BONY holds my note which was originated by Countrywide, sold to BOA, then I guess bundled and sold to BONY. Nothing much on here about BONY. I wish BOA still had both of my notes as I hear of settlements all the time with them.Well - it would help if you are NOT paying both to show true hardship. I was in a good place in 2012, because back then I was self employed as a 1099 consultant. What I did is I told half my clients to stop paying me for 6 months - this shows I had limited cash flow income. Then I took big chunks of $ out of my bank accounts and put them elsewhere (ie under mattress or in SD box) to show that I had very little money to pay my living expenses, plus my home was barely worth $240k and completely underwater.
I first got my home in April 2006 via two subprime I/O loans (80/20) thru Citywide Mortgage and GMAC (HELOC). The loans were sold off a few times ending with ultimately Bank of America servicing the first note from Countrywide mortgage and SLS.net servicing the HELOC.
Original balances (interest only):
1st mortgage = $333,000 BoA
HELOC = $62,430 SLS.net
My tax assessment for 2012 for my home was $228k and given my loans added up to $395k, I was obviously upside down and unable to refi or get a better loan. My home, at best, would probably short-sell for $240k, but my main intent was to keep my home and get a loan mod with BoA and (hopefully) settle the SLS.net HELOC.
So in the beginning of 2012, I stopped paying both loans in February 2012. I claimed financial hardship with BoA and SLS.net. I applied for a loan mod with BoA and told SLS.net I was not interested in a loan mod of any sort (they will require you to download their forms)...I kept in touch with BoA for purposes of getting a loan mod. However, with SLS.net, I basically ignored all calls and letters and a loan mod offer from them. I missed a total of 11 payments this year for SLS.net.
I missed a total of 5 payments with BoA, and finally in September, BoA offered me a 3mo trial period to qualify for loan modification. I was required and was able to make the 3 payments for oct/nov/dec and just last week, I was given a new loan agreement for the $333k first loan = $98k principal forebearance for 24 years, and new loan made on the remainder starting at 2 percent APR; ; and increasing slightly on an annual basis. At end of 24 years, I will have one balloon payment of $222k which I will have to payoff or refi at that time. And on top of that, I got pay-for-performance principal reductions of $1000/year from BoA for the first 5 years after my mod! (like getting $5k tax free!)
After I got that, I finally called SLS.net (i know these discussion boards say not to call, but it worked for my case). My loan after 6months went to charge off, so my account was sent to their Recovery department. I explained my hardship situation and given that I live in a recourse state, I let SLS.net know that I was not intending to NOT pay them at all - I offered a cash settlement to close out the loan in 2012 and release the lien on my home. All I did was give a verbal offer and the phone rep placed me on hold (to speak to a manager). Within 2min, they counteroffered me $500 higher, and I was able to settle my SLS.net HELOC for $0.12/dollar!!! Not bad for just ONE phone call after over 10 months!!! I paid via check on the phone ($9.95 charge) and I was issued in 2013 a 1099-C for the unpaid amount. I did NOT OWE the income tax on this via the "The Mortgage Debt Relief Act of 2007" since the HELOC was originated solely to obtain the home initially. I had good timing as this relief act was going to be eventually extended up thru 2016 from what I read.
So in the end, I got to keep my home with one modified 1st loan NO more HELOC! The money I saved from not paying BoA for 5 months and SLS.net for 11 months was more than enough to cover my settlement check to SLS.net to eliminate my HELOC and now for the past year, my home has about 3% equity (and I rent it out for a net profit, while I now live in a new home over 2x the size of my previous home). Even after a loan mod, you are able to buy another home provided you show that you have had excellent mortgage payment history for 24 straight months after mod. Hope you all have just as good outcomes with your underwater loans! My guess is that I lucked out because SLS.net was the servicer for my loan, but Wells Fargo was the actual note holder. WF was one of the big 5 banks named on the $25B mortgage relief settlement - Probably why it was pretty easy to eliminate my HELOC... GOOD LUCK with your loan reductions!!!