If you let your home go in your BK...

[mom2three09]

The 31% of gross guideline - my understanding - is the total mortgage payment including escrow. Its a requirement for the federal HAMP program that you don't qualify if your mortgage is already less than that mark. So on a gross of $5k per month, your mortgage would need to be over $1550. I think that is part of why there are so few HAMP success stories, if it were 31% of net it would make more sense I think. Many have mortgages below 31% of gross but still need help or must face letting a house go.

Our loan is not FHA - I don't know if that would have a bearing or not. If you travel over to loansafe.org, and go to the forum (look for the 'free help' link in the menu) there is tons of info. I mean literally tons, try not to be overwhelmed!!!

They did not give me a # of stubs to send - I believe I sent 2 months worth. Then had to send the most recent stubs for each job when I sent back the paperwork. (They provided an overnight envelope/label for FedEx.)

Our income started going down gradually in 2008 and some expenses increased, we used cards to make up the difference. Assumed it was temporary I suppose? Eventually ran out of room on the cards of course. Last spring I started looking for a 2nd job - found one after 6 months. That is now bringing in a decent amount of income that greatly improves our financial outlook.

My husbands paychecks have not even been 40 hrs since he got back to work in the spring, but I went ahead and figured the 31% based on 40 hr paychecks --- it looks like we are just under 31% (by $122). Now, if you average his income for the last 6 months we're way over the 31%... I guess it will all depend on how they figure it. We'll just plead our case with our hardship letter and hope for the best I guess. Ofcourse we'll be socking away our mortg payment $ into our savings every month too.

[SMinGA]

For the inhouse mod, BofA only used our income to confirm our actual net income was sufficient to cover our mortgage & expenses. (I only know this because at first I was told we were declined due to expenses > income, which I knew to be mathematically false. They miscalculated tip income that is reported on my 2nd job pay checks but not in the 'net' since I have already received it.)

Since you may be over 31% depending on how they calculate - find out if you can apply for BOTH inhouse & HAMP. They may say no, but if they say yes you may ultimately get to decide what works best for you?

My husbands paychecks have not even been 40 hrs since he got back to work in the spring, but I went ahead and figured the 31% based on 40 hr paychecks --- it looks like we are just under 31% (by $122). Now, if you average his income for the last 6 months we're way over the 31%... I guess it will all depend on how they figure it. We'll just plead our case with our hardship letter and hope for the best I guess. Ofcourse we'll be socking away our mortg payment $ into our savings every month too.

[mom2three09]

For the inhouse mod, BofA only used our income to confirm our actual net income was sufficient to cover our mortgage & expenses. (I only know this because at first I was told we were declined due to expenses > income, which I knew to be mathematically false. They miscalculated tip income that is reported on my 2nd job pay checks but not in the 'net' since I have already received it.)

Since you may be over 31% depending on how they calculate - find out if you can apply for BOTH inhouse & HAMP. They may say no, but if they say yes you may ultimately get to decide what works best for you?

I think applying for both is the way to go -- if one says no the other may say yes -- or we could get lucky and get a yes on both!

When we asked for a mod a couple of years ago, dh was laid off and BofA wouldn't even entertain the idea of a mod because they said our DTI was so high that we couldn't afford even a modified payment (this was ofcourse before we filed BK). So we'll def need to ask for a mod well in advance of his winter lay-off (which usually doesn't come til Nov).

So... we should wait until we're 2-3 months behind on the payments, then correct? Or should we apply sooner than that?

[mom2three09]

I have a good one on that topic...

When we closed in 12/06 it was with a company called Fieldstone. They sold to Countrywide almost immediately. (I think we made 2 payments to F then started paying C.) With the closing and first few payments, of course, we were funding an escrow account.

When Countrywide got it, they sent us a notice that we did not need those funds in escrow and so sent us a check for what was in the account. Did not lower the monthly payment. I knew they would eventually figure out OOPs so I put the $ in savings and let it draw interest. When they paid out taxes & insurance later that year, they did a review and gave the option of paying in full to balance the account or paying extra each month. We paid extra each month, leaving the balance in savings. ING Direct was paying 3-4% at that time.

That was before things went downhill, and we were never tempted to 'borrow' from that money.

