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Old 01-19-2011, 10:12 PM
2 posts, read 7,817 times
Reputation: 11


After two rounds of unemployment we have tried working with BoA to get help with mortgage payments, we were told for three months we were under review to then find out we were not. We were current through this time, then in July my husband's job was not paying on time, once every three weeks instead of weekly, I couldn't make my credit card payments. I retained an attorney and am planning on filing bankruptcy. At the same time BoA sent us a MHA package. We had til mid Aug. to send it back. I called to let them know that my husband was not employed again and on unemployment, they told me we did not make enough money for a modification and to call back once he got a job. Thankfully three weeks later he did have a job but for a little more than minimum wage. I called BoA to update the financials and was advised to work with HUD. We got all the information in with the help of the Urban League and sent in a modification package. This is now October and we are two months behind. I call two weeks after sending the package and am told that they have something in our file but it hasn't been put in the system yet call back later. I called back two weeks after that to learn that what was in our file referred back to the MHA that was sent to me in August and it was closed because we had not sent the paperwork back. They had not received the HUD package and if they had it would not have been considered since it did not come from a current solicitation package from BoA. I asked about getting the package again and was told it was very difficult to get another MHA and would need to pre-qualify by phone. Several transfers later I was told that since my husband now has a new job and makes too much money for MHA even though it is a temporary contact position for approx. three months they cannot pre-qualify me in a hypothetical situation. We are now behind Sept- Nov. I call back later and tell them we would be able to make a payment in December but it would take two paychecks to make the full amount. This lady says that will be fine and tells me that my account is still under review for any assistance that we could qualify for. The next week I get a letter from their attorney that at the end of 60 days at any point our house can be sold. I call back to ask about the letter and am told they will escalate my account so someone will review it. I ask about making the payment and am now told they will not accept my payment unless it is for the full amount of 4 months. I called back two more times and once was offered to immediately pay that months mortgage and agree to pay 2586 each month for the next six months but if I am late I automatically default. That amount also included 1800 in attorney fees for the letter they sent me. I asked for the offer in writing and explained that my husband works three hours away and would need to see it before we could accept it, she said she couldn't do that. I declined the offer. Right before Christmas I got the OOP's email address and within two weeks talked with a senior negotiator he had my file for about a week when he asked about my bankruptcy, I told him I had not filed yet but would soon. He says he is not even allowed to talk to me and no offers or deals can be made until I file and then will have to go through the bankruptcy department. Two days ago I get not one but TWO MHA mod. packages from BoA. Are they allowed to send those at will but when I requested one, not send it ? Any help on options would be appreciated.
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Old 01-20-2011, 03:17 PM
Location: Laguna Niguel, CA
768 posts, read 4,135,117 times
Reputation: 456
They can send you modification packages at their will, they do not need to be requested by you. I have had clients of mine who haven't had any issues with their mortgage payments, and out of the blue their lender sends them a modification or refinance package. However the loan modification can only go forward if you accept/sign the modification documents & return the package.

It sounds like you are getting the runaround. I've only attempted a loan modification for myself, and it wasn't with BofA, so hopefully someone who has gone through the process with BofA will chime in. Not to say that there won't be excellent advice coming your way, but you may also want to visit Mortgage Forum - LoanSafe.org and browse the hundreds of BofA modification stories there, and/or post the same thing there as well.
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Old 01-20-2011, 04:38 PM
2 posts, read 7,817 times
Reputation: 11
Thanks for the reply Shane, I am going back to HUD next week and attempt to send this all again. It is just so frustrating that had they re-sent this package in Oct. we most likely would have been approved. I already tried LoanSafe, and did not get the email to respond back to yet, I have not seen many in my situation that are also saying they are in bankruptcy.
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Old 01-20-2011, 05:31 PM
Location: New York
2,251 posts, read 4,529,166 times
Reputation: 1611

Do Not Do Bankruptcy if you are concerned with your financial future - there is another way!!!!

First thing in your situation - immediately need to file a QWR for a moratorium to prevent your house from being sold... Moratoriums are a legal method which have to be renewed every few months to postpone the imminent foreclosure. Compared to a Chapter 13 - making payments to a trustee and have it listed on your credit report for 7 years. Letting a Foreclosure take it's course - it can be 5 to 7 years before your can qualify for a new home loan.

You have a lot to comment on.... I can sympathize with you - BoA is our No 1 bank we submit and received loan modifications. They have a loan modification approval rating of less than 25%. Link - http://bailout.propublica.org/loan_mods/list (broken link)

Right away understand they are not looking to help you - but in business to make profit. Asking them to reduce what they are going to make in future profits, from the ground up, is impossible. Your loan is with other loans, are pooled together as a Pass Through Security, which is passed through Wall St, to investors. Bank of America is obligated to collected the Investors return of their money, money they originally lent you to buy your home..

If you let the foreclosure happen - BoA gives back your loan note to the Investors, and receive your outstanding balance for new loans.

By them suggesting a HAMP (MHA) program - you are not going to be approved, because there has to be 12 months on time payments before the application. This way - will put you into a worst position - when your denial does happen, the two options remaining pay all your areas or or losing your home to foreclosure.

Realize any information you give them - can and will be used against you. You telling them you are making less money, realize they can foreclose on you and they will not tell you anything until the last moment.

What needs to happen - in need to show what 31% of your Gross income is over three months. To prove you can afford your loan, but also negotiate what your modified payment will be. This method is used to prevent a forbearance (catch up payment) plan, you want all your missed payments on the back end of the loan. Then you need to demand an in-house modification.

