As suggested by our loan modification negotiator I contacted Bank of America's business card department to attempt to get a settlement on our charged off credit cards, which was not very successful.
The bank was more than happy to settle on these cards, but with payments that were not affordable. We have two business cards one with a charged off balance of over $40,000 and another of over $10,000. The settlement offer was for 3 payments of a combined total of $6,000. Another alternative was to pay back the entire balances and make payments of a combined total of almost $1,000 a month for five years. This is basically the same balance liquidation programs our personal credit cards are on.
It's not that we don't want to pay what we owe on these cards and we will after we finish paying our other debts, but there is no way we can pay these amounts. Even the payment reduction plan is out of reach once we started paying our mortgage again.
So, I emailed our negotiator and let her now what has happened. She has always been fairly quick to respond back to me, but not this time. She could have been too busy or just didn't feel like telling me, "Well, there is nothing more we can do than."
I probably won't hear anything for sure now until Tuesday. But Bank of America I warn you. If you don't approve this loan modification because we owe you other money, you will awaken a sleeping giant, who will strike back with a force you have yet to reckon with.
The fact that we are denied because payments are being added to our debt that have been charged off and are not being paid is ridiculous. That you tell me because our loan is with Freddie Mac is a problem as well and that all loan mods are not created equal is outrageous. That you gave us a loan modification on our rental property over our primary residence is absurd.
The public must be made aware of the inconsistencies with the banks and the whole loan modification process and I might just be the guy to do it.
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Showing posts with label Bank of America. Show all posts
Showing posts with label Bank of America. Show all posts
Friday, February 18, 2011
Tuesday, December 7, 2010
Doing Better, But Bank of America Can Still Suck It When It Comes to Loan Mod's
Day 341 of my Financial Freedom Countdown
Here's an update to "Bank of America Can Suck It, When it Comes to Loan Modifications." So right after I called my wife and told her we received a letter declining our loan modification with Bank of America, she immediately called the customer advocate that has been assisting us with the loan mod request on our primary residence. Surprisingly, the advocate answered, but promptly told my wife, "Yes, your request for a loan modification has been declined." That was that. First some generic, cut and paste, impersonal, unfeeling, decline letter and now a "So sad for your luck" you don't qualify from our supposed "customer advocate."
My wife had enough with this and promptly asked for her manager's name, which the advocate did provide. Shortly after my wife hung up, she received an email with the customer advocates manager's name and hold on to your butt's for this one. She stated that she was going to re-submit our paperwork for the loan modification.
What were they possibly going to find that they didn't the first time. Well, the next business day, my wife emailed the advocates manager asking specifically why we were turned down and how the hell did we get a loan mod on our rental property and not on our primary residence. Not long after she sent the email, I received a call from our customer advocate to review items from our credit reports. Here's the best part, She read off to me three credit card debt's that were not ours. Whoops, I was wrong. That wasn't the best part. The best part was those three debt's had payments totalling $2,600. I knew this information was incorrect because:
So, Bank of America's over site with this unknown debt reflected, had put an end to our hopes of getting a mod. Until now. The customer advocate re-ran our credit and these charges were no longer reflecting. Wow! It's amazing how things happen. So with the new credit report and those debt's removed our request for a mod is being re-submitted. Maybe now we can get somewhere. I will tell you right now, if you are denied for a loan modification, don't take no for an answer. All you have to save is your home.
[This post is written and copyrighted by Financial Elite (http://financialelite.blogspot.com/ ).]
Did you enjoy reading this article? You can receive free full-text articles from Financial Elite by RSS in your email inbox daily by entering your email HERE. Your email will only be used for this daily subscription, and each email will include a link you may use to unsubscribe at any time. Also follow us on Twitter.
My wife had enough with this and promptly asked for her manager's name, which the advocate did provide. Shortly after my wife hung up, she received an email with the customer advocates manager's name and hold on to your butt's for this one. She stated that she was going to re-submit our paperwork for the loan modification.
What were they possibly going to find that they didn't the first time. Well, the next business day, my wife emailed the advocates manager asking specifically why we were turned down and how the hell did we get a loan mod on our rental property and not on our primary residence. Not long after she sent the email, I received a call from our customer advocate to review items from our credit reports. Here's the best part, She read off to me three credit card debt's that were not ours. Whoops, I was wrong. That wasn't the best part. The best part was those three debt's had payments totalling $2,600. I knew this information was incorrect because:
- We don't have any debts with those kind of payments and...
- I had just run our credit and those debts weren't reflected.
So, Bank of America's over site with this unknown debt reflected, had put an end to our hopes of getting a mod. Until now. The customer advocate re-ran our credit and these charges were no longer reflecting. Wow! It's amazing how things happen. So with the new credit report and those debt's removed our request for a mod is being re-submitted. Maybe now we can get somewhere. I will tell you right now, if you are denied for a loan modification, don't take no for an answer. All you have to save is your home.
[This post is written and copyrighted by Financial Elite (http://financialelite.blogspot.com/ ).]
Did you enjoy reading this article? You can receive free full-text articles from Financial Elite by RSS in your email inbox daily by entering your email HERE. Your email will only be used for this daily subscription, and each email will include a link you may use to unsubscribe at any time. Also follow us on Twitter.
Friday, December 3, 2010
Bank of America Can Suck It, When It Comes to loan Modifications!
Day 337 of my Financial Freedom Countdown
For a bank who knew how to get TARP money, they sure don't know how to pay it back. I say that sarcastically as Bank of America did pay back the TARP money they borrowed and they couldn't wait to pay it back either. Probably so they wouldn't have to answer to anyone in the end, but one thing is for sure, they aren't paying it back to people who paid taxes, who in the end provided them with the TARP loan to begin with.
Month after month Bank of America has been tooting it's horn regarding how many loan modifications they have done to date, not to mention how many they are doing every month. As a matter of fact, Bank of America has the worst loan modification track record and this month it is no different.
Today we received a later stating:
Thank you for contacting us recently to discuss your home loan needs. We understand that it is becoming increasingly difficult for you to make your monthly mortgage payment, and unfortunately we are unable to offer you a workout plan at this time because:
Loan has been reviewed for standard HUD loss mitigation and has been disqualified based on homeowner's (ability to pay/delinquency status). Reviewed for HAMP program. Homeowner does not qualify for HAMP, due to the current front end ratio being below the 31% requirement. The file was also reviewed for other workout programs and the financial information submitted indicates that you do not have the resources to support any of the workout programs available. If your financial situation improves, please contact BAC Home Loans Servicing, LP, for a re-evaluation of your request.
I find this outrageous as just a few months ago Bank of America granted us a loan modification on our investment property. I say that again, "INVESTMENT PROPERTY." The fact that Bank of America gave us a loan mod on our rental property instead of our primary residence is ludicrous. This letter is also ridiculous as to me it is saying, "On one hand you make to much money and the other hand it says you don't make enough." So, which is it Bank of America? We make to much or not enough?
It is no wonder why so many people are having problems getting loan modifications or least the answers to their questions. All this is a bunch of double talk. Does no one know what the hell they are doing? We didn't even get a phone call from the person supposedly there to help us. Just some stupid form letter in the mail. The fact that we are able to get a modification on a rental property and not our primary residence has revealed that, not only is there definitely something awry with Bank of America's loan modification department, but our Federal Government as well. Something needs to be done with these inconsistencies. I am still waiting for the "CHANGE" Mr. President. How about you?
[This post is written and copyrighted by Financial Elite (http://financialelite.blogspot.com/ ).]
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Saturday, September 25, 2010
Bank of America Toots It's Own Horn When it Comes To Loan Modifications
Day 268 of my Financial Freedom Countdown
When is a time on a clock like the whistle of a train? When it's two to two. Toot, Toot, Toot! I have heard so many horror stories with people trying to get loan modifications through Bank of America and yet it seems Bank of America covers it all up by tooting their horn as much as they can.
