Bank of America - Loan Modification

[batman23]

Just spoke with BOA and they advised that they can not do a HAMP and need to complete a In house modification. Any one have any luck with this type of modification and what type of terms did you see in regards to balance, term and interest rate

[jmw1212]

Did they give you a reason as to why you were denied? Pnc just denied me because I am in active bankruptcy and it specifically states on the hamp website that being in bankruptcy is not a reason to be denied. They also told me I had to reaffirm the note and the hamp website says you don't have to reaffirm. So I am going to fight them on this.

[batman23]

There response via the letter "we are unable to offer you fha-hamp modification because your loan has qualified for a more appropriate loss mitigation alternative offered by US Dept of housing and urban development."

 

The rep at BOA stated that it would be a internal modification. I just dont know what options they would offer under this and if it would be something we could do. I was hoping to get the 33% of income that hamp follows.

 

I was curious if anyone had similar situation and what the outcome looked like.

Did they give you a reason as to why you were denied? Pnc just denied me because I am in active bankruptcy and it specifically states on the hamp website that being in bankruptcy is not a reason to be denied. They also told me I had to reaffirm the note and the hamp website says you don't have to reaffirm. So I am going to fight them on this.

[tiggerlgh]

You have a FHA loan, they don't do HAMP they have thier own programs.

 

The terms really vary from person to person, there is no one size fits answer. How much over 31% of your Gross Income is your mortgage payment?

[batman23]

I believe the the # is around 50%

You have a FHA loan, they don't do HAMP they have thier own programs.

 

The terms really vary from person to person, there is no one size fits answer. How much over 31% of your Gross Income is your mortgage payment?

[kweb]

I believe the the # is around 50%

You have a FHA loan, they don't do HAMP they have thier own programs.

 

The terms really vary from person to person, there is no one size fits answer. How much over 31% of your Gross Income is your mortgage payment?

 

 

Idk about b of a. But I do know that Chase's in house mod or "CHAMP" brings your loan current (if delinquent) and puts the delinquency on the principle balance. Really don't expect much help if you're current on the loan.

[batman23]

The mod i finally received reduced my payment by 48 dollars a month. I dont know if this would be up for negotiating with them but will try that on Monday. Anyone else have something similar happen ?

[cinderella]

BOFA like any servicer has zero control of an FHA loan. They are required like CITI/WELLS/CHASE/Etc to follow HUD guidelines. There is no negotiation. The servicer has to carry out the loss mit and HAMP guidelines prescribed by HUD. Should HUD audit the file and find differently, as with any other investor, there is going to some problems and maybe some firings.

 

FHA has hamp. It is the last of the waterfall for FHA, reverse order from other investors. There is no such thing as an in house mod for FHA, it is probably a non hamp HUD mod. The customer service rep. is confused, which really isn't surprising.

 

Is your interest rate 4.375 with a 360 term?

Edited January 29, 2012 by cinderella

[batman23]

That is what they offered 4.3 @ 30 years

BOFA like any servicer has zero control of an FHA loan. They are required like CITI/WELLS/CHASE/Etc to follow HUD guidelines. There is no negotiation. The servicer has to carry out the loss mit and HAMP guidelines prescribed by HUD. Should HUD audit the file and find differently, as with any other investor, there is going to some problems and maybe some firings.

 

FHA has hamp. It is the last of the waterfall for FHA, reverse order from other investors. There is no such thing as an in house mod for FHA, it is probably a non hamp HUD mod. The customer service rep. is confused, which really isn't surprising.

 

Is your interest rate 4.375 with a 360 term?

[cinderella]

That is what they offered 4.3 @ 30 years

BOFA like any servicer has zero control of an FHA loan. They are required like CITI/WELLS/CHASE/Etc to follow HUD guidelines. There is no negotiation. The servicer has to carry out the loss mit and HAMP guidelines prescribed by HUD. Should HUD audit the file and find differently, as with any other investor, there is going to some problems and maybe some firings.

