[quote=pcnow]I am not seeking payment, did not receive the letter from BAC, and may be in the incorrect forum for this information…. but I have some interesting (er…horrifying?) firsthand information regarding the BAC loan modification process that I have been engaged in since Dec. 2008.

I began a 3-month Trial Payment period as of August 1, 2009. It was extended each month since that time until Aug. 20,2010, at which time I received my long awaited Loan Mod agreement.

The terms of the modification are dramatically similar to the “Negative” ARM that I had through Countrywide…with the exception that the entire remainder of this modified loan (25 yrs) will end with an additional balloon payment of 93,000 along with my “last payment.” Yes, the interest starts out low, raises on a schedule, and all principle is apparently deferred to the end of the loan.

My concern is that while the balloon payment evolves monthly thru the term of the loan, there is some likelihood that a point will be reached where the property value has not increased (or has decreased) sufficiently to zero out the deferred principal. This will mean that instead of the payment becoming unaffordable, I will now have a built in guarantee of becoming “under water” with the balance vs. the market value.

I can’t help but wonder: 1) how is this going to prevent a future disaster in the mortgage industry, 2) Is this current process a “one time shot” for me while building in the impending disaster, and 3) How can this be legal if the original CountryWide loan structure wasn’t ?

Any thoughts out there? Also I will be glad to share more of the glitches in the BAC system…I have traversed plenty of them.[/quote]

Please share the more glitches. But I have to ask, you’re expecting that you won’t be underwater? And (2). There is no guarantees in life. If you haven’t learned that yet, learn it quickly.