Rebecca Mairone, Bank of America Home Loan's default servicing executive had this to say, "We continue to help thousands of homeowners through the HAMP and the use of other programs when customers are not eligible for a government supported modification. Our HAMP results in recent months show a reduced number of customers starting new trial modifications, due mainly to the implementation of a full documentation requirement. As a result, we are seeing a smaller increase in completed HAMP modifications month-over-month at this time."
I haved had mixed experiences with Bank of America's loan mod programs and I look at Bank of America's loan mod program as being just plain inconsistent. I received a loan modification on my investment property in a little over two weeks from beginning to end. However, I also have a second mortgage on this property, which they offered no help whatsoever. They tell me the loan had mortgage insurance on it and their claim has been approved so the loan will be going to who knows where. My concern is, now what happens?
What becomes of that second mortgage? Can they still foreclose on the house? I can't find any information on mortgage insurance on second mortgages and what happens if you default on one. Why give me a modification on one loan if you are going to let me default on another? We'll have to see how this plays out.
I have also not received a loan mod on my primary residence as of yet. The bank has been working on this since March and we are no further along then we were when it all started. How am I able to get a loan mod on my invest property, in a matter of weeks, and nothing on the second mortgage attached to the same property and not to mention my primary residence? Does anyone else smell a rat here?
[This post is written and copyrighted by Financial Elite (http://financialelite.blogspot.com/ ).]
Did you enjoy reading this article? You can receive free full-text articles from Financial Elite by RSS in your email inbox daily by entering your email HERE. Your email will only be used for this daily subscription, and each email will include a link you may use to unsubscribe at any time. Also follow us on Twitter.
When is a time on a clock like the whistle of a train? When it's two to two. Toot, Toot, Toot! I have heard so many horror stories with people trying to get loan modifications through Bank of America and yet it seems Bank of America covers it all up by tooting their horn as much as they can.
Rebecca Mairone, Bank of America Home Loan's default servicing executive had this to say, "We continue to help thousands of homeowners through the HAMP and the use of other programs when customers are not eligible for a government supported modification. Our HAMP results in recent months show a reduced number of customers starting new trial modifications, due mainly to the implementation of a full documentation requirement. As a result, we are seeing a smaller increase in completed HAMP modifications month-over-month at this time."
I haved had mixed experiences with Bank of America's loan mod programs and I look at Bank of America's loan mod program as being just plain inconsistent. I received a loan modification on my investment property in a little over two weeks from beginning to end. However, I also have a second mortgage on this property, which they offered no help whatsoever. They tell me the loan had mortgage insurance on it and their claim has been approved so the loan will be going to who knows where. My concern is, now what happens?
What becomes of that second mortgage? Can they still foreclose on the house? I can't find any information on mortgage insurance on second mortgages and what happens if you default on one. Why give me a modification on one loan if you are going to let me default on another? We'll have to see how this plays out.
I have also not received a loan mod on my primary residence as of yet. The bank has been working on this since March and we are no further along then we were when it all started. How am I able to get a loan mod on my invest property, in a matter of weeks, and nothing on the second mortgage attached to the same property and not to mention my primary residence? Does anyone else smell a rat here?
[This post is written and copyrighted by Financial Elite (http://financialelite.blogspot.com/ ).]
Did you enjoy reading this article? You can receive free full-text articles from Financial Elite by RSS in your email inbox daily by entering your email HERE. Your email will only be used for this daily subscription, and each email will include a link you may use to unsubscribe at any time. Also follow us on Twitter.
Tuesday, April 13, 2010
I Have Paid Off $10,991.62 in Debt So Far in 2010
[This post is written and copyrighted by Financial Elite (http://financialelite.blogspot.com/ ).]
Here's my first status update for my five year debt reduction plan. It is amazing what you can accomplish when you sit down and start working things out.
So far to date I am $10,991.62 lighter in debt. It is such a rush to see these balances finally starting to come down. I really can't describe what it is like, but I still have a long way to go as my plan is designed to be debt free in five years.
This first quarter results will probably be the highest for my debt reduction. Mainly because of the awesome offers I received from Chase. Second quarter will be close as all of my credit card re-payment plans will be wrapped up.
I will give kudos to Chase until I am blue in the face for the fantastic deal they gave me on a debt reduction plan.
Under Chase's Balance Liquidation Program or BLP they reduced my interest rates to 0.00%, waived my over the limit and late fees, and took off over $6,700 of interest from my balances to date.
Bank of America did not give me as sweet of a deal, but did lower my interest rates considerably. Between Bank of America's and Chase's debt management plans I am really seeing my debt go done and I am finally feeling that I can beat this and I will once again know what it is like to achieve financial freedom.
Now that I have my credit cards where they are more manageable to pay I will begin working on my next stages of my five year plan to eliminate my six figures of debt, which will include tweaking my budget again and working on getting a making home affordable program or a loan modification.
Stay tuned. The best is yet to come as this blog will be one day re-named Debt Free...Again!
We Also Suggest:
Here's my first status update for my five year debt reduction plan. It is amazing what you can accomplish when you sit down and start working things out.
So far to date I am $10,991.62 lighter in debt. It is such a rush to see these balances finally starting to come down. I really can't describe what it is like, but I still have a long way to go as my plan is designed to be debt free in five years.
This first quarter results will probably be the highest for my debt reduction. Mainly because of the awesome offers I received from Chase. Second quarter will be close as all of my credit card re-payment plans will be wrapped up.
I will give kudos to Chase until I am blue in the face for the fantastic deal they gave me on a debt reduction plan.
Under Chase's Balance Liquidation Program or BLP they reduced my interest rates to 0.00%, waived my over the limit and late fees, and took off over $6,700 of interest from my balances to date.
Bank of America did not give me as sweet of a deal, but did lower my interest rates considerably. Between Bank of America's and Chase's debt management plans I am really seeing my debt go done and I am finally feeling that I can beat this and I will once again know what it is like to achieve financial freedom.
Now that I have my credit cards where they are more manageable to pay I will begin working on my next stages of my five year plan to eliminate my six figures of debt, which will include tweaking my budget again and working on getting a making home affordable program or a loan modification.
Stay tuned. The best is yet to come as this blog will be one day re-named Debt Free...Again!
We Also Suggest:
- Bank of America's Balance Liquidation Program (BLP) Still Sucks
- What's the Best Way to Pay off My Credit Card Debt If I Have a High FICO Credit Score ?
- How did This Economic Crisis Start?
- Should I Use My 401K to Pay Off My Mortgage?
- Should I Take Out a 401K Loan to Pay Off My Credit Cards?
- Follow my journey to pay off debt and subscribe by email.
- Subscribe in a Reader (RSS)
- Follow us on Twitter
- Follow us on Blogger
Sunday, April 11, 2010
How Do You Get Creditors to Re-age Your Account?
[This post is written and copyrighted by Financial Elite (http://financialelite.blogspot.com/ ).]
What does does it mean to re-age your credit card account? In all of my years in banking I have never heard of the term re-aging.
The fact that I have never heard of the term maybe because in my long credit history I had never ever been late on a payment until last year.
I recently set up a good majority of my credit cards with both Chase and Bank of America on what they called their Balance Liquidation Program or BLP. But yesterday I received a letter from Chase stating I now qualified for their Reage Program and I thought what does re-age mean. Here's what I found:
Re-aging a credit card account can give you a fresh start with your creditors! The creditor will give you a clean slate like nothing happened from what I am gathering. So for instance I was 7 months past due on all my accounts. If what I have found in my research is correct that would mean they would remove the 7 months of past due payments from my credit report.
I have also found that a lot of creditors won't re-age your account. So if you try this with your creditors don't be disappointed if they won't do it. Also, some creditors follow federal guidelines, which allows them to re-age your credit cards once in a 12 month period or twice every 5 years.
According to the letter I received from Chase if I fall behind on payments again I may not be eligible for this program again for 5 years.
I have no intention on falling behind on payments again, but I never thought I would ever be late on payment either. So you never know.
