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I can't decide what to do! Help!

Discussion in 'Bank of America Mortgage Help' started by 4thteacher, Feb 9, 2011.

  1. 4thteacher

    4thteacher LoanSafe Member

    Long story short....Attempted a loan mod with BOA in late 2009/early 2010. The terms were not very good (only saving less than $100/mo) so I decided to forget it and catch up the payments and file Ch 7 on everything else. So, all of that was completed in Sept 2010 and I have made every pymt on time since Feb 2010.
    The payment is still too large every month ( I know I should've walked away, but I didn't). I am current, but I have been kicking around the idea of trying another loan mod. Would it really be worth all the hassle?
    My current terms are : 30 year fixed @ 6.125%
    I am not underwater and I do have about $20,000 equity in the home. I have tried to sell my home, but we all know how that is going right now. I would really love to stay in my home, but I'm not sure how much longer I can stay current. Help! What would you do?
  2. nicolas

    nicolas LoanSafe Member

    4thteacher, you know what I'M in the same scenario- I was able to secure a loan mod with Wells Fargo back in April of 2010 and I'm contemplating teh same things you are. I will give it another shot, my loan mod only reduced my payments by $50 and my DTI is still 44% of my monthly income. so I suggest why not give it another shot and see what you get, we got nothing to lose but get denied.
  3. 4thteacher

    4thteacher LoanSafe Member

    Does anyone know what they might do differently with a loan mod since I have a Ch 7 discharge?
  4. jakelabry

    jakelabry LoanSafe Member

    Well, with all your debt discharged by the 7, they may consider you capable of making payments and not offer you anything. Is your PITI payment >31% of gross income?
  5. 4thteacher

    4thteacher LoanSafe Member

    PITI = 57% of gross income
    PITI = 43% of gross income + child support (does this have to be included?)
  6. facha

    facha LoanSafe Member

    Child support does not have to be included in the gross income. The problem you may face is the equity in the home. Your lender will look at that very carefully to decide which is more profitable to them mod. or foreclose. I would still try for a mod., you have nothing to lose. Some members have had multiple mod applications and then finally succeeded. Try for a HAMP first, if eligible, and then go from there. Check out and read the HAMP section of the handbook https://www.hmpadmin.com/portal/programs/docs/hamp_servicer/mhahandbook_30.pdf

    Best of luck.
  7. chowder

    chowder LoanSafe Member

    The 7 won't mean a thing. As to the equity, it depends on whether anything would survive the costs of foreclosure and sale.
  8. Maurice Bedard

    Maurice Bedard Call 1-800-779-4547 Staff Member Loan Safe Mortgage

    You will need to show a hardship in the form of reduced income or greater living expenses since you got the original loan. But you definitely should apply for a HAMP mod, but don't report any retirement savings. They are not included for HAMP. And even if the payment was 80% of your income, and you still had a monthly budget surplus, you could be denied, so any surplus must be minimal since you are still current on your payments. Thoroughly read the HAMP handbook from the link above. You really need to read everything in it, because some info is in places you would never think of.
  9. 4thteacher

    4thteacher LoanSafe Member

    I forgot to mention that my loan is FHA. Does that make a difference for a HAMP?
  10. Maurice Bedard

    Maurice Bedard Call 1-800-779-4547 Staff Member Loan Safe Mortgage

    Big difference. I defer to people who know FHA procedures, but can say to call this number for help even if you aren't having problems with your servicer. FHA does have programs that reduce principal.-

    For an FHA-insured loan
    Your lender has to follow FHA servicing guidelines and regulations for FHA-insured loans. If your lender is not cooperative, contact FHA's National Servicing Center toll free at (877) 622-8525,or via email. Whether by phone or email, be prepared to provide the full name(s) of all persons listed on the mortgage loan and the full address of the property including city, state and zip. We may be able to help you more quickly if you can also provide your 13-digit FHA case number from the loan settlement statement.
  11. jakelabry

    jakelabry LoanSafe Member

    Actually, it does! For FHA loans, HAMP will only reduce interest to about 5% and the term will not be extended beyond 30 years. Don't know if a 1% reduction in interest would mean all that much with a DTI of 57%. They do have these partial claims thingys, maybe someone else can explain that!

    BTW - equity doesn't exist unless someone is willing to purchase your house for that price. If you cannot find a buyer to pay 20K over your mortgage value, then you have no equity so it's kind of a mute point!
  12. chowder

    chowder LoanSafe Member

    An excellent point. Problem is BoA is unlikely to acknowledge that little inconvenient factoid.

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