Loan Mod BOA

[Gabriel_S]

Hi folks, I just sent in a loan mod application to the Servicer of my mortgage, trying to buy some more time really. MY BK was discharged in 2009 and I never re-affirmed though I'm still living at the house. One of the Acknowledgements and Agreements in the application was ....

I agree that any prior waiver as to my payment of escrow items to the servicer in connection with my loan has been revoked

I asked a housing counselor about this question two nights ago and was told that it would not affect my discharge, or if the way it's worded (i.e. the item in red) would not be interpreted as a reaffirmation of any kind. She told me this is simply a pre-foreclosure options application and I would have to agree to and sign any terms offered by the bank for this agreement to hold and not to worry about it.

The bank has been paying my taxes for the home in a seperate escrow they set up in my account, this is what me worried. Can the bank come after me for the taxes since I sent this application back to them? I'm pretty sure they will turn me down for any mod regardless. The councelor said they can't do anything unless I agree to and sign any modification/forebearance papers if they do approve me, which I'm told is highly unlikely.

Just looking for this to be confirmed if anybody has gone through the process. Kind of starting to freak me out!

TIA

[basketsbears]

We have not filed yet, but had been trying to work any type of mod with BOA for about 2 years (it was no longer our primary residence), BOA would not work with us in any way. We submitted numerous applications, etc, and it was horrible dealing with them. This is the main reason we are filing.

[btbeme]

You should be fine. Mine said the same thing. You are not obligated to pay anything (except HOA...maybe). This is the application. Should your loan mod come through you would still have to agree to the terms of it and sign a pile of paperwork - which I suggest having your BK attorney look over first if it goes that far.

If your home is sold at foreclosure auction the tax bill may go right along with it if the bank hasn't paid it already. Most banks will pay the tax bill in order to keep the property from being seized and sold at a tax auction, leaving them with nothing. Same with your homeowners insurance.

And here's a neat thing... lets say your homeowners insurance is due to be paid in May and your house is auctioned in July. The bank will usually pay the insurance. Upon the sale and deed change, the insurance company will then cancel the policy and refund the balance to...the policy holder. That is you, not the bank. We got a check for $900 that we didn't expect.