We also had some po-dunk Mortgage Co. when we got our loan in 2007 that was bought out within 30 days by CW (and then obviously taken over by BofA when CW went under). Our escrow account just transfered with the loan tho, but they did somehow make an extra homeowners insurance payment which the insurance co. sent us a reimbursment for (which we sent right back to CW because we knew our escrow would come up short). Putting it into savings would have been a smart thing to do, but then we would have been tempted to spend it

Seems we have a lot of similarities .. other than our loan being FHA and yours not.

[bkbirdie]

Hello, I'm in a similar situation. Homes in my area are selling for a few thousand $ less than what I owe, if they even sell. My house also needs a lot of work and maintenance, which I can't afford because of medical problems. I've listed my house as a short sale because the loan is guaranteed by the VA. I'm trying to minimize their loss so I can save as much eligibility for my next house as I can. But now I'm thinking about taking the house off the market and just letting it foreclose, because I really need to stay here as long as possible to save money for my upcoming surgeries. 3-4 bedroom houses in this area rent for a little less than my mortgage, but I don't even need a house this big. So I can save a few hundred $ a month by downsizing to a 2 bedroom apartment. (It's just me and my 2 cats.)

I've been going back and forth with the thought of letting my house go since December. It's a really tough decision for me too, because I've put a lot of money and energy already into this house, making it "my own. " But I've come to the conclusion that it's a money pit, and I've been a slave to it. Part of the reason for my bankruptcy was because I got in over my head with this house, and also medical bills. The house went down in value, despite me dumping tens of thousands of $ on renovations, repairs, etc. I really dislike the thought of moving back to an apartment (I couldn't stand apartment living anymore, that's why I bought the house in the first place), but my freedom and health are the most important things. Good luck with your modification. I'll probably request one just to stall the foreclosure process.

[freeatlast98]

1 thought: if you can't rent what you need for the same amount of $ or less, then moving does not really make sense. But that does not mean you are locked in forever.

Bank of America (formerly Countrywide) mortgage here also.

We were behind by ~5-6 months and contacted BofA about an inhouse mod a couple of months ago. Had to fax mountains of paperwork, but nothing complicated. (Check stubs, itemized budget, tax forms, 'hardship' letter, bank statements.) They just modified our mortgage - adding the interest from missed payments onto our loan & lowering our rate. It reduced our payment and brought the loan current.

Asking for a mod = no harm in trying as I see it. But it seems they won't even discuss it if you're current. Perhaps they see it as 'you must be able to afford your mortgage since you're paying it so well'. In most states it takes months, even longer sometimes, to foreclose. Here is what I suggest:

Hold onto your mortgage payments. Let June, July, and August come due. Set that $ aside... Call in August and request an inhouse mod. (Much less red tape and quicker than the federal HAMP mods.) If it works out for you - you may just get a lower payment AND have that money saved from missing your mortgage payments to do the home repairs.

Our timeline:
Requested mod mid-April
Did not make May payment
May 21st mod approved
June 1st: had to return docs to BofA with certified funds = new payment amount (payment was applied as $120 fee & the rest to interest)
June 15th online account info w/ BofA updated to show mod payment amount & rate
July 1st: begin new payment amount at standard terms (due on 1st, 15 days grace)

If you did not reaffirm, a mod WILL NOT change that. It just changes the terms of your original mortgage, which has been discharged.

If you apply for a mod mid August and get it, your schedule will probably be:
Sept: don't make payment
Oct 1: must send back paperwork w/ 1 month payment
Nov 1: start making new payment

While waiting to find out what (if anything) BofA will do for your mod, you save up your mortgage payment $ for June-July-Aug-Sept. If the mod goes thru, make the 1 mo new payment with what you have saved & do what is needed to repair your home with the rest. If it does not work out, then you'll have started saving for moving & a rental.

PS-while trying for a mod, all collection activity stops.
PPS-the budget MUST show money available. If it looks like you're too cash strapped for a mod to help, they won't bother. We were almost declined because they undercounted some of my income... You don't need to go as detailed as with a ch. 7 budget (where you're showing nothing left) and don't need to include the misc. categories like entertainment, recreation, etc. Since those things, technically, come out of the money 'left over' each month.

