Getting A Second Modification With Boa

jwa81

LoanSafe Member
Jun 23, 2014
103
20
18
38
Hi everyone,

I'm new here and was hoping to get some support/advice to help put my mind at ease! We have our home mortgage through Bank of America. Back in 2012, we heard about mortgage modifications for the first time, so I called BOA to find out if we would be eligible. We were very interested to see if we could get a lower interest rate seeing as how our rate was at 6.5% at the time, which was the rate we locked in at when we bought our house in 2008. We were not behind in our payments at that time and we were vaguely told by the rep at BOA that we would need to fall behind in our payments in order to qualify for a modification. Long story short, we went through the whole process and received our permanent modification in the fall of 2012 and our interest rate was lowered to 3.75%, reducing our payments by nearly $200 a month, so we were pretty happy with that. All was well from that point forward and we were making payments every month with no problems. Unfortunately, this past winter my husband and I fell on some difficult times. My husband slipped and fell on the ice during a huge ice storm and suffered a severe rotator cuff tear as well as biceps muscle tear, which he needed surgery and extensive physical therapy for, and this put him out of work for over 3 months. Just before this happened, I took a pretty significant pay cut at my job and was only making about half of what I used to. Fortunately, about a month ago I got a new job making almost twice as much as I did at my old job and my husband returned to work 3 weeks ago, so things are finally starting to look up again for us. Actually, once we get caught up on our bills, we will probably be doing better than ever financially.

I contacted Bank of America for assistance during the first week of May as we were one, about to be two months behind on our payments. I explained the entire situation and they said that it sounded like we may qualify for a forbearance since our financial hardship was only temporary and was about to come to an end between my new, higher paying job and my husband finally being able to return to work. I was then assigned a customer relationship manager, who sent me all of the paperwork to fill out. I filled out all of the forms and sent in all of the documentation they requested. This CRM was absolutely horrible at returning my phone calls and I could almost never get in touch with her. I finally sent an email to the CEO of BOA complaining about this and I was almost immediately assigned a new customer relationship manager, who is actually in the office in the president and she has been great about always calling me exactly when she says she is going to and I never have a problem getting in touch with her. She even gave me her email address. She just called me this afternoon and told me that no further documents are needed from me and that my file has completed the underwriting process and now they are just waiting on a decision. She said she will call me every 2 days until a decision has been reached regarding getting some assistance. She had informed me a couple of weeks ago that we may be eligible for a second modification since it has been some time since our first one, but we have to wait and see what the final word from the underwriter will be, which will hopefully be sometime this week (I really hope). I am currently a nervous wreck. We are 3 months behind right now, although we are going to be making a payment next week. My question is: Has anyone ever successfully gotten a second modification with BOA? Has anyone ever gotten a forbearance? If so, how did that go? Is it relatively easy to get a second modification? My CRM told me that they are exploring all opportunities possible for us to get assistance. I guess I am just kind of looking for some reassurance so I can stop being such a worry wart while we're waiting to get our results. Everything else in our lives is going so well now, except for this one black cloud hovering over us while we wait to find out what our options are for mortgage assistance!

Thanks for listening!!
 

Moe Bedard

Call 1-800-779-4547
Staff member
Loan Safe Mortgage
Aug 10, 2007
26,850
466
1,000
49
Southern California
www.loansafe.org
Hello and welcome to the LoanSafe community. We appreciate you telling your story. Every story told here on the forum helps many others who will learn from your words.

I have seen quite a few second loan modifications and forbearances with Bank of America over the years. But with that said, they are by no means easy to get. The LoanSafe members that did get them were very lucky and often had to fight tooth and nail to obtain that 2nd modification.

The good news is that I feel you are in the right place and have the right people at BofA helping you in the Office of the President (OOP). It doesn't get any better than that.

