“Loans” Archive

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Making Home Affordable Tips…

I learned a lot about the Making Home Affordable/Home Affordable Modification Program (HAMP) in my 2 hour call with Bank of America.

1 – If you are hoping for a huge change… this is not the answer. Not all changes are permanent and/or large. Some adjustments may last as little as 3 months.

2 – Loan modifications are not quick. If you can’t wait the standard 9 weeks for the review of your file and another 5-9 weeks for paperwork processing, you don’t have enough time and you may want to move forward with other options like a short sale or foreclosure.

3 – Give an accurate listing of all your expenses. Don’t exaggerate but don’t minimize either. Have a good understanding of exactly how much you are paying. Keep this information available for when you call the bank.

4 – You will be rejected if you have recently made large purchases or if your credit score is low. You shouldn’t be making large purchases anyway so I can’t say as if I blame the banks for this stipulation.

5 – If you have a second mortgage with another lender, they will likely require you to get approved for the Making Home Affordable Program on your first loan before they will consider a change to your second mortgage. If you are accepted for the program on your first loan, it’s easy to submit the same paperwork for your second mortgage.

6 – This should not be your only option. It’s worth a try, but don’t fool yourself into thinking this will solve your problems.

7 – If your home is not a Fannie Mae/Freddie Mac mortgage, this program does not apply to you… BUT some lenders are still willing to modify other types of loans.

8 – This is a voluntary program. No one HAS to help you. Sure it’s good business sense to lessen foreclosures on the banks part, but if you are a problem child, don’t expect any help. Banks don’t want to keep you as a customer anyway. Be kind, courteous, and polite even if you are frustrated.

According to the bank’s calculations, my husband and I qualify. We are now in the first 9 week waiting period while they review our files. We have stellar credit scores and we haven’t made large purchases in a long time. We are good candidates for an interest rate reduction from the over 7% it is currently, down to the market rates of 5-6%.

Do I really think it will really happen?

No. But it’s worth a try.

Posted by Beks on October 23, 2009 at 5:00 AM in Credit Reports/FICO, Debt Updates, General Debt, General Personal Finance, Good Info, Home Ownership, Loans, Making Home Affordable Program | 13 Comments »
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Dealing with Making Home Affordable…

I am throwing the white flag…

and applying for the Making Home Affordable program.

Yesterday, I left work early and made THE call. My call started at 5:07 p.m. and ended at 5:57 p.m.

I called the Making Home Affordable number on my Bank of America mortgage website and waited 17 minutes on hold. Someone answered and transferred my call since my mortgage used to be a Countrywide mortgage and they had a separate division.

I’m fairly certain they routed my call around the world because really, what else can explain the 24 minute hold time and the gentleman who sounded like had lunch in Bangladesh. He asked for my name, account number, checked my account, thanked me for paying on time, and told me I would be transferred yet again to a representative. 9 minutes later, a message said, ‘Our office is now closed. Please call back another time.’

I would give you advice on dealing with the Making Home Affordable program but since I didn’t talk to anyone, I will tell you this… you need more than an hour.

Dear Bank of America… I had far better things to do than spend 50 minutes of my life listening to Kenny G. and the recorded reminder that someone will be with me shortly. Obviously you and I have VERY different definitions of ‘shortly’ AND, I had to drink three glasses of Chianti just to keep my ears from bleeding.
Ugh. Kenny G.

I’ll let you know how it goes… if I ever get through.

Posted by Beks on October 15, 2009 at 5:00 AM in Confessions, General Debt, Home Ownership, Loans, Making Home Affordable Program | 24 Comments »
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Sliding Backwards into Credit Card Debt Again…

Our credit card WAS paid off. Obvious emphasis on the past tense.

My husband is attending a bachelor party this weekend and the event required one credit card to book the trip for all five attendees (the bill could not be split). Most of our friends know about our recent credit card payoff (maybe shouting that fact from my roof and breaking into song was a clear sign) and naturally suggested that since we ‘had the room’ on our card (as if it were free), that my husband pay for the entire trip and be reimbursed later.

I’m not going to lie. I am upset.

Perhaps I’d be more trusting if this hadn’t happened before with concert and event tickets and in the end, we were always short. People conveniently ‘forget’ to pay or promise to pay later and then get annoyed when reminded. Plus, the credit card will be kept on file in case there are damages to the room or if alcohol is consumed.

