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LegalKnowledge, Attorney
Category: Legal
Satisfied Customers: 27246
Experience:  10+ years handling Legal, Real Estate, Criminal Law, Family Law, Traffic matters.
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I just completed a loan modification with Bank of America,

Customer Question

My name is***** just completed a loan modification with Bank of America, my last modification before this one was an affordable one until I got sick, I owed $143,000 plus a balloon payment of $55000 at the end of 24 years, I thought this new modification cannot be worse so I sent it my signed acceptance after 3 months of trial period without carefully going through the letter, I was shocked when I realized that the loan is modified to owing htem $203000 plus with a balloon payment at the end of 39 years of $140,374,57. The house is worth around $300,000 with a lot of repairs needed. I never received any disclosres re loan or terms of the loan until after the trial period, then I was given about 10 days to send everyone back. I now owe $200,000 more and the first 20 years payment will go to mostly interest. I di d not want to be homeless, but I am elderly and my income is not great.
JA: Thanks. Can you give me any more details about your issue?
Customer: Can I do something about this modificaiton to get back to where I was? I was 8 months behind only owing about $13,000 including penalties.
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Submitted: 1 year ago.
Category: Legal
Expert:  LegalKnowledge replied 1 year ago.

Good afternoon. Just to be clear, you were already in a modification and as a result of your illness, could not pay on it and how BOA modified your loan again, keeping you in the home? Even though you owe a lot more at the end of the loan, are you able to make the required payment each month?

Customer: replied 1 year ago.
that is correct. I need remedies to get out of the terms of this new modifcation, I cannot lose 20 years payment and 20 years more interest without losing my house.
Expert:  LegalKnowledge replied 1 year ago.

Thank you for the additional information. When you signed the modification, there was a presumption that you read it, understood it and agreed to it. For you to back out now, there needs to be a legal basis to support it. The goal of a modification, is home retention. The bank wants to try and keep you in the home and for them to do that, the numbers have to work, in regard to your finances. How this is structured, may be the only way for this to happen. If you defaulted on the previous modification, BOA can accelerate the loan and demand payment in full or foreclose, so you can not just go back now and say you want the old terms. If you do not want the current ones, then you can try and convince them of the error/problem which you have, to explain why you signed this or simply stop paying but that would cause you to lose the home. A loan modification is not something BOA must do. It is at their discretion based upon the numbers. 8 months behind, which you were, is A LOT. You are very lucky they did not foreclose and it appears they took all the past due amount, plus fees and interest and roll in into the loan and extended the term, to keep the payments affordable to you