I probably wouldn't try re-aging my account if I were only late by a month or so, but if you are a few months behind with your payments then it might be worth it. Also, be sure you are ready to commit to the program before you start it. You don't want to get it going and then not be able to make the established payments.
If what I have found is true and Chase does remove the past due payments that were reported I am going to be tickled pink. Not only did they remove over the limit and late fees, drop my interest rate to 0.00%, and take off thousands in accumulated interest, now they are bringing my account current. Now that's what I call customer service!
We Also Suggest:
What does does it mean to re-age your credit card account? In all of my years in banking I have never heard of the term re-aging.
The fact that I have never heard of the term maybe because in my long credit history I had never ever been late on a payment until last year.
I recently set up a good majority of my credit cards with both Chase and Bank of America on what they called their Balance Liquidation Program or BLP. But yesterday I received a letter from Chase stating I now qualified for their Reage Program and I thought what does re-age mean. Here's what I found:
Re-aging a credit card account can give you a fresh start with your creditors! The creditor will give you a clean slate like nothing happened from what I am gathering. So for instance I was 7 months past due on all my accounts. If what I have found in my research is correct that would mean they would remove the 7 months of past due payments from my credit report.
I have also found that a lot of creditors won't re-age your account. So if you try this with your creditors don't be disappointed if they won't do it. Also, some creditors follow federal guidelines, which allows them to re-age your credit cards once in a 12 month period or twice every 5 years.
According to the letter I received from Chase if I fall behind on payments again I may not be eligible for this program again for 5 years.
I have no intention on falling behind on payments again, but I never thought I would ever be late on payment either. So you never know.
I probably wouldn't try re-aging my account if I were only late by a month or so, but if you are a few months behind with your payments then it might be worth it. Also, be sure you are ready to commit to the program before you start it. You don't want to get it going and then not be able to make the established payments.
If what I have found is true and Chase does remove the past due payments that were reported I am going to be tickled pink. Not only did they remove over the limit and late fees, drop my interest rate to 0.00%, and take off thousands in accumulated interest, now they are bringing my account current. Now that's what I call customer service!
We Also Suggest:
- Bank of America's Balance Liquidation Program (BLP) Still Sucks
- What's the Best Way to Pay off My Credit Card Debt If I Have a High FICO Credit Score ?
- How did This Economic Crisis Start?
- Should I Use My 401K to Pay Off My Mortgage?
- Should I Take Out a 401K Loan to Pay Off My Credit Cards?
- Follow my journey to pay off debt and subscribe by email.
- Subscribe in a Reader (RSS)
- Follow us on Twitter
- Follow us on Blogger
Friday, April 9, 2010
Chase's Balance Liquidation Program Remains the Best...Bank of America's May Have Hit a Snag
[This post is written and copyrighted by Financial Elite (http://financialelite.blogspot.com/ ).]
I am so mad at Bank of America I could scream! To my surprise when I came home tonight I found I received a letter telling me "Act now-before we'll have to write off your account as a bad debt."
Bank of America has offered me to settle on one of my credit cards. Actually, it is the last card that I had put on their Balance Liquidation Program just a few weeks ago.
How the heck could this be. Why would I want to settle? The letter went on to say, "Living with past due bills is stressful. It puts pressure on you and and it can affect your relationships. Why suffer through that when there is a better option?"
A better option? I thought I chose a better option by getting on their debt reduction program. Not being put on the program as requested is what's stressful.
I immediately called 1.877.647.9535 as the letter requested. Not to take the offer, but to find out what the deal was. Although, the letter stated they were open until 8 pm my time, they were closed when I called.
The program normally requires for you to set up an automatic payment plan for at least a year, but this last card was not required to be set up. It has made suspicious that this card didn't not get set up as requested.
I am really hoping this letter was just crossed in the mailed. Otherwise, I am going to go through the roof if this card wasn't put on the program. I'll be calling again first thing in the morning.
In the meantime, Chase's Balance Liquidation Program is running smooth as silk. My credit repair and five year plan to pay off my six figures of debt is in full swing.
Chase has waived my over the limit and late fees, deducted thousands of accumulated interest from my balances, and dropped my interest rates to 0.00%. What more can I ask for?
I'll find out tomorrow, but I hope Bank of America hasn't royally screwed up.
We Also Suggest:
I am so mad at Bank of America I could scream! To my surprise when I came home tonight I found I received a letter telling me "Act now-before we'll have to write off your account as a bad debt."
Bank of America has offered me to settle on one of my credit cards. Actually, it is the last card that I had put on their Balance Liquidation Program just a few weeks ago.
How the heck could this be. Why would I want to settle? The letter went on to say, "Living with past due bills is stressful. It puts pressure on you and and it can affect your relationships. Why suffer through that when there is a better option?"
A better option? I thought I chose a better option by getting on their debt reduction program. Not being put on the program as requested is what's stressful.
I immediately called 1.877.647.9535 as the letter requested. Not to take the offer, but to find out what the deal was. Although, the letter stated they were open until 8 pm my time, they were closed when I called.
The program normally requires for you to set up an automatic payment plan for at least a year, but this last card was not required to be set up. It has made suspicious that this card didn't not get set up as requested.
I am really hoping this letter was just crossed in the mailed. Otherwise, I am going to go through the roof if this card wasn't put on the program. I'll be calling again first thing in the morning.
In the meantime, Chase's Balance Liquidation Program is running smooth as silk. My credit repair and five year plan to pay off my six figures of debt is in full swing.
Chase has waived my over the limit and late fees, deducted thousands of accumulated interest from my balances, and dropped my interest rates to 0.00%. What more can I ask for?
I'll find out tomorrow, but I hope Bank of America hasn't royally screwed up.
We Also Suggest:
- Bank of America's Balance Liquidation Program (BLP) Still Sucks
- What's the Best Way to Pay off My Credit Card Debt If I Have a High FICO Credit Score ?
- How did This Economic Crisis Start?
- Should I Use My 401K to Pay Off My Mortgage?
- Should I Take Out a 401K Loan to Pay Off My Credit Cards?
- Follow my journey to pay off debt and subscribe by email.
- Subscribe in a Reader (RSS)
- Follow us on Twitter
- Follow us on Blogger
Thursday, April 8, 2010
Is Your Financial Crisis Nearing the End?
[This post is written and copyrighted by Financial Elite (http://financialelite.blogspot.com/ ).]
Your credit score has been decimated, you may have lost your job or taken a reduction in pay, your 401K fell like a rock, you may have even lost your home or are facing a foreclosure. After all this, do feel like the financial crisis is behind you?
Reports last week show the economy grew at 5.9% in the fourth quarter of 2009. The stock market is still down from its highs, but is up about 70% over the past year and the White House is stating the "The trend has turned."
For many, including me, our financial recovery is far from over. My income had fallen to a third of what it once was, I accumulated over six figures of debt, my credit, which was once had a high FICO score of 811 has most assuredly taken a dive, and my homes have lost over a quarter million in combined value.
If you are experiencing similar circumstances you are probably feeling like there is no way things will ever get better. But is it really as bad as it seems? A number of studies by behavioral finance experts show, we are naturally programmed to think things are worse than they actually are and thoughts like that can actually keep you from getting your finances back on track.
Taking control of your money means taking control of your emotions that can prevent you from making wise financial decisions and that would normally guide you in devising an action plan to help reach your financial goals.
I have felt like there was no hope of paying off my debt both times that I hit the six figure mark. Both times I looked at bankruptcy as the only answer, but it doesn't have to be that way.
I had really thought back about the first time I was in massive debt and how I paid it off. This second go around at six figures of debt is no different.
The feelings of hopelessness have begun to fall by the way side. The first time I decided bankruptcy wasn't an option for me I developed a plan and stuck to it and just as I paid off that debt in five years I have developed a new financial plan to payoff this debt in five years too.
This mindset along with the first stage of my plan (get on a debt reduction program) has begun working wonders with my finances.
