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Hello, I currently have a mortgage with Bank of America and have been weighing my options. My salary has been cut by 20% and I'm slowly sinking into debt. Does anyone know how a loan modification works and how much they would be willing to go on my payment, my current rate is 7%.
Also, I am still stuck paying PMI after 5 years, is there anyway to get this removed, since most likely that would solve my money issues?
I'm about $60,000 under water and it's killing me that I could rent in the same complex for almost $1,000 a month less, since I wouldn't have to pay taxes and HOA fee's.
I live in Florida and would love to be able to just walk away and let them foreclose on me, since I would be saving about $12,000 a year on rent, but I'm just not sure how hard they would come after me.
The 1st problem you'll face is dealing with BOA. At one time they were semi-decent but not the best in the mortgage lending business. Since they took over Country Wide Home Loans everything you hear is extremely negative and they went from being mediocre to being some of the worst.
Even if you come up with a plan to modify, restructure or walk away from your home finding someone at BOA who has the ability to make things happen might be difficult.
So, with while BOA being extremely clueless could be a real negative it could also be a positive if you decide to walkaway. It could be 6-12 months before they figure out there is a problem and you could have free rent for a period of time.
But, BOA might have recently improved their procedures and processes and I could be wrong. I doubt it though.
The best thing to do is consult a local attorney on what would protect you the best.
Thank you Rakin...yeah my next step is to contact BOA to inquire about a modification and find out if my loan is a non-recourse loan. I am in Florida and I have read conflicting reports on whether Florida is a non-recourse State. Then my next step would be to contact a real estate attorney and get some advice.
I'm really not worried about living there for free until they come after me, I just want to get out and rent somewhere cheaper & save $1,000 a month to pay down my other debt. I can't even rent it out because the rent prices also dropped so much.
You will not be able to get rid of the PMI payment since you are under water.
Call customer service and ask them to send you a loan modification package.
yeah, that's what I figured.... I put a lot into in upgrades and appliances that if the market stayed the same, I could have by now, but since I'm so underwater I can't.
The cost of moving plus the cost of renting is not your top priority.
Getting a loan mod package is.
One step at a time.
You're right, but it's the thought of saving $12,000 a year and then having my debt paid of in 2 years, that makes me want to get out of this. I live in a 1 bedroom condo, so the move would only cost about $200.
do you have rough figure of how much a modification could help? My current mortgage is $1,500 with taxes (which are about $110 a month)
You're right, but it's the thought of saving $12,000 a year and then having my debt paid of in 2 years, that makes me want to get out of this. I live in a 1 bedroom condo, so the move would only cost about $200.
do you have rough figure of how much a modification could help? My current mortgage is $1,500 with taxes (which are about $110 a month)
The long term repercussions of foreclosure would probably be worse. It goes on credit reports, background checks, you won't get a loan for a while, insurance and interest rates will be awful. If the loan mod doesn't work and before you get to the point of a foreclosure look into a short sale or deed in lieu.
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