I don't live in a fancy McMansion, just a plain Jane 1950's 3 bedroom rambler which is less than 1,000 square feet (with a "man" garage about the same size). I need insulation in the walls and new siding but I like our location and it's home to my kids. Like a lot of people we bought the house when the market was at it's peak and at the time we were actually getting a good deal based on appraisal. My house is now worth about $40,000 less than we owe but I would like to keep our house. Stability for the kids and with a modification we can make it on my income.
I have been trying since June to get a mortgage modification with Bank of America. My husband has been out of work since May due to unforeseen medical issues that caught us by surprise and without his income things have really fallen by the wayside. Unfortunately he worked for a small business owner and had no disability benefits so we were down to just my income. This whole process has been a nightmare from the beginning and they are extremely difficult to work with. It's a definite case of an organization so big no one knows what other departments are doing.
In September 2009 I received paperwork telling me I was approved for a trial modification. For those of you wondering, this is the "Obama modification" that everyone is talking about. The goal is to get your mortgage payment to approximately 30% of your take home pay. I was approved for a 3 month trial period reducing my payments by approximately $300 a month. If the modification is permanent my lower payments will be achieved by a interest reduction from 6% to 3%. There is no principal reducation, just the interest change.
In December, I called to find out how long it takes for them to finish the review process and was told to keep making my trial payments until I hear from them. I was welcome to call back and check on the status. I made my January payment and called back the end of the month to find out what is going on because my online mortgage account used to tell me I was approved for a modification and I should hear something by February 6th and if I didn't to call them. All of a sudden on 1/28 that message disappeared. I was told they removed this from their system. (yeah...pardon me if I don't believe you). I told the agent I have been working on this for a long time and he told me they have people who have been doing this since 2008. I told him there is no way I have the time or patience to let it drag on that long and that I am getting to the point where I am ready to just give my house back to the bank and let them have it because I have wasted countless hours calling to get problems fixed on my account. We are almost to the point of filing bankruptcy due to the credit card debts I couldn't pay anymore with the loss of income and I can just lump this in with it and they can figure out how to sell it with 4 other foreclosure on our block alone. He put me on hold for a few minutes and came back to tell me he expedited my file to the underwriting department. (FINALLY!!)
When I got home from work yesterday I had a letter sent via FEDEX waiting for me from Bank of America that was dated 1/29 telling me that they have only received 1 out of 4 payments, that being my January payment and I need to cough up $X,XXX.XX within 30 days or I will forfeit my right to a modification and not be eligible again. If I feel differently and can provide proof of payment then I may send a letter to a PO Box ### with the information.
After the steam stopped pouring from my ears I called them, sat on hold for 45 minutes until I got an agent who told me that he shows my payments so there isn't an issue. If that is the case then why am I getting this letter??? The only lame excuse he could tell me is that the case probably went to underwriting before the payment. I told him that makes no sense because the letter says they have payment #4 but not 1, 2 or 3? I was so mad I made the agent listen to me read the whole letter. His only advice was if I wanted to cover myself then I could send a letter but they have the information. Again, why are you sending me a letter if that is the case?
Here is the ironic part. I have a Bank of America checking account just for the purposes of paying my mortgage so I spent my lunch hour writing a not so nice letter about how dumb it is that I am printing my BOA bank statements and the online BOA mortgage information that shows when they applied the payments to my account so that I can send this to BOA as proof that BOA received my payments. Are you confused yet? I had to draw it out with crayons to these morons that every transaction was done with the same company, their company so it baffles me that no one is able to connect the damn dots unless I print it out and send it to them.
I read an article on CNN.com last week saying the government was cracking down on all the "pending" modifications out there under the Help for Homeowners program. When I mentioned that to the agent last week he told me the funny thing is he has heard that from others as well as friends in other banks and none of the banks have apparently been told this. So is this lip service from the Obama administration or are the banks just not telling there people and then sending out all these letters to buy time.
I am going to keep at this because moving would be a nightmare but I am going to end up filing bankruptcy because of my other bills (credit cards & medical). If they delay much longer I will just have to give my house back to the bank and figure out what to do.
