Bank of America Loan Mod Nightmare

[freeatlast98]

I just got off the phone with BofA. The purpose of my call was to speak to someone about a loan mod. I was transfered 6 times and disconnected once. the last person i spoke to finally
took my financial information. Because I don't qualify for HAMP, they pre-qualified me for a new "Home Saver" program. This "Home Saver" program from what I understand helps with the missed payments then places a lien on the home so the bank can collect the missed payments. It sounds awful. I just want them to modify my payment so I can afford my home. She said I would receive the documents in the mail to start the process. What a nightmare this has been trying to do this. BofA is so.. disorganized, they didn't even know the best way to help. I just want to keep my home and all the rep said was "have thought of selling it?" Yes I have however, my daughter and have gone through so much these past 2 years, we just need our life back again. Also,I know these people hear problems everyday but don't they realize this situation could happen to them. What was sort of funny was that after transferring me all over the place including India, they asked if i would like to participate in a survey regarding their customer service!! What are these people thinking??

[JackBondLove]

It sounds like you want to restructure to reduce the payments. B of A is willing allow you to restructure the payments, but not at a loss of interest (basically they would increase the loan balance every time you would make a payment - hence the tacking on the lien.) I'm not sure what is so awful about this program, unless you do not like the idea of not making more or a profit whenever you would sell.

Like the rep said, you have the the choice of this program, or selling the house and moving on.

It is interesting that American businesses like B of A outsources so much work to India, thereby depriving deserving Americans from getting a good job to produce the income to make the payments. Of course, I got even by defaulting on them for about $28K.

[freeatlast98]

It sounds like you want to restructure to reduce the payments. B of A is willing allow you to restructure the payments, but not at a loss of interest (basically they would increase the loan balance every time you would make a payment - hence the tacking on the lien.) I'm not sure what is so awful about this program, unless you do not like the idea of not making more or a profit whenever you would sell.

Like the rep said, you have the the choice of this program, or selling the house and moving on.

It is interesting that American businesses like B of A outsources so much work to India, thereby depriving deserving Americans from getting a good job to produce the income to make the payments. Of course, I got even by defaulting on them for about $28K.

This whole thing has been so confusing and I'm not sure exactly how this would work. I'm going to wait and see if they even make an offer. Does it sound as if the monthly payment would be reduced? The rep mentioned I would have to make payments on the lien amount also. This is so over my head, I'm afraid to make a mistake.

[SMinGA]

Maybe it depends on the loan (mine is now with Bank of America was previously Countrywide) but when I called the 'retention department' 800-669-0102 in April about seeing what could be done to re-amortize the arrears, I felt like they moved pretty well. Did a phone interview in that call about income/expenses - then had to fax 30+ pages of financial info. Last Monday I received by FedEx my mod paperwork (inhouse, don't qualify for Hamp) and BofA received it back on Friday. Now waiting on the 'investors' to sign those forms & my account to update.

Amortized the interest from the missed payments, reducing my rate in a step program where it goes up in 2 years & up again 2 years later. But maxes out in 4 years at a lower APR than I started with.

Maybe it also made some sort of a difference that I had just dismissed a ch. 13?

[freeatlast98]

Maybe it depends on the loan (mine is now with Bank of America was previously Countrywide) but when I called the 'retention department' 800-669-0102 in April about seeing what could be done to re-amortize the arrears, I felt like they moved pretty well. Did a phone interview in that call about income/expenses - then had to fax 30+ pages of financial info. Last Monday I received by FedEx my mod paperwork (inhouse, don't qualify for Hamp) and BofA received it back on Friday. Now waiting on the 'investors' to sign those forms & my account to update.

Amortized the interest from the missed payments, reducing my rate in a step program where it goes up in 2 years & up again 2 years later. But maxes out in 4 years at a lower APR than I started with.

Maybe it also made some sort of a difference that I had just dismissed a ch. 13?

Thank you for your response, I appreciate someone being out there. I been feeling pretty alone lately.
May I ask how much in arrears were you? Also, did your payment decrease significantly? I faxed all the requested information yesterday and I am so apprehensive right now. My payment is $2300. and if it's not considerably less, I don't know how I'll do it. I have missed May's payment so far. One more question, with the trial period do they still give you a grace period?

[liboton21]

I went thru www.naca.com and got a 2.00% for the life of the loan while in BK7.

[freeatlast98]

I went thru www.naca.com and got a 2.00% for the life of the loan while in BK7.

Thank you!! I went to their web site briefly and it looks great.
Did they put you on a trial period as the bank would do?
Did you find any negatives in doing this? In other words did you experience any problems? Does NACA give you a grace period on when the payment is due?

[SMinGA]

As of right now - we owe for Nov '09 thru Jun '10. Started in mid-April so had 6 payments due then. BofA did remove all the late fees, and amortized the missed interest payments for about $5640.

