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Got BAC modification/Only reduced principal payment still too high, now late again! Will they forclo

Discussion in 'Bank of America Mortgage Help' started by Twirleygirl, Oct 16, 2013.

  1. Twirleygirl

    Twirleygirl LoanSafe Member

    We received a DOJ mod in April after literally 4 years of trial payments then non-payments, the usual runaround everyone else went through. We blame them for the mess to begin with since someone at BAC initially told us we had to be three months late to even apply for a modification. Long story short, they only reduced principal, which was essentially all those late fees and the difference from partial payments that they set up and perpetuated by never making a decision, plus us stopping payments altogether. They did not reduce our interest (6.75%), so the payments are still 39% of our gross monthly income. So now we have become late again, after making 4 on-time payments. (Loss of income last summer due to husband getting Lymes and not able to work for a bit (self employed professional coach) and husband's sister with cancer and mother hospitalized. We received the standard Notice of Intent to Forclose, but I've since made a payment. so now we still owe September and October payments and it's the 16th of October. I plan to make another payment Nov. 1. They sent a letter stating that they applied this new payment but would still accelerate it on Nov. 6 as previously stated in the NOI, unless we paid the fill $6700etc by that date. Do you all know if they move on this faster when it's already been modified, or will it take forever like before? (Prior to mod approval, we basically stopped making payments for over a year because we were so sure it was throwing money away) We are in Maryland, which has a 90 day timeline, but I'm wondering if making a payment here and there will help us. We could probably do a short sale but we're not quite ready to give in yet. (This is a NY Mellon conventional-not Fannie or Freddie) Thanks for any advice!!
  2. Evan Bedard

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

    Hello Twirleygirl,

    I'm shocked that BofA only provided a principal reduction and took no additional steps to lower your monthly payment, generally a principal reduction is by far the hardest part to accomplish. They should not expedite foreclosure proceedings due to the modification, BofA is still required to abide by state foreclosure laws. However, there are not as many foreclosures as several years ago so the courts are not as backed up and the process can be quicker. Did you previously go through mediation in your state?

    Here's some general information on Maryland's foreclosure timeline:

    Where the Order to Docket or Complaint to Foreclose includes the “Final Loss Mitigation Affidavit.†(Times in this chart are for general information. The timing of specific events in an actual foreclosure action may vary as permitted by law.)

    • Day 1 Missed mortgage payment.
    • Day 45 Notice of Intent to Foreclose must be mailed by regular & certified mail.
    • Day 90 Order to Docket or Complaint to Foreclose filed in circuit court.
    • Day 105 Last day for homeowner to request foreclosure mediation.** If foreclosure mediation is not requested by day 105, or if a motion to stay the sale has not been filed, the property may be sold on day 135 and the remainder of this timeline is inapplicable.
    • Day 110 If foreclosure mediation is requested, circuit court sends the request to the Maryland Office of Administrative Hearings by this day.
    • Day 170 If requested, foreclosure mediation must take place by this day unless postponement is requested.
    • Day 185 Foreclosure sale can be held unless a motion to stay the sale is filed.
  3. Twirleygirl

    Twirleygirl LoanSafe Member

    Our Bac CRM who handled the mod told me that the investor would only reduce principal, that they wouldn't also reduce interest rate. (DoJ mod) He said that was as good as they could do, to take it and be happy, that it was a good deal. I told him the payments were too high, that it would be very hard to sustain. We have not done mediation since we are now newly back in the late payments after 8 months of trial then modified payments. Is it better to do mediation sooner rather than later/last minute? Would mediation push them in our favor? Or is it just a legality thing? Do you know if my making payments will reset the timeline, even though I would still be behind? We just don't know what to do. I don't even know if our credit is good enough to rent a house at this point. Should we stay as long as possible or get out now? Our house needs a few cosmetic repairs that might make it hard to sell for what we owe and pay a realtor. (Outside trim rotting in places, master shower leaks, basement has musty smell,etc.) But I'm not sure if we would be eligible for a short sale since it's probably worth exactly what we owe.
  4. Twirleygirl

    Twirleygirl LoanSafe Member

    Well, surprising news from the account manager assigned to our loan...he called to say that even though he thought there would be no chance of a new modification, an underwriter IS reviewing to see if there could be a different program such as an in house mod that would help us. I wasn't expecting that.

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