BOA Loan Mod/Intent to Foreclose

[troubled]

hi All,

We were discharged in August and had hoped that would help. It has to a point. Unfortunately income is still low as I'm only working part time.

We are several months behind on our 2nd mortgage. and just received a notice on an intent to foreclose if not made current by March.

I applied for a loan mod with BOA in Sept. BOA holds the second mortgage of about $93,000 at 11.87% -- first is current-- $232,000 @ 5.25% and the house was appraised during the BK at $251,000.

They told us (after finally getting a person on the phone in retention dept. that had NO IDEA about our application!) that our income to debt was too high still (although I told them that if second wasn't so high it wouldn't be). But if I paid the amount owed it may help (they suggested I cash in 401k, which I don't have...lol)

I have 3 questions that I hope someone can help with:
1. My wife want to keep the house (I don't care) has anyone had success with offering a one-time % payout of say 10% or 20% (we'd borrow from family since we have no savings), since they will obviously lose money with a foreclosure?

2. I that or another attempt to modify doesn't work, how soon should I stop paying the first?

3. anybody have any other ideas/experiences that have (may?) worked?

Thanks for any input and happy 2010!!!

[StartingOver08]

Look up the posts by Relief in California. She was able to get the second paid off with a lump sum percentage somewhere around 12% (don't remember the exact amount). The second mtg released their lien in exchange for the payment. It is worth doing. In her case the second was completely unsecured because the value of the property was less than the balance on her first. She also was discharged from a Ch 7 before doing this.

[AngelinaCat]

I believe StartingOver08 is thinking of the poster Relief13035, who is in southern CA. Here is a link to her threads:

http://www.bkforum.com/search.php?searchid=1939615

Good luck! Happy Healing New Year!

[troubled]

Thanks to you both...Happy New Year!

[troubled]

Have spoken with BOA 3 times now and was told by retention department that there are no recommendations on our loan for a remodification and they are not reducing principle. Anyone have ideas of who else to speak with there?

Thanks!

[tigergem]

Ok I know this is not encouraging, or even particularly helpful, and for that I apologize. But check out this article I found about why they aren't in a big hurry to help mods.

http://www.nytimes.com/2009/07/30/business/30services.html

Oh. But this site might be helpful to you. Not sure. But they have an area specifically dealing with BofA.

loansafe.org

Good luck!

[troubled]

Thanks for the link. Guess it comes down to who can make a buck.

[DebtStinks]

appraised during the BK at $251,000

Appraised with who? Just take the number off Zwillow or something? The second can't get crap if the the first is equal to or more than the value of the home. Hell if it did sell for $251K the cost of foreclosure would be more than the 19k... the second would end up giving all the money to the first (I assume the second is from another bank).

Our first is with BofA and the second is with Citi... the home is valued less than what we owe on the first. But the second called, sent certified letters, blah blah blah about how they were going to foreclose if we didn't pay. They never did anything... other than make noise.

But it's all really a gamble... if the second can't get anything from a foreclosure then it's all just threats. Once they figure out that you aren't going to pay them I've heard some people getting deals on a % settlement since something is better than nothing. You just can't know what the banks are going to do... they just don't make much sense. We have been sitting around with no payments to the first or second since Feb. 2009 and not even received our NOD yet.

[troubled]

Hi,

Zillow numbers aren't worth a thing. We paid to have an appraiser put a value on the house as we were looking to file Chapter 13 (but missed the cut-of by about $4000).

We are going to try one last time in March to offer a settlement percentage, but so far they've been very unresponsive. Not sure if we received our notice of intent quickly because we reached out to them...

[montana59451]

Visit loansafe.org There you will find all the info you need to get the ball rolling. We just completed a successful loan mod ourselves. You are NOT ALONE in this.