When I asked why someone else couldn’t pony up a credit card, he told me it was because everyone is nearly maxed out but us. Um… isn’t that a good reason NOT to loan these people our credit card?

My husband and I rarely fight but this is a sensitive issue for me and I feel like we are opening ourselves up to a lot of potential debt.

Am I overreacting?

Posted by Beks on September 11, 2009 at 5:00 AM in Confessions, Credit Cards, Debt Updates, Life Experiences, Loans, Money & Relationships, Spending Money | 42 Comments »
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Info from a savvy reader…

Last week, I talked about our next debt payment step and how we intend to pay off the truck loan rather than the student loan even though the student loan has a lower balance. Dave Ramsey suggests paying lower balances first but I decided to rid myself of the high truck payment instead just in case job loss is in our future.

Ann, a brilliant reader, also pointed out that if I paid off my student loan first, I would lose my tax deduction.

As someone who gets WAY too much joy from writing off the student loan interest, I am grateful to Ann for reminding me of this fact.

I’m sure a lot of you have student loans and this should be a consideration in your debt payment plan.

Thanks Ann!

Posted by Beks on September 9, 2009 at 10:38 PM in General Personal Finance, Good Info, Loans | 7 Comments »
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Our next step…

Now that our credit card debt is gone, a reader asked what our next step is going to be.

Dave Ramsey suggests paying the extra amount on your lowest debt (which would be the student loan) but the minimum payment on our truck is more 4 times higher than the student loan. Plus, the interest rate on the truck is twice as much.

Another good reason to pay more on the truck is to quickly rid ourselves of the hefty payment. In the event of job loss, a student loan can be deferred due to financial hardship – auto loans are not nearly as forgiving.

We’re hoping to have the truck paid off in 10 months or less.

Here we go!

Posted by Beks on September 3, 2009 at 5:00 AM in Credit Cards, Debt Updates, General Debt, General Personal Finance, Loans, Reducing Debt | 21 Comments »
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Debt Update…

Here are the current numbers (I’ll work on getting the sidebar updated):

Total Starting Debt: $38,495.86
Total Paid: $16,727.33
Total Remaining: $21,768.53

Breakdown of Remaining Debt –
Truck: $11,934.57
Student Loan: $9,833.96

We’re nearly halfway there. I got an updated payoff date according to our Debt Snowball Calculator on DaveRamsey.com…

December 2010.

We shaved off 4 months so far. Can I get a Woo Hoo?

Posted by Beks on August 28, 2009 at 5:00 AM in Debt Updates, General Debt, General Personal Finance, Loans, Reducing Debt, Spending Money | 10 Comments »
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School Tuition Nightmares…

Dear State of California College,

First off, I’d like to thank you for cashing my husband’s tuition check within 12 hours of receiving it. Who knew that was even possible? Though to be honest, I’m not quite sure why we pay two months in advance and are later reimbursed. It kinda sounds like a man I heard about… what’s his name? Ponzi?

Second, I recently received your request for an additional $150 per semester – as if the two thousand I just paid you was completely insufficient for a whopping six units… and let’s not discuss your $200 parking pass shall we? I was amused at the complete ambiguity as for the reasons why the additional funds were needed from all 30,000 or so students but I was NOT amused when I actually had to pay it. But hey, thanks for allowing me to defer this unexpected payment for three weeks. I guess that’s supposed to help me be happy about paying more and getting less? I have approximately $26 in my checking account. Clearly, I cannot spend $150 when I only have $26. Who do you think I am? The state of California?

Also, I want to thank you for delaying the receipt of my husband’s tuition funds for two months. Perhaps you are trying to help the business students perfect the art of living off ramen noodles and tuna and hone their negotiating skills with creditors?

When we called to check the status on the cash flow, you said the check was ‘in the mail’. 3 weeks have passed. Are the checks being personally delivered by a three legged dog on a skateboard? In short, in response to your request for additional funds…

The check is in the mail.

Sincerely,

The broke wife of a California college student

Posted by Beks on August 4, 2009 at 5:00 AM in Life Experiences, Living Frugal, Loans, Spending Money | 14 Comments »
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