Your were so nice before when I asked you questions, I truly appreciate it. Yesterday, as I do every week, I called BofA because in speaking to them last week they said they were considering a "recast" of my mortgage loan. I then asked what that was and they said it was basically a "recast" placing the missed payments in the loan and then my payment will go up. I can't afford my payment now and now they say it will be higher after just missing two payments. I wanted to be considered for a modification and had sent all my documents in to them. It appears that the paperwork is not being looked at because their computer came up with the "recast". At this point I have missed May's payment and now June. Upon hearing what the "recast" meant I told them to cancel it because I want to be considered for a modification. Anyway, in my continued talk with the BofA rep, she told me an "Intent to Foreclose" had been mailed to me. I can't believe they would do this, I just missed May's payment and now June's. Did they ever send you one of these? Do you think they just want money paid at this point. Tomorrow, I will again call BofA to see if they'll let me apply for a modification. These people are so confusing, they say they can't help if you're current, then they send a "Intent to Foreclose' when I'm just 45 days late. Can you offer me any direction on how to proceed with the modification request since you dealt with Bank of America? I'm not sure if you remember however, my modification will also have to be an "in house".
I love my home and don't want to lose it. I'm scared to death right now.

[lisamomof4]

momof3 the 31% of income is the guide line for the HAMP program, it isn't a requirement for 'in-house' mod. what we received is an inhouse, though we do/did qualify for HAMP also. we have BofA on the front and end is fannie mae. who is on the 'end' can influence what kind of mod rate you will get. fannie does not allow anything lower than 3%. we were at 5.375% fixed. payment is now 3% fixed and year of past-due and escro added to the end. all is now 'current' and good to go. mods do require that lender does tax escro, so can't do your own anymore. it would cost us about $600 more to rent in this area than we pay for mortgage so it made sence for us.

[lisamomof4]

[B]freeatlast[B] PLEASE call or log onto NACA dot com or the hope dot org, help is FREE at either spot. i've found naca to be the bigger help. the thing with getting a mod is you are just one little voice, these places are HUD backed/approved and have a lot more 'muscle' to be heard and get things done. 45 days and a notice is crazy.

[lisamomof4]

only thing i might add is be carefull having to much money in bank account, they can question that. you can keep 1-2 payments worth in account but after that we just put it into safe so would be no question

[freeatlast98]

[B]freeatlast[B] PLEASE call or log onto NACA dot com or the hope dot org, help is FREE at either spot. i've found naca to be the bigger help. the thing with getting a mod is you are just one little voice, these places are HUD backed/approved and have a lot more 'muscle' to be heard and get things done. 45 days and a notice is crazy.

Thank you for the great advice. i have registered with NACA, they're going to have a workshop here in California near my home on July 10th. You are correct, I'm just a little voice that I feel no one is listening to. I have a payment together now which will take care of May's payment however, I'm afraid if I send it, I'll be back to square one. BofA says "we can't help you if you are current". Do you think I should just save it for now? This bank is a total crazy maker. Even, though the rep told me about the "Intent to Foreclose" letter, I haven't actually seen it. It's possibly somewhere in the mail system. Right, now I'm just in a panic about what they can do. Also, I know I have to file Chapter 7 and now with a missed home mortgage payment plus those creditors calling constantly, I'm in super panic mode.

[keepswimming]

This is helpful, and in hindsight wish I had done this. Our situation seems to get more complicated the longer we wait and the longer we try to do the "right" things.

We were advised by our attorney back in Feb to go ahead and try to sell our house so that we could potentially make 5-6K profit. Then, we were going to file in March/April while house was for sale. Well, it took us way longer to get the house ready for sale, which meant finishing insulation, flooring, etc. I took the attorney a check for $1571 three weeks ago and wanted to file. I had to track him down a bit as he was bogged down. He did not contact me unless I contacted him, and I was wondering why filing had not started. Now, my husband as of last Friday was offered a job in another state that pays 4oK more than he makes now (almost double the income). Attorney says we should not file because we may run into too many complications. Now we are stuck with 60K cc debt from our businesses, a house we probably cannot sell, and no way to file bk. Should be a fun move. Oh, and the attorney is keeping $600 of the 1571 for all his ADVICE!!!!!!!!!

[mom2three09]

This is helpful, and in hindsight wish I had done this. Our situation seems to get more complicated the longer we wait and the longer we try to do the "right" things.

