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Bank of America Heloc Settlement Advice

Discussion in 'Debt Settlement' started by ghettomax, Sep 7, 2012.

  1. ghettomax

    ghettomax LoanSafe Member

    Hello to all, Great forums! I have a $50k heloc with Bank of America that I havent paid on since 10/2011 and i am hoping for a settlement. Last week I logged on to my account and it now shows a $0 balance. I have received a couple calls from them the last couple days, didnt answer any, and yesterday i received a letter from their recovery department stating that the loan was now defaulted on. It states that I must pay the full $50k balance within 10 days or all and any effort to collect will be used. I am looking to settle with them but have yet to receive any offers. Should i just continue to ignore them and wait for settlement offer? My 2nd loan is underwater maybe 90 to 100% but property values are on the rise in my area. Im getting nervous, Any advice greatly appreciated! Man I would love one of those great Fed EX letters that have been popping up with full forgiveness.....
    Thanks
    James
  2. Cat Damiano

    Cat Damiano Mortgage Wars


    Welcome to the forum and thank you for joining........

    It is nice for the members that are receiving the DOJ extinguishment letters on their second liens because they are owned by BofA as well as serviced by them. If you are following the strategy thread, the steps are outlined in the very first post here;

    http://www.loansafe.org/forum/debt-settlement/37996-strategy-settling-your-2nd.html

    Also look through the following thread to see if there were any recent settlements aside from the DOJ letters here;

    http://www.loansafe.org/forum/debt-...ank-america-settlements-second-mortgages.html
  3. ghettomax

    ghettomax LoanSafe Member

    Bank of America 2nd settlement without financials?

    Quick question for anyone who has successfully settled a Heloc with Bank of America without sending in financials. I havent made a payment on loan of 50k since 11/2011. The loan was charged off in August and i have been following the stradegy for settling 2nd with them. Received a lcouple letters from recovery dept offering to work out the loan, no dollar offer, so i gave them a call. The guy i spoke with seemed eager to settle and went from 85%...I started laughing on the phone. He then went directly to asking me if I would be able to come up with 10%! I said I wasnt sure and would have to see if I could borrow from family. Then he started asking for financials which I politely told him there was not going to be any submitted and there was no reason they needed them to work settlement. Thats where I ended the call and said I would get back to them. So my main question is....how do I get them to honor a settlement without sending financials? Should I just tell them to call me when they want to settle without financials and forget about it?
    Thanks
    James
  4. TomEason

    TomEason LoanSafe Guide Staff Member

    ghettomax

    Thanks for your post.

    While you say you're following the Strategy for Settling Your 2nd, you aren't really, in that you violated a basic precept, which is no communication with the lender until after they make the first settlement offer. And it's clearly stated in that guide that the debtor should never disclose financials or other personal info to the lender. I recommend you review the guide if you want to follow it.

    If your BOA 2nd is underwater, they won't FC. They have no options; you have all the leverage. Were it me, I would no longer bother communicating with them. You likely have a very long time horizon to settle. Patience is key! While you wait, you need do nothing. How hard is that?

    You might visit the Success Stories thread to see how many have settled their BOA 2nds without providing any financials.

    Good luck.
  5. ghettomax

    ghettomax LoanSafe Member

    Hey Tom, Thanks for the reply

    I took the letter from their recovery department saying they may have settlement options as their first attemp to settle the account. It did not have a dollar amount just said there may be a settlement available. 10% is definately an exceptable amount for me because my loan is right on the line of being fully under water. CMA's that i have had are right around 400k and my first is 383k, so its close and that is what concerns me. I will go check out the Success stories buy I havent had any luck finding much about through search about how to get the bank to go ahead and settle without the financials. Im ready to settle this but just need a stadegy to get them to forget the financials......Any ideas?
    Thanks
  6. TomEason

    TomEason LoanSafe Guide Staff Member

    ghettomax Thanks for your post. Your 2nd is underwater an they won't FC. 400 - 380 - your 2nd = ?. While I don't recall the balance of your 2nd, unless it's less than $20K, it's underwater. So, likely you have no worries and you have the upper hand. Again, I recommend you read the strategy guide at post #1. If that doesn't satisfy you about disclosing financials, there are 3,700 posts in that thread you might browse. Or use the thread search tool to look for info about disclosing financials. And you'll no doubt be reading the posts in the success stories thread, or use the search tool.
    Last edited: Jan 6, 2013
  7. StuckInTheMuck

