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Old 01-07-2013, 12:59 PM
 
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So, I know this is a legitimate program (I'v done enough poking around online to determine that much). I got a FedEx package from BofA saying we may be qualified for a mortgage interest rate reduction as part of the DOJ case settlement. What I'm having trouble finding is what the qualification requirements are. They're now asking for copies of paystubs and tax returns, which is fine, but I'm not going to go through the hassle if we're just going to be told we don't qualify.

Does anyone know any specifics about this program? This is NOT the principle reduction program; we are current on our payments, no "financial hardship," just completely underwater. My concern is that we have moved out of the home and now rent it out, so the home is not owner occupied. Anyone know if that kicks us out of the program?

From what I've found online, qualification requirements include being current on your payments and meeting a minimum credit score (not a problem for us), but I can't find anything beyond that. If those were the only qualifications, then they wouldn't need my 2011 tax return, paystubs, etc.
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Old 01-08-2013, 04:09 PM
 
Location: New York
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To quality for the DOJ Mod Program The Following Must Be in Place.

1) House worth less than you owe on the loan. Need LTV of 100% or more.
2) Loan 60 days past due or more
3) Loan delinquent in January of this year even if you caught up and the went late again.
4) Cannot be a Fannie or Freddie loan.
5) Does not have to be your primary residence.
6) Does not matter if you had previous mod done.

BENEFITS OF DOJ PROGRAM:

1) Principle Reduction in loan to < 100%
2) Lower Monthly Payment
4) Forgiveness of any payments owed now.

PARTICIPATING BANKS:
1) Bank of America
2) Wells Fargo
3) J.P. Morgan Chase
4) Citi Group
5) GMAC now Ally Financial Inc.

1) You must do a phone survey first. They then confirm you meet the basic requirements right then and there.

2) You are assigned a CRM who evaluates and moves you into underwriting.

3) If they need financial info (tax, income etc...) they request it.

4) You receive a letter letting you know if accepted or not.

5) If accepted it will take 1 - 2 months to conclude in most cases but no danger to you in the mean time.
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Old 01-09-2013, 05:38 PM
 
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No, those are the requirements for the first round of mods they did that included principle reduction. For the current round of interest rate reduction only, you can NOT be past due at all. I've confirmed this on various sites and with both of the representatives I've spoken with directly.
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Old 01-11-2013, 01:30 PM
 
Location: New York
2,251 posts, read 4,524,124 times
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Quote:
Originally Posted by jillybean720 View Post
No, those are the requirements for the first round of mods they did that included principle reduction. For the current round of interest rate reduction only, you can NOT be past due at all. I've confirmed this on various sites and with both of the representatives I've spoken with directly.
jillybean

In the past five years have worked with 100's of home owners in different states. They believed they were doing the right thing - doing and giving everything their lender wanted. Only months later being denied, short of facing foreclosure on their homes. Homeowners became victims.

There's so much misinterpreted information on the internet today, Writers will say almost anything to get you to read their story's. Short of asking people on a forum for answers, that may be in a worst situation then you. It is fruitless scouring the internet comparing another individuals resolutions believing you are entitled to the same thing. Everything is different.

People cannot automatically qualify for a loan modification, as to a refinance which I am sure you know. You have a private investor - suggest you look up the loan trust your mortgage is part of, if in fact it can even be modified.

Mentioning you have BOA as your servicer, was this an old Countrywide loan? See your original closing documents, on page 10 to 15 to see the investor and trust number.

I recently wrote a motion against Bank of America discussing Countrywide of violating laws with predatory lending... If you have a predatory loan and your bank is not going to work with you, you may have to take legal action.


Plaintiff: xxxx,
xxxxx
Cumming, GA 30040
vs.
Defendant: Bank of America,
PO Box 5170 Simi Valley, CA 93062
BOA Loan Account number xxxxxxxxxx
BNY Mellon Trust: CWALT 2007-HY2

Dated this October 22, 2012

CIVIL ACTION FILE

MOTION TO COMPEL LOAN MODIFICATION

1. On November 29, 2006 the plaintiff entered into a no-document, no income check Interest-Only mortgage to purchase their homestead. Plaintiff paid 5% towards down payment, with a remaining loan amount of $291,650. The loan terms were five years fixed at 6.875%. On the sixth year the interest rate became adjustable. In the short term future the plaintiff’s mortgage is scheduled to balloon to include both interest and principle. It is now reasonably predictable unless the loan is modified, the monthly mortgage payment will become non-affordable unless changes are made.

2. Previous attempts for a loan modification starting in December 2010, no action was taken till the interest rate was reduced due to a scheduled adjustment. This past December 2011 the plaintiff’s interest rate dropped to where the payment is now affordable. The plaintiff now shows affordability, has caught up on missed payments, and has been current for the last four months.

3. Prior to the interest rate reduction payment was non-affordable. For the short term if the plaintiff adjustable loan continues with its original terms the payment will become once again non-affordable.

4.
The type of underwriting process Countrywide initially used placed the plaintiff in a precarious financial situation where the ability to repay this loan could be very low if the interest rate changes positive.