 

FHA has hamp. It is the last of the waterfall for FHA, reverse order from other investors. There is no such thing as an in house mod for FHA, it is probably a non hamp HUD mod. The customer service rep. is confused, which really isn't surprising.

 

Is your interest rate 4.375 with a 360 term?

 

that is it. You would get the same for an FHA hamp mod. Interest rates and term for both types of mods are the same, the freddie mac weekly.

[batman23]

Under these programs is it possible to get a longer term

[cinderella]

Under these programs is it possible to get a longer term

 

No. FHA hamp and non hamp only do 360/30 years and interest rate is always the freddie weekly. Sorry.

[cinderella]

You have a FHA loan, they don't do HAMP they have thier own programs.

 

The terms really vary from person to person, there is no one size fits answer. How much over 31% of your Gross Income is your mortgage payment?

 

Tigger, FHA does HAMP. Further, 31% may not be applicable to FHA HAMP. Many people are approved for FHA HAMP under 31% pre mod front end DTI. Certain rules apply.

[tiggerlgh]

You have a FHA loan, they don't do HAMP they have thier own programs.

 

The terms really vary from person to person, there is no one size fits answer. How much over 31% of your Gross Income is your mortgage payment?

 

Tigger, FHA does HAMP. Further, 31% may not be applicable to FHA HAMP. Many people are approved for FHA HAMP under 31% pre mod front end DTI. Certain rules apply.

 

I know and I should have been clearer. They have their own HAMP which I alluded to in my second part of my sentence, but they don't follow the HAMP program as most poeple think of it. As for the 31% it is a good baseline to start where the payment currently is.

Edited January 29, 2012 by tiggerlgh

[AKAGeorgiaGirl]

We completed a BofA inhouse mod almost 2 years ago. We didn't qualify for HAMP - I don't remember the details, but I knew we didn't qualify. Our loan was Countrywide and went to BofA when CW went under.

 

We were originally on a 30 year fixed @ 6.95% rate. Several months behind. The mod brought the loan current, amortized the missed interest payments, and gave us a step rate loan. 3.875% for 2 years, then 4.25% for 2 years, then it goes to 4.75% where it will stay. Loan term did not change. Started the process in April of 2010. Sent back final docs w/ an amount = 1 month (new) payment in June. That mostly went to interest. Started paying new mortgage in July. By mid August, our online account info had been updated to match the new details & was back to reporting paid as agreed.

 

One of the steps in the process was sending in a budget outline to BofA, in addition to income docs and such. At one point they under-calculated my part time job, which made it look like we had about $400 less per month income than we do. They were ready to deny until I dug into how they got the #s. They needed to see a little positive cash flow at our original mortgage payment to be willing to do the mod. That budget should show a little positive cash flow. Otherwise it was like they figured even a loan mod would not help in the long run.

[batman23]

Can a lender advise that we have an internal mod so we wont do a HAMP review?

We completed a BofA inhouse mod almost 2 years ago. We didn't qualify for HAMP - I don't remember the details, but I knew we didn't qualify. Our loan was Countrywide and went to BofA when CW went under.

 

We were originally on a 30 year fixed @ 6.95% rate. Several months behind. The mod brought the loan current, amortized the missed interest payments, and gave us a step rate loan. 3.875% for 2 years, then 4.25% for 2 years, then it goes to 4.75% where it will stay. Loan term did not change. Started the process in April of 2010. Sent back final docs w/ an amount = 1 month (new) payment in June. That mostly went to interest. Started paying new mortgage in July. By mid August, our online account info had been updated to match the new details & was back to reporting paid as agreed.

 

One of the steps in the process was sending in a budget outline to BofA, in addition to income docs and such. At one point they under-calculated my part time job, which made it look like we had about $400 less per month income than we do. They were ready to deny until I dug into how they got the #s. They needed to see a little positive cash flow at our original mortgage payment to be willing to do the mod. That budget should show a little positive cash flow. Otherwise it was like they figured even a loan mod would not help in the long run.

