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Diane Wheatley’s Blog

Understanding and Surviving the Housing Crisis

By Diane Wheatley, Broker | Broker in Rancho Cucamonga, CA

Bank of America Permanent Loan Modification - Approved!

By Diane Wheatley, Broker,  Mon Mar 1 2010, 17:23
In my experience of dealing with literally hundreds of trial loan mods I have only witnessed one borrower who received a permanent loan modification. I read the paperwork including its terms with my very own eyes, touched the documents with my own hands and could hardly contain myself with the thought of suspicion. But the borrower's documents were the real thing and he was on his way to deliver them to Bank of America's loan processing unit that day.

These docs were similar to full loan docs you would sign in a closing agent and a notary. The terms were outstanding. The mortgage payment was less than half of what he was paying previously for the first year, increased by less than $100.00 a year for the next four years where it would be reamortized over the life of the loan using an interest rate not to exceed 5.3% for the remaining term.

I felt as if I was touching a winning lottery ticket - an extremely rare find. This individual is in the title insurance business and had been attempting to negotiate his loan modification for a year and a half only to be declined three times in a row. He had trial mods that failed for lack of documentation as noted by Bank of America (untrue). He had spiral binders filled with each phone call's conversation, inquiry and requests. He had file folders filled with copies of documentation sent to B of A each with a return receipts attached proving signed delivery. I was truly amazed by the tedious yet thorough documentation he had to prove every move he made.

What finally made all the difference began a work related event where he made the acquaintance of a "loan modification specialist/attorney". You know the kind.....

Well come to find out that this particular attorney was for real. He collected no fees upfront or otherwise unless he was able to perform his task to the satisfaction of the client. He had a streamline approval processor at Bank of America who would provide an answer to any feasible submission with a day or two. And within exactly five days from the time he met this attorney his loan package was delivered to his doorstep via Fedex ready for signature and processing. Lickity split. Wow!

So it goes to show you that it is all about "who you know" and nothing to do with "how hard you try" that matters. But didn't we all think that there had to be an inside track to this process afterall? With less than 5% of all loan modification attempts being approved.....come on.

Diane Wheatley, Broker
Upland, CA


By Consumer101,  Thu Mar 4 2010, 17:59
Thank you I will add this link to my blog as I hope for the same outcome on my own modification.
By Curious,  Tue Mar 9 2010, 10:45
Who was the Attorney?
By Wright4ulg,  Sat May 8 2010, 20:06

If it walks like a piggy, talks like a piggy, by golly it’s a PIGGY!

BofA and it’s CEO Brian Moynihan reminds me of that song by John Lennon and George Harrison titled "Piggies" I invite you to listen to this song on youtube and see if it appropriately fits.


Have you seen the little piggies
Crawling in the dirt
And for all the little piggies
Life is getting worse
Always having dirt to play around in.

Have you seen the bigger piggies
In their starched white shirts
You will find the bigger piggies
Stirring up the dirt
Always have clean shirts to play around in.

In their ties with all their backing
They don't care what goes on around
In their eyes there's something lacking
What they need's a damn good whacking.

Everywhere there's lots of piggies
Living piggy lives
You can see them out for dinner
With their piggy wives
Clutching forks and knives to eat their bacon.

Patricia Barbosa - 818-713-2886
Assistant Vice President Office of President at Bank of America:
Call Patricia Barbosa if you want to complain about your loan modification process. She is a CEO in charge of home modifications.

When I filed my lawsuit against Bank of America, myself and United Law Group thought of the many others out there in the same situation. It was then that we decided to educate the public on what these piggy banks are doing, as well as unite us all together as one voice. Please help me turn this David vs. Goliath modification process, into a Goliath vs. Goliath.

Please stand with me and United Law Group and send an email to Bank of America that states that we will no longer tolerate their potentially illegal, fraudulent, irregular and abusive business methods.

One blogger named Terri sent me an email stating: “You won't believe it but while I was at work today I had a voicemail from an advocate from BofA. What do you think about that? No calls all this time, I respond to your email and I get a cal!. How do you like that one?

So please send your email directly to Bank of America and include the following:

1. Your name
2. Your complaint concerning your experience with Bank of America.
3. Please end your email “I support John Wright vs. BofA Lawsuit!”
4. Please send a copy of your email to johns-wright@hotmail.com
5. Please send your email to BofA CEO email below:

CEO Brian Moynihan:


John Wright Vs. Bank of America

Please join my fight or show your support through your comments at http://www.unitedlawgroup.com

Divided we might have fell America. UNITED WE MUST STAND!

By Lo,  Thu Jul 1 2010, 15:24
It's bad enough trying for a modification when you live in your home, try doing it with a second home. I'm treated like a slumlord with an investment property. The banks caused the problem and now they are looking for the public to pay the price. Baloney!
By Sad_boy,  Thu Jul 22 2010, 17:25
Right now I feel in the dumps...Just got rejected for Home Loan Modification through BofA citing lack of documentation which is an out-right falsehood.
We asked the under writer if we were all good with the docs and he said yes and that we had a good chance.
Now all I have to show for all the work we did to procure the documentation is a form letter saying how incompetent we are for not givng enough. Now I have to find $3000 to make up for my back payments.
A really sad day...I hope Obama can one day see through all this farce and do some good!!!
By Hmbca,  Tue Aug 17 2010, 17:59
We are presently trying to make our home affordable with BOA's home loan modification. We are in foreclosure, We fell behind on payments as my husband lost work directly due to the economy. At one stage we were behind on 3 payments and when my husband got back to work we tried to work out a payment plan offering to pay $5000 on the $10,300 we owed and to see if they would carry the remaining onto our next few payments. They refused and wanted the full amount owed. We then applied for a home loan modification as we were told we "qualified'. We had been told that not to make any payments at this time and were assured that the foreclosure process would be put on hold and there would be no sale date on our property until a decision has been made.. NOT TRUE. We arrived home to a notice posted on our door that our house is on the auction block for Sept.10th. We are devastated. We cannot get anyone to help us. We were told yesterday by Bank of America that there is nothing they can do about the sale date even though our modification application is still under reveiw, meaning nothing has been done. We are now working with the HUD Councilling today to try and stop the sale. This whole experience is a nightmare and we will most likely be homeless in 3 weeks time. We did not get an interest rate that became variable, we put money down on our home with a 30 year fixed and had excellent credit before this nightmare.
By Diane Wheatley, Broker,  Tue Aug 17 2010, 19:05
Your stories are all so tragic. It infuriates me to hear such nonsense regarding Bank of America's less than poor behavior. Less than poor? - it's down right malicious.

I can only guess that your loan mod packages were not reviewed with the intensity they should have been and tossed aside quickly because the clock was ticking a bit too close to 5:00. We have managed short sales and modification with Bank of America where they go smoothly (not so often) and where they are a dreaded nightmare with no one to turn to. But somehow, some way we spark their attention and finally get it processed correctly and in the best interest of the borrower.

I can offer my assistance to you at no obligation except to cooperate with the items needed from the lender. I'm proud to say that we have pulled off some tremendous opportunities for borrowers just like you. I can't make any guarantees but I can certainly try.

I have a Bank of America mortgage myself and know verbatim what you are dealing with. Please know that individuals like yourselves DO accomplish what seems to be the impossible and remain in their homes today. All of my best to you and please do not hesitate to give me a call anytime.

Diane Wheatley, Broker
(909) 981-5400 or (909) 559-0904 (my miracle worker)
By Loragarcia,  Mon Aug 23 2010, 16:49
Just stopped by....I am happy to report, we have been approved for a permanent loan modification with BofA.

We started in Feb. 2010 with Trial payments, faxed a million times, called a million people, faxed a million times more, got a million Fed Ex envelopes with one piece of paper in them, faxed a million times more got declined due to BofA not receiving my faxes. Of course I could never get anyone's extention and got a different story from everyone at BofA, it's almost not their fault - I think that any given person in each department can only do so much and what they think they know is not really what is really happening...ha ha

The day I got declined - beginning of August 2010 I was crushed, I started crying and decided well we are just going to keep paying the trial payments and whatever happens happens....I got online and researched every forum that I could for about two days straight. I found a forum...Real Talk, and met a lady named Ruth. She had been given the same run around, and did not give up. She had some actual phone numbers and extentions, I went down the line and called every phone number and got our file to be put on someone's desk who could figure out where I file was to end up next and so on. That was the trick. I needed my file to end up in the right hands every time there was a new step. I got my file to a Senior Negotiator who called me back, who got my file from someone who knew where my file needed to go. If I sound like I am circle talking I am...it's a total circle. My file went from being declined to being approved in two days. Two days later we got the terms, same terms as Diane saw -
1st - 5th year 2% interest - payment including escrow $1566.00 (saved $945)
6th year 3% = $1781,
7th year= 4% $1967
8th - 40th year 4.375% = 2046

BofA didn't tell me this but I figured it out, when we got declined for HAMP, BofA pushed through other options and did and inhouse Modification. They have investors that set the terms of the modification they are willing to do. Our particular lender said they would lower the interest and do the Step Rate Plan and extend our loan to 40 years. They would not do a principal reduction. I told my Senior Negotiator that I wanted to post her name and her phone number because I was so happy. She told me not to do that because she cannot help anyone unless their file ended up on her desk. My file got to the CEO somehow and ended up with her. She said that people get mad when they get her and she isn't able to help them, she can't just pick up someone's file and work on it. I am extremely grateful and do feel like I have won the lottery. There are so many different situations with these mortgages and so many programs no one person's is going to be the same as someone else's.

August 16th I received the final paperwork from BofA, went down to BofA had it notarized and sent back to BofA mortgage dept. The scanned it, marked it received and sent it to the closing dept. That's where it gets a little scary as my Senior Negotiator whom I have grown to love is not handling my file anymore and the closing dept does not take my frantic "I am freaking out" calls. She told me that she would gain our trust and she has. We are supposed to be getting our new payment coupons and new payments starting October 2010. I will keep everyone posted, and keep trying when they tell you No. Keep calling until you get someone that will actually "hear" you story and listen.

Good luck everyone,

By Loragarcia,  Mon Aug 23 2010, 16:58
P.S. I am a Real Estate agent who is not working right now. Everything I did was just as a homeowner. I am diligent and persistent. I did not pay a lawyer or anyone else to do my work, you can do it. One more thing....I feel it was very important, the bank wants a hardship letter - explain the hardship but don't be too crazy, make it to the point, make the trial payments on time, if you can't make these on time and with consistency I don't see any reason they would give a loan mod to someone who can't pay.

I also got them to put a credit freeze on reporting us as slow paying on our credit report, they report because while doing the trial payments they actually aren't getting the full payment. I got them to take the one off of our credit and freeze it so they wouldn't put anymore dings on our credit. Just a suggestion.

:) Lora
By Pc In Ca,  Wed Sep 15 2010, 21:00
So how about a phone number? I agree if you get the right person it can make all the difference. I have a Countrywide-B of A loan and have had it for 4 1/2 years. I think B of A should own up to the fact that Countrywide sold a fraudulent loan to a lot of us. I didn't realise the interest rate was tied to LIBOR which is an international rate. All the while interest rates were dropping in the U.S. the rate of my loan was increasing! B of A should modify loans like mine simply because of the fraud involved.
By Ckj,  Wed Oct 20 2010, 18:10
BOA sent me documents for a step rate loan a permanet loan modifation. first 5 years 2% 6 year 3% 7th 3.3% 8th year until i pay off the loan. does this mine I am approved. I am affraid they will come back and tell I did have enough documention then i will owe all this money for not paying the full payments. i am not behind and i have been making the full payments the new payment doesnt start til dec 1st 2010. any advise??
By Robg,  Sat Oct 30 2010, 19:00
I have a trial payment question. I have made 5 trial paymnets as of 10/30/10 and we jumped through all hoops that everybody else is taslking about. My question is: If my and when my loan id modified do my new permenent payments continue at the same amount?
By Diane Wheatley, Broker,  Sat Oct 30 2010, 23:50
Your permanent loan mod structure will be very similar to Ckj's. The initial 5 year's payment is typically your existing principal balance plus any arrearages, late fees, default fees, trustee fees, etc. amortized over 40 years instead of your current 30 years. This is to attempt to keep your payment as low as possible while ensuring that the lender will receive complete return on their original loan balance plus a bit more interest expense due to the length of your loan.

If you had been paying your property taxes and insurance outside of your loan payment those costs will now be impounded in an escrow account so that the bank can ensure proper payment on your behalf. The impounded monthly amount can be quite substantial if you are not currently used to paying your taxes and insurance on a monthly basis.

My biggest hope for you is that B of A approves your loan mod and grants you a permanent one. I don't want you to be paying so faithfully on your trial mod only to be denied when it is all said and done. Keep me posted! Good luck.
By Mattding,  Thu Dec 9 2010, 01:57
My wife and I just spent two hours on the phone trying to find out why BofA just called to say our home may go into foreclosure in the next month because they were missing documents when over one year ago we sat with a notary and sent in the documents to make our modification permanent. We've been paying the modified rate and had completed all the paperwork but apparently that paperwork was lost a year ago and we're not finding out until now. I don't know what is going to happen in the next week. I just pray the Fedex statement saying they received the paperwork along with the notary evidence can save us.
By Sheila,  Mon Jan 3 2011, 17:56
I just have to say after going through over 12 months of the same run around with sending documents and BoA state they did not recieve when you have fax received in your files. Also payed my three months trial period in thought of having a morgage payment. BoA is very deceeving and now I recieved today Jan 3 2011 that my modifcation was not approved. When trying to call to ask why the leaders states I didnt qualify BoA only stated back that the reason why is because they said so! So after 25yrs Im going to be in forcloser if I dont do a quick sale or deed in lieu so what happens to my equide in the house? Of course my situation has change since first applied for modification, all I ask for is to tack on owning to end of morgage. Very distrubing that some fat cat leader can distroy so many lives. These Banks need to be stopped!
By Sohappy,  Thu Feb 3 2011, 12:26
After submitting my modification package 1 year and 1 month ago and many telephone calls, I received word on 2/1/11 that I was APPROVED!!!!!! Later that evening at home, I received a telephone call from a BOA representative to schedule an appointment for the notary. The very next day, 2/2/11, I received the actual APPROVAL PACKET in my door delivered by FedEx. You just don't know how happy I am today!!!! I also inquired about my 2MP packet and they said that it too was in approval mode.
By Cal,  Thu Feb 3 2011, 14:07
I have been going through the modification process with B of A for 16 months now. I went through the trial modification period and ended up receiving paperwork for a permanent modification. Good so far right? B of A received my signed and notarized paperwork and began the closing process on the new loan. The statements I kept receiving still showed the old information so I kept calling them and asking how long it would take for this loan to close. I always got the same answer: "we're so backed up, just give it some more time". Well, last month I received a notice of default on my loan and last wek I received a notice of intent to accelerate!! I called AGAIN and refused to hang up until I got some answers. Finally, after 45 minutes I was told that my loan got REJECTED during the post-closing process! They are now asking me to resend my financials so they can re-negotiate the modification. WTH?! Currently, I'm inthe process of speaking to a lawyer to see what my options are. Wish me luck. FYI, I have made all my payments and have not been late either.
By PaulMolinaroEsq,  Sun Feb 6 2011, 13:41
The secret of providing loan mod trials and stringing borrowers along for extra payments is out... if you are in California and are interested in learned about joining other plaintiffs in a multiple plaintiff joinder action, stop by my web site at dub dub dub dot fransenandmolinaro dot com to learn more.
- Paul
By Diane Wheatley, Broker,  Sun Feb 6 2011, 21:55
From my own personal experience with Bank of America along with the posts that I receive and read every day that the hope of a permanent loan modification is slim to none. I would be very skeptical of any promise or encouraging news you receive from them. You may receive the paperwork on your doorstep out of the blue one day only to find out that the terms of the loan mod are hardly anything to get excited about. The banks are out to collect on every cent of past due interest and forget about any thoughts of a principal reduction.

I know this sounds so negative and bleak but I have found it to be the truth in 98% of the cases that run across my desk. It really comes down to the investor(s) who hold(s) the note. Each investor pool has their own set of guidelines that must be met in order for a loan mod to be successful. Bank of America is the largest servicer of home mortgages in the nation. Their backlog of defaulting loans is growing by leaps and bounds. The trial loan mods were a means to collect something rather than nothing while they are wading through the pools of past due accounts.

It kills me inside to hear the voices of so many homeowners who are successfully completing their trial loan mod payments for months on end only to be slapped with a notice of default or worse, finding out that their home has already been sold at auction! What a quandary we are in. If we didn't have each other to listen to our stories with an empathetic ear, it seems that we would have nothing to help keep us going like SoHappy has. Congrats to you SoHappy, you are certainly one of the lucky ones. Keep us posted.

By Fedupintx,  Fri Feb 11 2011, 08:35
I am so stressed that I am sick from this entire process. It has been 7 months now and I have repeatedly sent Bank of America my same documents over and over with letters of explanation to the underwriters/negotiators etc. They obviously don't read them or try to figure anything out. It is all a scam and I told the Bank of America people that last night. They should be ashamed of what they are doing to people. I have called them every week for 6 months and was told what documents they still needed and would send them in before they would even send me the Fed Ex packages asking for them and still they denied me because I did not get documents to them in the time they asked for. I told them that was the most ridiculous thing I had ever heard and I know it was documented in they're computer system from the times I called to make sure they received it the next day. I use to be a loan processor and I am not ignorant on how to submit a loan package. I thought there was a government program over seeing the process but obviously no one is watching them! Once again Bank of America is getting away with taking peoples hard earned money. I will never do business with these people again for anything. By the way I have never missed a mortgage payment even though other bills have had to wait. Good luck to everyone trying to go through this. I hope they make it!
Fed up in Texas
By Mishelle,  Mon Feb 14 2011, 15:16
I started working with my State Senator's office in February 2010. I sent letters to the Comptroller of the Currency, National Banking Association, etc. My Senators office sent a congressional inquiry to BAC. I was finally assigned to a special negotiator in April 2010. His name is David.

David returned phone calls and even answered his phone. David answered questions. David would sit on the phone with me while I faxed doc's to BAC, just to minimize my fears that the docs wouldn't be received. David called when he said he would call. For the past 10 months, both my senator's office and my BAC representative have held my hand every step of the way. I can honestly say, regardless of the outcome, I had access to every resouce available because of these two individuals.

We began a trial mod in Nov 2010. (Yes we too had to resend docs many times) We made our last trial mod payment on 2/1/2011. Today I received a FedEx package from BAC stating that we have been approved for a permanent mod beginning 3/1/2011.

I emailed my special negotiator David to let him know. (Once you start the trial mod your file moves to another department.) I thanked him for his efforts, more importantly for being my rock and my anchor through this process. He humbly told me that he was just doing his job. Well, he does his job well. He told me that 1/10 perm mods are being approved and that more often then not, people aren't following up. People are not providing the documentation requested. He said that often he has to chase people down trying to get an update. Some people are hiding income, etc. He said that you will "reap what you sow."

We too were victims of banking call centers and being a number rather then a person. But if you can escalate your concerns, start with your state senators, and get your file in the hands of someone from the Office of the President, you will see the process start taking shape. You MUST follow up, you MUST document every phone call, you MUST provide all documentation as requested, completely and timely.

I know that the tables could be turned and my letter could have said something different, but it didn't. We are thankful for the opportunity afforded to us by this Federal Program (and no I didn't vote for Obama) and for our State Senators office and also for Bank of America's Office of the President's placement of our file in David's hands.

I will try to come back to this site just to "officially" post once the perm mod docs are received by BAC and I received my final signed copy from BAC.

Good luck to everyone and please reach out to your State Senators. Write letters. Gather your facts, cross your t's and dot your i's. Follow the requested timeline, make copies of everything and hopefully you will retain your home.

Best of luck. Michelle
By Diane Wheatley, Broker,  Sat Feb 19 2011, 16:37
An important fact that I just learned about yesterday for those of you who are considering a short sale in order to salvage your credit so you can repurchase again in the near future. If you are presented with a loan modification or a trial loan modification, do not accept it. If you do your credit will be severely damaged even if you make your trial loan mod payments on time as agreed. Those trial loan mod payments you are making will go into a suspense account and not be applied towards your original loan whatsoever. In doing this you are racking up months of past due mortgage payments that will sink you when it comes time to purchase again.

You can obtain a short sale approval AND repurchase once the escrow is closed. Your credit should not be affected if you remain current with your mortgage payments. And I mean your existing mortgage payment, not a modified loan payment. This is true information that many people are not aware of. The credit guidelines change constantly and this fact was recently released through FHA. So if you are told that you must first default on your loan before being considered for a short sale, that goes against everything that FHA is trying to avoid with existing borrowers. You do not need to establish hardship by intentionally defaulting on your mortgage.

If your credit rating is still intact, this information should help you keep it that way so that you can once again enjoy home ownership.

Diane Wheatley, Broker
By Dontdoit,  Sat Mar 5 2011, 09:11
CAn you get a loan mod if you have equity in your house? Thanks
By Diane Wheatley, Broker,  Sat Mar 5 2011, 11:01
Yes, if your house payment is over 31% of your total income you should be able to qualify. If you have equity you may also seek a refinance which may more conducive to your overall credit rating. You have options.
By Confused With Kids,  Thu Mar 17 2011, 08:27
first time visitor to this page i am in for-closer status and was told yesterday am approved for in house modification (i still cant believe it til i see the doc) i have a sale date 04/05 i am so scared that i may not get the fedex info before the sale date i been making called every day the last 30 days sometime twice a day ,i have not made any payment while they process my modification my concern is will they post pond the sale date while i sign and notarize the doc and send in my first payment ? from what i read so far bank of america can declined after they approved i was told this was a permanent mod (like some one post earlier i feel like i own the lottery as well )this has cost me my health ,break us part in our home i gave every dime i have and cant afford to hire a lawyer i am just praying and asking God for some kind of miracle .i cant sleep ,eat or even pay attention at my job (lost 20lb just in 6 month )i have no information whats next if the bank approve me will freedie mac will declined my case? will i be able to sale the home in 2-3 years (i owe 104K house worth 150) will the modification affect me in the sale process please give me any feed back confused in Texas with kids
By Southbay,  Mon May 2 2011, 15:59
Diane - We have a loan with BofA. We were late on payment two months ago, answered the phone calls - made the payment and they waived the late fees. As a result, they put us in touch with a BofA rep in an office near us. We made an appt and saw him. It turned out all he could do, and was trying to do was to sell us another loan product. He was unable to "rework" our loan under new, stricter guidelines. He isntead gave us a number to call for a loan mod and basically alerted us that without missing a payment we would get little attention. Since then we are now late on our current payment. We're about a week past our leniancy date. The phone calls are pouring in, but no one leaves a message oddly enough and I typically will not answer an unidentified call. I'm nervous about answering this and getting emotional with the caller as I'm afraid it will somehow categorize my situation in a way that could end up not getting our loan reworked which is desperately needed. What steps can you suggest I take to properly streamline this process in hopes of getting a case mgr assigned to us ASAP (read all the entries above already). I'll give you the skinny on our situation (sorry to those non CA residing readers who may think these numbers are ridiculous). I'm an exec at a company whpo makes $200K/yr. My wife is an RN who makes appx $70K/year. We live in a 3 bed, 2ba home we payed $920K for in 2007 and received a loan with then Countrywide. The first is about $780K and is a 7-yr ARM and the second is for the balance at 10%. This was a zero down purchase and we were first time buyers at the time. This is our primary and only residence. We have two young children - lease one car and making payments to own a second. No fancy traveling, no expensive nights out, not a lavish lifestyle - and unabvle to save for any college or even an emergency fund. We're sinking in debt and I need to get to a place where I can be a good husband and father again (this mess is taking a pshch toll on us to it appears). Can you help? Does it matter that Bof A guy admitted that the Bank of New York owns our loan? Anything you can suggest would help. I'm comitted to working on one of those 1st - 5th year 2% interest - payment including escrow $1566.00 (saved $945)
6th year 3% = $1781,
7th year= 4% $1967
8th - 40th year 4.375% = 2046

programs (or equivalent for my situation) that some respondents are getting. Thanks for you help.

dated 5/1/2011
By Southbay,  Mon May 2 2011, 16:00
Diane - We have a loan with BofA. We were late on payment two months ago, answered the phone calls - made the payment and they waived the late fees. As a result, they put us in touch with a BofA rep in an office near us. We made an appt and saw him. It turned out all he could do, and was trying to do was to sell us another loan product. He was unable to "rework" our loan under new, stricter guidelines. He isntead gave us a number to call for a loan mod and basically alerted us that without missing a payment we would get little attention. Since then we are now late on our current payment. We're about a week past our leniancy date. The phone calls are pouring in, but no one leaves a message oddly enough and I typically will not answer an unidentified call. I'm nervous about answering this and getting emotional with the caller as I'm afraid it will somehow categorize my situation in a way that could end up not getting our loan reworked which is desperately needed. What steps can you suggest I take to properly streamline this process in hopes of getting a case mgr assigned to us ASAP (read all the entries above already). I'll give you the skinny on our situation (sorry to those non CA residing readers who may think these numbers are ridiculous). I'm an exec at a company whpo makes $200K/yr. My wife is an RN who makes appx $70K/year. We live in a 3 bed, 2ba home we payed $920K for in 2007 and received a loan with then Countrywide. The first is about $780K and is a 7-yr ARM and the second is for the balance at 10%. This was a zero down purchase and we were first time buyers at the time. This is our primary and only residence. We have two young children - lease one car and making payments to own a second. No fancy traveling, no expensive nights out, not a lavish lifestyle - and unabvle to save for any college or even an emergency fund. We're sinking in debt and I need to get to a place where I can be a good husband and father again (this mess is taking a pshch toll on us to it appears). Can you help? Does it matter that Bof A guy admitted that the Bank of New York owns our loan? Anything you can suggest would help. I'm comitted to working on one of those 1st - 5th year 2% interest - payment including escrow $1566.00 (saved $945)
6th year 3% = $1781,
7th year= 4% $1967
8th - 40th year 4.375% = 2046

programs (or equivalent for my situation) that some respondents are getting. Thanks for you help.

dated 5/1/2011
By Diane Wheatley, Broker,  Wed May 4 2011, 23:00
I have an excellent resource for you located in Orange County who have helped many, many individuals such as yourself. This firm is a founder of the Rest Report used by a handful of successful restructuring companies. Please contact me direct for further information on how to reach this contact. I'm certain they can help. Crazy world we are in and I'm sorry that you having to deal with such incompetence and uncertainty. Understand that I get absolutely NOTHING from referring individuals to these resources. I am simply grateful to have found credible resources that can actually do the job.

Have a good night. Diane Wheatley, Broker
(909) 815-4499
By Diane Wheatley, Broker,  Wed May 11 2011, 07:46
Dear Southbay - I hope that the resource I referred to you was helpful. Please let me know your thoughts and if the information he provided to you made a difference in your situation. Have a great day!

Diane Wheatley, Broker
By J. Mario Preza, CRB, CDPE,  Wed May 11 2011, 10:55
You have touched on a problem that doesn't seem to have a simple solution and evidently is going to be around for quite some time. Using the example of Bank of America ignores the bigger issue that this is pendemic to all banks and "servicers," and it galls me to hear some of their managers proclaim that they only have their investor's interest foremost when evaluating any modification(s). Give us a break! I recently attended a forum sponsored by a local real estate advocacy group, and I was shocked to hear that very commentary, but more so when one of the three managers acutally admonished that their approach to anything other than full reinstatement of defaulted loans was to have, an analogy, "...two trains on two parallel tracks both headed in the same direction.. the one that gets their first is the option the bank will take!" in referring to any modification (one train) or the foreclosure/trustee sale (other train). Again, tell me, is this any way to truly help the consumer who is being encouraged to seek alternatives to foreclosure?
By Teracon,  Thu Jul 28 2011, 10:16
I am just trying to get my final docs since we were "verbally" approved in June 2010. I am also still trying to find out how they applied the payments that erronously sat in a partial-payment account. Every time I call BAC, I have been told that someone would have to call me back.

I have sent letter after letter, only to end up no where.
By Teracon,  Thu Jul 28 2011, 10:16
I am just trying to get my final docs since we were "verbally" approved in June 2010. I am also still trying to find out how they applied the payments that erronously sat in a partial-payment account. Every time I call BAC, I have been told that someone would have to call me back.

I have sent letter after letter, only to end up no where.
By Diane Wheatley, Broker,  Fri Jul 29 2011, 14:39
Dear Teracon, It is looking like you might be waiting on documents that may never arrive. Be prepared for the chance that you'll ultimately receive a letter that you do not qualify for a permanent loan mod. The basis for the denial will be a reason that BAC pulls out of their hat.

The reason that I say that is the length of time it has been since you have been waiting for the permanent loan mod paperwork. "Verbally" means nothing in the financial world of loan modification. The trial loan payments that you are paying are placed in a suspense account. They are not applied to your principle and interest owed on the note.

BAC will give you a past due lump sum amount due on your note from the time you stopped making the full payment until the time you are either accepted or denied including late fees, if applicable. The trial payments you've made will then be applied towards the full payment you have not made with an unpaid balance due for the difference. There is a good possibility that you will receive an accounting demanding full payment of your arrearages or foreclosure proceedings will begin from where they left off last.

If BAC accepts your application for a loan modification, you will receive documents showing what your new payment amount will be which will differ from your trial loan mod payment. The amount will most certainly be higher than your trial payment because BAC will add the unpaid arrearages to the principal balance of your loan and reamortize it over a 30-40 year timeframe.

This is how it’s done. At least you can be prepared for what’s to come. If it differs from my scenario, please post the results as we are all very interested in the outcome. I wish you the very best of luck to you. Thanks for posting!

Diane Wheatley, Broker
By 123456,  Mon Oct 3 2011, 17:16
I just got a letter that I have been approved for mod from BofA and that I will be receiving papers with explanation for trial period. After reading these posts, I am little hesitant to even go forward with this process.
By 123456,  Tue Oct 4 2011, 12:24
Does anyone know if getting HUD involved would help get the ball rolling after the trail period is over?
By Nanner10,  Fri Oct 7 2011, 07:43
After 22 months and 3 different trials I finally received permanent mod documents. The only problem is they have increased my principle loan balance by $23K. I had received a Debt Validation Notice in July with an amount of $402K. I disputed in writing and received a letter back stating BOA would get back with a complete answer in 20 business days. Still has not happened. I kept calling and pushing for BOA to validate the debt. I finally filed a complaint with the FTC and notified BOA I had done so. I got a phone call last week from "Jody" who happily told me the debt has been updated and I now owed $10K more than my principle balance showed on-line, because I had made 2 trial payments. Well my two trial payments didn't add up to anything near $10K. So I am, again, suspicious of the figures. I told her I need to see each fee and/or charge that made up the $10K. I have still not received anything except the new loan docs showing $404K. Of course they give you just a week to sign and return, but I will not sign anything showing $404K as my principle balance. Make sure to read your documents very closely and make sure they are not pulling this crap on you. BOA is so incompetent they can't even do basic math.
By Diane Wheatley, Broker,  Fri Oct 7 2011, 09:13
Wow! A response from Bank of America can be a victory in itself however, the information provided was no where near a victorious one. BAC will account for all the missed payments, shortage between the trial and the usual payments, interest, late fees, processing fees, legal fees, review fees, document fees, escrow fees, past due property taxes, insurance, and whatever other fee they feel is appropriate. This amount will be added to your principle balance and then re-amortized over a 30-40 year period at 2% for the first 2-3 years then adjusting by 1% increments until it caps at 5%.

Could this be the case with you? Great job filing with the FTC. I only wish more homeowners and borrowers would do the same. Then maybe they would listen.

By Carmen,  Wed Oct 19 2011, 15:43

wow i have been trying to modify my home loan for a year now with no conclusion I also tried using making home affordable along with Hands they were no help just like everyone on the forum faxed, emailed, called etc... Considering hiring a attorney at kel attorney however they want $3,000 however they can not gurantee a modification .. So at this point I am losted...And dont know what will be my next step. Any suggestions?
By Diane Wheatley, Broker,  Wed Oct 19 2011, 17:55
Dear Carmen, I would suggest that you consult an attorney to discuss your options only. Do not hire an attorney to negotiate your loan mod for you unless you are truly certain that you will benefit from the outcome. If they are uncertain that you will qualify for a mod at the start, then don't waste your time or money. Please. So many people throw their money at attorneys only to be left flat. I get angry when I think about all the people that come into my office with the same heartbreaking story always with thousands of dollars thrown out the window.

I know you don't really want to think about the bottom line. But we all need to come to terms with it sooner or later. Loan mods rarely work if you can obtain one at all. Your other options are short sale, deed in lieu of foreclosure and finally, foreclosure. All of these options require you to leave your home and I'm so sorry for that. At best, you can stall for additional time while you are working on your short sale. Save as much money in those months as possible for a good security deposit on your next home. You are going to need that.

Everyone's situation is different yet will ultimately end the same. It is all about how you can work out as much additional time in your home as possible before actions will require you to leave. I'm so sorry for you. Please keep me posted and don't hesitate to call or contact me for any peace of mind I may have to offer you.

Diane Wheatley, Broker
By Kathie,  Sat Dec 10 2011, 15:38
We were just approved for a traditional in house mod with boa but they did not add our property tax in the escrow any idea how this will work? Hopefully in our favor as we don't qualify for the making homes affordable program.
By Ceemenpeen,  Tue Dec 20 2011, 14:05
I paid the regular installment of my home mortgages to us bank,but the bank says there is pending payments for the one installment,but the bank doesnot prepare it or they are accepting ours,so what to understanda/
By Daisy,  Wed Dec 28 2011, 13:48
Hi Diane,
I was hoping you may be able to provide some direction and/or know an attorney that can help us. We are in the Orange County area. After a very long process we were verbally approved for a modification with First Franklin and then before it was put in writing all our docs were sent to BOA and then lost for months. We had to begin the process all over again and then were ultimately denied due to very dishonest business practices (long story). They said they could not re-open our modification so we gave up. We were going to file for Chapter 13 and save the house but recently found out that is no longer an option. Now we are way behind in our payments and not sure what to do. We feel that a modification would only help us at this point if they lower our principal. Any info on whether BOA will do that? We owe over $500,000 for our house and the short sale next door is going for $260,000. Is it even worth it to fight for this property or should we just let it go? Do you know of an honest attorney in our area that can offer us some guidance? Thank you so much for any info you can provide.
By Diane Wheatley, Broker,  Sun Jan 1 2012, 01:33
Dear Daisy,

You owe over $500,000 on a home that is worth only half of that. From the sound of it, you have been able to reside in your residence for a long while without making a mortgage payment. You may want to consider the amount you have saved in not making a monthly mortgage payment as the “pay-off” to your economic crisis. B of A does not offer principal reductions nor does any other lender at this point. Even if you were granted a loan modification there are no guarantees it would lower your monthly mortgage payment while adding even more to your principal loan balance by way of fees, back payments and unpaid property taxes. It is only a short term solution at best.

Your best solution is to save all the money you possibly can while remaining in your home as long as feasibly possible. Start a short sale process with an experienced real estate Broker trained in short sale transactions. We know all the tricks and offer the same if not better solutions to your specific situation as an attorney without all the additional costs and expense. You should seek legal advice and consult with a professional authority that specializes in foreclosure law to best understand your options but be very careful not to sign any contracts or pay any retainer fees unless you have verified references and a clear understanding of what your money and resources are going to provide you. I see homeowners get taken for thousands of dollars all the time without ever receiving a bit of relief or viable solution to their circumstances. Be careful.

Best of luck and have a Happy New Year!

Diane Wheatley, Broker
By Perm_mod_done,  Fri Feb 24 2012, 20:11
Just got our permanent modification updated online, so I consider this long and dreadful process finally DONE! It has been two years on the dot now that I have been dealing with this. The first year was a complete nightmare. Nobody knew what was going on. One day I call I was approved, the next day I was rejected, the reps were clueless. The I started calling and e-mailing EVERYBODY. Finally after about 200 (no kidding) phone calls and e-mails to various people, managers, manager's manager's and CEO, I was able to receive a modification that was not really a good one (5% interest over 40 years, payment only $200 less then before, but it would bring the loan current), After making three trial payments, I was lucky enough that NACA was having an event in Chicago, so I went. First day I couldn't do anything since my account was still coded "bankruptcy" even though I have been discharged for 60 days already. Because of the "bankruptcy" code NACA reps couldn't help me on the spot. I was able to call early on Monday (last day of the event) and talk to a manager who managed to remove the code right away (at first I was told it may take 30-90 days). I went back to the event and after jumping through an additional hoop I received a modification and the trial payment (3% for 40 years and a monthly payment $500 less then before). Before they could give me this though they wanted to see my bankruptcy papers to verify that a certain debt that showed up on my credit report was indeed included in the bankruptcy. I had to run back home and bring the papers, but the modification was done there and then. After 3 trail payments were completed, it took about 60 days for me to receive the permanent modification in the mail. By the way, you only have one day to mail that back with a certified check for the first month's payment. So watch out for that document, if you miss it and are late in sending it may be all over. Then it took additional 55 days for them to finally process the modification and update everything on the internet. By the way, through all this I did have to keep on top of it because glitches would happen and I had to keep calling and demanding that they be looked into and fixed. All of a sudden I started getting noticed for foreclosure, my check was returned because they wouldn't accept partial payment, That of course freaked me out and it took a dozen phone calls (when I actually got to talk to them, I am not including the messages I left) in order to figure out what was going on and have it fixed. Apparently after I declined to sign the permanent modification for the first mod my account was no longer coded to be in the modification, even though I was currently in modification, the second one. That is why all the regular activity resumed and it took several different reps to figure out what and why it was happening and to code my account correctly again. Then I mailed back the returned check and BOA never received it. It took them 60 days and of course another dozen or conversations for them to credit me back for that money. These are just some examples of what happened during the last modification. I can't even tell you the amount of phone calls and e-mails I made prior to that. After all, it was all worth it though. Good luck and keep on calling, pressing, keep people accountable and demand answers/resolution. In my opinion going to the NACA event is worth the airline tickets or the drive. make sure you bring ALL the documents with you (not only the ones indicate on their paperwork but ALL the documents you can think of that could possibly be asked for). You get to sit down with a person and do it all right there and then. You walk out with your modification in your hand, and in my case it was far better then what I received via regular BOA channel even after months of dealing with them.
By Perm_mod_done,  Fri Feb 24 2012, 20:24
Here is my loan information and the results of the modification:

Old Loan $287,725
New Loan $301,803 (that includes about $13,500 in past interest due and about $500 in escrow due)

Old Payment $2,195.74
Trial Payment $1,588.95
Final Payment $1,627.67

Old Term 5.75% for 30 years
New Term 3.00% for 40 years
By Nalagirl,  Wed Apr 25 2012, 16:47
Hi there I'm new to this website and I am happy to see that people with BOA loan modification approve...can someone give me pointers on how to escalate my loan process... Has anyone here did the process on their own.. I've been scammed twice n I'm afraid to go through anyone pls help thx
By Mimma Soul Sonik,  Tue Jun 26 2012, 06:36
Here is my loan info from my BOA modification:

Old Loan: $122,431.16
New Loan: $129,932.30 (+ $7995.82 taxes/insurance, etc/ $38,979.69 deferred principal balance $90,952.61 interest bearing principal)
Old Payment: $1514.85
Trial Payment: $1226.95
Final Payment: $1225.74
Old Term: 5.375%
New Term: 4.625%, extended loan by 12 yrs 5 mos.
By Diane Wheatley, Broker,  Wed Sep 26 2012, 03:35
I've been so busy on the "How Long Until Bank of America Issues a Short Sale Approval" blog that I have not peeked in here for awhile. I realize that it has been a few months since the most recent post but I wanted to thank all of you for sharing your successes with us. Posting the final terms of your permanent mods is very interesting and helpful.

I am very curious to hear how you are keeping up with your loan mod payments and any additional updates you may have. Lots of changes on the loan mod front these days with little to no final results worth passing along. Many clients are held hostage for months and months making their trial payments in good faith when the rug is pulled from under them and they are DENIED.

We had a gentleman receive a permanent loan modification which he had been paying on for about 9 months when Bank of America suddenly rescinded it. A few months later the bank foreclosed. He was taken so suddenly that no one had enough time to react.

I'm waiting for someone to tell me that they have been paying their permanent modification payments for a few years successfully and without incident. Unfortunately, many homeowners can't keep up with their final loan mod payments either an ultimately lose their homes. For all you that have succeeded and living life with the mortgage crisis behind you, please give us a shout out!!
By Ricardpal66,  Wed Dec 12 2012, 22:38
Bank of America offered me Short Sale and $ 3500 for moving expenses after they denied modification. It is short sale a good option? What will happened with the unpaid morgagate balance if I do short sale? Do I have to pay that balance? Please advise. Houston Texas
Rico ricardpal66@yahoo.com !
By Diane Wheatley, Broker,  Sun Dec 16 2012, 02:32
Currently a short sale is far more advantageous to you than any other option. A short sale with Bank of America will eliminate the threat of a deficiency judgment for the remaining balance as long as it is your primary principle residence and the loans against the property are purchase money loans meaning the original financing you used to purchase the home. Until the end of this year you are offered tax relief through the debt forgiveness act of 2007. But your short sale would need to close by December 31, 2012. This law is scheduled to sunset on December 31, 2012. Unless the government extends the debt forgiveness act, you could be taxed on the forgiven debt as it will be included in a 1099 for you to add to your tax return as regular income.