    StuckInTheMuck LoanSafe Member

    ghettomax....where did you end up on this? Curious because i am a couple months behind you in same exact scenario. Thanks!
  8. chabsin

    chabsin LoanSafe Member

    Bumping this thread as I'm still looking to hear of any BOA settlements (as opposed to full forgiveness of the loan, of which there are many cases)
  9. TomEason

    TomEason LoanSafe Guide Staff Member

    Thanks for your post. I presume you've read the Success Stories thread.
  10. chabsin

    chabsin LoanSafe Member

    I did. No settlement stories from BOA. Only full forgiveness. Not that I'd mind one of those, and in fact I've already received one on my HELOC. But I still have a 2nd on a rental property that isn't entirely underwater, so I doubt I'll be found eligible for full forgiveness.

    The property values seem to be rising ... which I assume is a minus for me when it comes to settlement (both the settlement price and the tax hit are likely to go higher).

    To be specific:

    $489K price per Zillow; $410K first, $92K 2nd plus two years worth of interest/penalties.

    I don't see it becoming "in the money" any time soon, especially considering the bank's potential costs of $50K+ ... but it's my understanding that the definition of "underwater" when it comes to the DOJ settlement is different, in that the entire loan balance needs to be outside of the property's stated value, repossession/resale costs not included. In my case the first $70K or so of my loan would be considered "in the money" for this purpose, making me ineligible for full forgiveness.

    I'd love for me to be proven wrong on this, of course. But practically I'm waiting for a settlement, not a full forgiveness ... and as of yet, I don't see any forthcoming from BOA.
  11. sumer

    sumer LoanSafe Member

    My second mortgage is with GT (but the investor is BofA). They will agree with the settlement ONLY if I will send them the financial documentation. If I will not send the financial........they told me that will charge off the account, which will be next month. Second is TOTALLY under water. Should I fax them a letter with my proposal for settlement ? Should I contcat BofA and to make a settlement proposal ? Any advice ?
    Thanks
  12. TomEason

    TomEason LoanSafe Guide Staff Member

    Hi chabsin

    Thanks for your post. FYI, rental properties aren't eligible for full extinguishment under the National DOJ Settlement. If I were you, I'd not proactively pursue any kind of settlement. Instead I'd follow the guide at post #1 of the following thread. There's no hurry; patience is key. http://www.loansafe.org/forum/debt-settlement/37996-strategy-settling-your-2nd-94.html
  13. BX Snake Eyes

    BX Snake Eyes LoanSafe Member

    SOS from the Bronx

    We had a jumbo 80/20 loan originally from CW that was later bought by BOA. The 80% loan was eventually in housed to a 43yr 4.2 interest and then sold to Setrus. BOA said that the second would follow through once the 1st had completed the in-house process. They urged me to stay current on the second as well as pay my new trial payment throughout the whole in-house process in order to have a better chance of receiving a modification on the 2nd. Yet, once the 1st had completed the in house rate mod process they said there was nothing they would do about the second. I simply had to continue paying. My wife and I didn't want to ruin our excellent credit as we worked hard to pay all our bills, even taking personal loan to stay on payment schedule! Now we are on 9 months not paying our second loan currently still owned by boa. Regrettably, We sent in our finances in order to apply for the HAMP principle forgiveness program, but got declined because they said my wife and I make too much. Since our mortgage isn't more then 30% of our gross income, they would not offer us anything. Keep in mind my 2nd is completely underwater and at a 8.9%interest on 59K.
    Yes my wife and I both work hard, but we are struggling to pay for our home, bills, school tuition, etc. We are usually broke two days before we get paid! We've done our best to do the right thing in all our financial actions. We've been current on this loan since 2005. In fact we've probably already paid back the original principle in interest alone! Now a Boa secretary from the presidents office calls me every 7 days asking if we've changes our minds or do we have anything that we can pay today. She keeps reiterating that they will not make a settlement plan cause we do not qualify for one due to our combined gross income. We really don't want to loose our home, but its now been 9 months.. What should I do. Cost of living in a nice part of the Bronx is killing us and although we make good money, we cant afford to live in our little home and save a little for our children's college. Im tired of being broke only to pay these outrageous payments. We've contacted our senator and congressman and they simply send a letter and then nothing happens. It isn't right? We are current on our 80% 43 yr mortgage, but haven't paid the second in 9 months. Should i stop picking up the phone for a while? Have i ruined my chances because I've provided my financials?