Talking to my creditors and putting my credit cards on balance liquidation programs with Chase and Bank of America has begun to turn my emotions from despair to abundance.
With the Chase accounts having their interest rates dropped to 0.00% and thousands of interest charges being waived has allowed my to see light at the end of the tunnel. Just looking at the statements and watching the balances go down gives me such a thrill now it just makes me want to keep going and as Dave Ramsey says, "Run from that debt like a gazelle."
So make a plan and stick to it. Come out of the closet and let people know the jam you are in. Research shows you make better progress towards your goals if you are kept accountable. Let your family and friends know your plans.
If you don't feel you are ready to tell them yet you can tell me. Just email me and I'll encourage and hold you accountable to paying off your debt. If that doesn't work for you either you can make a "commitment contract" on Stickk.com, which will force you to cough up cold hard cash if you don't make your goal. Whichever way you want to come clean--just do it already!
We Also Suggest:
Your credit score has been decimated, you may have lost your job or taken a reduction in pay, your 401K fell like a rock, you may have even lost your home or are facing a foreclosure. After all this, do feel like the financial crisis is behind you?
Reports last week show the economy grew at 5.9% in the fourth quarter of 2009. The stock market is still down from its highs, but is up about 70% over the past year and the White House is stating the "The trend has turned."
For many, including me, our financial recovery is far from over. My income had fallen to a third of what it once was, I accumulated over six figures of debt, my credit, which was once had a high FICO score of 811 has most assuredly taken a dive, and my homes have lost over a quarter million in combined value.
If you are experiencing similar circumstances you are probably feeling like there is no way things will ever get better. But is it really as bad as it seems? A number of studies by behavioral finance experts show, we are naturally programmed to think things are worse than they actually are and thoughts like that can actually keep you from getting your finances back on track.
Taking control of your money means taking control of your emotions that can prevent you from making wise financial decisions and that would normally guide you in devising an action plan to help reach your financial goals.
I have felt like there was no hope of paying off my debt both times that I hit the six figure mark. Both times I looked at bankruptcy as the only answer, but it doesn't have to be that way.
I had really thought back about the first time I was in massive debt and how I paid it off. This second go around at six figures of debt is no different.
The feelings of hopelessness have begun to fall by the way side. The first time I decided bankruptcy wasn't an option for me I developed a plan and stuck to it and just as I paid off that debt in five years I have developed a new financial plan to payoff this debt in five years too.
This mindset along with the first stage of my plan (get on a debt reduction program) has begun working wonders with my finances.
Talking to my creditors and putting my credit cards on balance liquidation programs with Chase and Bank of America has begun to turn my emotions from despair to abundance.
With the Chase accounts having their interest rates dropped to 0.00% and thousands of interest charges being waived has allowed my to see light at the end of the tunnel. Just looking at the statements and watching the balances go down gives me such a thrill now it just makes me want to keep going and as Dave Ramsey says, "Run from that debt like a gazelle."
So make a plan and stick to it. Come out of the closet and let people know the jam you are in. Research shows you make better progress towards your goals if you are kept accountable. Let your family and friends know your plans.
If you don't feel you are ready to tell them yet you can tell me. Just email me and I'll encourage and hold you accountable to paying off your debt. If that doesn't work for you either you can make a "commitment contract" on Stickk.com, which will force you to cough up cold hard cash if you don't make your goal. Whichever way you want to come clean--just do it already!
We Also Suggest:
- Bank of America's Balance Liquidation Program (BLP) Still Sucks
- What's the Best Way to Pay off My Credit Card Debt If I Have a High FICO Credit Score ?
- How did This Economic Crisis Start?
- Should I Use My 401K to Pay Off My Mortgage?
- Should I Take Out a 401K Loan to Pay Off My Credit Cards?
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Wednesday, April 7, 2010
Emergency Fund Depleted and Cutting Into the Budget
[This post is written and copyrighted by Financial Elite (http://financialelite.blogspot.com/ ).]
Well the $400 start to my emergency fund has been depleted. I bought three new tires for my car and went over budget by $109.
I originally had planned to buy two new tires for my car. The front two were the worse and actually were pretty bad, but the rear tires didn't seem that bad to me and I had hoped to be able to wait on those.
Turns out the rear tires were pretty bad too and so I went ahead and bought a full set. I was really happy with the price that Discount Tire gave me for the four tires.
Originally, I had planned to get two run flat tires and hold off on the other two. The tire shop just about matched the price for the four regular tires that what the two run flats would have cost me. Although, my budget was $400 I did get out the door for $509.
The extra $109 cut into my budget of what I wanted to spend, but actually my budget overall had a $200 surplus that I haven't allocated yet. So it wasn't too bad.
I am determined to keep an eye on my finances and not go over my budget or have to charge on my credit cards. I also don't want to jeopardize my balance liquidation programs.
I have the majority of my credit cards set up on a debt reduction program or BLP with Chase and Bank of America and I am determined to make sure I always make those payments on time.
If I miss a payment I can be removed from the program and if that happens my accounts will return to their high interest rates and all the fees and interest that Chase waived will be added to the card balances one again.
I should be able to start re-building my emergency fund within the next week. I'll keep you posted.
We Also Suggest:
Well the $400 start to my emergency fund has been depleted. I bought three new tires for my car and went over budget by $109.
I originally had planned to buy two new tires for my car. The front two were the worse and actually were pretty bad, but the rear tires didn't seem that bad to me and I had hoped to be able to wait on those.
Turns out the rear tires were pretty bad too and so I went ahead and bought a full set. I was really happy with the price that Discount Tire gave me for the four tires.
Originally, I had planned to get two run flat tires and hold off on the other two. The tire shop just about matched the price for the four regular tires that what the two run flats would have cost me. Although, my budget was $400 I did get out the door for $509.
The extra $109 cut into my budget of what I wanted to spend, but actually my budget overall had a $200 surplus that I haven't allocated yet. So it wasn't too bad.
I am determined to keep an eye on my finances and not go over my budget or have to charge on my credit cards. I also don't want to jeopardize my balance liquidation programs.
I have the majority of my credit cards set up on a debt reduction program or BLP with Chase and Bank of America and I am determined to make sure I always make those payments on time.
If I miss a payment I can be removed from the program and if that happens my accounts will return to their high interest rates and all the fees and interest that Chase waived will be added to the card balances one again.
I should be able to start re-building my emergency fund within the next week. I'll keep you posted.
We Also Suggest:
- Bank of America's Balance Liquidation Program (BLP) Still Sucks
- What's the Best Way to Pay off My Credit Card Debt If I Have a High FICO Credit Score ?
- How did This Economic Crisis Start?
- Should I Use My 401K to Pay Off My Mortgage?
- Should I Take Out a 401K Loan to Pay Off My Credit Cards?
- Follow my journey to pay off debt and subscribe by email.
- Subscribe in a Reader (RSS)
- Follow us on Twitter
- Follow us on Blogger
Monday, March 29, 2010
Kudos To Wells Fargo Financial
[This post is written and copyrighted by Financial Elite (http://financialelite.blogspot.com/ ).]
I talk up a storm with giving kudos to Chase and their Balance Liquidation Program and helping my financial situation and my six figures of debt. They have reduced my balances by removing thousands in interest and fees. Way to go Chase and thanks so much for your help.
Now I have to give kudos to Wells Fargo Financial. A couple of months ago, when I was looking into bankruptcy, I had quit paying all of my accounts including my account with Wells Fargo. So of course I received an over the limit fee and a late fee.
However, today I received my statement for my next payment and was pleasantly surprised to find a credit for the overlimit fee. I didn't even ask for it. I was totally expecting to pay the fee, but Wells removed it with no questions asked.
Also, while reviewing the statement I am consistently floored by the required statement format. Creditors are now required to disclose how long it will take to pay off the debt by paying the minimum payment.
