I just got off the phone with BoA.
They are offering a reduction of principal, which I think is quite rare.
$65k off the top of my loan of 385k. New loan amount: 320k
The offer also includes a 2.5% interest rate, but no word on whether this is an introductory offer or how long it would be in place. They did say the payment would never again exceed $1,800/month, including escrow and taxes, which is half of what it was before.
The numbers:
Currently pay $3,800 per month.
New payment: $1,100 per month.
This may cause me to reconsider and keep the place. That reduction is enough to offset the horrible utility bills and maintenance costs.
They hired a third-party company to come visit us. The woman was very kind, but a little nervous. Someone pulled a gun on one of her colleagues a week or so back. I can see why she was edgy at first.
She called a BoA number and got through immediately to someone who seemed to be on the ball. They said to expect the loan docs in the next 4 weeks or so. She said they are very backed up right now.
The lady on the phone seemed stunned that a principal reduction popped up on her screen. She didn't know how to handle that part, and had to put me on hold to verify the info was correct and ask a supervisor how to best explain it to me.
I will let you know, in a few weeks, what the docs say. Will run them by my attorney, but if the reduced payment is real, and lasts the typical five years (or longer, I hope), we may keep the place.
Details for anyone interested:
I do not have a second on the house.
We have not made a payment since February 2009. No lis pendens has been filed and foreclosure has not been initiated.
I used to call every month to reapply, fax some docs, and so on. I had no plans of staying, but they were so confused I figured it might buy time.
What they are asking for: Hardship letter regarding my back surgery. P&L statement for last quarter (self-employed). 2 months bank statements.
best wishes,
-dmc
They are offering a reduction of principal, which I think is quite rare.
$65k off the top of my loan of 385k. New loan amount: 320k
The offer also includes a 2.5% interest rate, but no word on whether this is an introductory offer or how long it would be in place. They did say the payment would never again exceed $1,800/month, including escrow and taxes, which is half of what it was before.
The numbers:
Currently pay $3,800 per month.
New payment: $1,100 per month.
This may cause me to reconsider and keep the place. That reduction is enough to offset the horrible utility bills and maintenance costs.
They hired a third-party company to come visit us. The woman was very kind, but a little nervous. Someone pulled a gun on one of her colleagues a week or so back. I can see why she was edgy at first.
She called a BoA number and got through immediately to someone who seemed to be on the ball. They said to expect the loan docs in the next 4 weeks or so. She said they are very backed up right now.
The lady on the phone seemed stunned that a principal reduction popped up on her screen. She didn't know how to handle that part, and had to put me on hold to verify the info was correct and ask a supervisor how to best explain it to me.
I will let you know, in a few weeks, what the docs say. Will run them by my attorney, but if the reduced payment is real, and lasts the typical five years (or longer, I hope), we may keep the place.
Details for anyone interested:
I do not have a second on the house.
We have not made a payment since February 2009. No lis pendens has been filed and foreclosure has not been initiated.
I used to call every month to reapply, fax some docs, and so on. I had no plans of staying, but they were so confused I figured it might buy time.
What they are asking for: Hardship letter regarding my back surgery. P&L statement for last quarter (self-employed). 2 months bank statements.
best wishes,
-dmc
, 341 Meeting: 08/12 
, Discharged: 10/16, Closed: 10/18 
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