Modification after bankruptcy questions

[willsurvive]

Hello,

Yes good news, our loan mod is 100% legit, for real, done deal. Just 2 weeks ago, we started seeing the online account reflecting correctly, and we finally got our first loan statement for December. We are finally feeling like we can rest easy. I feel for all of you with all the uncertainty in your lives it is HARD. Anyway, we did have a bankruptcy disclosure with our loan mod that does in fact say that in the event we need to walk away, we could and will not have a deficiency against us. Really this is a win-win situation for us. Once again, we were ready to walk and willing to pay a payment of $1200+ for rent, and this is exactly where our payment is at right now. I was also nervous about our escrow being all screwed up, but they just "analyzed" it a few weeks ago, and the back stuff that we didn't pay for nearly 18 months, is put back in our loan and our escrow was reset to 0, and did not go up at all.

If I was you, I would make copies of everything and send back exactly what they ask (1 set or 2, not sure?). I would definitely, definitely make sure you see that Modification Bankruptcy Disclosure Rider" paperwork before you sign anything. That is HUGE, and it will protect you in the future if something goes wrong and you can't make your payments. Once we sent back our paperwork (with required payment) we did not hear anything at all for 3 months. We made our monthly payments as explained in the modification paperwork, and I would write a letter with the cashiers check with our loan #, etc. explaining we are not receiving statements. I also sent everything certified, so I could track that they actually received everything. This last payment, I sent a regular check and was nervous, but they really cashed, it lol, and applied it correctly. I'm going to try to make a payment online soon I hope. I called once a month, and usually ended up frustrated because no one knew what was going on, so if you do call be prepared for wrong answers. The online did start showing some "activity" 2 months into the modification, but it was totally wrong until about 2 weeks ago. Now everything is reflecting correctly, including receiving statements in the mail.

GOOD LUCK!!! I hope the best for all of you, and I hope my story gives someone a ray of hope out there (you all deserve it).

Take care

[qnguyen]

Hi,
How was it going with your mod at BOA? Did you eventually have your mod finalized and was able to save your house from the sale?
I've just joined this forum in searching for help on our mod at BOA. At beginning of Nov, I was denied from HAMP after 8 month of trial payments. Then on Dec 1st I received a FedEx package from BOA with their proposed for an in-house mod (with Loan Mod Agreement, Notary...). The term is not that different from HAMP and is pretty good for us at the time. My questions are:
- I was sent 2 set of Load Mod Agreement+Notary...; should I keep 1 and send back 1 set (signed, dated, notarized) or send them all 2 sets?
- I was not sent the "Midification Bankcruptcy Disclosure Rider" and am going to call them to send it overnight to us. Did you eventually find out any problems attached with that Disclosure?
- How long did it take for BOA to process and finalize the modification?
I am expected to return the package to BOA by Dec 14 and would appreciate if I could have your advice ASAP.
Thanks in advance.

[CCsAreEvil]

A big question is, if any of these mods actually go through, can you legally still walk away at any point in the future? If the answer is yes, then why not go with the mod. If the answer is no (but the "original" note was discharged so how can this be?), then I would NOT do it at all.

It would be interesting if there's any verbiage in these mod agreements that address the discharged debt and how/if the mod affects that.

[paddydaddy]

The foreclosure process started in June 2010. In July we were asked to fill out HAMP paperwork because *maybe* we would qualify. We did it for the heck of it thinking no way, no how (haven't made a payment for 20 months). Anyway, in August we were offered an in house modification adding our missed payments back in (not wonderful, but oh well). The rate is 2% for 5 years, 3% year 6, 4% year 7, and lands at 4.25% year 8 and on for the full term of 40 years. I know the additional years isn't wonderful, but the way we look at it is we are going to have to pay rent somewhere, and why not this house (that we built ourselves). Overall, it is a payment reduced by $1,000 so we are paying $1,225 per month and we can't rent cheaper than that for our family. Good luck!

Hello. After reading your posts, I seem to be in about the exact same situation as your family. I was just curious if you could give an update on how things are going now after a few months into the modification process. Any positive or negative comments?

Also, did you ever attempt to negotiate the increasing interest rates or a principal reduction? Like your family, we were essentially preparing to move and had accepted our situation, when out of the blue, the modification came in the mail with only 2-3 weeks to accept. And, so far, I feel the same way as your posts. It's not the best deal, but I can't rent a house of this size for cheaper.

[SMinGA]

Thanks for the update. Your terms are a better rate than mine, but then your term is stretched out further. Seems the inhouse mods are trying to make the situation work for the homeowner. I would have loved going down to 2% for a while, but I have no reason complain with the reduction I did receive.

And if you are able to pay more, you'll make great headway on paying the principal down...

The foreclosure process started in June 2010. In July we were asked to fill out HAMP paperwork because *maybe* we would qualify. We did it for the heck of it thinking no way, no how (haven't made a payment for 20 months). Anyway, in August we were offered an in house modification adding our missed payments back in (not wonderful, but oh well). The rate is 2% for 5 years, 3% year 6, 4% year 7, and lands at 4.25% year 8 and on for the full term of 40 years. I know the additional years isn't wonderful, but the way we look at it is we are going to have to pay rent somewhere, and why not this house (that we built ourselves). Overall, it is a payment reduced by $1,000 so we are paying $1,225 per month and we can't rent cheaper than that for our family. Good luck!