In my case by paying the minimum payment it would take 22 years to pay off the debt. By paying an extra $34 it knocks the re-payment time down to 3 years. Saving 21 years of payments and $5,577 in interest.
My goal (using Dave Ramsey's plan) is to payoff my smaller balanced card, which I am currently paying $43 a month on, and then take that $43 and apply it to the minimum balance on this card and paying it off sooner than later.
So far banks in my book are as follows:
Chase 1
Wells Fargo 1
Bank of America .5
Thanks Chase and Wells Fargo for stepping up to the plate for customers that want to pay back what they owe you.
I talk up a storm with giving kudos to Chase and their Balance Liquidation Program and helping my financial situation and my six figures of debt. They have reduced my balances by removing thousands in interest and fees. Way to go Chase and thanks so much for your help.
Now I have to give kudos to Wells Fargo Financial. A couple of months ago, when I was looking into bankruptcy, I had quit paying all of my accounts including my account with Wells Fargo. So of course I received an over the limit fee and a late fee.
However, today I received my statement for my next payment and was pleasantly surprised to find a credit for the overlimit fee. I didn't even ask for it. I was totally expecting to pay the fee, but Wells removed it with no questions asked.
Also, while reviewing the statement I am consistently floored by the required statement format. Creditors are now required to disclose how long it will take to pay off the debt by paying the minimum payment.
In my case by paying the minimum payment it would take 22 years to pay off the debt. By paying an extra $34 it knocks the re-payment time down to 3 years. Saving 21 years of payments and $5,577 in interest.
My goal (using Dave Ramsey's plan) is to payoff my smaller balanced card, which I am currently paying $43 a month on, and then take that $43 and apply it to the minimum balance on this card and paying it off sooner than later.
So far banks in my book are as follows:
Chase 1
Wells Fargo 1
Bank of America .5
Thanks Chase and Wells Fargo for stepping up to the plate for customers that want to pay back what they owe you.
Sunday, March 28, 2010
Is Bank of America Helping People with Their Balance Liquidation Program?
[This post is written and copyrighted by Financial Elite (http://financialelite.blogspot.com/ ).]
I have put several of my accounts on Bank of America's Balance Liquidation program. I am happy to say that I am no longer accruing late and over the limit fees and that my interest rates were reduced considerably.
It turns out that I am not the only. According to Bank of America they have modified 1.4 million consumer and small business credit card accounts. Under the banks BLP program the modifications may include a rate reduction, elimination of fees or debt settlement.
Tom Home, from Bank of America's Proactive Account Review team says, "Customers want to pay their bills and maintain a positive credit history." Home also said, "We do everything in our power to help them get back on a more solid footing, while at the same time doing all we can to mitigate credit losses for the company. It is a delicate balance, but we have an extremely talented team committed to doing just that."
Although Bank of America did drop my interest rates I still feel they could have done better. Chase lowered my rates, as well, but they lowered them to 0.00%. They also waived thousands in interest, where Bank of America waived nothing.
The banks states that they helped more than 1 million consumer credit card customers last year alone with their loan modification programs and gave customers a new payment schedule, revised annual percentage rate or reduced fees. These are the same offers I received, but is that really all they can do?
One solution they offered a customer was an internal "fixed-payment" solution. With the fixed-payment program, the card is closed and the customer pays off the loan in full over 60 months with reduced fees. This customer supposedly had their payment dropped by more than half and he went from considering bankruptcy to being hopeful.
All of this sounds like exactly what I received, but only one of my payments were cut in half under Bank of America's plan. I have said this before that the bank didn't have to do anything, but when they talk about clients wanting to pay back what they borrowed, they are talking about me.
I am choosing not to file bankruptcy and I am working on doing the right thing. So come on Bank of America you can do better. Step up to the plate and do what Chase has done. Drop those rates to zero percent, waive some interest and fees, and maybe make those 60 months of payments to 72 months of payments. Or even more.
Bank of America's new motto is "Making Successful Home Owners". Let's make some successful credit card holders too.
I have put several of my accounts on Bank of America's Balance Liquidation program. I am happy to say that I am no longer accruing late and over the limit fees and that my interest rates were reduced considerably.
It turns out that I am not the only. According to Bank of America they have modified 1.4 million consumer and small business credit card accounts. Under the banks BLP program the modifications may include a rate reduction, elimination of fees or debt settlement.
Tom Home, from Bank of America's Proactive Account Review team says, "Customers want to pay their bills and maintain a positive credit history." Home also said, "We do everything in our power to help them get back on a more solid footing, while at the same time doing all we can to mitigate credit losses for the company. It is a delicate balance, but we have an extremely talented team committed to doing just that."
Although Bank of America did drop my interest rates I still feel they could have done better. Chase lowered my rates, as well, but they lowered them to 0.00%. They also waived thousands in interest, where Bank of America waived nothing.
The banks states that they helped more than 1 million consumer credit card customers last year alone with their loan modification programs and gave customers a new payment schedule, revised annual percentage rate or reduced fees. These are the same offers I received, but is that really all they can do?
One solution they offered a customer was an internal "fixed-payment" solution. With the fixed-payment program, the card is closed and the customer pays off the loan in full over 60 months with reduced fees. This customer supposedly had their payment dropped by more than half and he went from considering bankruptcy to being hopeful.
All of this sounds like exactly what I received, but only one of my payments were cut in half under Bank of America's plan. I have said this before that the bank didn't have to do anything, but when they talk about clients wanting to pay back what they borrowed, they are talking about me.
I am choosing not to file bankruptcy and I am working on doing the right thing. So come on Bank of America you can do better. Step up to the plate and do what Chase has done. Drop those rates to zero percent, waive some interest and fees, and maybe make those 60 months of payments to 72 months of payments. Or even more.
Bank of America's new motto is "Making Successful Home Owners". Let's make some successful credit card holders too.
Monday, March 22, 2010
What Happens if I Miss a Payment After I Start the BLP Program
[This post is written and copyrighted by Financial Elite (http://financialelite.blogspot.com/ ).]
I have been tickled pink over Bank of America and Chase's Balance Liquidation Program or BLP. Although Chase did much more for me than Bank of America, the help the both provided for me is phenomenal.
After planning my basic budget there was no way I could continue to make payments to these creditors. So I am thankful for everything they've done to help, whether it was a little or a lot..
As I have written before Chase reduced my interest rates to 0%. Waived thousands in late and over the limit fees and thousands in interest. But what happens if I fall behind again or miss a payment under the BLP program?
I received letter from Chase describing exactly what will happen if I am late or miss payments under their debt reduction program.
If my first payment was returned for insufficient funds, my account would not have been enrolled and I would have been charged a returned payment fee.
Also, in the event I miss two consecutive program payments or up to 5 program payments within my program term, I will be removed from the program, my credit for my interest and waived late and over the limit fees will be reapplied to my account and the interest rate will be returned to what it was before.
If you need help with your credit card payments definitely contact your creditor and see what they can do for you. But be sure you can afford the new payments they offer you before you commit. Otherwise, you could end up right back where you started.
I have been tickled pink over Bank of America and Chase's Balance Liquidation Program or BLP. Although Chase did much more for me than Bank of America, the help the both provided for me is phenomenal.
After planning my basic budget there was no way I could continue to make payments to these creditors. So I am thankful for everything they've done to help, whether it was a little or a lot..
As I have written before Chase reduced my interest rates to 0%. Waived thousands in late and over the limit fees and thousands in interest. But what happens if I fall behind again or miss a payment under the BLP program?
I received letter from Chase describing exactly what will happen if I am late or miss payments under their debt reduction program.
If my first payment was returned for insufficient funds, my account would not have been enrolled and I would have been charged a returned payment fee.
Also, in the event I miss two consecutive program payments or up to 5 program payments within my program term, I will be removed from the program, my credit for my interest and waived late and over the limit fees will be reapplied to my account and the interest rate will be returned to what it was before.