What I suggest is that you concentrate your thoughts on success. Do not let worry rule you when you truly have been given a gift before with the 1st loan modification and now with being in the OOP. Try to eliminate the black cloud by being grateful for what you have. I do not say this to be rude or to say you that you are not, but just to remind you that your thoughts WILL influence the outcome in any given situation. Hence, if you think you can or can't, you are most likely right.
 

poormanindc

LoanSafe Member
Aug 20, 2010
45
1
6
I think you'd be better off getting a forbearance over another modification. Reason being is that if your financial (income) has improved as you stated you might end up having a mortgage that is more than your previous one from 2012. They use your current financials to figure out what type of modification you can get into. So if you and your husbands income has increased over the 2012 income then that puts your 31% of what's suppose to go for your housing expenses up. If you do a forbearance then you'd need to catch up to what you owe to keep the original modification in place. I'm not sure if being behind by 3 months lets you at least be able to keep your original modification. The housing market and laws have changed since 2012 and it seems to be more difficult to get a "Great" modification now compared to just a few years ago; housing values have come up, interest rates are up; government is just not as concerned as it was a few years ago. Hopefully everything works out for you. Keep us updated.
 

jwa81

LoanSafe Member
Jun 23, 2014
103
20
18
38
Thanks for the replies. I definitely am very grateful for my new job and the fact that my husband is finally back to work after being out for over 3 months with his injury. We are very fortunate in that regard. This thing with BOA is literally the last thing we have to get straightened out and it's hard waiting around for an answer. As of today, I know that we are through with the underwriting process and are just waiting to find out what the final result is. Hopefully, my CRM will have some information when she calls me on Wednesday. I'm very glad that my CRM is with the OOP. I feel that could definitely work in our favor. My name is actually the only one on the mortgage, so they aren't able to count my husband's income, only mine, but that's no big deal. That's how it was when we got the first modification 2 years ago. I'm keeping my fingers crossed for a good result. Everything else has fallen into place for us over this past month, so I'm hopeful that this will as well.
 
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Moe Bedard

Call 1-800-779-4547
Staff member
Loan Safe Mortgage
Aug 10, 2007
26,850
466
1,000
49
Southern California
www.loansafe.org
It is our pleasure!

You DEFINITELY have a great attitude and seem positive. Just keep that up and all will end well.

Good things happen to good people. This is obviously the case with you :)
 

Julzy

LoanSafe Member
May 20, 2010
45
2
8
Hello,
Yes, I was able to get a forbearance loan mod. from B of A. It took me two years, but I was persistent and always followed up with the OOP and made sure I was making my payments on time. The best thing you did was go through the OOP. I had to contact them several times, and my customer service agent was switched a few times until I received the proper service, but persistence does pay off in the end. Good luck to you and don't give up!
Julzy
 

jwa81

LoanSafe Member
Jun 23, 2014
103
20
18
38
Hello,
Yes, I was able to get a forbearance loan mod. from B of A. It took me two years, but I was persistent and always followed up with the OOP and made sure I was making my payments on time. The best thing you did was go through the OOP. I had to contact them several times, and my customer service agent was switched a few times until I received the proper service, but persistence does pay off in the end. Good luck to you and don't give up!
Julzy
Wow, 2 years??? I sure hope ours doesn't take that long! When we got our modification back in 2012, it took about 5 or 6 months, but we weren't dealing with the OOP back then, just a regular CRM. I'm very glad that we now have a CRM in the OOP. She has been the best one we've ever had. She always follows up with us exactly when she says she is going to without fail. She called today and said that there still aren't any updates, but she will call me again on Tuesday, at which time we plan on making a payment, but hopefully we'll have some updates by then.
 

indeep1959

LoanSafe Member
Jan 14, 2009
358
6
18
I'm on my second (actually third mod,turned down the second mod offer that was way too much) so it can be done but it does take a while (2.5 years to be exact) so you must be patient and diligent in keeping pressure on.
 

jwa81

LoanSafe Member
Jun 23, 2014
103
20
18
38
Well, just got a call from my CRM and still no updates. She did tell me that our file has already passed underwriting (it apparently passed that a few weeks ago) and is still "awaiting approval from the investor." I guess that's a good sign? She told me that she did send a request for an escalation on it since we've been waiting for a while now and she knows how frustrated we're getting. If it's awaiting investor approval, I'm assuming that means that the underwriting department has come up with some sort of assistance for us, whether a forbearance or another modification, and now it just needs "investor approval." I just hope this process is over soon!
 

