Modification after bankruptcy questions

[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.

[gunner01]

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

[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?

[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]

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!

[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.

[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.

[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.

[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]

Congrats! I feel pretty much happy for you guys and am in great hope to have a happy ending just like you. I did sign/date the agreement, notarize all 2 sets and return the package to BAC last Friday. I called BAC and asked for the Disclosure Rider and was explained that we don't need the form since we had never filed Bankcruptcy. Anyway, I mannaged to reproduce the form based on online samples, signed them and sent them back. I did make copy of all the docs sent as you sugggested (thank you!); and will do so too with our new monthly payments.

About the Loan Mod Agreement and the Disclosure Rider, did you eventually receive a copy of those with BAC signatures? I don't think it worth at all if only we signed and that we keep no copies with BAC signatures on. Have the new payment correctly shown up on the account and in the statement is really great, but I would feel secured and could rest easy only after I receive the docs with their signatures on. They are the only legal proofs we would have for any future incidents.

Last question: Is your mod HAMP or BAC in-house? We were denied from HAMP and then offered their in house mod. Were you in the same situation?

Thanks again for your infor and advise.

[willsurvive]

If you did not file bankruptcy, then the Modification after bankruptcy disclosure rider is irrelevant and you will not need it. I wouldn't worry about it at this point. No, I have never received a signed agreement from BAC (though I wish I had). Honestly, I don't think we'll ever see it, and if I called for it I would get a big run around and cause myself more stress. I'm not going to worry about it. I really think that having the account look correct online, and the statements showing up is enough for me to move on with my life and consider it a done deal. To each is own though.

This is definitely not a HAMP, but an in house mod we received.

Again, good luck

[SetMeFree]

Any luck with your MOD? I am filing Chapter 7 in about a week. The house is in foreclosure now but a sale date has not been set yet. I was thinking about contacting BofA after filing and looking into getting a MOD any suggestions?

[CCsAreEvil]

Interesting. Received a letter from CitiMortgage stating they are trying to keep people in their homes. They claim they will be contacting us soon about a loan MOD (post-BK). A separate letter sent about 2 weeks earlier said they were going to accelerate foreclosure if we did not bring payment up to date from around Aug/Sept (like that was going to happen). We'll see what happens. I guess we'll go through with the mod loan process. Worst case is probably delaying the foreclosure process to let us squeeze in some extra time before we have to leave.

[SetMeFree]

Willsurvive....When did you file your bankruptcy? I am trying to figure out the best time to file.

[Rico07]

Modify before BK if possible

Any luck with your MOD? I am filing Chapter 7 in about a week. The house is in foreclosure now but a sale date has not been set yet. I was thinking about contacting BofA after filing and looking into getting a MOD any suggestions?

You might consider holding off on BK if you can until the modification is in place. I know with HAMP they cannot foreclose while you are in the process. I don't know about an "in house" as all terms are according to the individual bank. Chapter 7 does not help if you are in arrears. As soon as the stay is lifted they can begin the foreclosure process again. If you are looking to save your home modify first then file. JET