Notice of Intent to Accelerate from Bank of America
Hi everyone. Long story short - I have a second mortgage with Bank of America (originally Countrywide). I bought a home for $290k in April 2006. Citi has the first mortgage for $232k; B of A has the second for $58k.
The B of A loan has an interest rate of 9.375%. Each month I pay almost $500 in pure interest. I know - it was stupid to take the loan. But I did.
Anyway, lost my job and found a new one, but at 15% less pay. Meanwhile my house value has dropped precipitously - now it's worth (optimistically) $200k. That's official - neighbor in similar house / lot was just appraised for $205.
I have missed my May and June payments with the B of A loan. On June 2nd, I received a Notice of Intent to Accelerate. It stated that if I don't pay them $1000 by July 2nd, they [b]will [/b]begin foreclosure proceedings (the emphasis on 'will' was in their letter).
I want to keep my home. But the $500/month in interest is awful and there is no equity in the house to support that second lien. So I'm not certain why they would foreclose only to receive.... nothing. Because Citi would get everything at the foreclosure sale.
I would like B of A to lower my interest rate to 0% for a year and then raise it to a maximum rate of 5% over three years. That should give me enough time to (hopefully) get a raise or two and eliminate other expenses.
So I have two questions -
1. Has anyone successfully had a second mortgage modified by B of A? What are my chances of a modification if the equity doesn't support their lien?
2. How serious is this Notice of Intent to Accelerate? I'm not even 60 days past due. Will they really foreclose after 60 days?
This is longer than I intended. Sorry! :roll: I'm not trying to get the principal reduced, or anything - just some breathing room while my budget adjusts.
Thanks for your help.