Recent mortgage modification offers made by Bank of America. Anyone experienced it yet?

Posted on Dec 16, 2023 in FHA Information

Question by Sandy B: Can my lender force me into an escrow account under the Home Affordability Refinance Program?
My husband and I were informed by our lender that if we refinance under HARP (Home Affordability Refinance Program), healing hospital we have to set up an escrow account. I can only find that escrow accounts must be set up under the modification portion of the program but not the refinance. My loan is owned by Fannie and I live in CA.

Best answer:

Answer by sassy25
Yes your lender can. That is their stipulation for refinancing your loan.
It is a take it or leave it deal.

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Question by cantyoujustseeit: Recent mortgage modification offers made by Bank of America. Anyone experienced it yet?
Recently there was a news article stating that 200, web 00 modification offers were being sent out by Bank of America. (Please don’t call lazy or a dead beat. I have worked since age 16, dosage now 48 and last 6 yrs. x2 Full time jobs, seek 6/12hr shifts a week) I lost one job a year ago and of course with the job market have been unable to find a job that brought in the income I used to get. That being said, I started to get behind.
I received this offer from Bank of America. However, the payment they are suggesting for modification is exactly what my mortgage was; minus the escrow of taxes and insurance of $ 1,000. I have until June 25 to submit contract and then make my 3 trial payments the 1st of Jul, Aug, Sept. Then upon completion, will be advised if final approval for modification is granted. This has been a long and tedious process just to get to this point. However, with my reduced income and I have submitted countless paycheck stubs, I cannot see how they came to the same amount as before.
Yes, I am afraid to call my customer service rep, because if they get the impression that I am unwilling or have reservations of signing the contract, they may just proceed with foreclosure. There are no definitive outlines. “If I complete the trial, there MAY be a reduction in interest rate, there COULD be forgiveness of late charges.”
Does anyone know of any attorneys in the St.Louis/SoCo/Arnold area that could help me go over these documents and go to bat for me for negotiation to make a counter offer? I feel this is no modification at all, since my payment is essentially the same. Mortgage payment, $ 989 + Insurance $ 100 + Taxes $ 75 + FHA mort insurance $ 55. = $ 1,219. My current pymt is/was $ 1,217
There is no mention of any monies being applied to the escrow for taxes, insurance, etc in the modification documents either. Thank you for your time and consideration in helping guide me to the path I should take.

Best answer:

Answer by Yirmiyahu
Years before Obama existed, mortgage modifications were tried. They didn’t work. They still don’t work.

If you can’t afford the house, you can’t afford the house. Period.

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One Comment

  1. It sounds like time to sell.

    If your income is too low to make the payments then they will not modify the loan.

    Modification is lowering the interest rate from what you wanted to pay previously. They can only lower it so far, there are legal limits.

    You can counter with a lower interest rate, but not below the legal limit. The limit is based on the prime interest rate, so changes daily. It willbe somewhere around 3.5%