If you need help with your credit card payments definitely contact your creditor and see what they can do for you. But be sure you can afford the new payments they offer you before you commit. Otherwise, you could end up right back where you started.
Sunday, March 21, 2010
Where Can I Get Help Dealing with My Credit Card Debt?
[This post is written and copyrighted by Financial Elite (http://financialelite.blogspot.com/ ).]
At the beginning of this year I had begun looking into bankruptcy. I quickly decided to seek other alternatives before going that route.
Having had six figures of debt before and paying back every penny I had decided that I could probably pay it off again. So I decided to contact my creditors and see if I could get any help.
I started with Bank of America first. I discussed their Balance Liquidation Program or BLP with them. They had offered me reduced interest rates on all my credit cards, but didn't offer waiving any late fees.
I decided to check other options before committing to the banks BLP program. A lot of people I know have considered using a debt consolidation company to help with their credit card debt. You do NOT want to go this route.
These kind of offers are usually rip-offs and can end up doing more harm than good. Now matter how good the offer they make sounds, don't do it.
These companies generally don't tell you that they will probably charge 10 percent of what you owe on your credit card balances. In the event they do end up working out a settlement with your creditors they will most likely charge you another 10 percent on the amount they "save" you.
These types of companies will most likely NOT tell you that what they have negotiated for you will destroy your credit score and that you will end up owing income tax on the amount that was forgiven. So this was not the way to go for me.
So I contacted the National Foundation for Credit Counseling. The NFCC is a network of nonprofit agencies trained to help you asses your financial situation and plan out the steps necessary for you to follow. Remember they don't wave a magic wand and make everything go away. Getting out of debt is no easy thing. Unless, you have a rich uncle willing to pay it all off for you or you hit the lottery you will have to work hard at paying off your debt.
When I made my appointment with my local NFCC I had to wait over a week to get in to see anyone. Which means there are a lot of other people in this situation. It also makes me feel good that people are looking into other options rather than throwing in the towel and filing bankruptcy.
The meeting was interesting in the fact that after laying out a quick budget that there was absolutely no reason for me to file bankruptcy and I should take the banks offer and run.
The interest rates that the banks offered could not be beat by the NFCC. The rates would have been pretty close, but it wasn't worth taking. Even though the rates were almost comparable, it would have meant I would have it reported on my credit report that I was using a credit counseling service. So going with the banks BLP was the way to go.
I have one more card to set with Chase and then all of my accounts will be under the balance liquidation program.
If you are looking for help with your credit card repayments definitely start with your bank first and see what they can offer you. If that doesn't work give the NFCC a call at 800-388-2227 or visit them at nfcc.org. They're the ones you can trust.
We also recommend:
Chase's Balance Liquidation Program is Fantastic
Should I Use a Debt Consolidation Company To Pay Off My Debt?
Bank of America's Balance Liquidation Program (BLP) Still Sucks
At the beginning of this year I had begun looking into bankruptcy. I quickly decided to seek other alternatives before going that route.
Having had six figures of debt before and paying back every penny I had decided that I could probably pay it off again. So I decided to contact my creditors and see if I could get any help.
I started with Bank of America first. I discussed their Balance Liquidation Program or BLP with them. They had offered me reduced interest rates on all my credit cards, but didn't offer waiving any late fees.
I decided to check other options before committing to the banks BLP program. A lot of people I know have considered using a debt consolidation company to help with their credit card debt. You do NOT want to go this route.
These kind of offers are usually rip-offs and can end up doing more harm than good. Now matter how good the offer they make sounds, don't do it.
These companies generally don't tell you that they will probably charge 10 percent of what you owe on your credit card balances. In the event they do end up working out a settlement with your creditors they will most likely charge you another 10 percent on the amount they "save" you.
These types of companies will most likely NOT tell you that what they have negotiated for you will destroy your credit score and that you will end up owing income tax on the amount that was forgiven. So this was not the way to go for me.
So I contacted the National Foundation for Credit Counseling. The NFCC is a network of nonprofit agencies trained to help you asses your financial situation and plan out the steps necessary for you to follow. Remember they don't wave a magic wand and make everything go away. Getting out of debt is no easy thing. Unless, you have a rich uncle willing to pay it all off for you or you hit the lottery you will have to work hard at paying off your debt.
When I made my appointment with my local NFCC I had to wait over a week to get in to see anyone. Which means there are a lot of other people in this situation. It also makes me feel good that people are looking into other options rather than throwing in the towel and filing bankruptcy.
The meeting was interesting in the fact that after laying out a quick budget that there was absolutely no reason for me to file bankruptcy and I should take the banks offer and run.
The interest rates that the banks offered could not be beat by the NFCC. The rates would have been pretty close, but it wasn't worth taking. Even though the rates were almost comparable, it would have meant I would have it reported on my credit report that I was using a credit counseling service. So going with the banks BLP was the way to go.
I have one more card to set with Chase and then all of my accounts will be under the balance liquidation program.
If you are looking for help with your credit card repayments definitely start with your bank first and see what they can offer you. If that doesn't work give the NFCC a call at 800-388-2227 or visit them at nfcc.org. They're the ones you can trust.
We also recommend:
Chase's Balance Liquidation Program is Fantastic
Should I Use a Debt Consolidation Company To Pay Off My Debt?
Bank of America's Balance Liquidation Program (BLP) Still Sucks
Friday, March 19, 2010
Bank of America's Balance Liquidation Program (BLP) Still Sucks
Last but not least, I set up the last of my Bank of America credit cards on their Balance Liquidation Program or BLP.
The Balance Liquidation Program is designed to help you repay your credit card debt in five years with a reduced interest rate. After my first go at a budget I had determined there was no way I was going to able to pay all of my creditors without some help.
Bank of America was the first creditor I began working with to payoff my six figures of debt. They took all of my expenses and income into consideration to determine how much I could afford to pay towards my debt.
I initially was pretty happy with what Bank of America had offered me. On one card they lowered my interest rate by 26 percent, the other by 13 percent, and this last one by 9 percent. They also waived any over the limit fees from now on.
My payments in some cases have dropped by as much as half. So I didn't think that it was all that bad deal...at first.
When I moved on to my credit cards with Chase I was floored at what they offered me. First off Chase did not go into as much detail with my expenses as Bank of America did. Next they offered to drop my interest rates to zero percent. But the greatest part of it all was they waived thousands in interest and late and over the limit fees.
Either way Bank of America didn't have to do anything. They could have sent me to collections or charged the account off. But again I would not be able to pay back my six figures in debt without it and it did fit into the budget. I just wish Bank of America helped a little bit more compared to what Chase offered to me. Come on Bank of America you could do better.
[This post is written and copyrighted by Financial Elite (http://financialelite.blogspot.com/ ).]
We Also Suggest:
The Balance Liquidation Program is designed to help you repay your credit card debt in five years with a reduced interest rate. After my first go at a budget I had determined there was no way I was going to able to pay all of my creditors without some help.
Bank of America was the first creditor I began working with to payoff my six figures of debt. They took all of my expenses and income into consideration to determine how much I could afford to pay towards my debt.
I initially was pretty happy with what Bank of America had offered me. On one card they lowered my interest rate by 26 percent, the other by 13 percent, and this last one by 9 percent. They also waived any over the limit fees from now on.
My payments in some cases have dropped by as much as half. So I didn't think that it was all that bad deal...at first.
When I moved on to my credit cards with Chase I was floored at what they offered me. First off Chase did not go into as much detail with my expenses as Bank of America did. Next they offered to drop my interest rates to zero percent. But the greatest part of it all was they waived thousands in interest and late and over the limit fees.
Either way Bank of America didn't have to do anything. They could have sent me to collections or charged the account off. But again I would not be able to pay back my six figures in debt without it and it did fit into the budget. I just wish Bank of America helped a little bit more compared to what Chase offered to me. Come on Bank of America you could do better.
[This post is written and copyrighted by Financial Elite (http://financialelite.blogspot.com/ ).]
