BoA offered a PRINCIPAL REDUCTION!

[willsurvive]

PatientSteph

First off, hugs to you. I too am married to an unemployed man and we too have been through a year of **ell thanks to the slowing of the economy. We are not caring for my mother, but I can imagine that would be very stressful. I'm so sorry. I wish I had a success story about BofA, but we too have been trying for a loan mod since Jan 09 to no avail. I've actually come to grips with the fact that we will lose our home, but it is still hard.

Take care, life will get easier.

[eddiep]

Steph

Sorry to hear that everything in your life is so stressful right now. Hang in there, things will get better. BOA is a pain in the butt but... they eventually came through for me. It sounds like you are on track. I cant really tell from your post, has the mod been approved and you are waiting 10 - 15 days for paperwork or are you waiting for an offer? There is another forum loansafe.org that is all about loan mods, they were my lifeline!

I started with them in Jan 09 too, but luckily we were not Countrywide customers, I think that helped. I modified all three loans with them and the final documents were delivered in August, so it took a long time and many many frustrating calls. I wish you and your family a happy healthy 2010!

[PatientSteph]

I thought I would check in to update what has been going on with our loan mod. They sent a letter saying that we do not qualify. I am still reeling over the news. I feel like they have been jerking us around for the past 11 months. I really don't believe they are communicating with the various depts. When I called about the denial letter, they said that they did not have the hardship letter. Keep in mind I've sent them everything 10+ times. My mom's cancer has spread to her brain so that was a huge set back for her. I'm not sure what this means in terms of time left, but my mom may be in the last few months of her life. It has been the worst two years of my life dealing with the possibility of foreclosure and my mom's illness.

Thanks for the kind words. I hope everyone had a peaceful holiday.
Steph

[PatientSteph]

lender wants relief from automatic stay

We just rec'd our workout package for the loan mod and there is a statment in the package that I'm concerned about....

"This offer is contingent upon (the Lender) rec'ing relief from the Automatic Stay for bankruptcy in which the property referred to in the Loan Mod Agreement is included at the time of the modification."

What does that mean?

It sounds like that if we agree to the loan mod and we claim bk, then they can take the house and they will not let us stay there.

btw...we have a 2nd mort (50k) which is not part of the workout because they said it does not qualify.
My home is worth 150 k, the first lein was 150k but is now going to be 165 K (with loan mod they added 15k for late fees and delinquent payments)

I still owe the 50k on a 2nd mort. So basically I owe 215k on my home, but the home is worth 150k. If my financial situation does not improve we were considering bk, and possibly stripping the second. But with that statment in the workout pkg, it looks like we would not be able to stay in the home.

Thanks for any comments or advice.
(the above numbers are for example purposes)

[justbroke]

"This offer is contingent upon (the Lender) rec'ing relief from the Automatic Stay for bankruptcy in which the property referred to in the Loan Mod Agreement is included at the time of the modification."

What does that mean?

They are bound by the automatic stay not to change the terms of your loan. In order to do this property, they need to ask for "limited" relief from the automatic stay.

If they do ask for relief (which they will need to), make sure it is limited to modification of the loan and not for any in rem or in personam actions.

[PatientSteph]

Thanks for the quick response, there is so so much to learn and educate myself about it's mind boggling. Thank goodness for this site...and all the folks that contribute.

I spoke to my lawyer briefly today and he said I should make several payments once this mod goes through b4 I file. He said he has seen folks with loan mods get them pulled out from under their feet because of timing. One night in my future I will lay my head on my pillow and now have to worry about all the bills and loosing my home...one day soon.

[eddiep]

Hi Steph
Been there done that! It was a nerve wracking process to say the least but worth every gray hair. We waited for months for the modification process to be completed before we filed. Just be extra cautious, making payments does not mean it is complete. The paper work has to be completed and entered in their computer before you file. Sweet dreams are in your future.

[Bell30656]

The other thing to worry about if this indeed turns out to be Bank of America trying to be nice and forgive a bit of the loan is will they send you a 1099 for the $65,000? You really need to be certain this is spelled out. That could be a bunch of taxes.

[BrokeMike]

The other thing to worry about if this indeed turns out to be Bank of America trying to be nice and forgive a bit of the loan is will they send you a 1099 for the $65,000? You really need to be certain this is spelled out. That could be a bunch of taxes.

Not under The Mortgage Forgiveness Debt Relief Act and Debt Cancellation

http://www.irs.gov/individuals/article/0,,id=179414,00.html

[PatientSteph]

They didn't forgive any of my debt, they just tacked on an addtl 18k to the principal. I still have my second mort, but now my first has increased considerably. So now I owe then back a good chunk more then I started with. They are going to get all their money and then some.


I thought I would also mention that I sent the signed package (notarized and all) back by fed-ex and sent the first payment by certified check. I did all this on 12/13. I checked the tracking and they have rec'd my check. And when I called they verified they have it posted to my account.

Yesterday I rec'd another loan modification package from BoA. The terms are completely different and the loan payment is 200 more then the first offer. The two mods are from different parts of the country..I guess there are home retention offices in several states??? So I'm wondering what is going on with that? When I tried to call and get answeres, I was transferred around to several people and departments and ultimately cut off. I took that as a sign that I should not persue the second....and might I add an inferior offer to the first. So I'm just going to ignor the package.

[Skipper]

PS,

I don't think it is that uncommon to have more than one workout package sent to you. This is simply because (as screwed up as it sounds), apparently there are multiple departments at BofA that work independent of each other.

There is a ton of resources regarding this process at loansafe.org. Just go to the forum drop-down box and take a look. That site is to mortgage issues, what this site is to BK issues.

Keep the patience, as it is a long haul to a permanent modification, but it can be done!

Skipper