Rae Jean – Persistence Pays Off

Hi Paul,

I think I’ve finally successfully got a good loan modification from Bank of America (previously Countrywide)……….but I have one question that I am seeking an answer to and immediately thought of you and your wisdom.

After 3 unsuccessful attempts at a modification on my sub-prime interest only option arm I recruited NACA and they have succeeded in getting me a 3.25% fixed rate for the life of the loan! Yeah.

Heres the question- I had filed chapter 7 bankruptcy in 2008 that was released in April of that year. The docs for my modification are signed, notarized and sealed in the fed-ex envelope ready to go back to BOA. As I was giving my copies one last review I see they have a sentence that I am not sure about in the docs….

It says “This offer is contingent upon BAC Home Loans Servicing, LP receiving relief from the Automatic Stay for any bankruptcy in which the property referred to in the Loan Modification Agreement is included at the time of the modification.”

They did not send any sort of form for me to sign regarding this. Countrywide had made me a modification offer a few months ago that I declined (modified payment was higher than current payment) but in those docs they sent me a form titled “Modification Bankruptcy Disclosure Rider”

Do you think because they wrote what they did and I signed the docs the request has been satisfied or do you think that I need some sort of signed document specifically relating to this?

Also I’ve read on another site that folks that are getting modifications from BOA are sending back their signed and notarized docs but BOA will not send back a copy with their signature and notarization. Is this cause for concern?

I am just worried that they could later claim that they never signed anything. I am sending a request for it to be sent back with their signature but I’ve heard they won’t do it. It worries me that they are trying to pull a fast one.

I have called my negotiator about the automatic stay part but he hasn’t returned my call and I need to get these docs back to them as soon as possible. My bankruptcy attorney isn’t worth calling. He was not helpful in the least (and always made me feel like I was bothering him) or I would ask him. I would just like to hear your take on it. I know you are not an attorney, but neither am I and I don’t know what to think.

Thanks for your help in the past. I think this is my 3rd or 4th time writing to you and you always have come through for me.

Sincerely,
Rae Jean

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Hi Rae Jean,

You aren’t involved in the lender’s request for relief from stay.  That’s between BofA and the bankruptcy court.  It’s true that the lender could say they never agreed to the loan modification because they never signed it on their end.

Read: Are Loan Modifications & Forbearance Agreements Binding?

All things considered, however, if it was me and the loan modification was affordable and I felt I was going to be successful with it then I would accept the loan modification.

Thanks for the questions and congratulations on an affordable loan mod. 

Paul

This author is not an attorney and this information should not be considered legal advice.  Please consult an attorney for legal advice.