $498-ish as we consistently made small principal only payments. Due to a job loss, we are currently short on income about $3,500 once unemployment kicks in. I faxed a hardship letter requesting to be enrolled in HAMP along with paystubs, bank statements and the Reassessment Notice recently valuing our house at $248K (Ummm... in just TWO YEARS????). I called BofA today and they received my fax and said to wait 3 weeks for matter to be assigned to someone and then an addition 45 days after that for an evaluation. Do I sit tight or attempt the email the executives route? I KNOW they are overwhelmed, just wondering if there's a faster track. Of interesting note, whenever I say the HAMP program, they act like they've never heard of such a thing! Thanks for any input.

[beelzebub]

Originally Posted by CouldaWouldaShoulda

We have a 40 year fixed at 6.875%, 10 years interest only....I called BofA today and they received my fax and said to wait 3 weeks... Do I sit tight or attempt the email the executives route? ... whenever I say the HAMP program, they act like they've never heard of such a thing!

We had a similar loan (but not jumbo). Did you get your loan through the BofA+ACORN program? Ours was also a 40 yr loan w/ 10 yr interest only the first 10 years, and our interest rate was 6.625%.

I don't know whether you should sit tight. I don't think it would hurt for you to contact the various execs that are recommended in this thread.

As for "HAMP", did you say "hamp" or the "Making Home Affordable Program?" I never used the acronym hamp. Sometimes I said "the Obama plan" and they knew what I was talking about.

Good luck,

-BLZB

[Here's Hoping]

BLZB - Hello -- this is really "CouldaWouldShoulda," but I couldn't log on and had to re-register. This site is like Fort Knox! Anyway, yes, our loan was originated through the BofA-Acorn program. I'm interested in what hardship you had to show and how you were successful. As far as HAMP (Home Affordable Modification Program) that is the acronym that is referred to in all the research I have conducted. HARP is the Home Affordable Refinance Program. Thank you so much!

[beelzebub]

Originally Posted by Here's Hoping

I'm interested in what hardship you had to show and how you were successful.

My wife had a home-based childcare business which she could no longer operate profitably because she got pregnant, had a very difficult pregnancy, and our new house is not suitable (too small) for that anyway.

As far as HAMP (Home Affordable Modification Program) that is the acronym that is referred to in all the research I have conducted. HARP is the Home Affordable Refinance Program.

Well, HAMP might well be the technically correct acronym, but in my experience talking to BofA telephone reps, "the Obama plan" was the most easily recognized.

-BLZB

[Here's Hoping]

Well, I'm glad to hear that an Acorn loan was approved for a mod. Did your loan convert to a 30 or 40-year fixed PITI payment? Are you in CA? We are on the Central Coast and property values have plummeted. I crack up at the "good news" about home sales picking up... Duh! The prices are literally HALF what they were two years ago. I hope and pray that this mod goes through. Patience is definitely NOT a virtue of mine, but I will wait and see. Congratulations to you and yours.

[nygirl07]

I applied for a loan modifcation at the end of July...I followeed the advice of this board and emailed the exects and got a call 24 hrs later....They had me send it our pay stubs, expenses and a few other things and 48 hrs later we got a call saying we were pre approved for the modification and that it would be assigned to someone and we would get a call back in 3-4 weeks.

I've been calling every week just to check in and they said I've been assigned to someone and I'm scheduled to be called back on Sept 3rd. What can I expect with this call back? Are they going to offer me my modifcation or ask for more info?

Our situation is a loss of income due to being self employeed...We have two mortgages with a balance that totals $172,000 and our monthly payment is $1595 including taxes and insurance.

What did everyones income to expenses show? I sent ours in showing a small surplus and they sent us an approval letter saying we had a $500 more in expenses then income. We aren't sure how they came up with it but we are assuming they took our lowest monthly income (since in changes monthly due to being self employeed).

Just curious as too what I can expect

[RE.Brok.er.MyrtleBeach]

According to the Bank of America website, on August 3, 2009 they announced some "upper executive" changes so you may want to "delete" some old names and add some new. One higher level management position was that held by Liam McGee who is mentioned earlier in these "threads" as to who to send an email to.
Ken Lewis Announces Management Changes at Bank of America - Aug 03, 2009

Can someone please post the MOST CURRENT email names and addresses of the executives that folks can send an email to?

I have been a real estate agent for many years and have NEVER seen the country in the state that we are in. I, myself, am in a position of losing my own home due to a FORCED change in my husband's job and loss of income in my business. Today, I will be writing our hardship letter. I read through alot of the postings here last night up until 3am and then couldn't sleep thinking about how truly traumatic the entire situation is to not only "grown-ups" but to our children and families.

I received a letter from Bank of America and we are behind 3 months in our payments. If we rented it would save us a total of $2000 per MONTH if we take into consideration the following current outlay for owning a home: Maintenance is very costly- we need flooring, wood repair, paint and upkeep to our a/c heat system, our electric bill is very high per month: $395.
Our current P & I: $2700 and the Taxes and Home Insurance of an additional: $350 - WE COULD BE RENTING FOR APPROXIMATELY $1300 PER MONTH and our electric bill would be smaller -
What to Do? What to Do? - I have ALWAYS looked at homeownership as "forced savings" because if we rented and were paying less per month, somehow IF there was any additional money left over - it would BE SPENT !!