Rate goes to 3.875% for 2 years, then 4.375% for 2 years, then 4.75% permanently beginning July 1st 2014. I didn't get the 2% rate - but then, my situation is not as drastic as some. We would be able to handle our original payment if we had to. Income is back up since I started a 2nd job late last year.

I had to list my expenses/bills and send that in with other paperwork. NOTE: make sure your budget shows something left at the end of the month. They miscalculated the net pay on my 2nd job (receive tips & hourly; tips show in the gross but not in the net since they're not paid in my check-they didn't count tips at first in my income total) and were going to decline me until I made them recalculate.

My total payment went down by about $200: $1176 to $979. The escrow payment actually went up though. They did not amortize $ to fund my escrow account to make up for the missed payments. I was afraid that by the end of the year (taxes due 10/15, insurance due 11/17) they'd increase the escrow payment further because the account balance will be negative. But just got word our county is lowering property tax assessments so I think these the escrow payment in the mod will rectify things, and eventually they should lower the escrow payment by ~$50.

Thank you for your response, I appreciate someone being out there. I been feeling pretty alone lately.
May I ask how much in arrears were you? Also, did your payment decrease significantly? I faxed all the requested information yesterday and I am so apprehensive right now. My payment is $2300. and if it's not considerably less, I don't know how I'll do it. I have missed May's payment so far. One more question, with the trial period do they still give you a grace period?

[SMinGA]

Something else I thought of...

While being processed for the mod, they stop collection efforts. I got notices about how I should make payments like usual during the processing, but I think they were auto-letters.

They sent out my papers by FedEx on Friday the 21st.
I received them on Monday the 24th.
They were due back to BofA (they provided overnight FedEx envelope) by June 1st. Had to get them notarized, include copies of latest pay stubs AND certified funds = 1 month of the new payment. This was listed as $120 in field inspection 'fee' and the rest to interest. I must send in the new payment for July 1st.

Important: When you get your paperwork, there is a very short window of time to get it back. And I think its standard to require 1 month payment with the paperwork. While you're not making mortgage payments, I highly recommend you set some $ aside where you can access it quickly to convert to a money order/cashier's check when the time comes.

[freeatlast98]

Something else I thought of...

While being processed for the mod, they stop collection efforts. I got notices about how I should make payments like usual during the processing, but I think they were auto-letters.

They sent out my papers by FedEx on Friday the 21st.
I received them on Monday the 24th.
They were due back to BofA (they provided overnight FedEx envelope) by June 1st. Had to get them notarized, include copies of latest pay stubs AND certified funds = 1 month of the new payment. This was listed as $120 in field inspection 'fee' and the rest to interest. I must send in the new payment for July 1st.

Important: When you get your paperwork, there is a very short window of time to get it back. And I think its standard to require 1 month payment with the paperwork. While you're not making mortgage payments, I highly recommend you set some $ aside where you can access it quickly to convert to a money order/cashier's check when the time comes.

I hopeful mine will go as smoothly as yours did. Just question how in arrears were you. I have missed May's payment and now June. Also, does the new payment structure have a grace period as the old payment did.

[freeatlast98]

Sorry I asked again. I just noticed you had stated how in arrears you were. THank you

[SMinGA]

Counting thru May I'm 7 months missed. The mod only adjusts the rate from the original loan. Still due on 1st, late after 15th.

In all honesty, you'd probably get further with BofA if you were 2-3 months of payments due when you started the process. I hear its hard to get anywhere when you're current or barely behind.

I hopeful mine will go as smoothly as yours did. Just question how in arrears were you. I have missed May's payment and now June. Also, does the new payment structure have a grace period as the old payment did.

[freeatlast98]

Counting thru May I'm 7 months missed. The mod only adjusts the rate from the original loan. Still due on 1st, late after 15th.

In all honesty, you'd probably get further with BofA if you were 2-3 months of payments due when you started the process. I hear its hard to get anywhere when you're current or barely behind.

I think you're right, I probably get further if I was more behind however, I just a big chicken and was just plain afraid to do that. I now wish I had done that so I could save more payments and get caught up on other stuff I have let fall behind. Yesterday when I called them and they told me the total due on May and June, it freaked me out. Anyway, I just hope they offer me something I can handle.

[SMinGA]

Inhouse does go faster than HAMP (horror story x 10 is my interpretation from what I've seen/heard) so it could be that by mid July they have an answer for you. If they don't come back with something that satisfies you - push them to do better. The key may be to get them to see that they either work with you - or else.

Loansafe.org is a good forum to check out, though overwhelming as there is so much info. To get to the forum - click on "Free Online Help" and the forum link is the top of that sub menu. Much info on working with the mortgage companies there.