mickandvick

LoanSafe Member
Apr 18, 2012
62
4
8
Hi Everyone,
I am in a similar situation as jwa81. In 2012 I contacted BofA regarding National Mtg. Settlement. I was told I did not qualify since BofNY Bony was invester. Since I was also current and never late with any payments, I was also told by Bank of America in a written statement that I would have to be delinquent to receive any assistance from them. I stopped making payments as recommended, which also destroyed my excellent credit. After a major battle with BoA, 8 months after I stopped making payments, I finally received a very small mod. with trial payments beginning July 1, 2013. I have made all my payments on time since then and my loan is current. On August 31, my job will be terminated and my income will be reduced about 50%. BofA has been aware of the termination date and reduction in income since 2012. I have been told that I could apply for a new mod but that generally you have to wait 1 year from the date the mod became permanent which will not be until Nov 1. I was also told that the 1 year rule may be waived due to the change of circumstance with my income. With my income being slashed I will not be able to make September's payment. Has anyone experienced an income change of circumstance and received a mod before the 1 year modification requirement from BofA? I contacted my CRM that I worked with on my current mod and he told me that they would allow me to apply for a new mod but would need current payslips showing the decreased income. I will not receive a reduced payslip until October 1st at the earliest. I will then be a min of 1 month behind on mort. payment. I offered to give them a copy of the termination notice and estimated reduced income from my employer but was told that they would most likely not accept this documentation. Also, since my home is significantly underwater,($25k) has anyone ever received a principle reduction from BofA. In order the get me at 31%, BofA would need to reduce my principle, reduce the interest significantly, or refinance? Since HARP 3 has not passed, refinance does not seem likely. Any advice would be greatly appreciated.
 

Moe Bedard

Call 1-800-779-4547
Staff member
Loan Safe Mortgage
Aug 10, 2007
26,850
466
1,000
49
Southern California
www.loansafe.org
Hi Everyone,
I am in a similar situation as jwa81. In 2012 I contacted BofA regarding National Mtg. Settlement. I was told I did not qualify since BofNY Bony was invester. Since I was also current and never late with any payments, I was also told by Bank of America in a written statement that I would have to be delinquent to receive any assistance from them. I stopped making payments as recommended, which also destroyed my excellent credit. After a major battle with BoA, 8 months after I stopped making payments, I finally received a very small mod. with trial payments beginning July 1, 2013. I have made all my payments on time since then and my loan is current. On August 31, my job will be terminated and my income will be reduced about 50%. BofA has been aware of the termination date and reduction in income since 2012. I have been told that I could apply for a new mod but that generally you have to wait 1 year from the date the mod became permanent which will not be until Nov 1. I was also told that the 1 year rule may be waived due to the change of circumstance with my income. With my income being slashed I will not be able to make September's payment. Has anyone experienced an income change of circumstance and received a mod before the 1 year modification requirement from BofA? I contacted my CRM that I worked with on my current mod and he told me that they would allow me to apply for a new mod but would need current payslips showing the decreased income. I will not receive a reduced payslip until October 1st at the earliest. I will then be a min of 1 month behind on mort. payment. I offered to give them a copy of the termination notice and estimated reduced income from my employer but was told that they would most likely not accept this documentation. Also, since my home is significantly underwater,($25k) has anyone ever received a principle reduction from BofA. In order the get me at 31%, BofA would need to reduce my principle, reduce the interest significantly, or refinance? Since HARP 3 has not passed, refinance does not seem likely. Any advice would be greatly appreciated.
Hello,

They normally do this when the income change or reduction has not yet occurred. The way they look at it is that your income will stay the same and until it changes, they will address it then. After all, they are in the debt collection business and not the mortgage assistance business. Their fiduciary duty is only to their investors.

Obtaining a principle reduction is possible, but it will be very hard. You have to just hope for the best and plan for the worst, and wait until October when you have new paystubs. Hence, relax for now and try not to worry about this just yet because there is nothing you can do that you have not already tried. You can keep asking, but they will most likely keep turning you down which will be a waste of time, energy and unneeded stress.

I wish I had better answers, but I just want to be honest with you.