[ladyran]

I received an in house mod - went from adjustable to fixed rate and that rate dropped 1.34%, dropped my payments $77 month. Back payments put to the end of the loan.

 

I have also applied for the independent mortgage review and will apply for this new program as soon as BofA starts accepting apps on it.

[batman23]

What is

independent mortgage review ? Are you referring to mortgage settlement

I received an in house mod - went from adjustable to fixed rate and that rate dropped 1.34%, dropped my payments $77 month. Back payments put to the end of the loan.

 

I have also applied for the independent mortgage review and will apply for this new program as soon as BofA starts accepting apps on it.

[cinderella]

Can a lender advise that we have an internal mod so we wont do a HAMP review?

We completed a BofA inhouse mod almost 2 years ago. We didn't qualify for HAMP - I don't remember the details, but I knew we didn't qualify. Our loan was Countrywide and went to BofA when CW went under.

 

We were originally on a 30 year fixed @ 6.95% rate. Several months behind. The mod brought the loan current, amortized the missed interest payments, and gave us a step rate loan. 3.875% for 2 years, then 4.25% for 2 years, then it goes to 4.75% where it will stay. Loan term did not change. Started the process in April of 2010. Sent back final docs w/ an amount = 1 month (new) payment in June. That mostly went to interest. Started paying new mortgage in July. By mid August, our online account info had been updated to match the new details & was back to reporting paid as agreed.

 

One of the steps in the process was sending in a budget outline to BofA, in addition to income docs and such. At one point they under-calculated my part time job, which made it look like we had about $400 less per month income than we do. They were ready to deny until I dug into how they got the #s. They needed to see a little positive cash flow at our original mortgage payment to be willing to do the mod. That budget should show a little positive cash flow. Otherwise it was like they figured even a loan mod would not help in the long run.

 

Georgiagirl and yourself have different loans. Yours is an FHA, hers originated from Countrywide, which is most likely a subprime and CW did not do FHA. Your investors are different, hers is probably owned by BofA and serviced by bofa, yours is serviced by bofa but owned by HUD. Two different situations.

 

A hamp review is required for every FHA loan. If you had a non-hamp mod, which appears you have, you would have been denied a HAMP mod. It is the way FHA works, a waterfall is followed, once a homeowner fits into a loss mit plan, the review of further plans down the waterfall is complete, it is denial due to the homeowner qualifying for another loss mit. option on the FHA waterfall.

[cinderella]

 

We didn't qualify for HAMP - I don't remember the details, but I knew we didn't qualify. Our loan was Co

 

One of the steps in the process was sending in a budget outline to BofA, in addition to income docs and such. At one point they under-calculated my part time job, which made it look like we had about $400 less per month income than we do. They were ready to deny until I dug into how they got the #s. They needed to see a little positive cash flow at our original mortgage payment to be willing to do the mod. That budget should show a little positive cash flow. Otherwise it was like they figured even a loan mod would not help in the long run.

 

This is good example of how a mod really goes. It is a process.

 

Most people think you send in docs and boom, you are done! They read a forum or a link to the making home affordable site and then move to get their mod. Believing modifications are like driving through McDonalds and for a few minutes of their time, they are entitled to a federal program to lower their payment.

 

Doesn't work like that. Knowing guidelines for investors, what will pass and not pass audits, calculating income, interpreting hardships, NPV understanding, tools for appraising value, little known rules, internal policies and reviewing finances is pretty involved, more than origination. A lot of frauds out there, and a lot of desperate homeowners that do need help. A good underwriter is invaluable in loss mit. With a thorough review and analysis, they can make a denial an approval and vice versa. Many times, an underwriter will know a homeowner will be denied, but caught something in the file, an issue on pay stubs to allow them to recalculate income with a different method to allow a modification, or something unusual in expenses in in house mods. Yet, there are many people that simply don't care, they sent the minimum amount of documents in and are done! It stuns me that when a file is being reviewed and the underwriter knows a denial is pending and sends the file back asking for more docs/clarifications the nastiness of some homeowners who say, "I sent my docs in!!! Give me my mod or I am calling the Attorney General!" In these cases, sure, all minimum amounts of docs are in file to make a decision, deny it and move on.

