Home Loans and Support

BOA and Making Home Affordable Program

Discussion in 'Loan Modification' started by ILResident, Jun 29, 2009.

  1. ILResident

    ILResident LoanSafe Member

    I have been trying (unsuccessfully) to modify my loan since late last year. Countrywide/BOA sent me a couple of modifications of which the terms were so close to my current loan that I declined signing. Upon announcement of the Making Home Affordable Program I requested another mod based on its guidelines, yet never heard anything in response. Just recently I was sent a HomeSavers Forbearance Agreement but I’m not sure if there are any advantages to signing it. My questions are:
    1. Seeing I am eligible for a Making Home Affordable Modification shouldn’t I have been evaluated for that program prior to being offered any other alternatives (especially since I specifically requested it and sent in all required paperwork)?

    2. If I was evaluated for a Home Affordable Mod and denied shouldn’t I have been notified of that? Or should I assume that because I was offered the HomeSaver’s Forbearance instead that I was denied for the Home Affordable Mod?

    3. If I am eligible for a Home Affordable Mod (based on the criteria of the program) are there any other reasons I may be denied that might be beyond my control or that I’m not aware of?

    4. If after completing the Modification Waterfall Process, my payment is still higher than 31% payment ratio, are there other adjustments that still be made (such as going lower than 31% standard or the 2% cap on interest)?

    5. If additional adjustments are not possible and the 31% ratio can’t be achieved, am I then denied the Home Affordable Modification?

    6. Is there any reason at this point for me to agree to the HomeSavers Forbearance program?

    Please advise.
    Thanks in advance!
  2. Roberto77

    Roberto77 LoanSafe Member


    I also am in IL with CW mortgage. The HomeSaver Forbearance plan is a FannieMae plan so I assume you have a Fannie mtg.

    The HomeSaver Forbearance plan is only for those who do not qualify for the HAM plan. If you qualify for HAM, Homesaver Forbearance does not apply to you. Please see https://www.efanniemae.com/sf/servicing/pdf/loanworkoutfactsheet.pdf

  3. Roberto77

    Roberto77 LoanSafe Member


    Forgot this. If still above 31% after 2% mtg calculation, the term can be extended to 40 years. If still above 31% after 2% and 40 years, principal forbearance must be used to achieve the 31% target. Principal forbearance is good because it is interest free and non-amortizing. The principal forbearance is paid off when you sell the home or payoff the interest bearing mtg.

  4. ILResident

    ILResident LoanSafe Member

    Thanks for your response!

    I understand the program to work just as you stated, that one receives the Forbearance plan only if you do not qualify for HAMP. Problem is I don't know if I was evaluated or not. When I called BOA the rep in the Office of the President couldn't answer that question either. She stated that I had been granted the Forbearance plan and that if I chose not to take it then I would proceed directly through foreclosure.

    I'd really like to know whether or not my loan can be modified and what the new payment amount would be. Obviously if I can't afford it theres no point in giving them $4500 just prior to a foreclosure.

    Any ideas on how I can get any more information? BOA claims they know nothing more than what they have told me.

  5. Roberto77

    Roberto77 LoanSafe Member


    Does Fannie own your mtg? If so, CW is required by Fannie to evaluate you for the HAM plan before any foreclosure proceedings. You might tell CW that fact. Hopefully, eventually they will then evaluate you for HAM.

    The other question is: Do you qualify for HAM?

  6. ILResident

    ILResident LoanSafe Member

    Yes I have checked and rechecked all the eligibility requirements for HAM and I meet every single one. Also Fannie Mae does own my mortgage. When I talked to BOA the other day the only thing she would tell me was that "I have been approved for the HomeSavers Forbearance Program". When I asked her if I had been evaluated for HAM she did not respond to that direct question. Instead she said this is the program the investor offered you. I said if I don't agree to this then thats it, the foreclosure will occur and she said yes. I asked her if there was any other information available or someone else I could talk to and she said no. She then said that if I had additional questions to call the number on the Forbearance contract as she had no knowledge of that program and had never even seen the letter. I did so and they had no additional information to offer either.

    I just don't know how to proceed at this point. If I sign the Forbearance then I get to pay $4500 over 6 months to MAYBE modify my mortgage (no mention if it would be HAM). If I don't, the house goes straight into foreclosure. I have the ability to keep my home (should it be evaluated under the HAM standards) and I stressed and restressed that to no avail. I'm at a loss at to where to go from here. Any ideas and/or opinions would be greatly appreciated.
  7. Roberto77

    Roberto77 LoanSafe Member

    I suggest you either call the mentioned phone # and/or write them certified letters telling them they are in violation of the Fannie and Treasury Dept rules by not considering you for HAM. If that fails and they start foreclosure, contact Fannie and/ or hire an attorney to force CW to give you the HAM plan.