We were advised by our attorney back in Feb to go ahead and try to sell our house so that we could potentially make 5-6K profit. Then, we were going to file in March/April while house was for sale. Well, it took us way longer to get the house ready for sale, which meant finishing insulation, flooring, etc. I took the attorney a check for $1571 three weeks ago and wanted to file. I had to track him down a bit as he was bogged down. He did not contact me unless I contacted him, and I was wondering why filing had not started. Now, my husband as of last Friday was offered a job in another state that pays 4oK more than he makes now (almost double the income). Attorney says we should not file because we may run into too many complications. Now we are stuck with 60K cc debt from our businesses, a house we probably cannot sell, and no way to file bk. Should be a fun move. Oh, and the attorney is keeping $600 of the 1571 for all his ADVICE!!!!!!!!!

Find another attorney. It's likely the attorney you hired just doesn't want to mess with a complicated BK (would have been nice if he had told you this BEFORE you paid him ).

[mom2three09]

Your were so nice before when I asked you questions, I truly appreciate it. Yesterday, as I do every week, I called BofA because in speaking to them last week they said they were considering a "recast" of my mortgage loan. I then asked what that was and they said it was basically a "recast" placing the missed payments in the loan and then my payment will go up. I can't afford my payment now and now they say it will be higher after just missing two payments. I wanted to be considered for a modification and had sent all my documents in to them. It appears that the paperwork is not being looked at because their computer came up with the "recast". At this point I have missed May's payment and now June. Upon hearing what the "recast" meant I told them to cancel it because I want to be considered for a modification. Anyway, in my continued talk with the BofA rep, she told me an "Intent to Foreclose" had been mailed to me. I can't believe they would do this, I just missed May's payment and now June's. Did they ever send you one of these? Do you think they just want money paid at this point. Tomorrow, I will again call BofA to see if they'll let me apply for a modification. These people are so confusing, they say they can't help if you're current, then they send a "Intent to Foreclose' when I'm just 45 days late. Can you offer me any direction on how to proceed with the modification request since you dealt with Bank of America? I'm not sure if you remember however, my modification will also have to be an "in house".
I love my home and don't want to lose it. I'm scared to death right now.

this is just crazy -- 60 days late and already an intent to foreclose? I highly doubt that really. Possible I guess, but I'm betting the person you talked to hasn't a clue what they are talking about.
Is your loan FHA?

I just read on another board where someone who also has BofA stopped paying their mortgage months ago -- already moved out and got settled -- just to get a letter from BofA offering to do a mod ---- this after many months of no payment I hope we are as lucky and BofA comes to us and offers a mod before we even get the chance to ask for one ourselves --- highly unlikely I'm sure Since we are FHA I'm sure they are going to gladly file foreclosure against us because they are guaranteed their $$$

[freeatlast98]

this is just crazy -- 60 days late and already an intent to foreclose? I highly doubt that really. Possible I guess, but I'm betting the person you talked to hasn't a clue what they are talking about.
Is your loan FHA?

I just read on another board where someone who also has BofA stopped paying their mortgage months ago -- already moved out and got settled -- just to get a letter from BofA offering to do a mod ---- this after many months of no payment I hope we are as lucky and BofA comes to us and offers a mod before we even get the chance to ask for one ourselves --- highly unlikely I'm sure Since we are FHA I'm sure they are going to gladly file foreclosure against us because they are guaranteed their $$$

My loan is a Fannie Mae loan. Apparently in California, there is a "Deed of Trust" and that allows the bank to send this notice of "Intent to Foreclose" as soon as you're 31 days late. My brother has been unable to pay his mortgage since
December 2009 and BofA has still not foreclosed or sent hin a notice. I'm so...confused about this.

[lisamomof4]

freeatlast i would keep the 'payment' money you have and just set it asside. there are so many people in this situation i can't believe they are going to be able to move on you that fast. i would keep up with NACA (it took us a year from begining to end and through ch7) and if you get forclosure notice or a 'sale date' let them know ASAP as they can/do help with that. biggest mistake people make is waiting till it's to late to get help, thinking it will get better.
keepswimming job offer is FUTURE income i don't think that should have an impact on being able to do bk as it's just a 'posability' for the future...you don't have that extra 40k now so it shouldn't have an impact. would 2nd finding a better bk attorney, even see about recovering some of that fee other att. kept-that just doesn't sound right.