BOA trying to force trial period of 3 months

[subking]

In Michigan

BOA is our first GreenTree 2nd both discharged 2-2009 haven't heard anyhting from the second since and we haven't paid the first in almost a year now.

Foreclosure has began and were at the end of our 90 day period. We've been working with a housing conselor and submitted tons of paper to the bank for a modification and just had our mediation meeting last week with the bank and their attorney. The meeting went well and we agreed upon terms (orally only and nothing in writing) the bank is asking us to sign a trail period agreement (forbearance agreement) for a period of 3 months. They said the payments will include our usual home loan amount and taxes and insurance about $1,000 a month and by thier calulations we can afford it. So we agreed for them to send the paperwork.

The forbearance agreement arrives asking to pay $900 for an amount about $100 less then we agreeed upon at the meeting (thats fine) however this special agreement states BOA can apply these 3 payments anyway they want prinipal (yeah right), interest, late fees, or past due amounts in any manner they see fit. It also states we agree to be responable for any and all late fees and special charges (probably legal fees). Then goes on to say if make all 3 payments on time one of three options will be given to us. 1. We will be required to recommence regular payment schedule and pay an extra amount until all past due amount including late fees are paid in full. 2. We will be required to reinstate loan in full ( BS its was discharged by BK Ch7) or 3. They will offer to modify the loan or offer some other form of assistance.

Next it says all taxes must be current. Our taxes are not current (didn't pay 2011) and then says failure to meet any of the conditions is considered default and BOA will go forward with the foreclosure.

Our housing coulselor says they can't force us into this agreement and we don't want to sign it because it gurantees us nothing. But what it does gurantee is we will pay $900 for the next 3 months, pay all current taxes due, and then after 3 months they may offer us a modification, and theres no gurantee of what that modification will be.

We would be willing to sign a modification but are not willing to throw away $900 for 3 months with no written agreement or gurantee of a modification. We worried they will take the funds and then continue forclosure anyway.

PLEASE HELP we need advice.

[despritfreya]

Only advice I can give is that if you don't like the deal, don't sign on the dotted line. Don't pay and eventually the lender will foreclose. Until it does, you get to live in the home "rent free". Just make sure you service the HOA, if there is one.

Des.

[subking]

We are willing to accept a modification problem is their promising a modification without giving us any details of what that may be until we pay for 3 months with no explanation of where those funds are going and no gurantee of anything.

We feel if their gonna offer a mod then offer it, theres no need for a trial period because its not required by law and really makes no diffrence. Either all parties agree to the mod or not. We're not willing to pay for 3 months and hope the bank decides to offer a mod without even having any details. We don't understand why their so reluctant to come forward with it.

[despritfreya]

My understanding of HAMP is, that is how it works. You make your "trial payments" and then, if you qualify, the lender modifies. What difference does it make as to where 3 payments are applied if, in the end, you save the home? That is the price you pay for not abiding by the original contract you signed Call it a showing of your good faith. You make the 3 payments and we, your lender, will move forward with seeing if you qualify for HAMP. It is what it is and, the reality is, your lender does not have to negotiate with you. I suppose you could try to get it to apply the payments as you would like it to but don’t hold your breath. Again, if you do not like the terms of the proposal, walk away.

Des.

[subking]

Problem is this is not a HAMP mod as they told us we don't qualify for HAMP, if we did then we would have no choice but to accept the trial period, but they would also be laying out the terms of the mod and we would know what the payments will be to come.

The biggest problem is they want us to pay for 3 months with no explanation of the terms to come. I'm not to concerned about where they apply the 3 payments but I do feel they should tell us what those 3 payments are going towards. Our main concern is they take these 3 payments, we pay the past taxes in full, then after the 3 months they offer us a mod that is not acceptable to us, to high of a payment, or just decide to forclose and we've lost all the funds we could use to apply to finding a new home.

[tobee43]

after what boa is attempting to do i would run not walk to the nearest exit. if this is what they are doing in the "trail" phase, what's to happen after that?

we attempted a loan mod unsuccessfully for over 18 months on the home we lived in for over 30 years. we finally realized the bank was making it impossible to work something out. so we simply had to come to the realization that we had to leave. we stayed approx another 6 months to save up for a move and then just left.

it's been over 4 years and Chase still hasn't made a move to foreclosure, nor, do they have to really. they can sit on the house for the next 20 years if they so chose and there is nothing we can do...except move on.

unless you are certain you want to keep the house, i would not assist BOA or any bank in anyway unless it would benefit you! and, that certainly doesn't appear likely with what they are attempting to pull.

best of luck!

[subking]

Thank you for your reply. I don't feel they will delay the forclosure as we've already been contacted by BOA attorneys, it seems their being pretty agressive.

They listed the forcolsure in the paper. We then got a housing counslor involved which put a 90 day hold on the process, we submitted all paperwork to the couselor and to BOA, we then had a mediation meeting last week and the 90 day period is over. They have told us to sign the trail agreement or their moving on with the forclosure.

This gives us a mandatory 4 weeks of them to pubically list the house in forclosure in the leagl news, after that it goes to sheriff sale, and I'm certain BOA will be the only bidder, once that happens we have a 6 month redemtion period, after that BOA would have to sue us for eviction but were not gonna wait to be evicted. So were looking at about 7 months to be out.

