Boa Equity..now What?

Lory

LoanSafe Member
Apr 2, 2016
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I recently posted this question at the end of a thread that was last active in 2015 so I thought I would re-post as new in hopes that it may be seen. Thank you so much for any suggestions you may have.

Hi there...we are new here and are seeing over and over again in the threads that we have done a big no no and are interested in the "what now" info. We had a $90k equity line with BOA. Our house is worth less than our first and they have charged it off. We are now dealing with their "recovery department".

My husband has been doing all the talking with them. We ignored the initial packet they sent us asking for every piece of financial info we had.In one of the last phone calls, he was told they would get back to him in 30 days with a response to his 5% offer.

They called him the next day and said they brought another person in and needed a few pieces of info in order to consider the offer (as I know now after reading up here that was a lie). The requested info was not as extensive as the packet. There was no filling out of paperwork, just statements.

As I said, we now know that is a big Don't Do. Any idea of what we may be in for now that we actually showed them what we do and don't have? We don't have much left at the end of each month so there wasn't anything to hide.

Thank you for anything you may be able to offer...this is so scary to me.
 
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bkakca

LoanSafe Member
Jul 5, 2013
189
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I recently posted this question at the end of a thread that was last active in 2015 so I thought I would re-post as new in hopes that it may be seen. Thank you so much for any suggestions you may have.

Hi there...we are new here and are seeing over and over again in the threads that we have done a big no no and are interested in the "what now" info. We had a $90k equity line with BOA. Our house is worth less than our first and they have charged it off. We are now dealing with their "recovery department".

My husband has been doing all the talking with them. We ignored the initial packet they sent us asking for every piece of financial info we had.In one of the last phone calls, he was told they would get back to him in 30 days with a response to his 5% offer.

They called him the next day and said they brought another person in and needed a few pieces of info in order to consider the offer (as I know now after reading up here that was a lie). The requested info was not as extensive as the packet. There was no filling out of paperwork, just statements.

As I said, we now know that is a big Don't Do. Any idea of what we may be in for now that we actually showed them what we do and don't have? We don't have much left at the end of each month so there wasn't anything to hide.

Thank you for anything you may be able to offer...this is so scary to me.

Hello Lory and welcome to Loansafe! If your 2nd is totally underwater ( you mentioned your home is worth less than your 1st mortgage), and BofA has charged it off, AND your are current on your 1st, they most likely will not foreclose.

Following the Strategy for Settling your Second would mean going silent on them now. We are in the same boat, but our 2nd is partially in the money now. We have refused to provide any financials at all. So waiting here too.

If they contact you again with an offer that you either cannot afford, or don't want to accept, this advice from another member, in reference to credit cards, is a good response:

"To any reading this sticky, when your credit card company (bank) asks for financials, tell them you
already provided everything to a credit counseling agency who provided you with guidance on what
you could afford.
I did this when settling with my BoA card. They must have asked me for
financials every time we talked (which was a lot over the 180 days). I would simply say
"I've already provided all this information to a conseling agency who has advised me that I
have negative cash flow and need to reduce my obligations
".

Also, here is a post that Mo (Maurice Bedard, Founder Loansafe) posted in response to another member a bit ago:

"If they charged the loan off, then most likely they are not going to foreclose. It's typical not to hear anything for a long time. I've seen many cases where people do not hear anything for approximately 1 to 2 years. More often than not it is sold to a collection agency.

My advice is to just not worry about it and wait until they contact you. There is really nothing you can do now and worrying would be simply a waste of time and not worth the stress at all."

Mo always says to hope for the best and prepare for the worst.

Keep us posted, you are not alone. ;)
 
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Lory

LoanSafe Member
Apr 2, 2016
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Thank you for responding. They did call my husband back and said the best they could do was 50 percent because we owed so much...she said our offer was just so small for such a large amount (we basically offered 5 1/2 percent). So my husband told her "then I guess we have nothing else to discuss". She then says she'll pass it along to the next person in line. So I guess now we wait, as you said. I read somewhere that they sometimes garnishes wages...is that something that is happening often?
 

despritfreya

LoanSafe Member
Sep 8, 2011
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"I read somewhere that they sometimes garnishes wages...is that something that is happening often?"

1. You do not mention what state you are in.
2. You state that the 2nd is an equity line. I will assume you took out this equity line sometime after you purchased the home.
3. I assume you have not filed bk and therefore have not discharged the money obligation for this debt.

Assuming state law does not preclude your 2nd from suing under the promissory note you signed (very few, if any, do if it is a true 2nd mortgage), at some point either the lender or the junk debt buyer may elect to file a law suit based upon the loan obligation. Once it gets a judgment then, yes, it can collect upon the judgment as allowed under state law and that can include wage garnishment. How often does this happen? Cannot really say but, in my state I am seeing it more and more. I do anticipate however that such action will become less and less as property values increase to a level that justifies foreclosing instead of obtaining a money judgment.

Des.
 

Lory

LoanSafe Member
Apr 2, 2016
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Thank you despritfreya...
We live in Florida
We did attain the equity line several years after we bought the house
We have not filed for bk

Thank you for your time
 

Lory

LoanSafe Member
Apr 2, 2016
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on my husbands credit it is no longer showing as bank of america..it is showing Commbank. From what I see online, that would be Commonwealth bank? Has anyone dealt with them? We were expecting BOA to sell the loan but we didn't think it would be to another bank. We have had no communication from them whatsoever. At the same time, my husbands credit continues to go up, which we didn't think would happen so were thinking of trying to refi as our interest rate is at 6%. Is that even a possibility with what is going on?