I'm at my wits end! My wife and I have been trying for over 3 years to save our home.
The whole mess started with an IRS problem due to a flaw in the Turbo Tax Home and Business edition for 1999. The program deducted our home mortgage interest twice. IRS was super to work with Because, it was a flaw in the program they did not apply any penalties or interest. I asked a friend who I knew since 5th grade to help while my wife and I arranged for a loan to take care of the problem.
He was a former IRS auditor and now with an accounting firm in Phoenix. This was back in 2002. Because my friend missed 3 deadlines the IRS became a little hard to deal with. The dollar amount jumped to $39,000.
and IRS wanted it now. To complicate matters, I had lost my job because the company I was with since I was 17 went out of business and at that time I was 51 years old and we were the largest furniture retailer on the planet with 1018 stores. As a result the only loan we could get was a refi on our home, which later turned out to be labeled a "Predatory Loan" through Countrywide. We paid off IRS.
Then in 2007 the loan became unaffordable, the interest had jumped to almost 11% with payments approaching $4,700. per month. The State of California had filed a law suit against Countrywide for "Predatory Lending Practices" and our loan was among those involved. That brings us to 2008 and the "Obama Make Homes Affordable" plan plus the acquisition of Countrywide by Bank of America.
We had retained "Wall Street Modifications" to represent us with Countrywide related to the law suit and Countrywide having to fix these loans. Wall Street Modifications was a fraudulent company however, they negotiated a Modification for us at about the same time as BOA acquired Countrywide. The acqusition was approved by the Federal Reserve Board and as part of that approval BOA was to fix those Predatory Loans extended by Countrywide. Here is the statement from the Federal Reserve Board and I Quote - "...Bank of America should stabilize this massive portfolio (Countrywides questionable mortgage loans) by ensuring those borrowers can afford to keep their homes".
The Modification through Wall Street was also unaffordable and Countrywide agreed, so that never went forward at their suggestion. Countrywide, under BOA control and under the "Obama Make Homes Affordable" plan came up with a new Modification plan with payments of $1,385. which were affordable and mailed it to us on December 24th, 2009. Payments were to begin on February 1, 2010 which we signed and returned to the BOA office where they originated from in Pittsburgh, Pa.
and I have copies of the agreement. My wife called BOA to make our first payment on Monday February 1, 2010 and was told that for some reason BOA decided they were not going to go through with this plan and they would work something out and get back to us. We called and called and called, then in early April 2011 we were told that we might lose the home!
That brings us to today a year and 2&1/2 months later BOA is now telling us we do not qualify under the Obama plan because of the past due payments are making the loan balance to high to fit a into payment related to our income. If they had honored the Modification of December 2009 there would not be any past due amount.
Product or Service Mentioned: Bank Of America Loan Modification.