[Lord Tarl]

My wife and I have recently become unemployed and are both existing off of unemployment. Together with our 3 year old son we live in a home in Pa that we purchase for 180k about 4 years ago via a Bank of America Mortgage Loan. I have called BoA and asked them what aid I might be eligable for but they tell me that there is really nothing they can do as for some reason our house is now woth 182k which is more then we paid for it.. no idea why that even matters but hey... The only option they present is to lower the mortgage rate SLIGHTLY but they would require us to hold mortgage insurance, which brings the monthly rate back up to where we would be saving a total of $45 a month if we went through all that.I read about all the things being done in this time of economic strife and I have to wonder why there is no option out there that would help me out. So I am wondering if maybe BoA is not telling me everything. Has anyone gone through something similar and might be able to advise or work in the industry and have some ideas? I figure with our savings we can go MAYBE another 4 months till we have to start missing payments, which by the way we have never done.I just do not know what to do or who to turn to for help. Being on the street with my 3 year old is the worst nightmare I can imagine. Anyone have any ideas what type of aid I can ask for or who to ask it of? I don't have money to hire a financial planner or anything so I am really at my wits end.Thank you in advance.@The other ChrisI appriciate the effort.. but the question is around what i can do to save the house and what options are out there from the stimulous package etc. Of course moving or getting more income in an option. but the main point is that I don't want to move. =) But thanks

[MayAustin]

Hi there;

I know this must be such a frustrating time for you - my husband and I went through the same thing a few months ago. We pretty much had our whole house packed up and were ready to try and start finding a place to rent. Our house was way under water so we couldn't refinance either.

As a last resort, we put together a loan modification package and with the help of a non-profit group, submitted it to the lender. The good news is that we eventually did get our loan modified to a permanently lower affordable monthly payment (although our loan was extended 10 years - but so worth it so that we could keep our home).


Here's a few tips:

1. Unfortunately, you will probably have to stop making payments before the lender will even talk to you. I know you don't want to, but the reality is that the lender currently don't consider your loan as a risk, so they won't bother trying to work out a deal with you (they think, "hey, why would we bother? The guy is making his payments on time!"). We stopped making our payments for 4 months and put the money aside in an emergency savings account.


2. Start getting together the paperwork you need to submit a loan modification package (to submit around month 2 or 3 of late payments). You'll need:

- A list of all of your household expenses (utilities, credit cards, personal expenses, groceries, etc.) - try going through your bank statement to help determine your expenses

- Proof of income (pay stubs or bank account statements for the self-employed)

- Previous year's tax returns and a completed 4506-T

- Hardship letter (letter detailing why you've fallen behind in your mortgage and asking the bank for a loan modification)

For help with writing an effective an great hardship letter, go to ezinearticles DOT com and then search, "How to Write a Great Hardship Letter")


3. Don't Give up Hope! You need to stay really positive during this trying time and believe in your heart that things will work out. It IS possible to get your loan modified (and on your own, too) - My husband and I were months and months behind on our mortgage; we put together our loan modification package with the help of a non-profit organization that helps you for free.

You CAN modify your mortgage on your own, provided you have the time and patience to do so. It's not really all that hard to put the package together - it's just that you do need to gather up all of the documents, put together your hardship letter and know the correct place to send your package.


I hope this helps and good luck to you!

May Austin

[cutecub00]

Like so many people right now, me and my husband where about to lose our home but we went through a company to lower our mortgage payment, they also helped with our finances (debt consolidation). I will give you the company that we used, very
reputable and i have a good friend who is going through the same process. Hope
this helps

[James cuck]

You helped me make the best choice and helped me save my home from foreclosure.

[Kathy.Alar]

which non-profit group helped you with your loan modification?