5.
Recently 15 States including Georgia filed lawsuits accusing Countrywide of violating laws against predatory lending. Their complaints allege that Countrywide’s systematically failed to adhere to their own underwriting guidelines; Countrywide engaged many deceptive sales practices, charged unlawful fees and interest rates, and made mortgage loans that Countrywide had no reasonable basis to think that the borrowers could afford, all in violation of the predatory lending laws of the United States.

6.
Countrywide ignored conventional guidelines regarding the plaintiff’s debt to income ratio. Guidelines state if a borrower is obligated to pay 55% of his monthly income to principal, interest, and property taxes and another 20% to installment loans, medical, or other expenses, they are distend to fail.

7.
Countrywide created a situation whereby even the slightest depreciation on a purchase money transaction by accepting only five percent down on an interest only mortgage would leave the plaintiff with a financial obligation far greater than it’s worth. Not only is the plaintiff highly leveraged, but plaintiff is obligated to pay private mortgage insurance, making the payment higher.

8.
Given this fact Countrywide had no way of knowing if the plaintiff will be able to afford the mortgage payment. They have a fiduciary responsibility to ensure that the borrower is not in harm’s way.

9. On April 27, 2009, Bank of America rebranded Countrywide Home Loans as “Bank of America Home Loans.”

10. Pursuant to the Supreme Court of the State of New York complaint CPLR§503 and CPLR§909 and CPLR§3001 concerning Countrywide settlement of widespread predatory lending. The Multistate settlement required modification of numerous mortgage loans meeting agreed financial criteria. At which Countrywide Home Loans or Countrywide Servicing must purchase every modified loan is not less than 100% of the unpaid principal balance of, and any accrued interest on, that loan immediately before modification.

11. This action relates to two series of securitizations known as the CWL series and the CWALT series. Specifically the plaintiff’s loan is part of trust series CWALT 2007-HY2.

Conclusion

For the reasons stated above it is in the interest of all parties to modify this toxic loan. This motion references how "Countrywide” deceived borrowers by misrepresenting loan terms. Borrowers were tricked into accepting unfair loan terms, usually through aggressive sales tactics. They often are taken advantage of because of their lack of understanding of terms and involvement in complicated transactions. Anecdotal information suggests predatory lending is concentrated in poor and minority communities, where better loans are not readily available. Having outstanding loans that borrowers are gradually paying off is usually good for a bank, but when mortgage loans become toxic, they can become a financial burden.

Respectively
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Old 01-12-2013, 08:21 PM
 
976 posts, read 1,557,886 times
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No, our loan is not an old Countrywide. It has been serviced and owned by Bank of America for as long as we've had it. This isn't a refinancing offer, it is a DOJ-mandated loan modification (though it is a "refinancing" type of modification) as the result of the class action lawsuit settled in early 2012. Thanks to some knowledgeable folks on another forum, I was able to find the information I was seeking:

https://d9klfgibkcquc.cloudfront.net...oA-4-11-12.pdf

Exhibit D, item 9, is what I believe pertains to my specific situation.
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Old 03-12-2013, 12:09 PM
 
1 posts, read 27,926 times
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I'm hoping someone is in a similar situation and can offer some much needed advice.
I have a Countrywide originated mortgage (April 2006- approx $1mil), now serviced by Bank of America. Property value has depreciated approx 25%.
I received a package for modification request back in Sept. 2012 (after falling two months delinquent on payments)
I submitted all requested docs, over several months, and spoke with my relationship manager on a weekly basis to make sure nothing was outstanding. I was consistently assured everything was in order, no additional docs were required and that the package was with the underwriting dept. and under review.
I received a denial letter last month (5mts into the process) stating that my modification was denied "for failing to supply requested documentation".
I spoke with my rep and her boss who told me to open an appeal- even though they were in receipt of all requested docs they said there were several depts. involved and the system "wasn't perfect" .
So- I opened an appeal and my "appeals specialist" told me the appeal was valid and listed a number of documents required. I immediately faxed requested documents on 3/5/13, called her to follow up on 3/6/13 and had her read back to me the docs requested and the docs she saw as received. I asked her three times to give me a verbal guarantee that no other docs were required and all was in good standing (I had no other recourse (besides fax transmittal report) as they do not give out email). I received a fedex letter from BofAm dated 3/7/13 denying the appeal: "Your loan is not eligible for a modification because you did not timely provide us with the documents we requested".
I spoke with both my original modification rep and my appeal rep who both said they did not make the decision and to open a new modification. Is this legal? What is my recourse? Is there any hope in a new appeal? Should I request a DOJ appeal? Has anyone actually had a favorable outcome with BofAm in modification process?
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Old 03-12-2013, 12:24 PM
 
