GOING NUTS!!! Home Loan Modification & CH13

[nana811]

Background: April 2010 we signed a new loan modificatin agreement with bank of america. They received all our documents, plus the loan agreement signed and notorized for the 2nd time in April, the first time was December and they misplaced the agreement and it exprired.

TODAY: I find out cause I filed CH13 on May 28, that my modification is denied and will have to start over and send them my 2 months of paystubs, bank statements, 2yrs of tax return, letter of hardship and letter from my lawyer so that they may review my account.

IS THIS RIGHT? I was told once the loan agreement was sent signed notorized and they confirmed they received it, it would take about 60 days for their internal system to kick it in motion, but that it was finalized. NOW BOA says no.

WHAT TO DO????

HELP!

[Pandora]

Was this HAMP and if so, did you complete your trial payments and receive a permanent modification?

Just signing the trial payment documents is not a guarenteed loan modification, you have to wait until you get the perm. modification along with the signed notarized perm. mod paperwork back from the bank. Its then that it becomes active and locked - to which you then submit it with your Ch. 13 plan.

Loan mods (if HAMP) have been taking anywhere on average from 8 months to 18 months or longer; in-house modifications can take upwards of 3 months or longer, it just depends on the lender and what they want to do. As of today however, HAMP seems to have fallen apart and hardly any are being approved given the program was never fully enforced - only merely "suggested". The banks have been trying to weasel their way out of their agreed upon acceptance of the program since paying back TARP monies.

[nana811]

the documents were a NEW LOAN AGREEMENT, nothing temporary. It stated payments for 2yrs x amount, after that for 3 years xamount and then the final tally amount. It started at 2% interested and by 5 years it would be at 5% interest.

What does HAMP mean and TARP mean?

My filing included the 2nd home loan, not the first.

[Pandora]

HAMP = is Making Homes Affordable Program

Tarp is the monies the banks took= bailout

You should know what HAMP is if you applied for a loan modification - from the sounds of what you wrote, thats HAMP. ??? Does it say Making Homes Affordable on any of your document pages? Did you get a signed copy back from the lender? Trial payments were for how long? Etc etc etc....

You filed Ch. 13 and managed to strip and/or include the 2nd - but didnt include your 1st mortgage, is that what you're saying? Thats not possible... unless you're paying your 1st outside of your plan and do not have any arrears owed to it - if thats the case, then why modify?

[momofthree]

To the OP: Hamp includes a fixed rate for the first 5 years and then stepping up 1% each year after that until it fixes at around 5%, so it sounds like this is probably an in-house loan mod. I believe banks can revoke an in-house mod due to bankruptcy. Did you have any kind of trial period payments? You had to include the 1st mortgage into your filing. You must include all debt in your filing. However, I'm guessing your mortgage is being paid outside of your payment plan.

For help with mod questions, check out www.loansafe.org

Pandora, many people seek out modifications before they are actually behind. As soon as we found out about dh's paycut, we applied for the mod program even though we were still current. We wanted to be proactive and fix the problem before it actually became a problem, kwim? Our mod was finalized before we were ever considered delinquent...doesn't mean that we didn't need it.

[Pandora]

I hope this helps you. Here are some names of people you can contact at BOA to discuss the status of your loan modification package.


Barbara Desoer Office of the President BOA - email

[email protected]


Rhea Smith (admin officer) Office of the President 800-669-2443 (x2773)

[Pandora]

To the OP: Hamp includes a fixed rate for the first 5 years and then stepping up 1% each year after that until it fixes at around 5%, so it sounds like this is probably an in-house loan mod. I believe banks can revoke an in-house mod due to bankruptcy. Did you have any kind of trial period payments? You had to include the 1st mortgage into your filing. You must include all debt in your filing. However, I'm guessing your mortgage is being paid outside of your payment plan.

For help with mod questions, check out www.loansafe.org

Pandora, many people seek out modifications before they are actually behind. As soon as we found out about dh's paycut, we applied for the mod program even though we were still current. We wanted to be proactive and fix the problem before it actually became a problem, kwim? Our mod was finalized before we were ever considered delinquent...doesn't mean that we didn't need it.