[willsurvive]

The foreclosure process started in June 2010. In July we were asked to fill out HAMP paperwork because *maybe* we would qualify. We did it for the heck of it thinking no way, no how (haven't made a payment for 20 months). Anyway, in August we were offered an in house modification adding our missed payments back in (not wonderful, but oh well). The rate is 2% for 5 years, 3% year 6, 4% year 7, and lands at 4.25% year 8 and on for the full term of 40 years. I know the additional years isn't wonderful, but the way we look at it is we are going to have to pay rent somewhere, and why not this house (that we built ourselves). Overall, it is a payment reduced by $1,000 so we are paying $1,225 per month and we can't rent cheaper than that for our family. Good luck!

[SMinGA]

Mine does not seem to be a typical situation, I'll warn you!

Called mid April to ask about inhouse mod. Knew we did not qualify for HAMP, was just looking for a way to bring loan current - add arrears to principal. Did not expect a rate reduction.

Had to fax paperwork - checkstubs, tax returns, bank statements, etc. Received mod offer late May, had to return signed/notarized by June 1st with certified funds = new payment. Made payment like normal in July. By mid July, my account had fully updated - started reporting new payment/balance to bureaus.

Old terms: 6.95% for 30 yrs
New terms: 3.75% for 2 yrs, 4.375% for 2 yrs, then permanently goes to 4.75%. Ends at the same time as the original loan. (30 years from purchase.)

Is anyone willing to share the details of their Loan Modification with Bank of America?

[gunner01]

Is anyone willing to share the details of their Loan Modification with Bank of America?

[SMinGA]

Martha, I don't know... It probably depends on the bank and the terms of their mod agreement. Keep following up, don't give up until you get someone on the line who can answer you about the status of your mod.

[martha]

I have a modified loan agreement but it has been nothing but a nightmare. Cb modified it in May and now they have sent me an "Acceleration Warning ( for intent to foreclosure) and states in the letter if I don't pay the money owed which was added to the principal balance by the end of this month they will accelerate the forclosure procedure. We have made each one of the modified payments but they still have the old information in our online account, some representatives have told me give them more time.
Can they do foreclosure in our house even though we have abide by the conditions and terms in the modified loan agreement?. The bank has not.

[willsurvive]

You've been very helpful! It's nice hearing from someone that's been there done that (and that the banks have really helped a live person, lol). I've taken the advice, copying the FedEx label, copying all the paperwork. I won't freak out if my payment doesn't show up nor my online account for awhile. Deep breaths, here we go

[SMinGA]

just noticed the sale date question.

I was not that far along. We were about to go into the FC process (I think) when we filed ch. 13 in Dec. '09, then we dismissed it in March of this year. A month later, as soon as my account came out of the BK department at BofA I started talking to them about the mod.

But... I don't think the Nov. 1 foreclosure sale will be an issue. I was told BofA stops collection/foreclosure proceedings while being processed for a mod.

[SMinGA]

Team Hope, I think, is just HAMP so not what you need.

I always ended up in the retention department I think - where they started with the 'you're $X past due, are you still living in the house' routine, and I'd tell them I'm in the middle of an inhouse mod. They'd look thru notes, and then see the details...

Sounds like they ARE addressing the escrow in your mod then. I don't know if they simply overlooked it for me, or if the amount was low enough to not bother. Overall, its probably best for me that they did not capitalize the escrow adjustment. My correct escrow payments monthly are only about $162 now...

[willsurvive]

Thanks so much for your personal experience. On the mod, we have late payments and interest in there, and another section of missed escrow payments of $8,000. I'm assuming that is what yours didn't have? I just want no surprises, but I'm not sure it's possible, lol!

I made the mistake of calling BofA about the mod and I was transferred several times, dropped phone calls 2x, transferred to Team Hope, and no one was helpful in the least. One guy said the modification was only a trial period and no guarantee that it would be accepted. I then told him the name of the paperwork was "Loan Modification Agreement" with a "Modification after Bankruptcy Disclosure" and it was requesting a notary to sign it and send it back. That stopped him in his tracks and he sent me to another department to which was no help at all. I really think no one knows what's going on, so my gut says sign it, send the first payment, and go with it. As a side note, was anyone else in foreclosure with a sale date, and then receive a loan mod? Did it stop your foreclosure sale date and everything? Our sale date is Nov. 1st, so if we go with this, I want that to stop immediately. Thanks!

[SMinGA]

One other thing, to warn you about, in case your situation is like mine...

I had only made 3 payments since the last set of taxes & insurance were paid, and my next taxes & insurance is coming up in the next couple of months. My escrow account was looking pretty bleak.

When they did the mod, they added missed interest back into the principal but did NOT account for the missed escrow payments. So last month, they evaluated my escrow account and (not a surprise) noticed it was going to be short. I had the option of paying a lump sum to balance escrow, or increasing my escrow payment for the next year to fix it.