6,558 posts, read 7,325,816 times
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Quote:
Originally Posted by ny6677 View Post
I'm hoping someone is in a similar situation and can offer some much needed advice.
I have a Countrywide originated mortgage (April 2006- approx $1mil), now serviced by Bank of America. Property value has depreciated approx 25%.
I received a package for modification request back in Sept. 2012 (after falling two months delinquent on payments)
I submitted all requested docs, over several months, and spoke with my relationship manager on a weekly basis to make sure nothing was outstanding. I was consistently assured everything was in order, no additional docs were required and that the package was with the underwriting dept. and under review.
I received a denial letter last month (5mts into the process) stating that my modification was denied "for failing to supply requested documentation".
I spoke with my rep and her boss who told me to open an appeal- even though they were in receipt of all requested docs they said there were several depts. involved and the system "wasn't perfect" .
So- I opened an appeal and my "appeals specialist" told me the appeal was valid and listed a number of documents required. I immediately faxed requested documents on 3/5/13, called her to follow up on 3/6/13 and had her read back to me the docs requested and the docs she saw as received. I asked her three times to give me a verbal guarantee that no other docs were required and all was in good standing (I had no other recourse (besides fax transmittal report) as they do not give out email). I received a fedex letter from BofAm dated 3/7/13 denying the appeal: "Your loan is not eligible for a modification because you did not timely provide us with the documents we requested".
I spoke with both my original modification rep and my appeal rep who both said they did not make the decision and to open a new modification. Is this legal? What is my recourse? Is there any hope in a new appeal? Should I request a DOJ appeal? Has anyone actually had a favorable outcome with BofAm in modification process?
I fell two months behind on my mortgage because of a medical hardship case. That was around 3 years ago and almost lost my house to Wells Fargo who basically did the same thing as BOA did to you. I called my congressman's office and their staff set them straight. Everything has been straightened out for the better. So, push comes to shove there is this option if all else fails.
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Old 03-12-2013, 03:24 PM
 
5,075 posts, read 9,377,702 times
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Gosh, they're modifying non-owner occupied loans as well? Where was the DOJ handing out goodies when my dot com stocks went underwater???
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Old 03-12-2013, 06:53 PM
 
Location: New York
2,251 posts, read 4,524,124 times
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Quote:
Originally Posted by ny6677 View Post
.... Has anyone actually had a favorable outcome with BofAm in modification process?
What you were told hear a lot from home owners in foreclosure "denied from not sending in requested documents". Bank of America looking at their report card on modifications - less then 36% turn into permanent modifications. See link Loan Modification Progress Chart | Eye on the Bailout | ProPublica

"NY" is your name tells me your in New York, which is a judicial state with the lender has to go through the court system to foreclose. Right now in our state - it is taking over two years to foreclose because the court system is so backed up. I am not saying it is ok to do nothing, because each missed payment goes back into the loan making the balance larger. I am just saying this to give you a little piece of mind.

Understand your position - the bank is on top, the loan is in the middle, and your on the bottom, because you are trying to handle this on your own. The reality is you owe money to the bank, they do not owe you. In your situation it would be advisable for you to have legal representation, because an Attorney is at the same level as the lender.

Today had a call from a client after their modification was completed; asking about a 1099-R they received after the lender reduced the principle $25,000. Due to the mortgage forgiveness act of 2007, was extended through 2013. They are not have to pay taxes on their principle reduction. Last year they had the same story you have, her lender was unresponsive, sending a letter they were denied for not sending in paper work.

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Old 03-15-2013, 01:19 PM
 
1 posts, read 27,776 times
Reputation: 13
Default Modification Specialist - question?

Quote:
Originally Posted by Modification Specialist View Post
What you were told hear a lot from home owners in foreclosure "denied from not sending in requested documents". Bank of America looking at their report card on modifications - less then 36% turn into permanent modifications. See link [URL="http://projects.propublica.org/bailout/loan_mods/list"]Loan Modification Progress Chart | Eye on the Bailout | ProPublica[/URL]

"NY" is your name tells me your in New York, which is a judicial state with the lender has to go through the court system to foreclose. Right now in our state - it is taking over two years to foreclose because the court system is so backed up. I am not saying it is ok to do nothing, because each missed payment goes back into the loan making the balance larger. I am just saying this to give you a little piece of mind.

Understand your position - the bank is on top, the loan is in the middle, and your on the bottom, because you are trying to handle this on your own. The reality is you owe money to the bank, they do not owe you. In your situation it would be advisable for you to have legal representation, because an Attorney is at the same level as the lender.

Today had a call from a client after their modification was completed; asking about a 1099-R they received after the lender reduced the principle $25,000. Due to the mortgage forgiveness act of 2007, was extended through 2013. They are not have to pay taxes on their principle reduction. Last year they had the same story you have, her lender was unresponsive, sending a letter they were denied for not sending in paper work.

What if your income is sufficient for the current monthly payment, but you are many months behind due to employment/income loss that you have never been able to overcome? The DOJ just turned down my modification request based on the fact I have enough income to make the payment - but BOA won't take any of the past due payment without being paid in total. I make too much money for the debt per DOJ, but not enough to be able to work out the backlog.

BOA has now denied me internally because I make too little to qualify for the payment that includes the backlog amount. So on one hand I make too much, the other hand too little, and in the mean time, no mod. Can I appeal that to the DOJ to see if they can account for the past due amount? Any other ideas?
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