Over a year ago, July 28, 2011 to be exact, we contacted Alarcon & Associates about helping us get a loan modification with Bank of America. The reason we needed this is because we are now raising 3 grandchildren and the added expenses of doing so has put a serious financial burden on us to say the least.
The first person we had contact us was Florencia Echeveste, Case Manager for Attorneys Legal Network who sent us all the forms to be filled out including setting up 3 payments of $875.00 for the service. Once that was done then Christa Klett, Client Relations Department at Alarcon & Associates contacted us welcoming us and provided information about how the plan works and that there is no promises or guarantees on the rate or terms your lender may offer.
The next person to contact us was Tim Butler at Alarcon & Associates who went over a few things to get the ball rolling. Several months passed by with no information on where things were at other than to request more pay stubs and tas documents. On August 15, 2011 we recieved a Notice of Intent from Bank of America which I immediatly sent off to Alarcon & Associates asking what this was and what we should do. On the same day Christa Klett replied back to my request stating that she forwarded the letter to her manager. At this time she also stated that her manager would be assigning our file to a loss mitigation specialist that day.
On September 19, 2011 we recieved a letter from BOA stating that we needed to pay the full amount due by September 16 (notice the date, the letter was addressed September 6 but we didn't receive it until September 19) or they would start foreclosure. I sent this information to Tim Butler who responded that "the modification is moving forward with Bank of America. As far as the documentation you received that is normal correspondence sent out in the beginning of the foreclosure process. Bank of America has not yet started the process, the modification is being reviewed and they are not requesting anything at this time."
The next correspondence we received was on November 30, 2011 from Brittney Votta at Alarcon & Associates stating, "My name is Brittney from Alarcon & Associates, also handling your loan modification. I just followed up with the bank and all of your documents have been received and rorwarded to the underwriter for review. Every thing looks great and is moving forward. We will be following up when the status changes. Thank you, and have a great day."
On February 15, 2012 my wife sent Tim Butler the following email, "Just curious if you have heard anything on a finalization date on the loan mod. Since it has been quite awhile since the process began we have some questions to review. Can you tell us if the lower payment will be for the remainder of the loan or if the lower payment is for a limited time? Will they lower the loan amount owed to the actual value of the house in today's market and then finally, what happens to the back payments owed at this point in time?"
On February 17,2012 Tim Butler replied, " the rate is lowered for the remainder on the loan, the principal balance will most likely not be dropped although we are working on it, and the money you owe goes to the back of theloan at the lower rate."
In March 2012 we filed chapter 13 bankruptcy which we later canceled and discharged (May 2012). On March 7, 1012 Tim Buler emailed us stating that he had received an email from BOA asking if we had done so. I replied back that we had, provided our attonreys name and contact information.
On March 8, 2012 Tim Butler emailed again saying "that's stops the modification review. I need a letter from your bankruptcy attorney allowing us to move forward with the modification review." Our attorney furnished this to him that day.
On April 18, 2012 I sent and email asking if SOMEONE could please contact ASAP our attorney because our chapter 13 was moving along and the trustee needed the status of the loan modification now. Our attorney has tried to contact him but as of that date had not received any reply to his request."
On April 18, 2011 Tim Butler replied back, "your file is on for a call back tomorrow. I will email him an update at that point."
On April 20, 2011 Brittney Votta from Alarcon & Associates sent us an email stating, I just followed up with the bank and everything is still looking great and is moving forward. It is still in review with your new customer relationship manager named Justin Wiesert. He has received all of your documents you have supplied to us and they are currently still reviewing your file and now requesting: New 710 form, new 4506-T form, 2 most recent consecutive pay stubs, 2 most recent consecutive bank statements, 2011 tax return, current utility bill, and updated HOA fee letter." All this was sent to them again.
On May 8, 2012 I sent Tim Butler an email asking "any answers on where we are at with the loan modification."
On May 21, 2012 I emailed our annual tax assessment asking him to take note of the 100% fair market value now, $104,070. That is a negative $73,930 over the loan amount.
On July 30, 2012 I once again emailed Tim Butler asking if he got the information I sent him last week, where we were at and why is it taking so long, over a year now.
His reply was "I did, documents have been sent. We will be following tomorrow. The process should be wrapped up shortly."
On August 20, 2012 we received a packet via FedEx from BOA with a loan modifiction which at first we thought it was something else not the sameone Alarcon & Associated had been working on because the payments went from $1095.88 to $1147.40 and the interest rate at 3.75%. I scanned all the papers and emailed them to Tim Butler saying "I certainly hope this isn't what we have been waiting over a year for because the payment is now $1147.40 a month for a three month trail period, how do they expect me to pay more when I couldn't pay the lower payment before/"
His reply was "I have received and reviewed the modificatio. Yes that is what you have been waiting for. At this point the finances show you have overcome your hardship. There is no possible way to lower the interest rate any lower because it's a FHA mortgage. You need to sign and return the agreement and make the trail payments."
Nothing has changed with our finances since the beginning except that everything is now costing us more so how can we have overcome the hardship is what I asked in reply to Tim Butler.
His reply was "This is the lowest possible rate you can get with this loan type. If you feel you still can not afford it than you have to look into doing a short sale or a deed in lieu and walk away from the property. He also state that with my income alone the debt to income is 18%, that's more than affordable. The government modification program only lowers your payment to 31%."
Needless to say we are in shock about all of this and feel that they took us for our money and provided nothing in return except a higher house payment and who know if we will continue to have a home after the trail period payments have been made.
PLEASE anyone out there consider using this place DO NOT WASTE YOUR MONEY ON THEM BECASUE THEY WON'T HELP YOU, ONLY SCREW YOU.