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Replies (9)
- Bradley Slavens, "Slavens Realty"
- Contributions:14
A key factor may be that you can make your payments. If you can the banks want to get paid.
If you are making your payments using a 401k etc. speak to an attorney, those assets may not be able to be considered in your ability to pay.
The banks only modify if they have no other option.
Talk to an attorney about tax and legal consequences of any decision you make.
Good Luck!
Thanks
Brad
- flyingfrenchman
- Contributions:3
Thanks for the advice Brad. My wife and I are considering a short sale instead, but will post more information if something else works out.
- Bradley Slavens, "Slavens Realty"
- Contributions:14
You're welcome. I do a lot of shortsales, let me know if you need an agent.
Thanks
Brad
[contact info removed by moderator]
Thanks
Brad
[contact info removed by moderator]
- Chris Gorno, "5 Star SoCAL Agent"
- Contributions:27
Flyingfrenchman~ I feel for ya! It's very frustrating trying to get all of the paperwork in, that is requested for a loan modification. Very few homeowners qualify for a loan mod. It is such a small window that very few fit through it. 1st of all you have to PROVE that you can no longer afford your current pymt. Then 2nd you have to PROVE that you can afford the new pymt (it's like qualifying for a new loan). It's a very small opening in that window, that very few people fit through.I am sorry to hear that you are experiencing a hardship. If you are underwater $135K and you have a legitimate hardship, then a short sale is a dignified solution to help turn your life around. I had to do the same when my husband lost his six figure job, and we were upside down $145K. It was the best thing we could have done. It's like taking an elephant off of your back.
Best,
Chris Gorno REALTOR, CDPE
[contact info removed by moderator]
Best,
Chris Gorno REALTOR, CDPE
[contact info removed by moderator]
- Chris Spade, "sdaceofspades"
- Contributions:8
Brad is right, the bank is only going to modify the loan if you can make the payment and if it makes sense. The problem with loan modifications is that banks just service the loan, as is the case with your Bank of America loan. B of A deals with over 500 investors in their pool and each one has it's own guidelines. My advice is that you find out who that investor is to see what their guidelines are for modification. The person you spoke to at B of A may not know what they're talking about. One thing I've learned about doing short sales is that you never ever, ever take no for an answer from someone who doesn't have the authority to say yes. Trust me, I've called back banks on several files and gotten several different answers. Once you find out who the investor is--google to see if they have loan modification guidelines on line--that may give you an answer. Chase is another beast--although they are getting better, they too present challenges when it comes to modifications. It's not likely that a bank or investor will decrease your principal balance, I've not seen it anyway--they may modify it to extend the loan or give you some temporary relief on your interest rate. By the way, social media is the best way to communicate with the banks--they don't want bad press. If you have any questions, feel free to call or shoot me an email. I'd be happy to answer any questions you may have
Best,
Chris Spade
[Contact info removed by moderator]
Best,
Chris Spade
[Contact info removed by moderator]
- Ed Brophy, "Ed Brophy"
- Contributions:455
You mention that you qualify under Making Home Affordable, is your loan owned by Fannie Mae or Freddie Mac? If your loan is owned by Fannie or Freddie under the guidelines of MHA they have to work with you on modifying your loan.
Follow the link I posted to the MHA website, there's a a lot of helpful information there for you to read.
If you don't know who owns your loan, use the loan look up to find out. Good luck.
Follow the link I posted to the MHA website, there's a a lot of helpful information there for you to read.
If you don't know who owns your loan, use the loan look up to find out. Good luck.
- FHA Short Refi Solutions, "FHA Short Refi"
- Contributions:3
Bank of america will complete a "earned principal reduction if you have one of the loans they are trying to get rid of. In most cases if boa is the servicer then wells fargo is the lender. DO not attempt a loan modificaton that does nothing for you. Instead find a new lender who will refinance you at the current appraised value then you can submit to your current lender the HUD 1, new appraisal and approval on your new loan. Also request,as you are allowed by law, for all your original documents from bank of america to verify that all your docuemnts were in fact signed legally and the chain of title has not been broken(Forensic Audit) In many cases across the United states most lenders utilized MERS as well as robo signers to get he docs signed. This is the reason bank of america as well as the other lender put a freeze on foreclosures. It was/is not to be nice it is to make sure they did not break the chain of title nor the law. If your lender in fact has broken the chain or required respa documents were not signed or dated or dated incorreclty according to the state laws then in turn theuy have no right to collect on your mortgage payment. This obviously put you in a much better position to negotiate your mortgage terms
- Andrew Adams, "203K Specialist"
- Contributions:9349
This screams scam. Personally I would never contact a company that has a website with no real contact info. A nameless faceless website seems like a trap to me!
Just my .02!
Just my .02!
- flyingfrenchman
- Contributions:3
Wow, thanks to everyone for their reply. I was under the impression that I would be notified by email after each post on the thread, else I would have reviewed and replied sooner. Yes, all good suggestions and yes, I have submitted for my original loan docs amongst other things and I was told that my investor was WELLS--not sure if that means Wells Fargo however. Once we hear back I will post with any updates. Thanks again and happy holidays--Cheers!
Attempting Loan Modification w/Chase Second
I have a second with Chase or about $80k(8%) and a first with BofA for about $506k(6.38%). We owe a total of 585k and the house has been recently reassessed for $450k by county clerk ($135k upside down) or $500k conservatively by comps. We have been trying for over 1.5 years to do a loan modification with BofA. We clearly qualified within the guidelines of the Making Homes Affordable Program and did have good reason for a hardship. My wife and I have never missed a payment or have been late on either of the loans. Apparently since BofA is just a servicer of our loan, our investors will not agree to modify the terms of our loan nor are signed up for the making homes affordable program.
I am thinking since BofA will not work with me, that I can attempt to negotiate with Chase on our second instead. My wife and I would prefer to preserve our credit instead of doing a short sale and we do enjoy our home and neighborhood. What are the chances that Chase may consider carrying over our second or subordinate in order for us to avoid a short sale so that we can continue paying as agreed (or better yet, interest free if optional) so that we can better qualify to refinance the first with a better interest rate and get the &%^# away from BofA? Your professional advice on how to approach please?
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