    BX Snake Eyes
  14. BOAvictim

    BOAvictim LoanSafe Member

    BOA deed in lieu **Need Advice/suggestions*

    Hi everyone!! Im new to this site and have been having a tough time being able to post where I thin this post belongs...to no avail, this was the only place it has let me actually post...so please bear with me and I apologize if Im intruding or messing up someones post....completely un-intentional!!!

    Im currently in the final stages of deed in lieu with BOA, and need to decide whether or not to sign and procede. With the Mortgage tax forgiveness act coming to a close at yrs end, Im weary of whether or not to follow thru due to the lack of quick attention from BOA. My move out date is set for 11/29...and Im aware title must be transfered before 2014 in order to use the tax advantage. Dont see it happening. Our household is a 1 income family, $60/yr...and our forgiveness amount would 117,000. Without tax credit, we are doomed. Any suggestions? Should we just let it go into forclosure? Sure we try anyway, with that high propability of paying uncle sam...FOREVER?? Please help if you can!!!
  15. TomEason

    TomEason LoanSafe Guide Staff Member

  16. BOAvictim

    BOAvictim LoanSafe Member

    Tom Eason....thank you for your response...I have read all of the posts at your thread...im having trouble understanding exactly why a FC is better than a DIL....I guess because ive been approved for it already and seemingly to me, almost clear from the responsibility. Ihave to sign the agreement from the approval by tomarrow. Im in NJ, out of the home already, already played "the hamster wheel game"...im sure if I pull out of DIL, it will FC quite quickly. What EXACTLY, besides credit am I bound too in either case??

    Ive put a call into my bk lawyer to see if we included the house. We started out in ch 13, in hopes of saving the house back in 2010, then quickly realized we couldn't pull it off, so we converted to ch 7, and were discharged in 3/2011.

    My main concern is that the final DIL completion of title transfer wont take place til AFTER the 1st of the yr, which leaves me liable for the tax due to the expiration of the forgiveness act.....if I decide to just walk and let it forclose, what am I liable for now and down the road...assuming it wasn't included in my bk??

    You seem so informative, but im still lost on actual backlash of the FC, aside from credit...thank you so much for your responses, im learning a lot.
  17. bgriff

    bgriff LoanSafe Member

    I can't imagine that you went through a BK7 and the mortgages were not included. If the loans were included in BK7, there would be no tax liability since their is no debt to forgive. Technically, you have no debt - it was wiped out in BK7.
  18. Evan Bedard

    Evan Bedard Call 1-800-779-4547 Loan Safe Mortgage

    BofAVictim, I'm not sure Tom got the entire rundown from your previous post, while waiting out the FC can be beneficial for many, in your case it makes sense to continue with the DIL as you've already vacated the property and are very far into the FC process. And I do agree with bgriff, it's very likely your mortgage(s) was included in the Chapter 7.

    http://www.loansafe.org/forum/bank-...america-deed-lieu-need-advice.html#post507958
  19. Evan Bedard

    Evan Bedard Call 1-800-779-4547 Loan Safe Mortgage

    Welcome to the LS community Snake Eyes.

    You're actually in a better position than you may think and BofA is in no position to foreclose on an underwater 2nd mortgage, regardless where you're located or how many payments you are now behind. I recommend you avoid BofA's intimidating calls and eventually seek to settle your 2nd (likely for as little as 5-10 percent of the outstanding balance) by following the Strategy listed here:

    http://www.loansafe.org/forum/debt-settlement/37996-strategy-settling-your-2nd.html
  20. BX Snake Eyes

    BX Snake Eyes LoanSafe Member

    After a year on not paying anything on my 59K Heloc, Boa called and negotiated a settlement of 10%. They also said they would fix out credit and follow the process through with the title company, etc... We are now in the midst of contacting out state representatives to urge congress to extend The Mortgage Debt Relief Act of 2007, which would waiver the government taxing the forgiven principle amount (which in truth would financially knock us out for the count). If anyone has any information on the status of The Mortgage Debt Relief Act of 2007, please fill me in.

    BX Snake Eyes
    "Stay in the Struggle"

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