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DOJ program rejection - Preemptive Hardship Modification

Discussion in 'Bank of America Mortgage Help' started by naiveborrower, Jan 12, 2013.

  1. naiveborrower

    naiveborrower LoanSafe Member

    B of A interest rate relief program - stated income confusion

    Hello

    If during loan origination (back in 2007) someone filled out a pre-application form for Countrywide with just their individual salary info and Countrywide loan rep suggested they use household income since they said that was a common practice, would it now be flagged by BofA in 2013 if the modification paperwork has the individual (lower) income ?

    Of course now in 2013 it's all very apparent that this common practice at Countrywide shouldn’t have even occurred, but people tended to trust the financial experts representing these large successful firms. So fast-forwarding a few years, if the home is severely underwater as a result of these nationwide bad banking practices, but borrowers have always been current on payments since income levels supported the purchase, do you think a different income level on all paperwork for the global settlement interest rate relief program would be flagged at this point ?
  2. RE Drama

    RE Drama LoanSafe Member

    My original loan was a stated income loan, and I submitted my current income documentation for the DOJ mod with no problems. Yes, the information differs from the original info submitted. I understand your concern, but I don't believe we have anything to worry about as far as old paperwork is concerned. They know that people's situations change. I hope you get your interest rate reduction and lower payment.
  3. jillywilly

    jillywilly LoanSafe Member

    I don't think it will be a problem. It's been a few years since the original loan. People change jobs, living situations change...income levels change. Our income now is quite significantly higher than it was when we originally got our B of A loan, but we recently had a baby and considered having a stay-at-home parent, which would have results in much lower income. I don't think B of A really cares since we pay on time every month, which is their bottom line.

    Good luck to you! I spent yesterday gathering most of the required financial documentation for this (somewhat of a pain for us since our B of A property is now rented out, so we have rental income to claim as well, but still underwater month-to-month since rent doesn't cover the mortgage). The basics of paystubs and tax forms were easy to collect for submission, so hopefully that part will be relatively simple for you :)
  4. naiveborrower

    naiveborrower LoanSafe Member

    Thanks so much for your replies. Good luck to you both!
  5. Luckyone

    Luckyone LoanSafe Member

    To : RE Drama,
    I am intrested in the rate relief program, have properties in the high 6% rate, is it a straight refi or just a rate reduction with out any costs or starting over at 30 years. I have one income property that has an adjustable rate (ARM) only. the others are fixed and one HELOC that I converted to a fixed rate(6.45%).
  6. jillywilly

    jillywilly LoanSafe Member

    It's just a rate reduction - NO other changes to the loan, and no costs. If you think you qualify, you could contact them, but if your loan qualifies, they should be contacting you via FedEx package without you having to "apply" or anything. I didn't know anything about any of it and just came home to find a FedEx envelope on my front step one day.
  7. naiveborrower

    naiveborrower LoanSafe Member

    I just got a rejection letter for the BofA DOJ modification program. Debt to income ratio too high. No wonder since I'm paying such a high mortgage rate :)

    I was only 1% off from their max DTI ratio. I noticed that the DOJ document didn't list a DTI as an eligibility requirement. Seems like this is a BofA added requirement which they should be able to waive for a 1% difference if they really wanted to. But rejection all the same. They said with the DOJ program you can't resubmit or appeal...just case closed. Three different reps said that yesterday. Still waiting for a manager to call back...was told that could take 2 days. Meanwhile, when I started the process a couple months ago, they said I could submit additional documentation (non-borrower household income) if I wasn't accepted. Now 2 months later, they say that's not true...case closed...sorry, moving on to the next case. Does this sound right to you ?

    They said I should apply for another program, a Preemptive Hardship Modification, with the hardship based on our house being tremendously underwater and being rejected for the DOJ program with really no other option in sight to get to a fixed rate. I wondered what you may have heard about this program ?

    thanks for your insight
  8. Evan Bedard

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

    They are giving you false information about the appeal. You can definitely appeal their denial and send in any extra documents that may render their decision. I would contact the executive's office immediately in regards to what you have been told and do not hesitate to file an appeal to get your case back in review.

    CEO Brian Moynihan: brian.t.moynihan@bankofamerica.com phone # 877-498-7226

    BofA executive team 704-386-5687

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