There are two test to determine if you qualify - (1) make enough income to support your loan at the smallest payment. (2) having a verifiable (beyond your control) hardship that put you into this situation.

A Moratorium acts like a bankruptcy, the benefit is it not listed on your credit report, like a BK would for 7 years.

As for your credit card debt - they can't do anything except take you to court and file a judgment (which can take a year). Unless you have $50,000 plus in credit card debt. You should work on lower settlements.

Last edited by Modification Specialist; 01-20-2011 at 06:41 PM..
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Old 01-21-2011, 10:41 AM
Location: Texas but Washington dreams SOON
48 posts, read 119,287 times
Reputation: 24
I am in the same "run around" mess with BOA
have started a loan mod and then got notice that it was declined due to a missing piece of information, which was supplied in the packet. After calling BOA to confirm they had ALL the paperwork for the mod review I was advised that they did indeed have it all and that they were going to " file an apieal " on the denyal and that they would again put it in the review process, and to call back in a week or two to " check the status". So far " still in review" 3 weeks later. excuse after excuse have been advised they are swamped backlogged " files up to the roof and some can not be located" no answers just excuses and delays
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Old 01-21-2011, 04:17 PM
229 posts, read 538,694 times
Reputation: 164
I am hoping that you have a HUD office close to you that deals with this type of situation. Contact Lutheran Social Services to see where to go for help on this. Or google HUD to see where there is an office that can help with Making Home Affordable programs that are NONPROFIT and sponsored by government help. Be careful in this as there are scammers out there. You only want certified HUD programs. This is why I suggested LSS - at the very least they will tell you where you can find an office to help you.

My contact was through the city I live in, sponsored with HUD funding and if I could have found a full time job (so far only temp work) they would have worked with the mortgage company to modify the loan.

Good Luck. Don't try to do this yourself. The banks don't care about you, only about their money so you should treat this like a business decision just as they do.
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Old 01-21-2011, 10:27 PM
8,206 posts, read 20,320,305 times
Reputation: 9467
I think you are chasing your tail. There is still qualification criteria w/ MHA loans at BofA. But the guy at the bank was correct. Every bank that I am aware of has a separate BK department that is firewalled from the rest of the company. It matters not where you are, what you are doing, it goes into the BK department immediately upon notification to creditors, and then they are under no obligation to offer the MHA. If you don't want to reaffirm the mortgage as it currently exists, it goes to foreclosure.
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Old 03-02-2011, 10:31 PM
Location: New York
2,251 posts, read 4,529,166 times
Reputation: 1611
Originally Posted by stangboss2k View Post
.....got notice that it was declined due to a missing piece of information.........excuse after excuse.....no answers just excuses and delays

Realize you are on the bottom of a toe-tum pole - the banks on top and your loan is in between. When I consult with potential clients, more often than not they have already attempted to obtain a loan modification on their own and have been unsuccessful. I have heard the same sad story hundreds of times…

‘Due to a loss of income, Mr. and Mrs. Smith approached their bank asking for a loan modification. They are told that they “should” qualify under either a federal or in-house modification program based upon their preliminary numbers. The bank representative tells them how “simple” the process should be…

Move ahead 10 months.

‘After dozens of filings providing updated documents, and spending hours on the phone dealing with the bank’s representatives, the Smiths receive a denial letter for any of a dozen reasons. Frustrated and deterred, they turn to hiring an attorney to help.’

The question becomes, “Why did this happen?” Unfortunately, there are a myriad of reasons as to why this could have happened. For one, when the real estate bubble burst, banks geared up rapidly for the fallout, and in some cases that meant handing loan modifications to inexperienced hires. This has caused many problems, including lost paperwork, failure to follow protocol, and the inability to speak to a qualified person. Additionally, these inexperienced bank representatives can cause delays in the process, which can lead to a denial for failure to provide updated documentation.

Another reason this occurs is the wide discretion the banks have when reviewing a loan modification application. Loan modifications are permissible, not mandatory. Despite assurances that in order to qualify for the federal Home Affordable Modification Program, the applicant must simply fit certain criteria, in a great number of situations, the bank denies a seemingly qualified applicant. This can happen because of a minor paperwork error, such as a lack of a signature on one page in a 50 page submission. It also occurs because the applicant “fails” the “Net Present Value Test,” which is required for all loans being considered under HAMP, and is based on a complex formula which determines whether it will be more valuable to approve the loan modification or foreclose on a house.

This can mean that if there is anything more than nominal equity in the home, the borrower will be denied for a HAMP modification. Among the other reasons for denials is a lack of income, a surplus of income, or investor guidelines.

Contrary to what you might think, I wish my clients were able to obtain loan modifications on their own. According to what is portrayed in the news, it should be easy to obtain a loan modification from a major lender who participates in the federal program. However, this is simply not the case.

In these hard economic times, it becomes yet another burden to pay attorneys’ fees. Nevertheless, lenders, loan servicers, and investors make it as difficult as possible to obtain a favorable loan modification. That is why a well-qualified attorney with experience dealing with the banks is necessary. Unfortunately for many homeowners, it can be the difference between losing their home and getting a loan modification with an affordable monthly payment.
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Old 04-15-2012, 10:20 AM
1 posts, read 2,630 times
Reputation: 10
I too, have had a tough time with a BOA home mod loan. After trying to straight refi my loan stating in 2008, twice, again in 09, twice, and starting in 2010 with a loan mod, turned down twice. Then April 11, started the process again. Finally, after a year, received the loan mod packet this past week. Payments are ok, interest at 4.5%, not great but 1/2 of old interest. Problem is, balloon payment of $86K WITH interest. What to do?
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