Hi everyone. Long story short - I have a second mortgage with Bank of America (originally Countrywide). I bought a home for $290k in April 2006. Citi has the first mortgage for $232k; B of A has the second for $58k.
The B of A loan has an interest rate of 9.375%. Each month I pay almost $500 in pure interest. I know - it was stupid to take the loan. But I did.
Anyway, lost my job and found a new one, but at 15% less pay. Meanwhile my house value has dropped precipitously - now it's worth (optimistically) $200k. That's official - neighbor in similar house / lot was just appraised for $205.
I have missed my May and June payments with the B of A loan. On June 2nd, I received a Notice of Intent to Accelerate. It stated that if I don't pay them $1000 by July 2nd, they [b]will [/b]begin foreclosure proceedings (the emphasis on 'will' was in their letter).
I want to keep my home. But the $500/month in interest is awful and there is no equity in the house to support that second lien. So I'm not certain why they would foreclose only to receive.... nothing. Because Citi would get everything at the foreclosure sale.
I would like B of A to lower my interest rate to 0% for a year and then raise it to a maximum rate of 5% over three years. That should give me enough time to (hopefully) get a raise or two and eliminate other expenses.
So I have two questions -
1. Has anyone successfully had a second mortgage modified by B of A? What are my chances of a modification if the equity doesn't support their lien?
2. How serious is this Notice of Intent to Accelerate? I'm not even 60 days past due. Will they really foreclose after 60 days?
This is longer than I intended. Sorry! :roll: I'm not trying to get the principal reduced, or anything - just some breathing room while my budget adjusts.
Thanks for your help.
-AnnaReason for Editing (Minimum 15 Characters)
Asked on 9:19 am Jun 25th 2009
Anonymous
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For the record.. DO NOT IGNORE A BANKS INTENTS TO ACCELERATE!!. YES THEY CAN AND WILL.
If we took this bull by the horns, and used our intelligence instead of not doing anything at all. We would maintain control of the situation.
When the banks holler about failing stocks an stick their hands out for a bailout, we should do it ourselves. Each and every time we allow the FEDS to step in and "take care" of it.. we find ourselves in further debt. If we lent them the money ourselves, we would be in the drivers seat period. We would be able to make the required and NEEDED modifications to them by placing stipulations on them so stiff that it would make their world spin.
Not too many people really know the truth about the banking system and how it works. The fact is that when we go to a bank and ask for a loan, we are not getting money "they loaned us" the fact is, we are the originators of this money. (do your research and find out)
So in fact the "original note" was unlawfully converted to the banks liabilities in the form of "bank credit".
A very good read for those who are seeking the truth I would recommend the [URL="http://www.rayservers.com/images/ModernMoneyMechanics.pdf"]Modern Money Mechanics[/URL] written by the Federal Reserve Bank of Chicago them selves. Another absolute MUST read is "[URL="http://sosnews.org/pdf/banks-foreclosing.pdf"]How to combat Bank Foreclosures[/URL]" [(takes a while to load it is a large file)]
PLEASE help your selves by doing some research. The world is NOT as though it appears.Reason for Editing (Minimum 15 Characters)
Answered on 11:26 am Sep 28th 2010
Anonymous
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You need to call them and find out what they can do to help...maybe they can defer a payment or two while you work things out...
The main thing is that you TALK with them...if they don't hear from you, they can only assume that you're not interested in working things out.
If you can, talk with an attorney before you call them so you have an idea of how to deal with this.Reason for Editing (Minimum 15 Characters)
Answered on 11:58 am Jun 25th 2009
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desperatelyseekingsanity, Thanks for your response.
I have called them. And I submitted a hardship letter two weeks' ago.
They tell me that foreclosure proceedings will continue while they're 'reviewing' my letter (whatever that means).
I also receive constant collection calls from India and those reps know nothing about my hardship letter. When I call B of A, they just ask if I can pay.
That's why I was asking about loan modifications.
