Quote:
Originally Posted by jillybean720
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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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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