Refinanced with Wilmington Finance Inc sold to countrywide and now BOA with BONY as the investor.We have been trying to work with them but the only deal they would give was 8% Calc over 40Years. Adding 10k to end making loan 232k(House is worth around 170k)The reason I did not sign it was because they did not change the amortization date so I would owe balloon payment of 171k Dec.1,2036. Payments actually went up. Currently we have an 8%interest only loan and are 5 months behind. What are the chances now that the AG finalized settlement with BOA that we can negotiate a principle reduction and a fair interest rate? Have not been served with papers yet. Checked with town of Newington and Wilmington and MERS are grantees. No record of CW or BOA. MERS has BOA and BONY listed.
BOA pushed us into the interest only loan April09 because our loan was going to go to 10%.The only reason we refinanced to the 221k with Wilmington in Nov06 was because they had us pay for an appriasal and it came in at 274k. Being dumb at the time but looking at the reality my house was NEVER worth even close to 274k the highest it has been was maybe 230-240k. Servicer BofA said the deal was the best the BONY Mellon was going to give. They calculated and made payment about 31.25% of monthly gross income. I have 4 kids and 31% of my gross leaves nothing for emergencies or unexpected expenses. I cannot leave my family continuing to live paycheck to paycheck. Payments that came back were 2138 a month. The deal might not have looked so bad if the 171k balloon payment was not there I simply needed my payments to come in around 1700 a month with ins and taxes. Interest rates are below 4 why couldnt they put us at 5 and calculate the amortization date out the same time
Landlord / Tenant Lawyer
You should really contact an attorney to discuss the specific facts of your case in order to receive an answer to a detailed question like this.
This forum is more appropriate for legal questions to which general answers can be given for educational and guidance purposes.
The "chances now that the AG finalized settlement with BOA that we can negotiate a principle reduction and a fair interest rate" cannot be predicted with any certainty and this is not really a legal question. Neither law school, nor legal practice prepares an attorney to calculate probability and such calculations are best left to statisticians and actuaries.
Also, the determination of what a "fair" interest rate is depends on multiple factors, including but not limited to, the type of loan, the debt to equity ratio, the solvency of the debtor, the creditworthiness of the debtor, the likelihood of collection, the debtor's other assets, and many other factors that cannot be listed here in a comprehensive manner.
This answer is for general purposes only and does not establish an attorney-client relationship. An attorney-client relationship will not be established with me unless and until you have executed a written agreement for me to represent you.
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