Our house is way upside down, so really it comes down to the convience of staying, were not in any shape to do repairs to it so were thinking its probably best to just stay and then walk away considering BOAs unwillingness to negoiate in good faith.

[despritfreya]

I think you missed the point I was making. Your lender is under no obligation to negotiate with you. You signed a contract (good or bad) that you would pay $x/month. You have breached that contract. Basic contract law states that the non-breaching party does not have to agree to modify the terms of a contract.

You can make a counter-offer as it relates to the application of the payments. The non-breaching party has the right to accept, reject or make a counter-counter offer. If you are unable to come to an agreement the non-breaching party has the right to enforce the terms of the contract, which includes all rights it has upon breach.

So, your choices are:

1. Accept the terms and move forward from there;
2. Make a written counter offer and move forward from there; or
3. Walk away.

Of course there is a 4th option, file a Chapter 13 (no discharge of any new debt) which will allow you to "cure and maintain" under the current contract terms. During the course of the 13 you can continue to negotiate a modification but you will have to resume regular monthly payments and put forth a Plan that cures the default.

Des.

[subking]

No I understand you and have read your replies, thanks. The bank is obligated by law to offer us a modification once weve asked for help. Their required to do so. Its just their not acting in good faith.

[despritfreya]

I apologize for beating a dead horse but. . .

What law are you referring to? You have already stated that you do not qualify under HAMP.

Further, even if there is a law, by your own statements the lender has to offer a modification. Is that not exactly what it has done - even if not finalized? You just do not like the initial terms of that offer. So, you make a counter-offer and hope it is accepted. If not, you either take the deal or walk.

Des.

[subking]

Our housing counselor told us as well as our attorney that since we asked for a mod they are required to offer some type of mod if our income reflects that we have the ability to pay (it does). They have not offered anything but a 3 month trial period for a determined amount and then said they may either offer a mod by terms to be set by them, offer to reinstate loan in full, or require us to make regular payment plus additional payment to be determined by them.

They are not providing enough information for us to able to make a decsion. If we were aware the terms of the agreement then we would move forward with the trail period and make the 3 payments. But were not willing to throw away 3 payments, pay past due taxes, keep insurance current (which it is), only to be offered nothing or a insane amount we can't pay.

Our position is offer the mod, lay out the terms of the mod, if both parties agree we have a deal. It really is that easy.

[Pandora]

.. The bank is obligated by law to offer us a modification once weve asked for help. Their required to do so. Its just their not acting in good faith.

...They have not offered anything but a 3 month trial period for a determined amount and then said they may either offer a mod by terms to be set by them, offer to reinstate loan in full, or require us to make regular payment plus additional payment to be determined by them.

They are not providing enough information for us to able to make a decsion.

Actually the bank is NOT obligated to offer you anything; the only lenders that are mandated to participate in HAMP are Fannie / Freddie - other than those 2..you're SOL (I realize you're not going for HAMP...) No lender is mandated to modify the org. loan terms, ever; you may request they review your case however it is at their discretion to do so.

As to the second part: they HAVE offered you terms - just not the ones you desire, spelled out the way you want. Your choices are clearly set in front of you:

1. Make the trial payments with terms to be set by them,
2. offer to reinstate loan in full,
3. require us to make regular payment plus additional payment

You wont get final terms until its all gone through underwriting, with copious amounts of paperwork you will have to submit (several times more than likely) - and until its offered (upwards of 6-18 months or better) in a final mod - you'll have to be at their mercy. Worth noting: all the while until its finalized, you will have to continue to make trial payments, irregardless of their "3 trial payments rule".

Des is correct...on all counts.

[HHM]

The bank is obligated by law to offer us a modification once weve asked for help.

Absolutely false.

Sorry, it is so damaging when people are given bad information that leads to false hope.

Also, you should be concerned about how the trial payments are applied, understand...what happens is that you are put on trial payments and that payment is less than the contractually due amount. If you are later rejected for the modification or you do not accept the modification that is offered, you are instantly in default. Regardless of what you were told, this sounds like a HAMP modification. Even if it isn't, as was already pointed out, the offer is what it is, the bank made the offer, you either accept it or reject it.

Based on what you have said, you should just walk away. If you are way upside down and can't/don't want to do repairs, there is no modification that will make sense. The "convenience" of staying is not a good reason, just stop the headache and walk. You will be fine.

[subking]

HHM, I aplogize if I misstated anything (not my intention), this place has helped me in the best way when were at our worst. I was told that by our housing conuselor, she said that if a mortgage holder request help they must offer something because of the bailouts they recieved form the goverment.


BOA is acting in bad faith, we are not gonna sign anything with them and become another victim of their fradulent offers. Were done and doing nothing with them.

[ValleYum]

BOA is acting in bad faith, we are not gonna sign anything with them and become another victim of their fradulent offers. Were done and doing nothing with them.

My advice is to tell them "pound sand". You take this opportunity and make the best of the 7 months you have and $ave all the money you can! I think you will enjoy being a renter - NO REPAIRS or property taxes and renters insurance is much cheaper than homeowners! Yay!

Good luck!!