We Also Suggest:
- Bank of America's Balance Liquidation Program (BLP) Still Sucks
- Kudos to Chase...Bank of America Can Suck It
- Chase's BLP is Awesome...Bank of America's Sucks
- What's the Best Way to Pay off My Credit Card Debt If I Have a High FICO Credit Score ?
- How did This Economic Crisis Start?
- Should I Use My 401K to Pay Off My Mortgage?
- Should I Take Out a 401K Loan to Pay Off My Credit Cards?
- Chase's Balance Liquidation Program is Fantastic
- Follow my journey to pay off debt and subscribe by email.
- Subscribe in a Reader (RSS)
- Follow us on Twitter
- Follow us on Blogger
Tuesday, March 16, 2010
Chase's BLP is Awesome, But Bank of America's Sucks
[This post is written and copyrighted by Financial Elite (http://financialelite.blogspot.com/ ).]
I have proceeded to move on to the next stage of my five year plan to payoff my debt and made some calls to my creditors.
First up I called Chase about setting up another account on their Balance Liquidation Program. In which they set up your account on a five year repayment plan. Just like the last card I set up on the BLP, Chase was just awesome.
Not only did they reduce the interest on the account to zero percent. They waived the late and over the limit fees. Plus the icing on the cake was they knocked thousands off the interest that accrued over the last few months.
I can't say enough about this program with Chase. For me this is exactly what consumers need to get help. I truly feel they want you to be successful in being able to make your payments.
Oh, one other thing, I had previously talked to Chase about adding this card to the program and they wanted a higher payment. But today they were willing to take $95 less for this month if I went ahead and took the deal. I immediately jumped on it.
Next I talked to Bank of America about setting up my last account with them on their program. But just like the other accounts I had previously set up on their repayment program Bank of America was not as generous as Chase.
Although, as I have said before, B of A doesn't need to do anything, but I think they could do better. They would not waive any of the late or over the limit fees. They would not waive any interest, but they did drop the interest rate by 8%. It's pretty close to zero percent, but Bank of America still disappoints me. Especially, since I have been a client for 20 years.
We Also Suggest:
I have proceeded to move on to the next stage of my five year plan to payoff my debt and made some calls to my creditors.
First up I called Chase about setting up another account on their Balance Liquidation Program. In which they set up your account on a five year repayment plan. Just like the last card I set up on the BLP, Chase was just awesome.
Not only did they reduce the interest on the account to zero percent. They waived the late and over the limit fees. Plus the icing on the cake was they knocked thousands off the interest that accrued over the last few months.
I can't say enough about this program with Chase. For me this is exactly what consumers need to get help. I truly feel they want you to be successful in being able to make your payments.
Oh, one other thing, I had previously talked to Chase about adding this card to the program and they wanted a higher payment. But today they were willing to take $95 less for this month if I went ahead and took the deal. I immediately jumped on it.
Next I talked to Bank of America about setting up my last account with them on their program. But just like the other accounts I had previously set up on their repayment program Bank of America was not as generous as Chase.
Although, as I have said before, B of A doesn't need to do anything, but I think they could do better. They would not waive any of the late or over the limit fees. They would not waive any interest, but they did drop the interest rate by 8%. It's pretty close to zero percent, but Bank of America still disappoints me. Especially, since I have been a client for 20 years.
We Also Suggest:
- Bank of America's Balance Liquidation Program (BLP) Still Sucks
- What's the Best Way to Pay off My Credit Card Debt If I Have a High FICO Credit Score ?
- How did This Economic Crisis Start?
- Should I Use My 401K to Pay Off My Mortgage?
- Should I Take Out a 401K Loan to Pay Off My Credit Cards?
- Follow my journey to pay off debt and subscribe by email.
- Subscribe in a Reader (RSS)
- Follow us on Twitter
- Follow us on Blogger
Sunday, March 14, 2010
Kudos for Chase...Bank of America Can Suck It
[This post is written and copyrighted by Financial Elite (http://financialelite.blogspot.com/ ).]
Well here we go again at another go around of paying off six figures of debt. The first time around took me five years and that is what I am expecting to happen again this time.
As we have discussed before so many of my friends and family members are throwing in the towel and filing bankruptcy and letting their homes go. I will admit the last time I was in this much debt I had really considered bankruptcy and I have definitely considered it again.
My thinking though is I paid of my six figures of debt before and I can do it again. There are a couple of differences between this time than last though. The first go round I was never late on any payment. This time I have been late and I am going to need some help.
So I have started going down the line and began calling my creditors. Starting with Bank of America.
Bank of America offered me a what I thought was a generous five year repayment plan. Lowering my interest and payments. I have three personal accounts and have begun working on two of them. The first one was a credit card with an interest rate of 27.99% and a payment of $820. This card now has an interest rate of 2% and a payment of $450. The second is a credit line that had a 17.99% interest rate and a payment of $279. This line now has a rate of 5% and a payment of $210.
Next I began working on Chase. Chase offered a similar plan, but a way better deal. First off Chase dropped my interest rate to zero. Did you hear that? Zip, Zilch, nada, not one cent. They offered me the same five year plan Bank of America did, but not only did they drop my interest rate to zero, they took off all the interest and waived any late and over the limit fees. Now that's what I call working with your client.
Bank of America did not have to a thing for me. They could have just sent me to collections with no deal whatsoever and their deal was better than what Consumer Credit Counseling could have got for me, but for being a twenty year client with multiple loans you think they could have done better. I guess at least it's better than nothing.
We Also Suggest:
Well here we go again at another go around of paying off six figures of debt. The first time around took me five years and that is what I am expecting to happen again this time.
As we have discussed before so many of my friends and family members are throwing in the towel and filing bankruptcy and letting their homes go. I will admit the last time I was in this much debt I had really considered bankruptcy and I have definitely considered it again.
My thinking though is I paid of my six figures of debt before and I can do it again. There are a couple of differences between this time than last though. The first go round I was never late on any payment. This time I have been late and I am going to need some help.
So I have started going down the line and began calling my creditors. Starting with Bank of America.
Bank of America offered me a what I thought was a generous five year repayment plan. Lowering my interest and payments. I have three personal accounts and have begun working on two of them. The first one was a credit card with an interest rate of 27.99% and a payment of $820. This card now has an interest rate of 2% and a payment of $450. The second is a credit line that had a 17.99% interest rate and a payment of $279. This line now has a rate of 5% and a payment of $210.
Next I began working on Chase. Chase offered a similar plan, but a way better deal. First off Chase dropped my interest rate to zero. Did you hear that? Zip, Zilch, nada, not one cent. They offered me the same five year plan Bank of America did, but not only did they drop my interest rate to zero, they took off all the interest and waived any late and over the limit fees. Now that's what I call working with your client.
Bank of America did not have to a thing for me. They could have just sent me to collections with no deal whatsoever and their deal was better than what Consumer Credit Counseling could have got for me, but for being a twenty year client with multiple loans you think they could have done better. I guess at least it's better than nothing.
We Also Suggest:
- Bank of America's Balance Liquidation Program (BLP) Still Sucks
- What's the Best Way to Pay off My Credit Card Debt If I Have a High FICO Credit Score ?
- How did This Economic Crisis Start?
- Should I Use My 401K to Pay Off My Mortgage?
- Should I Take Out a 401K Loan to Pay Off My Credit Cards?
- Follow my journey to pay off debt and subscribe by email.
- Subscribe in a Reader (RSS)
- Follow us on Twitter
- Follow us on Blogger
Tuesday, January 26, 2010
Are Their Mortgage Loan Modifications For Second Liens? Bank of America to be First to Offer.
From Bank of America: Bank becomes first mortgage servicer to commit to Treasury's Second Lien Modification Program
Bank of America announced that it is the first mortgage servicer to sign an agreement formally committing to participation in the pending second-lien component of the federal government's Home Affordable Modification Program (HAMP)
Bank of America has systems in place to begin implementing the Second Lien Modification Program (2MP) with the release of final program policies and guidelines by federal regulatory agencies, which is expected soon. 2MP will require modifications that reduce the monthly payments on qualifying home equity loans and lines of credit under certain conditions, including completion of HAMP modification on the first mortgage on the property.