 

In no way is this directed at you, but it is a good example of going back and forth on loss mit review. There is a lot more to it than just sending in pay stubs, and it is an ongoing process until it is permanent.

[jmw1212]

Cinderella,

First of all, I don't think that people that apply for a mod for their home think it's as easy as driving through McDonalds!

Anyone that thought it was that easy would have never even bothered to apply because the paperwork would be overwhelming to them. When you have repeatedly send in documents over and over and over again, you start to realize that the "bank" really is just putting a number on you in an assembly line. You are just another number and you are not even looked at. The people that work these loan mods have no clue what they are even doing. They don't even know the laws. For example, with the HAMP Mod: They don't know for instance that you cannot be denied because you are in bankruptcy, yet I was. They don't know that you don't have to reaffirm your loan to be accepted, yet they tell you, you do.

 

Perhaps if they spent a little more of "OUR TAXPAYER DOLLARS" on training these people, they might know what to do and how to use "OUR MONEY" to help "US" keep our homes, rather than swelling up their wallets for a FAT BONUS each year! Pass that one on to your CEO if you don't mind.

 

I really think if you have nothing better to do here than throw things into our faces about how wonderful your banking system is without acknowledging the facts, than you should not be able to post your unhelpful and most rude comments. We are all loosing our homes and property, in "most" cases due to this economy and the banks negligence, not our own.

 

This message board is here to help people in need, not to try and prove how uneducated someone might be because they don't understand the banking system. If you want to explain that, then please do so with respect, but also acknowledge that we are not illiterate and know when we are being put through the "RUN AROUND!"

We didn't qualify for HAMP - I don't remember the details, but I knew we didn't qualify. Our loan was Co

 

One of the steps in the process was sending in a budget outline to BofA, in addition to income docs and such. At one point they under-calculated my part time job, which made it look like we had about $400 less per month income than we do. They were ready to deny until I dug into how they got the #s. They needed to see a little positive cash flow at our original mortgage payment to be willing to do the mod. That budget should show a little positive cash flow. Otherwise it was like they figured even a loan mod would not help in the long run.

 

This is good example of how a mod really goes. It is a process.

 

Most people think you send in docs and boom, you are done! They read a forum or a link to the making home affordable site and then move to get their mod. Believing modifications are like driving through McDonalds and for a few minutes of their time, they are entitled to a federal program to lower their payment.

 

Doesn't work like that. Knowing guidelines for investors, what will pass and not pass audits, calculating income, interpreting hardships, NPV understanding, tools for appraising value, little known rules, internal policies and reviewing finances is pretty involved, more than origination. A lot of frauds out there, and a lot of desperate homeowners that do need help. A good underwriter is invaluable in loss mit. With a thorough review and analysis, they can make a denial an approval and vice versa. Many times, an underwriter will know a homeowner will be denied, but caught something in the file, an issue on pay stubs to allow them to recalculate income with a different method to allow a modification, or something unusual in expenses in in house mods. Yet, there are many people that simply don't care, they sent the minimum amount of documents in and are done! It stuns me that when a file is being reviewed and the underwriter knows a denial is pending and sends the file back asking for more docs/clarifications the nastiness of some homeowners who say, "I sent my docs in!!! Give me my mod or I am calling the Attorney General!" In these cases, sure, all minimum amounts of docs are in file to make a decision, deny it and move on.

 

In no way is this directed at you, but it is a good example of going back and forth on loss mit review. There is a lot more to it than just sending in pay stubs, and it is an ongoing process until it is permanent.

[Guest asma]

Do you know the procedure for applying any type loan?