Maybe I should just type up my own load modification request and submit it to them, rather than wait for them to respond to my letter.Reason for Editing (Minimum 15 Characters)
Answered on 12:15 pm Jun 25th 2009
Anonymous
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I would still call an attorney and try to get some info on how best to handle this situation...a phone consult shouldn't cost you anything.Reason for Editing (Minimum 15 Characters)
Answered on 2:22 pm Jun 25th 2009
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Anna-
So, I have almost the same EXACT situation as you. Today is July 7, 2009 and I see you needed to respond back to B of A by July 2, 2009, what happened? Did B of A work with you? Your response back would and any advice would really help.Reason for Editing (Minimum 15 Characters)
Answered on 8:10 pm Jul 7th 2009
Anonymous
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Is the notice of intent to accelerate a scare tactic or will BofA start forclosure proceedings? I'm trying to determine if I should completely tap out my savings and borrow money to bring the loan current while I wait for my loan mod. review to be complete.Reason for Editing (Minimum 15 Characters)
Answered on 4:05 pm Jul 23rd 2009
Anonymous
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This is exactly what I'm trying to find out! My position is this-I sent B of A my hardship letter back in February or March, they said that they would review my letter, blah...blah...blah! I asked if I could quailify for a loan modification. Basically, everything has been OVER THE PHONE! COMPLETELY OVER THE PHONE. They verbally take my financial information OVER THE PHONE. They told me over the phone that I don't quailify and she couldn't tell me why. So I said "F" it. Knowing that the 2 houses next to me sold for $150,000-$180,000. There is NO WAY I'M GOING TO PAY FOR MY HOUSE LOAN THAT IS APPROX. 500K. I need to refinance in 2-3 years and I WON'T BE ABLE TO BECAUSE I HAVE NO EQUITY. IF I'M LUCKY MY GREAT, GREAT GRANDKIDS WILL SEE ANY EQUITY IN THE HOUSE! So, my ONLY chance in keeping this house is through a loan modification BUT I CAN'T TALK TO A ACKNOWLEDGABLE PERSON!! It is so frustrating! I was sent the "Notice of Intent to Accelarate" letter and I need to pay my total morgage by the end of this month. If ANYONE is going through this process or has advice.......please let me/us know! To be honest with you, I already used all my savings (completely) AND borrowed money from friends and family. I would rather KEEP my money and have food on the table and pay for gas. What if you use all your money and use all your resources and B of A doesn't modify your loan? Meanwhile, you pay your morgage and they get their money and you have nothing to bail you out?
I DON'T KNOW WHAT IS GOING TO HAPPEN IN MY SITUATION BUT IF ANYONE HAS RECEIVED THE "NOTICE OF INTENT TO ACCELARATE" LETTER AND HAS HAD SOME RESOLUTION EITHER BAD OR GOOD. PLEASE POST SOME ADVICE!!Reason for Editing (Minimum 15 Characters)
Answered on 10:08 pm Jul 24th 2009
Anonymous
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If you contact their Loss Mitigation department I bet they will help you. You may have to take a "Home Saver" loan though for the amount in arrears.Reason for Editing (Minimum 15 Characters)
Answered on 1:56 am Jul 25th 2009
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Negotiating with a mortgage lender is all about leverage. Know your state's anti-deficiency laws. Figure out how much equity there is for the 1st note holder, and then the 2nd.
These are important factors in understanding if the 2nd would actually follow through with a foreclosure or if they are just barking.Reason for Editing (Minimum 15 Characters)
Answered on 7:43 am Jul 29th 2009
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Hi, Just came accross this post because I was looking up info myself. I too have gotten that "notice". I currently have my 1st and 2nd TD with CW --now BofA. I owe about $556 on my first and $60k on my 2nd TD. I will be brutally honest. It took forever to get anything done on my 1st TD with CW and I was an employee of theirs and I had to eventually go almost 90days to get anyone to listen and I know what I am talking about--I had perfect credit and even called them months prior with no help. I am an Underwriter in this business and what I find is that people are very quick to judge others when they have no idea of each persons situation. At the time my husband and I bought our home we went Full doc and we both had good jobs in this industry. When it came crashing down NOBODY could forsee the amount of foreclosure actitivty that would take place--Not even the so called experts. Well my husband got laid off and has been struggling to hold onto each temp job he gets. I have been lucky to hold on but everyday could be the day I lose my job too. We have had so many foreclosures in and around our neighborhood I would be lucky to even get $350k for our house. It took months for them to finally modify our 1st but they did and really we are only paying so we can stay in the house. The 2nd--WILL DO NOTHING--I will say it again--THEY WILL DO NOTHING...We have talked to them so many times it is redundant. All they can manage to come up with is try and short sale---They have no idea of what they speak--You never will get anyone on the phone that can help--no department --no person etc....believe me I have tried until I am blue in the face. I tell them the scenario of my value vs what I owe and I get no answer. The wont modify or do anything to help with the payment. This is BofA (I am in CA). It is worthless to try and get the lender to work with you on the 2nds. I know plenty of people, friends and nothing is done. I have now chosen to speak with an attorney to see what this may do and if nothing I will prepare to walk away from the house altogether but I know with kids that could be very difficult. I will let you know what I find out. Oh and please do not let some people scare you into thinking you will never be able to get a home again after you foreclose--lies! Most guidelines allow you to do so after 2 to 3 years even if it is on your credit and guranteed those guidelines will even change more so because of what is happening right now. Peace :roll:Reason for Editing (Minimum 15 Characters)
Answered on 5:31 pm Aug 4th 2009
Anonymous
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