"For many homeowners facing severe financial difficulty, decreasing the payment on the first mortgage without a reduction in the payment on the second lien may not produce an affordable combined mortgage payment," said Barbara Desoer, president of Bank of America Home Loans.
"2MP will become a valuable addition to Bank of America's broad toolkit of potential solutions for customers facing financial difficulty and will increase our ability to help even more homeowners," said Desoer.
Read more at Housing Wire: BofA First to Join HAMP program for Second Liens
This looks interesting, but as unsuccessful or disorganized as loan modifications on first mortgages have been, it may be a while before this one kicks in.
Bank of America announced that it is the first mortgage servicer to sign an agreement formally committing to participation in the pending second-lien component of the federal government's Home Affordable Modification Program (HAMP)
Bank of America has systems in place to begin implementing the Second Lien Modification Program (2MP) with the release of final program policies and guidelines by federal regulatory agencies, which is expected soon. 2MP will require modifications that reduce the monthly payments on qualifying home equity loans and lines of credit under certain conditions, including completion of HAMP modification on the first mortgage on the property.
"For many homeowners facing severe financial difficulty, decreasing the payment on the first mortgage without a reduction in the payment on the second lien may not produce an affordable combined mortgage payment," said Barbara Desoer, president of Bank of America Home Loans.
"2MP will become a valuable addition to Bank of America's broad toolkit of potential solutions for customers facing financial difficulty and will increase our ability to help even more homeowners," said Desoer.
Read more at Housing Wire: BofA First to Join HAMP program for Second Liens
This looks interesting, but as unsuccessful or disorganized as loan modifications on first mortgages have been, it may be a while before this one kicks in.
Friday, January 22, 2010
Were You Denied a Mortgage Loan Modification?
From CNNMoney: Talkback: Were denied a mortgage mod?
Today CNNMoney asked, were you placed in a HAMP trial modification but denied a permanent modification? What are doing now?
Here were some of the responses:
"I tried to get Bank of America to do a loan modification on my loan, and I was told that I needed to be behind in my mortgage payment at least 5 or more. Since I was up to date that I didn't qualify."
"Started 8 months ago wit B of A to modify. After being denied 3 times-each time they had the wrong info entered for income even though they had confirmed 5 times. So, now stopped paying until they modify or buy some time to move. Now the credit is shot and I can't use my credit cards anymore because they keep lowering my limits down, they finally moved the file to a "retention specialist" who says they use a 10% rule to modify. They take your net income, lower it ten percent and then back in a new payment. Sounds crazy but we will see if it works. Months of not sleeping and waiting for a knock on the door is no way to live."
"I was under review with BOA for 5 months before they came back this week with nothing. They said at this time there was nothing they can do. I am only 30 days late but will hit 60 days this time. Maybe then they will help."
"I say everyone stop paying on their houses for 9 months and I mean EVERYONE. Bring 'em crashing down once and for all."
"JP Morgan is playing games in order to prevent giving me a loan modification."
"I might as well seek out a rich uncle."
It's seems like a lot of the stories are the same. So many people are not getting any help or are being stalled into foreclosure. Have you applied for a loan modification? Are you getting anywhere?
Today CNNMoney asked, were you placed in a HAMP trial modification but denied a permanent modification? What are doing now?
Here were some of the responses:
"I tried to get Bank of America to do a loan modification on my loan, and I was told that I needed to be behind in my mortgage payment at least 5 or more. Since I was up to date that I didn't qualify."
"Started 8 months ago wit B of A to modify. After being denied 3 times-each time they had the wrong info entered for income even though they had confirmed 5 times. So, now stopped paying until they modify or buy some time to move. Now the credit is shot and I can't use my credit cards anymore because they keep lowering my limits down, they finally moved the file to a "retention specialist" who says they use a 10% rule to modify. They take your net income, lower it ten percent and then back in a new payment. Sounds crazy but we will see if it works. Months of not sleeping and waiting for a knock on the door is no way to live."
"I was under review with BOA for 5 months before they came back this week with nothing. They said at this time there was nothing they can do. I am only 30 days late but will hit 60 days this time. Maybe then they will help."
"I say everyone stop paying on their houses for 9 months and I mean EVERYONE. Bring 'em crashing down once and for all."
"JP Morgan is playing games in order to prevent giving me a loan modification."
"I might as well seek out a rich uncle."
It's seems like a lot of the stories are the same. So many people are not getting any help or are being stalled into foreclosure. Have you applied for a loan modification? Are you getting anywhere?
Wednesday, January 20, 2010
Wells Fargo Pulls Off a 4th Quarter Profit
From Julianne Pepitone at CNNMoney: Well Fargo swings to a profit
Wells Fargo shows a fourth-quarter profit as it repaid $25 billion in bailout funds.
The bank reported a fourth-quarter net income of $2.8 billion.
Wells Fargo earned 8 cents per share, compared with a loss of 84 cents in the year earlier quarter.
Analysts had expected a loss of 1 cent a share for the fourth quarter.
In the fourth-quarter, earnings per share share were reduced by 47 cents for preferred stock dividends and stock redemption's related to TARP.
Revenue rose in the quarter to $22.7 billion. wells' revenue totaled $9.48 billion.
Writedowns totaled $5.4 billion, or 2.7% of average loans, up from $5.1 billion, or 2.5%, in the third quarter.
Wells' earnings report came in along with a ton of other financial institutions such as Bank of America who reported a fourth-quarter loss of $5.2 billion.
Wells Fargo shows a fourth-quarter profit as it repaid $25 billion in bailout funds.
The bank reported a fourth-quarter net income of $2.8 billion.
Wells Fargo earned 8 cents per share, compared with a loss of 84 cents in the year earlier quarter.
Analysts had expected a loss of 1 cent a share for the fourth quarter.
In the fourth-quarter, earnings per share share were reduced by 47 cents for preferred stock dividends and stock redemption's related to TARP.
Revenue rose in the quarter to $22.7 billion. wells' revenue totaled $9.48 billion.
Writedowns totaled $5.4 billion, or 2.7% of average loans, up from $5.1 billion, or 2.5%, in the third quarter.
Wells' earnings report came in along with a ton of other financial institutions such as Bank of America who reported a fourth-quarter loss of $5.2 billion.
Bank of America 's 4th Quarter Results
From David Ellis at CNNMoney: Bank of America losses grow to 5.2 billion
Losses at Bank of America widened to 5.2 billion.
Wednesday, the nations biggest bank said that repaying funds from TARP, or the Troubled Asset Relief Program, hurt profits by $4 billion during the quarter.
The company would have reported a loss of $194 million not including the one-time charge.
Bank of America said it lost 60 cents a share while analysts were expecting a loss of 52 cents a share.
The Charlotte, N.C. based lender lost $2.4 billion, or 48 cents a share, in the fourth quarter 2008.
Bank of America's homebuilders loan portfolio, for example, declined from the third quarter.
Overall net charge-offs, or debts the company believes it will never be able to collect, also fell, while the company set aside less money for bad loans during the quarter.
Losses at Bank of America widened to 5.2 billion.
Wednesday, the nations biggest bank said that repaying funds from TARP, or the Troubled Asset Relief Program, hurt profits by $4 billion during the quarter.
The company would have reported a loss of $194 million not including the one-time charge.
Bank of America said it lost 60 cents a share while analysts were expecting a loss of 52 cents a share.
The Charlotte, N.C. based lender lost $2.4 billion, or 48 cents a share, in the fourth quarter 2008.
Bank of America's homebuilders loan portfolio, for example, declined from the third quarter.
Overall net charge-offs, or debts the company believes it will never be able to collect, also fell, while the company set aside less money for bad loans during the quarter.
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