I understand that - we did the same thing and were current when we were approved for our mod as well - you and I sound like we're on the same timeline and nearly the exact same situation/circumstances, except my husband lost his job. My question (or concern really) was that the OP filed and didnt include their 1st mortgage.... in that instance, then one would assume one wouldnt need a mod if the 1st wasnt included in the plan - unless it was modified already and/or there was no arrears. Or at least thats how it read to me. There's alot of info missing - like are there arrears, trial payments done, etc etc.

I'd like to help this person - as its not an easy task as you and I both know we've been there and done that - and you're right, it does sound like an in-house mod - my apologies, I misread how it was typed.

ETA: OP - are you trying to modify the 2nd mortgage - the 1st mortgage? both mortgages? Strip the 2nd?

[SMinGA]

There should have been a disclaimer in the paperwork that if the loan entered into a ch. 7/13 they would need to lift the stay in order to continue. Even though you signed & sent back, it takes time for it to all be finalized on their end. Should have waited til you had your final copies (signed by BOA) back.

My loan mod process started in April w/ BofA. 99% done now - just waiting on the final docs back.

[SMinGA]

ps-

BofA is modeling inhouse mods after the HAMP program. If you don't know what HAMP is - my guess is you're inhouse.

Read over your paperwork - the coversheets that came w/ the mod docs. I think its near the bottom of the first page, the disclaimers. Mine also indicated the mod was dependent on receiving the docs (back to BofA) by xx/xx/xx date w/ certified funds = 1 mo new payment & current check stubs. It was in that same area that it mentioned an active bankruptcy would require lifting of the stay.

The mod is an attempt to resolve your mortgage - and it would be a violation of the automatic stay for BofA to have continued on as if you had not filed.

[mhsaltz]

BOA got me also

My wife and I were approved for a loan modification( 2nd mortgage) in February, 2010 with BOA. We made all of the trial period payments on a timely basis and were in total compliance with the agreement. On May 21st, my wife and I filed for Chapter 13 bankruptcy protection. My wife and I made our May and June BOA mortgage payments on a timely basis. I contacted BOA regarding a mailing address when I was informed by one of their representatives that my loan modification had been revoked. We also had to reapply for a modification on the mortgage. There are two things that are upsetting about all of this : 1) BOA would have never told me about this unless I contacted them 2) My July payment will be late because when BOA changed the due date for the July payment. (We would be on time if the modification due date remained in place.) I realized there were going to be bumps in the road, just not this quickly.

[nana811]

Thank you guys for all your advice, I did call BOA President office and already got a call back, contact person and her ph#. She is looking into my account and letting me know thursday what's the deal and where to go from here.

FYI- went to my 341 meeting today. I think all went well,l took about 15mins. So now I just wait fo rthe next step and find out out about my modification.

Will keep you guys posted.

[mrslick]

"nana811" any updates on your modification?

[nana811]

Well, its going through the process. I did call the President's office and got a call back the next day and I submitted the paperwork they wanted again for the 3rd time, waiting on their offer. My loan negotiator is on vacation until next Tuesday, so I wait....

FYI: 341 meeting was good and short. They did have to do an amendment because of the 1st mortgage on being oficially modified. Hopefully that will be done before confirmation.

[Pandora]

FYI: 341 meeting was good and short. They did have to do an amendment because of the 1st mortgage on being oficially modified. Hopefully that will be done before confirmation.

Never mind... disregard

just went back and read that apparently it was permanent

[Pandora]

Well, its going through the process. I did call the President's office and got a call back the next day and I submitted the paperwork they wanted again for the 3rd time, waiting on their offer. My loan negotiator is on vacation until next Tuesday, so I wait....

I'm confused - is it permanent or not at this juncture?

if its not perm. modification - they've (trustee) done a temporary reduction to your payment, I believe - but I also believe what happens if your perm. mod doesnt come through is that everything gets added back onto your plan to adjust for the temporary reduction.

I'm not 100% on it, but I thought I just read somewhere on here last week where something similiar happened to someone else going thru a mod - and their payment dropped for XX months (over a year in process) then they were denied - and the back payments were added back in. This caused the payment to go up like 1K a month.