Can I still modify my loan if I am NOT three months behind as most banks require?
March 20th, 2009
Mark T asked:
I have a home loan with Bank of America will have some trouble once the interest rate adjusts up.
I have a home loan with Bank of America will have some trouble once the interest rate adjusts up.
I just read an article about a new program starting Dec 15 (I think) that will start working on Fannie Mae and Freddie Mac defaulting mortgages first but will be the program for other lenders to follow. To qualify you have to be 3 months behind and owe more than 90% of your home’s value.
Your best bet is to contact BOA and see if there is anything you can do now to prevent problems.
Talk to them now - don’t wait. Government has passed some
new laws that may help you. Tell them you may have to default
if they can’t help you out. You may be in a position to negotiate
ok, first thing you do is call B of A and ask for the “loan modification” or “loss mitigation” department - not BILLING or COLLECTION, tell them the truth, that you took out an ARM (you could lie and say that the mortgage broker promised you it was a fixed rate loan and you didn’t realize it would adjust until you got to the closing table) and now that it’s adjusting you will not be able to carry these payments. Give them a hardship story that you can repeat verbatim, possible loss of job, possible health issue of a wage earner in the house, anything to let them know you are serious about paying the mortgage but not with it adjusting. The banks do not want your house, their REO’s are bulging at the seams, especially if you have little or no equity in the house, they may even lower the rate and then fix it for 30 years, the banks are doing crazy stuff these days to help keep people in their homes. I work with people in foreclosure every day, dealing with the banks on their behalf, your persistence will pay off, you can email me if you have other questions.
The bank (any bank) are out for their own selves. They will do whatever to make the most profit. For example if you’ve got overdrawn and you have four checks come through the same day. The bank figures there is not enough money in your account to pay all four. One is big, and 3 are little. Guess which ones they bounce. That’s right the bank honors the big one and bounces the other three. charge is $20 per check. go figure..
Yes, but you will need to show hardship. I would call them first, but many will not deal directly with homeowners, but rather trusted loan modification companies.
Here is a list of things to be cautious of when considering a loan modification firm: