Countrywide & Bank of America

[LoanModMan]

What have you encountered in dealing with this lender? Tell us the good, The Bad & The Ugly...

[Jason1]

Hello, my name is Jason.

I have been dealing with Bank of America since October 2009 on my modification. I still have not received any information on my modification except that it is in review.

My current payment on my home is 851.41 and they say it will go down to $735.00. I do not think that is much of a cut.

I went through a divorce and my income went from $5,000 a month to $2,300. What would be a good estimate? They only go off gross not actual bring home which would be about $1,400 a month.

I hear of the 2% of the life of the loan. How do I qualify for that?

[LoanModMan]

Hi Jason.

Is Bank of America offering you a HAMP modification?

You are right a modification in payments from $851.41 to $735.00 is not much assistance unless you previously were not escrowing for taxes & insurance and the new payment includes them.

You have exhibited a valid hardship with your divorce and loss of income.

IWith a $2,300 per month gross income the HAMP guidelines would bring your payments to $713 to include your principal, interest, taxes and insurance. That would mean that 31% of your gross income is allotted to housing costs.

The 2% rate is the floor rate that HAMP will allow the servicer to lower the rate to in order for you to get to a 31% housing to income ratio. that means if your income supports a higher payment/rate that is what you would receive.

The 2% rate under HAMP is not a 30 year rate, it is done in a stepped rate fashion as follows:

Years 1 -5     2%
Year 6          3%
year 7          4%
Year 8          5%
Year 9 - 30    5.25%