Loan Mod Update

[nervous1]

I think it is definitely foolish to use IRA money on a mortgage at least until you reach the foreclosure stage. I was able to get my first modified and now I am trying to get my second HELOC settled or otherwise crammed down to the value of my property. I'm still in the middle of a Chapter 7 waiting for discharge,not paying the HELOC in the meantime and will see what happens when the bankruptcy discharges presumably in mid to late August 2010.




Filed Chapter 7 5/18/10
341 on 6/10/10
trustee report of no assets 6/15/10
discharge-????????

I realize now that it was a foolish move, but I thought it was my last resort. I've already used most of it to pay the last few months. Wish I had it back. My thinking was that it would keep us current until we found employment.

I have an equity line too. Does not paying that result in faster action by the lender? I ask because I pay both the mortgage and equity line on the 15th and, every month, I start getting calls around the 8th or so reminding me to pay the equity line, but not the mortgage.

And, I'm assuming that if I (1) want BofA to try to work with me on staying in the house or (2) figure I'm not going to be able to pay anyway, that I should NOT pay the mortgage OR equity line, right?

[ben1381]

I think it is definitely foolish to use IRA money on a mortgage at least until you reach the foreclosure stage. I was able to get my first modified and now I am trying to get my second HELOC settled or otherwise crammed down to the value of my property. I'm still in the middle of a Chapter 7 waiting for discharge,not paying the HELOC in the meantime and will see what happens when the bankruptcy discharges presumably in mid to late August 2010.




Filed Chapter 7 5/18/10
341 on 6/10/10
trustee report of no assets 6/15/10
discharge-????????

[SMinGA]

Kourtini, you can try going to FedEx to track a package. If you put in your loan # as 'reference #' (not tracking) and your zip code, it might show if one is on its way to you. Only if they used your loan # as reference # though.

Nervous1, based on what I have seen - if you can't show enough income to meet your expenses they won't bother with a loan mod. I don't know how they view unemployment income though? Paying the mortgage if there is a chance you'll need to walk - seems like a bad idea though.

[Pandora]

I've seen it work both ways - being late or not being late. We were fortunate to be approved for a mod and we were not late on our 1st at all, but we werent with BOA either.

Whatever you decide to do, I would highly recommend not making any "trial" payments until you actually have trial paperwork in-hand. Otherwise, you're just throwing your money away waiting for that paperwork to get to you, which it may never arrive and the bank will just string you along.

I would not cash out your retirement to pay a mort. that you know you will not be able to pay. Loan mods take forever, upwards of 18 months for some, very few get approved and done in less than 8, even in-house mods by the time they're booked and registered correctly.

Save your money - you're going to need it down the road.

[ssmdem]

Here's my story:

A few months ago, when I first heard about the loan mod, I called BofA to see if we qualified. They basically told me that, since we were current on our loan, we did not qualify. Made no sense to me, since we are both unemployed, selling things off here and there to survive, etc. Nope, nada...you're current, as far as we're (BofA) is concerned, you don't need help.

So....about a month ago, I read online somewhere that the loan mods have been "extended" to help out those who "foresee" that they will soon have trouble paying their mortgage. Duh. Just what I kept telling the nice lady before.

I called, was told that "yes, you meet the criteria." I rec'd a pkg. by Fed Ex., which I promptly completed and Fed Exed back to them on June 9. A couple of weeks later, another Fed Ex pkg arrives, telling me that my application was incomplete. Could that be because they didn't ask for that material in the first pkg?!?! (I've heard they really really drag the loan mod stuff out.)

So, once again, I FedEx their material back to them pronto.

Yesterday, I receive a phone call from Hope, but they hung up before I was able to answer. Called them back....they verified my identity, etc. Told me that I had not sent in all my material. I told them YES I had. They miraculously found it.

Told me my case was under review and that BofA would be sending their decision to me "some time."

So.....what to do...what to do...?

I really don't expect for them to modify our loan. We don't have any income to show that we can pay. (But, yet, we've never missed a payment in 11 years.)

