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Any recent Bank of America settlements on second mortgages?

Discussion in 'Debt Settlement' started by indeep1959, Mar 3, 2012.

  1. indeep1959

    indeep1959 LoanSafe Member

    As someone with a BOA second mortgage, I seem to see a lack of success stories with settling seconds with them.

    Was wondering if people could post if they have been successful?

    This is my strategy to settle with them at 5 or 10% but don't see any positive stories on these.

    Haven't paid my second in 3 years,still get monthly statements though.
  2. TomEason

    TomEason LoanSafe Guide Staff Member

    indeep1959

    Thanks for your question. I presume you've visited the Success Stories thread. Cannot recall if there are any BOA successes there.

    But who cares? If your BOA 2nd is underwater, and unless you're in a very unusual RE market, you likely have a long long time before there's a compelling reason to settle. And you may never need to.
  3. indeep1959

    indeep1959 LoanSafe Member

    No Tom I didn't see any success stories there, and searched and still didn't.

    Yes I guess you could say "who cares", but eventually in the next 6-7 years I'd like to sell this place and actually recoup a pittance of my investment. As it stands now, I'm underwater, and eliminating the second through a settlement would go a long way to achieving that.

    I put a lot of money into this place and Countrywide screwed me 4 years ago with dumping this evil of a second mortgage on me with terms that were ridiculous but I had no choice to accept at closing. I could have walked away then, but this was a custom home that I paid some upgrades with out of my own pocket so walking away would have meant losing almost 75k then.
    (Of course now it's triple that if I walk away.)

    So hence my desire to get this done sometime in the next couple years while valuations are still in the crapper.
    Plus I may not be here that long anyway because I'll be paying 5% on my HAMP by year 8 making this payment pretty uncomfortable to a guy within 4 years of retirement.

    We'll see if BOA ever contacts me, though I vow never to pay this second anymore, I'd be willing to go 10% to settle. (13K).

    As for being in an unusual RE market, I actually think I am. This area is quite desirable and more than a few professionals have told me it will come back faster than most areas here in Chicagoland.
  4. bubberrand

    bubberrand LoanSafe Member

    The only thing I've seen BOA doing is dumping the loans they assumed from Countrywide.
  5. TomEason

    TomEason LoanSafe Guide Staff Member

    indeep1959

    Thanks for your post. Your fortunate to be in a fairly desirable area.

    However, unless recovery forecasts are realistic (i.e. not from RE professionals fishing for listings), I would bet you'll have years before you need to settle.
  6. indeep1959

    indeep1959 LoanSafe Member

    Probably right of course. Valuations are still trending downward here in the Chicago area.
  7. SurvivinginCA

    SurvivinginCA LoanSafe Member

    BofA settlement on 2nd

    This is my first post ever after diligently reading volumes of the Forum. I am in the process of negotiating a settlement with the BofA recovery dept. 6 months after default they charged it off and immediately offered a 50 percent settlement, then they verbally offered 40 percent a couple months later. I have not accepted either. Hope this helps.
  8. TomEason

    TomEason LoanSafe Guide Staff Member

  9. indeep1959

    indeep1959 LoanSafe Member

    Please keep us posted as to how things go, definitely interested here.
  10. UnderwaterBlues

    UnderwaterBlues LoanSafe Member

    I too am in the same boat with a B of A second. I haven't paid it since August 2011 so I made it over 6 months now with absolutely no contact with them. I too would like to try to settle just to get that off my back as my home is still underwater quite a bit on just the 1st loan in itself. Still following Tom's strategy to the T so I will see what happens. Good luck to all.
  11. BigBlok502

    BigBlok502 LoanSafe Member

    My last payment to B of A HELOC was August 2011 and have had no contact with them, today would be the normal scheduled payment due date. My online account shows a zero balance, zero payoff amount and zero due.
  12. UnderwaterBlues

    UnderwaterBlues LoanSafe Member

    I just logged in on B of A and my account still shows on there. I'll check it next month and see. I have no intentions of paying one cent to them without a settlement offer which will have to be very little as I also don't have any savings to pay it anyway...
  13. CalOkie

    CalOkie LoanSafe Member

    My 2nd is with BofA and serviced by Green Tree. The info I have rec'd thus far is that most banks will settle for 5 - 10% but BofA is not as flexible and is closer to 85% (although YMMV). Just passing along what i've heard - may hear more shortly as i'm on hold with Green Tree now.
  14. TomEason

    TomEason LoanSafe Guide Staff Member

  15. chabsin

    chabsin LoanSafe Member

    I have a HELOC with BofA with a 5/11 last payment. Was charged off at six months, balance shows 0 but the account is still there online. Never been offered any settlement.