[CTSoxFan]

Cinderella,

 

 

Perhaps if they spent a little more of "OUR TAXPAYER DOLLARS" on training these people, they might know what to do and how to use "OUR MONEY" to help "US" keep our homes, rather than swelling up their wallets for a FAT BONUS each year! Pass that one on to your CEO if you don't mind.

 

I really think if you have nothing better to do here than throw things into our faces about how wonderful your banking system is without acknowledging the facts, than you should not be able to post your unhelpful and most rude comments. We are all loosing our homes and property, in "most" cases due to this economy and the banks negligence, not our own.

 

This message board is here to help people in need, not to try and prove how uneducated someone might be because they don't understand the banking system. If you want to explain that, then please do so with respect, but also acknowledge that we are not illiterate and know when we are being put through the "RUN AROUND!"

We didn't qualify for HAMP - I don't remember the details, but I knew we didn't qualify. Our loan was Co

 

One of the steps in the process was sending in a budget outline to BofA, in addition to income docs and such. At one point they under-calculated my part time job, which made it look like we had about $400 less per month income than we do. They were ready to deny until I dug into how they got the #s. They needed to see a little positive cash flow at our original mortgage payment to be willing to do the mod. That budget should show a little positive cash flow. Otherwise it was like they figured even a loan mod would not help in the long run.

 

This is good example of how a mod really goes. It is a process.

 

Most people think you send in docs and boom, you are done! They read a forum or a link to the making home affordable site and then move to get their mod. Believing modifications are like driving through McDonalds and for a few minutes of their time, they are entitled to a federal program to lower their payment.

 

Doesn't work like that. Knowing guidelines for investors, what will pass and not pass audits, calculating income, interpreting hardships, NPV understanding, tools for appraising value, little known rules, internal policies and reviewing finances is pretty involved, more than origination. A lot of frauds out there, and a lot of desperate homeowners that do need help. A good underwriter is invaluable in loss mit. With a thorough review and analysis, they can make a denial an approval and vice versa. Many times, an underwriter will know a homeowner will be denied, but caught something in the file, an issue on pay stubs to allow them to recalculate income with a different method to allow a modification, or something unusual in expenses in in house mods. Yet, there are many people that simply don't care, they sent the minimum amount of documents in and are done! It stuns me that when a file is being reviewed and the underwriter knows a denial is pending and sends the file back asking for more docs/clarifications the nastiness of some homeowners who say, "I sent my docs in!!! Give me my mod or I am calling the Attorney General!" In these cases, sure, all minimum amounts of docs are in file to make a decision, deny it and move on.

 

In no way is this directed at you, but it is a good example of going back and forth on loss mit review. There is a lot more to it than just sending in pay stubs, and it is an ongoing process until it is permanent.

 

 

Please keep the political commentary out of your responses. Thank you.

[PennyPinching]

I just wanted to chime in on this slightly older post. We just finished our FHA Bank of America modification. The process took almost one year. The rate we got was not stellar (5.1%), but we did get about $260 knocked off the monthly payment. B of A put about $75k into what was called an invisible 2nd. It is a non-interest bearing 2nd that only needs to be paid back on sale or refi. The thing I want to point out is that the process is rough. We were initially denied mod, then subsequently approved after I followed up a couple times. Then, after we made our mod payments on-time, nothing happened for months. We were advised to just keep paying the mod amounts, but no guarantee of outcome. I finally called FHA and reported the issue to them. They were very helpful and were instrumental in the final closing. After getting FHA involved, the loan mod closed within a couple months. In fact, after initially denying my paperwork several times, it suddenly closed in one week! So... long story short. Document EVERYTHING in a notebook in your process. All phone calls, names, payments, etc... Then follow up frequently, be persistent but be nice! Then, get FHA involved to at least let them know what is going on and call on them if needed. B of A is too big for their own good and there is too much need these days with mortgages.

Lastly, trust the folks like Cinderella and others on this forum. There are years of accumulated advice within these forums...

Edited July 9, 2012 by emtownsend