When negotiating a short sale, you want to be sure that your agent or negotiator includes verbiage in your short sale approval that they will not seek a deficiency judgment against you and check with your CPA or tax accountant on the ramifications of the tax forgiveness act expiring by the end of the month and how it will specifically affect you.

Good luck and please keep us posted! Happy holidays.

Diane Wheatley, Broker
By hvacdavey,  Thu Jan 17 2013, 22:14
The problem is, that nobody knows is....................If you get approved for a modification you can't do a FHA Streamline refinance. The Investors don't like to buy modified loans and so in turn your loan is not desireable when trying to get someone originate your new loan because no investor will buy it. They view a modification like a foreclosure. Get current on your mortgage and refinance...There is more benefit and less nonsense.
By lovemy3kids,  Sat Feb 9 2013, 23:02
I have modified my own BofA loan. Never, ever give up! Even when you are denied, ALWAYS ask to reapply. I can't tell you how many times i applied. I was denied over and over. Even if they tell you no, go over their head. Most people just think it's over and quit! DON'T! I have been modifying since 2008! We just got approved this week! The key is perseverance. My payments went down from $6500 to $2300! I did my homework and gave them a proposal of what i thought was fair and affordable for us. Funny enough, it was almost to the penny! I asked them to drop my loan to 2% used a mortgage calculator online and used the 31% percent of my income to come up with the final payment amount, then simple asked with a proposal. They did not ask for it, I just sent it in with my paperwork. If you have a foreclosure date, call exactly 5 days before and ask for a postponement. When my case is still open they always granted mine. I am so proud of myself, I am thinking about getting a RE license, just to help others.
By Diane Wheatley, Broker,  Thu Feb 14 2013, 23:52
Dear lovemy3kids, Congratulations! I love to read the success stories! You should be proud of yourself. If you happen to be in California, give me a call and I'll provide the support you need to become a licensed Realtor. Way to go!
By erinsmyser,  Sun Feb 17 2013, 10:32
I'm so amazed at how many people have the exact story that I have- down to the denial from HAMP for lack of timely documentation (HA!). I finally sent a tweet out to the twitterverse expressing my disdain for B of A and magically, I got contacted by a BofA representative. I have someone from the office of the CEO handling my case but I'm sure it will involve sending and resending docs to find out that I do not qualify for a loan modification. The problem that we're facing (not truly a problem) is that we make more money now than when we took out the loan. We are unable to plead hardship- I would just rather pay less. Are we an automatic denial because we are not experiencing a financial hardship?
By Diane Wheatley, Broker,  Sun Feb 17 2013, 20:08
Dear erinsmyser,

The Bank of America representative who contacted you is the social media representative who's job is to quash negative postings regarding Bank of America. They are your closest friend in the beginning and a shoulder to cry on in an effort to resolve in your dilemma. Beware, they may be a wolf in sheep's clothing.

You state in your post that you don't believe that you have a qualified hardship. If Bank of America knows that you are doubting your ability to qualify then you can almost count on their commitment to decline your file. In other words, Bank of America is not going to grease your file in an effort to provide you with a loan modification. The bank is NOT your friend.

Recent information was released stating that the banks are not focusing on hardship issues. However, the banks do not look fondly on strategic defaults either. Sorry to sound so negative. I just don't want you to waste your time making friends with the enemy.
By pfrias,  Tue Apr 9 2013, 11:50
I have apply for home modification since October 2012 as of today nothing, I am 40 days behind on my payment, I am so scare that I will lose my home. What can I do.
By samiriley,  Wed Apr 24 2013, 06:08
We originally applied for modification in January of 2012. Received trial period payments that were to be for June, July and August. I made those payments and heard nothing. Continued to make payments September and October. The end of October after 5 trial period payments we received approval for permanent modification. We immeadiately signed those documents and returned with a cashiers check for Novembers payment. Made December, January and Februarys payments with no response from BOA. I continued to call weekly and was told there was nothing new to report. The end of February I received "new" permanenat modification papers and was asked to sign and return with a payment for March which I did. I was never told what happened to the originals permanent mod papers we signed in October (guess they grew legs and ran away!). One March 29th 2013 I received the permanent mod papers back from BoA signed by 2 of their officials. I thought the process was fianlly over. Guess again! I also received a Fedex package that same day with new permanent modification papers asking me to sign and return again. I call my rep and he said oh those must have been sent out in error, don't sign them. Here we are the end of April and what do I receive again, a Fedex package with new permanent mod papers. I phoned my rep last night and he said, "my manager and I were looking into your account trying to figure out why you contine to receive these packets. He said the copy that was signed by you and BoA as an error with one of the dates for the 2nd phase of the loan so these new papers are just to correct the date. Please sign and return them with a payment for May." I am leary to do this because I have a signed copy from them which to be makes it legally binding. If I sign new is that voiding the previous contract and they could refuse to sign these new papers? I just wish this nightmare was over! We were one payment behind and all I wanted was for that payment to be moved to the end of the loan. Please help!!!!
By Albert Rodriguez,  Wed May 8 2013, 19:02
I got my mod. About a year ago took over a year and a half! Did it all my self did not want to waste money on lawyers claiming they are going to help you! So I got 2% from 6%! Also had a HELOC loan I just stopped paying it and 6 months later bofa forgave the loan $74,000!
By obrien0912,  Sun Jun 2 2013, 16:54
I signed a loan modification with Bank of America on February 10,2013. I made my first payment end of January, Feb, March, April, May. Then I got a call from BAnk of America saying that I forgot to sign a paper, my ex husband signed but I forgot. I did pay every singled month and want to know why they did not notify me. I have my copy that was signed so why didn't they keep that. Now they want to forclose on my house again. This just is not fair. Obrien0912@att.net

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