Faces of loan modification: Mark Bonacorso, Tucson, Ariz.
Filed under: Banks, Real Estate, Recession, Mortgages, Refinancing
How well is the government's loan modification working? WalletPop's four-part special report continues with profiles of some of those trying to get help. To read the overview, click here.Public relations consultant Mark Bonacorso faced the good and bad news of divorce with resolve. The good: he got the 3,500-square-foot adobe in northwest Tucson. The bad: he also got the first and second mortgages and the $2,700-a-month payments.
He wanted to make it work, especially since his home was worth less than he owed.
At first, with business strong at his firm, Media Ink, this seemed feasible. Then, as the recession slowed work, forcing him to lay off his two employees in March, those payments became daunting.
Bonacorso was not looking for Bank of America, his lender, to cut his principal. He called hoping to reduce his monthly payments by combining his first and second mortgages, lowering their interest rates -- now 5.875% on his first; 7.625% on his second -- and extending the loan's term from 30 years to at least 40.
Instead, he was told that since he was current on his loan and not headed for foreclosure, he did not qualify for a modification.
"When I asked if I started skipping mortgage payments, would I then be eligible for a loan modification program, their rather terse reply was my mortgage should be my top priority," said Bonacorso, 52.
Then came solicitation letters from Bank of America, offering modifications and mortgage "checkups."
This time, Bonacorso was told that since the market value of his house -- around $360,000 -- is less than the $400,000 he owes, the bank couldn't help him. (Bonacorso and his then-wife paid $435,
000 for the property in September 2005 and were then advised to avoid a jumbo loan by taking out first and second mortgages simultaneously, a setup he said they qualified for in 20 minutes over the phone.)"My personal thoughts on this: Bank of America is only interested in helping borrowers that they never should have given loans to in the first place," Bonacorso said, "and is simply going through the motions to appease the (Obama) administration."
These days, signs of economic recovery are trickling into Bonacorso's business, giving him hope that alternative avenues for refinancing will open up again.
"Simply put," he said, "I'll do whatever I can to keep this house."
Reader Comments (Page 1 of 1)
11-14-2009 @ 6:37AM
Kerrie Ireland said...
GIving birth to triplets I think would be aneasier process than a loan modification,...and IM talking from conception to delivery. I have been "working with" Wells Fargo that I have renamed Well F@#ked since MARCH ofthis year to modify my home loan. I think they are trained to tell you something different every timeyou call, I agree I think these banks are pretending to work witht he government but really have absolutely interest in helping you save your home. I think they would rather you foreclose so they add you to their list and no doubt claim money backfrom some other scheme or tax break. My home is probably worth a little more than my mortgage if I were to give it away, we bought an older home with a huge remodel doubled the size although with the housing crisis have not doubled the value. We have ben making trial payments since JUne on the HAMP plan and get a different answer everytime we call. The average person would have given up probably in May. Only the strong will survive the modification process. After calling in October to check on our status after five calls as I was curious how many different answers I could possibly get a rep told me that we were denied AUg 28 for our modification, yet noone had bothered to let us know. I am still pursuing the modification and they are now reviewing again. The Home affordable modification should be offered before you default on your loan , I advise everyone to go to the Makinghomeaffordable.gov website. The process is not for the weary, and make your motto NEVER NEVER NEVER GIVE UP, or you will not survive. If you get someone who is being an a$$ hang up and call back, be prepared to get transferred four or five different times, and if your calling from your cell phone make sure you can charge it up, I dont how many times I have spent more than two hours on the phone on hold being transferred and eventually being cut off, and then when I finally get someon who seems to know what they are talking about , my phone goes dead. And of course dont believe everything they say,.. they change their tune for everyone, and the rules change to work against you.
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11-16-2009 @ 12:26PM
jg said...
Kerri,
your experience seems typical of individuals attempting loan mods on their own. The unfortunate truth is that there are few legit resources for help. If you really want professional help you have to be very careful of who you work with. There is one nationwide outfit that is legal and legit that you might look into pmcloanhelp.com This company utilizes only licence professionals as negotiators. They have an excellent track record and a really unique approach to helping homeowners. The way their business works eliminates the possibility of the homeowner getting scammed because it adds oversight to the process and keeps the homeowner involved throughout the process. maybe check it out
11-14-2009 @ 7:53AM
lyn said...
My story is similar to yours Kerrie. CHASE has been giving me the run around since Feb. They finally had me pay 3 payments at a lower amount while they were supposed to determine if I qualified for the loan modification. Well, that was almost 5 months ago. I paid my 3 lowered payments and went back to paying the original amount of the loan on the 4th payment and will continue. The problem is the arrearage while I wait on the modification answer. In the meantime I get letters from the collections dept (every month) telling me to call because they want to help. Each time I call I am rerouted back to the homeowner's assistance program and they tell me to wait until I get a letter from them. This was a rough year which included my being laid off for 4 months. I'm back working making less money than before and I just want to get these payments caught up and put this behind me...but I'm still waiting on the %$^&*** letter or a better ^%$^& answer.
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11-16-2009 @ 2:50AM
Miki said...
It is said that banks are so resistant to providing loan modifications. I think your best choice is to hire a mortgage loan modification consultant who can manage professionally your renegotiation process with your lender. Consultants have a much higher success rate than individual applicants.
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