I sell real estate but am finding it difficult to sell in these hard times. Somehow, there are a very few agents in our area who get ALL OF THE government backed foreclosures for their listings which get sold in a matter of days !! There are about 5 agents who get 90% of the listings !! Those agents have become RICH OVERNIGHT and I KNOW they will make more than $300,000 this year alone in selling FORECLOSED HOMES while sooooooo many other agents will be losing their homes making only $25,000 per year if that.

ANYWAY... I am wondering if I should even apply for the loan modification if 64% of people who have it done are falling back INTO default ??? Any thoughts, suggestions?? My home is NOW worth $70,000 LESS than the mortgage owed. I paid over $400,000 for it 4 years ago.

OPTIONS??? DEED IN LIEU OF FORECLOSURE, Modification, short sale...(My home needs over $25,000 in repairs and is not in the condition that it SHOULD be in for me to allow clients and agents to view it.)

WOW - This all is just so overwhelming and putting such tremendous STRESS on my marriage and my business. I almost want to just "let it go" and start over... someone please give me a pep-talk and tell me why I should HOLD ON TO MY HOME.

Thanking you in advance.

[LHarveyMadman]

I think most people have been getting contacted through Barbara Desoer's office; her email address (listed earlier) is still valid, I believe. Personally, I was told by the B of A rep who made first contact that my email message was forwarded to her by Ken Lewis.

[windyCA]

Help!

Just got my loan mod offer letter from BoA today (9/8/09) after came home from work. The letter is dated 9/2/09, and we need to sign and return the acceptance letter within seven days from the date of the letter, so tomorrow (9/9/09) is the last day that we need to return it(what if the letter comes in tomorrow or later?).

It is impossible for them to receive the letter by tomorrow, I can only mail it out by overnight tomorrow morning! The letter also said if they do not receive the acceptance letter, the offer will expire automatically without further notice. It is rediculous, the letter was mailed out from NY on 9/4/09 via first class mail and it was labor day weekend!

Any suggestion or thought?

The letter we received is only an acceptance letter that we need to sign, and was told that once we return the acceptance letter, they will mail another package vis Fedex overnight, which will need to be notarized.

It sounds a little different than the process I have heard from this website. Can anyone let me know if they went through the same process?

We are still current, except that we haven't made September payment yet as instructed. On the letter, there is a paragraph said: "your mortgage is currently in default. Collection activities, which may include foreclosure, may continue. If you sign the attached acceptance and perform as required in this commitment, we will cease any collection activity when the mortgage is modified."

Is this standard language? Will there be any negative impact on my credit report in the future based on this?

Finally got the offer after more than 4 months waiting, but it seems that they still try to give you a hard time. Can't relax a little bit until signing the actual loan modification document and getting the acount updated in their system.

[nativelasvegan]

Your situation is very similar to mine. I too am a Realtor and not able to afford my monthly mortgage payments. I started my home loan modification with Countrywide/B of A in April. After talking with inept reps at the toll free number of B of A’s website, I decided to contact the executives. I also called and wrote my STATE senators daily. I filed a complaint with the BBB, Comptroller of Currency and Attorney General. I started with Barbara Desoer. I made formal application with Barbara/ B of A by sending her a loan application, hardship letter, copies of my last two years tax returns, copies of our last two months bank statements, and copies of our two most recent check stubs. I indicated in my letter to her that it was a formal application for consideration of the government backed home loan modification program. I also provided her with a spreadsheet showing her the cost of foreclosing on my house and keeping real estate on their books. I let 10 days pass and then started calling her office three times a day. I finally received a call from Pam Preciado from the executive offices, informing me that my application was being considered and I would hear from someone soon. I let about five days pass and started calling Pam every day. My file was with a Jeff Momo in the Home Retention Department. I called him three times a day for several weeks. I have now been told that I am approved for the modification. My current payment is $2400 P&I only. I have been approved for a “trial” period where I will have to make 3 payments for $2123. After the 3 payments are made, my payment drops to $1487 (PITI!) a month, 2% interest fixed for 5 years. It is my understanding that banks who received taxpayer bailout money are REQUIRED to participate in the making home affordable program. The banks are allowed to reduce a monthly mortgage to 31% of a borrower’s gross income. Figure out your gross monthly. Multiply it by 31% and you should have the figure of what the bank can offer you on the modified plan.

I too thought about renting my home. Our home also needs some work and I was not able to lease it. I am a leasing agent with the biggest company in my city, resources at my disposal, and was not able to rent my home. Since leasing was not an option, I am going to get a modification from the bank. It seems that if you lease your home, you are going to be in a terrible negative cash flow situation. PLEASE HOLD ON TO YOUR HOME. Although I have not received my modification paperwork, I am not giving up. This house has almost cost me my marriage, my family. However, the fight is almost over. I will still have my family and I will have my home. I can’t tell you how many times I have wanted to give up and just walk away. Please, DON’T GIVE UP! If you follow the advice of the followers on this website, you will have a chance to save your home. Talk to your family about the fight you are getting ready for, and ask for their support. If I can help you in any way, please let me know.

[nativelasvegan]

I would send it back via certified mail, return receipt requested, TODAY. Sending it using this method will provide you with a receipt from the post office indicating the date it was mailed. I would fax it too.

[nativelasvegan]

I sent an email to Barbara last night barbara.j.desoer@bankofamerica.com and got a call from a lady named Eileen (Eileen's number: 626.584.2309) this morning. Eileen told me that she got the email I sent to Barbara last night.

[nativelasvegan]

This was for RE BrokerMyrtle Beach. Sorry. New to this forum.