    Separately, I have a 2nd Loan with BofA on a rental property. Last payment was in January of 2011. It's over 12 months late, but I have not see be charged off yet. Shows full balance online. Credit report showing 150+ days late for months already.

    I have written to them both to stop calling me (in California they must honor such a request). Since receiving a Notice of Acceleration in September for the 2nd Loan, I haven't even received anything else aside from regular statements.

    I would love to hear from them an offer of 50%. Not that I would accept it; it's just that it would be a sign from them that they are ready to negotiate.

    I think about it a bit ... keep on checking these forums to see any news of BofA settlements ... but ultimately, as long as my primary residence is underwater I'm not worried. The rental property is borderline underwater ... but if they choose to foreclose so be it. I have no equity in it anyhow, and sooner or later I'll start having to pay Principal on the first and will no longer have positive cash flow.
  16. BigBlok502

    BigBlok502 LoanSafe Member

    I answered the phone today without looking at caller ID, it was CSR with B of A wanting to talk settlement on my HELOC. I mostly listened. He started off with "B of A typically will not settle for less than 85 percent, however I have two deals for you" and would need financials and tax returns from past two years. I have seven days to make a decision.

    Deal 1 = Interest rate dropped to 0 percent, monthly payments of $250 per month against full amount due of $96k.

    Deal 2 = Principle reduction of $47.5k, interest dropped to 0 percent, monthly payments of $450 per month for 10 years, down payment of $1640.

    I thanked him for his time, said I was busy and would think about the offer.
  17. indeep1959

    indeep1959 LoanSafe Member



    At least they wanted to settle, that's encouraging, but on the other hand wish it was a better deal perhaps?

    50 percent wouldn't make me take it, though 25 might.
  18. juliegirl

    juliegirl LoanSafe Member

    I will be following this thread closely. I began following the forums in 2009 when working on modifying my first.

    I too have a BofA HELOC. The last payment I made was is December, however, it was for a July payment. So the account was 6 payments past due when the account was charged off. I had no knowledge of this. I actually contacted BofA on Feb 28 in order to make a payment. I was told the account was charged off and my call was transfered to the "recovery dept". At that time, I had not read any info on settling 2nds. Long story short, I panicked when I was told the entire amount was now due. The negogiator suggested I schedule six monthly payments and at the end of that time, my account would be reviewed. I did just that....

    Then I scoured the forum and found strategy for settling seconds. I cancelled the payments and told my contact person I needed to discuss the situation with my husband. So, my situation is different, in that I intiated contact and i think the negotiator thinks she might get somewhere with me because she is trying to reach me again. During our first conversation, she did ask whether we would consider a settlement, but in my panic and not well studied I didn't know how to respond. She asked whether we were "underwater", I said I didn't know (I don't believe we are, but according to value sites, we are very close and with the added cost to FC, I'm pretty sure that wouldn't happen) Should I wait to receive something in writing? or should I take her call? I know she will say in order to settle she would require financial info (she indicated that earlier), but I know now that is against the "rules".

    Very scary to sit and wait...

    Thanks for listening (reading)
  19. TomEason

    TomEason LoanSafe Guide Staff Member

    juliegirl

    Thanks for your post.

    I would recommend you get a better handle on your property value. You might ask a local RE agent experienced in your neighborhood to provide a CMA (always free). If that valuation shows your HELOC is underwater, they won't FC. In that case I strongly recommend you follow the strategy, no longer communicate with BOA and remain very patient.

    On the other hand if your 2nd is in the money, you might visit the following thread.

    http://www.loansafe.org/forum/debt-settlement/41196-settling-money-2nds-6.html

    Good luck to you.
  20. hecrec174

    hecrec174 LoanSafe Member

    Tomeason, i just want to thank you for all your help with the "settling you second" guide. You have really helped a lot of people.


    I have both my loans with BOA It was originally with Nationpoint/First Franklin. Now BOA. What a headache trying to get a mod from these people.
    Finally Got an inhouse mod last year. Not such good terms

    BOA: $393,000 (45 yr arm balloon) 2 months behind
    BOA: $96,000 ($65,000 deferred, so I am only paying interest as if it was $31,000) (35 yr arm balloon)
    Home value : $335,000 as per Zillow
    Bought in Dec 2006

    My house is so far underwater I think it is ridiculous for me to continue paying the second loan, and am missing my first payment this month. The mod is a 45 yr loan! Even at the end their is a balloon payment? Geesh!

    When a bank owns the first and second, do they have less of an incentive to settle? As they own both? Any thoughts would be great.

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