Home Loans and Support

BOA loan modification

Discussion in 'Making Home Affordable' started by annapantus, Dec 3, 2009.

  1. annapantus

    annapantus LoanSafe Member

    We just received approved loan modification documents from the BOA, that we have to sign and mail back to the BOA. I read on the forum about three month trial period. BOA documents do not mention anything about a trial period. Does it mean that this loan modification is permanent? Or can they cancel this loan modification?

    After our loan modification is complete, do we have to stay living in the house or can we rent it out? Can BOA cancel our loan modification because our primary residence becomes a rental property?

    Another question. Can BOA cancel our loan modification if a few month after a loan modification, you buy another property and pay cash?

    If a retired person decides to shortsell his house, can the bank go after his 401K?
  2. Brownie

    Brownie LoanSafe Member

    What is the title of the agreement? Does it says "Loan Modification Agreement" on the top and do they ask that you sign and notarize the document? If so, most likely this is the permanent one.
  3. Garry

    Garry LoanSafe Member

    So God dropped a mod out of no-where in your lap?
  4. c150000

    c150000 LoanSafe Member

    Lol ..................................
  5. THANKS2U

    THANKS2U LoanSafe Member

    Did I smell cash when you stated pay cash for another property.

    You need to speak with an attorney, because if you can pay cash for another property then you can afford an attorney for legal advice.

    Be careful on this site as sometimes our Bark can be just as bad as our BITE.

    Tread carefully !
  6. jakelabry

    jakelabry LoanSafe Member

    Don't know if they will, but they should! Banks usually deny modification to people with cash reserves so what kind of scam are you running?
  7. jbocklage

    jbocklage LoanSafe Member

    Is this a HAMP mod? If so BOO to you, cash to buy another home, rent the one you have! Come on there are families struggling to buy food and pay utilities that need the HAMP mods, folks like you won't get to heaven being greedy! Sorry but the truth is the truth.
  8. annapantus

    annapantus LoanSafe Member

    We do not have any cash. It was a theoretical question. My Mom died, we might get something in the future, might not.

    The loan modification does say "Loan Modification Agreement" on the top and they ask us to sign and notarize the document.
  9. Garry

    Garry LoanSafe Member

    Ask God, He gave you the Mod, right?;)
  10. Evan Bedard

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

    Hi Annapantus,

    In the agreement you were sent does it explain any details of the modification?
  11. Garry

    Garry LoanSafe Member

    I'm pretty sure the mod is as hypothetical as the questions. This is a test of our knowledge. Here is the answer, Mods don't fall from the sky, try again.
  12. annapantus

    annapantus LoanSafe Member


    It does explan the details. It has interest rates and the maturity date. But no mention of the trial payments. But when I called to the BOA asking about modification on the second loan, they told me that we can apply for a modification on the second loan only after three trial payments on the first loan are made. But I'm not sure if that person knew what he was talking about. I read a few posts here that some people got a loan modification and it was cancelled after a trial period.
    With this modification our interest rate went down, but our monthly payments went up. Because now we have to pay principle and interest. Therefore we are still financially in troubles.
    Have anybody had BOA modify first and second loan at the same time?
    We were looking at different options of saving money and trying to keep the house. We were considering moving into our rental property and rent out our current primary residence, that we got loan modification for, because our current home is bigger and we can rent it out for more. But I'm afraid that it can jaopardize our loan modification with BOA.
  13. THANKS2U

    THANKS2U LoanSafe Member


    Simply send back paperwork NOT SIGNED with a counter offer letter statting you need a Good Faith Modification that is Permanent & Sustainable for your income - which would be approx. 31 % of your gross income..

    If your yearly GROSS income is say $100,000 then divide by 12 month

    8,333 per month - The take .31 % x 8,333 = 2,583.00 per month would be your new payment for PITIA Principal Interst Taxes Insurance and Association dues ...

    So whatever your gross monthly income is, then times it by .31 % and that would be your new acceptable payment. If they offer a payment of from 31 % to 38 % and if you can afford that amount then do it !

    Just make sure the loan never goes up and out of your payment range, as in there is a fixed rate or a reasonable cap of only 5 % max these days and make sure your second loan is extinguished or lowered by at least 50 % - Depends on who your second loan is with ?

    Give us the exact terms of your current quote MODIFICATION OFFER and we might be able to help you better
  14. annapantus

    annapantus LoanSafe Member



    I called to the BOA yesterday and finally I got to talk to someone who was able to answer my questions. They told me that we did not qualify for a home affordable plan and they gave us a similar modification: 2.5% for the first five years, 3% for the 6th year, and then it increases by 1% till it reaches 5%. It is a 30 year loan. And it is permanent. There is no trial period.
    They told me that they modify second loans only if you qualify for a home affordable program. If not, they can not do anything with the second loan. Both first and second loan is with BOA.
    Our mortgage payments are about 31% of our income. But we are still struggling financially, paying for a daycare for two babies. Plus we have a rental property, that we have to pay an extra $900 every month, net of rental income.
    We probably have to end up shortselling our rental property. Have anybody been successfull with a loan modification on the rental properties? Our first mortgage is with Wachovia and the second one is with First Horizon on the rental.
  15. worried welder

    worried welder LoanSafe Member

    I don't mean to sound rude but honestly I would LOVE the opportunity to have the loan mod offer you have sitting in front of you.

    Your payments are already 31% of your income and you have a rental property....I don't think it takes a financial genius to understand that you need to lose the rental property.

    I have 1 home, work my ass off, and am struggling to afford it. I think it's a little unfair and ridiculous that people with multiple properties and payments that are in an affordable range are seeking (and getting) assistance.

    How much more help do you need?
  16. Garry

    Garry LoanSafe Member

    In the first post: "If a retired person decides to shortsell his house, can the bank go after his 401K?" In the last post:<!-- google_ad_section_end --> "But we are still struggling financially, paying for a daycare for two babies." In the first post he is retired and to old to have babies. There is so many things that don't make sense it isn't funny. Here's another: "Another question. Can BOA cancel our loan modification if a few month after a loan modification, you buy another property and pay cash?" Then this:
    "We do not have any cash. It was a theoretical question. My Mom died, we might get something in the future, might not." How many people don't know if their mother had any cash when she died? The list goes on, I can pick these posts apart until the cows come home.
  17. worried welder

    worried welder LoanSafe Member

    I'm with ya Garry.

    The way I look at it, it's people like this that are tying up the resources that people like you and I desperately need.

    I'm not saying that they are single-handedly responsible for the lengthy process of these loan mods (or the treatment we are receiving by the banks) but the sure as hell aren't helping by asking for assistance when they really shouldn't be and utilizing the limited resources that the banks have.
  18. Garry

    Garry LoanSafe Member

    Exactly.
    Do me a favor Annapantus, Don't bother trying to explain. You should have never posted in the MHA forum. This is for us poor people that need help with programs like MHA.
  19. c150000

    c150000 LoanSafe Member

    people like that have a horseshoe up there #@s

    but remember: karma guys........
  20. litton nightmares

    litton nightmares LoanSafe Member


    TRUE ENOUGH.
    Hey, orig poster, if you have enough CASH to pay for a house, you definitely DID NOT NEED the help that you got. And If you are NOT using that property as your PRIMARY RESIDENCE, and clearly you have already formulated a plan to rent it out-- well in this case, it would seem that YOU WEREN'T ACTING IN GOOD FAITH.
    We have enough problems getting help we need to keep a roof over our heads around here. If you scammed a loan modification you don't need, better get a lawyer, because they will go after you. :eek:

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