My dilemma is this. I have not yet paid for July because for the last few months, I waited until the 15th to pay (before late fee). However, every penny we have now is PRECIOUS. I should say here that the ONLY way we've been able to pay is that I cashed out my retirement account - entirely. That money will be gone in 2 months, if I pay the existing mortgage amount.


Honestly, if they don't give us a loan mod., we cannot afford to stay here. I don't think it makes sense to send in maybe two more months of pmt., knowing we couldn't stay here anyway. Keep the money and put it in a new place, right? (Or buy a new couch, as my 12yo son said ;).

I've also been told I should not pay because they're more likely to work with you if you demonstrate hardship.

WWYD???????

I wouldn't pay it if I were you. Not saying you can't get approved if you've got a paid-on-time record, but I think you stand a better chance if you're behind. NOT paying it is NOT going to cause them to decline your application - so you have nothing to lose at this point. If you know you can't stay at the current amount, then quit throwing away your money. Quit paying now and just see what happens.

[nervous1]

Here's my story:

A few months ago, when I first heard about the loan mod, I called BofA to see if we qualified. They basically told me that, since we were current on our loan, we did not qualify. Made no sense to me, since we are both unemployed, selling things off here and there to survive, etc. Nope, nada...you're current, as far as we're (BofA) is concerned, you don't need help.

So....about a month ago, I read online somewhere that the loan mods have been "extended" to help out those who "foresee" that they will soon have trouble paying their mortgage. Duh. Just what I kept telling the nice lady before.

I called, was told that "yes, you meet the criteria." I rec'd a pkg. by Fed Ex., which I promptly completed and Fed Exed back to them on June 9. A couple of weeks later, another Fed Ex pkg arrives, telling me that my application was incomplete. Could that be because they didn't ask for that material in the first pkg?!?! (I've heard they really really drag the loan mod stuff out.)

So, once again, I FedEx their material back to them pronto.

Yesterday, I receive a phone call from Hope, but they hung up before I was able to answer. Called them back....they verified my identity, etc. Told me that I had not sent in all my material. I told them YES I had. They miraculously found it.

Told me my case was under review and that BofA would be sending their decision to me "some time."

So.....what to do...what to do...?

I really don't expect for them to modify our loan. We don't have any income to show that we can pay. (But, yet, we've never missed a payment in 11 years.)

My dilemma is this. I have not yet paid for July because for the last few months, I waited until the 15th to pay (before late fee). However, every penny we have now is PRECIOUS. I should say here that the ONLY way we've been able to pay is that I cashed out my retirement account - entirely. That money will be gone in 2 months, if I pay the existing mortgage amount.


Honestly, if they don't give us a loan mod., we cannot afford to stay here. I don't think it makes sense to send in maybe two more months of pmt., knowing we couldn't stay here anyway. Keep the money and put it in a new place, right? (Or buy a new couch, as my 12yo son said ;).

I've also been told I should not pay because they're more likely to work with you if you demonstrate hardship.

WWYD???????

[kourtini]

Just thought I would update everyone on our situation. Beginning of last week I thought it wouldn't hurt to email, call, and fax every person at BofA to try and get them to modify our loan. I located the email and phone number for the president of home retention at BofA and I started sending her emails and leaving her messages about our situation. 24 hours later I got a call back from a nice lady named Cynthia in the "office of the president" saying that she has gotten authorization from our attorney to work with us on modifying our loan and that she had already mailed out the paperwork (Fed Ex) and that she would be our "advocate" from this time forth. We spoke with our lawyer and he did indeed give them authorization to work with us. He basically told us... hey if you can get them to do something, that's perfect. Cynthia gave me her direct number and extention and said that we would be bypassing and not dealing with the customer service number any longer. I'm still super skeptical... because let's face it... it's BofA and so far they have been nothing but turds to us... but if there's a chance we can stay in our home with a modified mortgage, I'm all for that. Anyone else have a similar experience????