I got Countrywide (BOA) Modification! Looks good.

[BK Overwhelmed]

Hi!

We had a chapter 7 discharge Sept. 2008. We included the house in the BK and Countrywide got their "Relief From Stay". Per attorney advise we moved out and began renting elsewhere.

The home was never forclosed on and yes the HOA has been on us for up keep and Dues.

In March 2009 I called to see if by chance we qualified for a Mod and they said yes. We faxed in some ppwk and never heard a thing. There was finally an auction date set for May '09 and it has been postponed 2x. I was ready to move on! I called June and my loan was still in "workout".

I called Countrywide every week since June because I just wanted to let the home go to auction and they supposedly "notated that" several times. Technically it has been vacant for a year but we are actually just renting 4 doors down.

The mod has me making payments begining Sept 1st and put the balance on the back of the loan. Interest rate is like 4.125% for 7 years and then adjusts to 5.375% FIXED. I was in an interest only arm.

I haven't BEGUN to deal with the second ($100k completely under water with Compass) but I have to respond with notorized docs in a week to BOA (countrywide)

Since it was discharged in BK..could I walk away in the future? Can they still come back and say "WAIT! We are not really modifying this AFTER I started sending payments again? I am sooo confused!

If I can truly have these terms of the Mod...I should take the deal. I will have to lien strip (can I do a ch 13 after a ch 7?) or see if they will settle..but I am clean out of $$ to settle with.

Thoughts?

[Amy26]

If the house was included in the bk and it is closed and done...then how can they mod a loan that technically doesn't exist anymore? I thought I read in another thread that they are not allowed to "mod" a discharged loan... I could be wrong...

[bulletproof77]

They can't "re-do" a loan that was discharged in a BK. I also have (HAD-discharged, not re-affirmed) a first through Countrywide/BOA and second through Mid-First. As stated both don't technically exist anymore, although liens do stay in place. In a last ditch attempt to save my house, I tried a "mod" too with CW/BOA only to be told by both their customer service and legal department that a loan that has been discharged cannot be re-negotiated, however a NEW loan can be initiated by the lender. I chose to walk..

[OhioFiler]

They can't "re-do" a loan that was discharged in a BK. I also have (HAD-discharged, not re-affirmed) a first through Countrywide/BOA and second through Mid-First. As stated both don't technically exist anymore, although liens do stay in place. In a last ditch attempt to save my house, I tried a "mod" too with CW/BOA only to be told by both their customer service and legal department that a loan that has been discharged cannot be re-negotiated, however a NEW loan can be initiated by the lender. I chose to walk..

Smart.

[daedalus]

Before accepting any loan modification from a mortgage company, I would strongly advise you to thoroughly research your loan closing, documents, etc. for any potential wrongdoing by the original lender. It could be that they know they are exposed to some liability, so they want to create a new agreement to cover it up. I bet that most of us would discover some major legal problems with our mortgages if we took the time to investigate.

BTW, IMO any modification that does not include a principal reduction if your home is worth less than you owe, is not worth the paper it's printed on.

[bulletproof77]

Yes, I really had no choice...with the first and second I owed 210K on a house worth around 100K (and falling fast). You can't give away a house in the High Desert of Southern California. Once you look at it as a business decision, it was fairly easy..All BofA/CW wanted to do was add back payments on to the loan and forgive 2 payments. No thanks....

[socalgal]

Loan Modification Scuttled by Lender Selling Note

Have you heard of BofA scuttling loan mod packages that they have offered by selling the note and just not finishing the processing of the modification before the new lender is the owner of the note?

They are pulling this stunt even though I've been told that it should not be allowed to occur. I have even seen comments on some other threads about attorneys who claimed it COULD NOT happen. I would very much like to know if there is any known clause anywhere in the banking industry that regulates this. No clause in the modification package gave them an 'out' like this.

I hear that nationally there have only been 200,000 loans that were modified. Is that true?

I have an attorney who is starting on this case.

Furious in California

[tazzy20176]

I just got approved for a loan mod after discharge by CW/Bank of America. I consulted with my attorney before I signed the papers and he stated that if I accepted the loan mod, I would not have the option of walking away later because now a new modified loan exists. So I have decided to walk away since my home is almost $200,000 under water. It's so hard to do, but this is the best decision for me.

[socalgal]

Has your attorney ever said anything about IF you did sign the offer whether THEY could just walk away after YOU had SIGNED? (And in my case the stipulated documentation that was the only clause to satisfy in the mod agreement WAS PROVIDED and they had verified the document was in order. )

I'm not trying for free advice, just whether there is any thing that says the LENDER has to honor the agreement THEY offer you if you DO ACCEPT it.

Anyone?

Mad SoCalGal

[Hodgini66]

That's the prob with "mods".

First, they require/demand you waive a bunch of rights, and agree you won't attempt to discharge personal debts if you later go insolvent.

SoCalGal: I suggest you send a QWR to obtain copies of the Note from Litton, looking for WHEN it sold to Litton. Compare with the "deadline" execution date for the mod agreement.

Timing is everything and yes, you have mess on you hands.

[socalgal]

That's the prob with "mods".

First, they require/demand you waive a bunch of rights, and agree you won't attempt to discharge personal debts if you later go insolvent.

SoCalGal: I suggest you send a QWR to obtain copies of the Note from Litton, looking for WHEN it sold to Litton. Compare with the "deadline" execution date for the mod agreement.

Timing is everything and yes, you have mess on you hands.

This is a modification without any BK filling.

The modification package HAD to be back with BofA by March 25th. They even had started internal processing BEFORE that date and they have it documented as already being into processing. That completed on April 09, 2009.

The notice of intent to sell the note or transfer servicing was mailed after that date I believe. It is required that the notice be provided at least 15 days before the note transfers. The note transferred on May 01, 2009.

I had called to verify that the sale was not 'messing' with the mod. They ASSURED me, no problem. And CONTINUED to make those claims until litton sent the default notice. They claimed it was just a need to get documents to 'catch up'.

This is one that is clearly caused by the timing of the NOTE sale by BofA, not some problem with when the mod was submitted.

[Hodgini66]

As I stated in your own thread, It appears you have ample grounds for a cause of action.

Fraud by way of Bad Faith negotiations and inducement.

We can all speculate here all day long about what your docs ACTUALLY say. The only thing that really matters is whether either of the parties have violated RESPA and whether a judge would entertaining this despite arbitration.

Best Wishes