Q: I had a reduction of income making my mortgage payment 52% of income. Being disabled my income is based on pension and Social security disability. A good portion of that income was not permanent as led to believe, my lender had to verify that income and accepted it.
Now I can barely afford the mortgage & my creditors. I want to keep my home, any argument in causing BOA to consider principle reduction when my loan should never have been approved?
Valued at last appraisal 334K, owing 267K. I am paying property taxes based on the ballooned values, and falling behind in escrow. Like I said I can and want to make mortgage payments but any emergency come up and I fall behind, paying mortgage first. Also part of mortgage
debt reflects 4 refinances in 6 yrs to move down from 10.5% to 6% interest. Because of refinancing charges, consolidation of debts, (+ remodeling) forced cash out I am paying 40K extra.
334K appraised value – 60K 60-80K reduced value due to economy.
274 -40K extra charges on loan
234K shortsale value if I’m lucky – 33K upside down.
Finally: I was approved for BOA imminent default program takes 45 days to complete application Submitted followup letter with details of budget and proof of income etc and BOA sent me documents for another program (maybe the same?) Hardship Affidavit, for the home retention or making home affordable program (govt. assisted). I have until the 23rd to respond with documents. any comments or direction would be greatly appreciated.
A: Sounds like you already have the ‘ball rolling’ !
Good job. I suggest that you finish the documents you told me about & see what their ‘final offer’ is. Then, at that point you can make a decision. Unfortunately, your decision will be like voting for President (of the USA) – a lesser of 2 evils. Best of luck, let me know if I can be of more help,