    Since you have been trying for a mod before HAM, CW appatently has continued to use their old tactics on you. The CW rep is also lying by saying that is what the "investor has offerred to you" -- since Fannie says "Fannie Mae approval is not required" for the Homesaver Forbearance plan.

    Scream loud and often and they will back off.

  8. ILResident

    ILResident LoanSafe Member

    Great information, I certainly will pursue this.

    I can't help but feel exactly as you described "CW is using their old tactics on you". To me it seems like they have some ulterior motive to move me away from a HAM, or they have no plans to modify my loan and want to get as much money as they can before they foreclose on you. Is this my imagination or are other people experiencing the same type of issue? And what is CW's motive?
  9. Roberto77

    Roberto77 LoanSafe Member

    I don't know if there is any great profit advantage for CW to steer someone into a HomeSaver Forbearance plan instead of HAMP, both of which are Fannie regulated. If there was an advantage, CW would have to do it on a large scale to make it worthwhile and then the violations would definitely invite scruitny from Fannie and the Feds.

    It probably is just gross incompetence of the CW reps and maybe some thought in their head that they will be earning some type of a commission.

    There seems to be no evidence that CW/Boa has even started the HAMP. They may be bogged down in the refi portion of the Obama plan. The last news release from BOA was on 4-4-09 announcing the start of the refi portion but nothing since about starting HAMP. Also, Fannie has made many changes and updates to the refi plan which must really be confusing to the already weak minds at CW.

    I think CW must eventually offer the HAMP to us. In my case,the longer it takes the better it is for me because I am not making any payments and stashing a little cash.

  10. QuayzyCrazy

    QuayzyCrazy LoanSafe Member

    Roberto 77,
    When I read your responses I had the sense that you understood this whole mess a lot. Will it be too much of a problem if I ask you to take a look to my profile and see my post and evaluate my case? I want the sincere opinion of someone in my same shoes. I'm honestly totally overwhelmed. I think CW BOA is doing this more confusing unnecessarily so people don't pursue HAMP. I need to know my options so I can start. And I just don't have the money anymore... I'm still current but the situation is so critical that I'm at risk of imminent default! Please help....
  11. ILResident

    ILResident LoanSafe Member

    Very interesting post, I think you may be right about the delay with HAM and CW. I had no idea that CW really hasn't issued that many HAMs but that makes sense. When I spoke to the rep she really didn't say a thing about HAM just kept reiterating that I got what the investor gave me. She said most likely they will continue to try and modify my mortgage but no guarantees.

    Roberto77, are you waiting for a HAM as well? Its interesting to know that others are in the same boat as I am. I agree with you about the part of saving money until a final determination is made. That is why I am so hesitant to sign the Forbearance contract and shell out $4500 if I'm going to end up in foreclosure. I've already been on a Forbearance for a year and have spent the last 7 months trying to get a mod. If I'm not going to get it, I need the money!
  12. Hopefull2009

    Hopefull2009 LoanSafe Member

    Do you have regular income right now? If not, they may be offering this plan until you "resolve" whatever hardship you described. If you read all the forebearance guidelines, it's "something" until which time a more permanent solution can be worked out (i.e. a modification).
  13. Roberto77

    Roberto77 LoanSafe Member

    Homesaver Forbearance is only for those who do not qualify for HAMP.

  14. ILResident

    ILResident LoanSafe Member

    Yes, I have a very stable income which has been clearly documented with CW. I can guarantee that I meet every one of the HAM requisites too. The only one I am unsure about is the NPV test which does not have to be met in order to be eligible for a HAM per their guidelines.

    I'm frustrated because I can't get any answers as to whether I was evaluated for a HAM or not and if I was, why I was denied. I have about 10 more days before I have to sign this Forbearance contract and really don't know whether I should or not as it offers no guarantees except that they get an extra $4500 before they foreclose on me.

    I'm really on the fence on this one!
  15. Roberto77

    Roberto77 LoanSafe Member

    You cannot be denied an HAMP because of the NPZ -- for the reason that you have a Fannie loan. That fact is specifically stated in the Fannie guidelines. The servicer (CW) is requifred to do a NPZ but the results of the NPZ, positive or negative does not effect your HAMP eligibility.

    Nobody can tell what to do, but really consider the alternatives that were mentioned to you.


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