BOA Suggests Forebearance - Being Late on Mtg Will Qualify Us

winker58March 30, 2011

We have a mtg with Bank of Americas and one line of credit and one home equity loan with Wells Fargo.

Yeah, we were living high on the hog like all the others and bought our house and tooks out the other loans for upgrades after the fact. My husband's job was doing better than expected and he was bringing income a good salary and big bonuses. I was working a medium job. Well, he took a pay cut, no bonuses now and I ended up quitting my job because I have developed a health condition.

We were turned down for a modification from BOA but have been told that if they give us a forebearance we do not pay our mortgage for three months we will be considered behind on payments and will then qualify for a modification. Does that sound strange or does anyone know anything about this?

We would still be liable for the three months' mortgage, just would have to make payments or something. they aren't saying exactly what will take place just yet.

Do they want us to go in foreclosure hoping that we won't hang on to the money that would have gone toward the mortgage or what?

Wells Fargo has the other equity loans. We received something in the mail that did not look a paid advertisement for modification. It said that our modification had been approved and blah blah blah and that we should call. I usually throw everything like this away but called just 'cause. I talked to someone that told me that BOA wasn't interested in modifying and that their best bet was shortsale for them. The place I called was a company that had attorneys apparently that for $3,500 will try to get a modification for us. They asked if I wanted someone to call me back the next days for an intake. I said sure but did not really intend on going for something like this. I just wanted to see if I could find anything out. They told me that they didn't work on BOA modifications but possibly could help with Wells Fargo loans that we have. They said that Wells Fargo might try to pay on our first mortgage for us so that they have an interest in the shortsale. So confusing to me.

Well strangely, BOA called the next day with their forebearance offer. I wonder if there is a connection somehow.

What's with all these plans and forebearances and telling you to get behind on payments so they can help?

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Unfortunately, your BOA customer service rep is lying. For some reason, they think it is fun to jerk home owners around for months before letting them know they won't be getting any assistance. They are denying over 90% of modifications even if you jump through their hoops.

Some basic questions:

Is the house worth less than you owe on it? How much?
Can you make the current payments?

    Bookmark   March 31, 2011 at 8:55AM
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First, I think whoever gave you advice about skipping payments is doing you a disservice. If you want to lose your home in this environment, that may be the best way to do it. Second, anyone who wants money upfront to try to get you a loan modification is a scam artist. I can guarantee you will get no results, and never see the money again. The market is full of scam artists like this. A simple Google search will turn up all kinds of horror stories about people who have given money to these kinds of people and not only received nothing in return, but put themselves in a position where they lost their house.

What is your goal here? Can you make payments or not? These situations are very complex, and your are getting confusing and even wrong advice. Find a NON-PROFIT credit counseling service in your area to help you sort this out. And be careful. Many credit counseling outfits out there are not non-profit, want money upfront, and will end up making things worse. Contact your local government to see if they can recommend anyone. Also, United Way has debt counseling services in some areas.

    Bookmark   March 31, 2011 at 2:42PM
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The National Foundation for Credit Counseling is the group that certifies the non-scam artist credit counselors. The link to their site is below.

Here is a link that might be useful: NFCC

    Bookmark   April 1, 2011 at 8:22AM
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Keep paying what you can and sell your house. They are not acting in your best interest. I'm sorry that you are in this situation. Hope you can find someone through NFCC, but you will need to make decisions quickly.

Are there things in the house that you can sell on eBay to make $$ to pay the mortgage until you sell the house? Another idea would be to rent out rooms if you are in a popular area.

Best of luck to you.

    Bookmark   April 1, 2011 at 10:52PM
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Ask BOA to put that offer in writing and see how fast their tune changes!!!!

Don't pay anyone $3500 to help" you!!!!

    Bookmark   April 2, 2011 at 10:22AM
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Really, BOA told you to NOT pay your mortgage? If that is true, send proof of that all the way to Obama.

For them to offer Forbearance, you were way behind on mortgage payments.

    Bookmark   April 20, 2011 at 8:32PM
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First off, what kind of loan do you have and who insures it?

Second, you are wasting your money paying on the second unless you come to terms on the first. The 2nd stands to gain nothing if the house sells short unless they have some special wording in the loan. The 2nd is usually more willing to work with you because they know they get nothing if you lose the house.

Unfortunately BAC DOES tell you to miss payments. The more you owe, the more they tack on, the later you are, the more they's in their interest to get as much as they can from you. You can call ten times a day and get ten different answers. The left hand never knows what the right is doing.

They do tell you to miss payments. Three missed payments is the magic number to get a modification. The modification raises your payments. They make more money. You obviously can't afford the higher payments if you can't afford the normal payments.

Make sure you closely read the forbearance paperwork. Even if you get a reduced payment for 3 or 6 months, the difference is due at the end of the forbearance and not the end of the loan.

Do not pay anyone to help you. All the help you need is free. is one to help. Your county may have people working on mortgage modifications too. I ended up contacting the Governor, Senators, Congressman, the OCC the AG in my state and anyone else that would listen.

It took me 31 months of fighting but I finally got a HAMP modification, which they should have offered me a year and a half earlier.

Go to and do some reading. You aren't alone.

    Bookmark   July 21, 2011 at 9:43PM
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A county auditor sent the following info to my sister about foreclosure 'help'.

First, the old adage, "If it's too good to be true, it probably is," is very wise. When that warning bell rings in your head, stop whatever you are doing and listen to it. Don't do anything until you have thoroughly researched the company or individual you are working with.

Second, if it costs you money to proceed, walk away. Programs like ESOP that my office is working with, have been researched and have a proven track that includes the endorsement of the State Treasurer. ESOP does not charge; they work from grants. Please don't spend any of your precious capital on what may very well be a scam! We have several families who have paid to have work done that they could have done for free, or where the scam artist walked away with the money once they had it in hand.

Third, know what they are suggesting and what you are signing. Do NOT sign blank forms or let someone else fill out your paperwork. Many a homeowner has signed away their home to a scam artist.

Fourth, beware of agents who say they will sell your house quickly. Some of these people work with investors who are going to give you the lowest price they can get away with to get your house. Make sure you work with reputable real estate agents!

Fifth, avoid low-interest mortgage loans on the phone or Internet. The caller gains your confidence and then gets vital information such as your Social Security number and bank accounts. The loan is quickly transacted (on the phone or on-line) and you start faxing the documents they need and sending wire transfers to close the deal. Never give out your Social Security number or bank account numbers to anyone on line or over the phone! NEVER a good idea, always a sign of trouble.

There is tons of information on line about scams. Please take the time to research this important subject to protect you, your home and your assets.

    Bookmark   July 22, 2011 at 12:50PM
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