120+ days late on mortgage w/BofA

[Anonymous]

I just found out that 120+ days is the equivalent to a foreclosure. I am on a payment plan with the BOA,  my ARM readjusts in 2013.  How can I minimize the damage?  My credit score sucks, primarily due to cc util, and my condo is severely underwater.

any help would be appreciated, thanks

[Lel]

What do you mean by "damage"?  Further damage to your credit score?  Or are you concerned about your ARM?

[Anonymous]

sorry, I should have been clearer.  Damage to my credit score.  Before 11/2009, I had a perfect payment history.  I should be all caught up by July, eventhough the payment plan is until November

[Lel]

How is your payment plan being reported to the credit bureaus?  Do you know whether you're being hit with rolling late payments while you're on this payment plan?

[Anonymous]

 I will be hit with rolling late payments.  so the money paid will be to oldest debt first.  I plan to make a $1575 payment on 4/25, so along with $425 that is in my partial account.  That will catch me up for Dec. and Jan. So then I will owe for Feb, Mar, April.  In May, I plan to make another $2000 payment etc... but yes, it will be reported as past due.

[Anonymous]

Well, the lates have already hit your credit then (and will continue to do so until caught up).  So that damage is done.  Basicly, this is going to really hurt your chances of any type of refi in 2013 as they consider 120 days late a forelcosure and all foreclosure rules apply.  Also, by then, I would expect the gov't programs that have been helping people to refi underwater loans to be wound down and no longer available.  It is gonna be tough.  WIth interest rates definitely ont he way up, I would think about getting as much $ as you can put aside to help with what is likey to be a decent size mortgage increase come 2013.  It is not to say you will be unable to get a refi then if you maintain perfect credit rfrom now to then, but just it is going to be a tough road.

[Anonymous]

would a gw letters work in this typr of situation?

[Anonymous]

generally no.  It can not hurt to try by any means, but unless it was a single late that was due to some circumstance beyond your control, banks are not too open to GW's on mortgages.  The reasons mainly being that they want to report accurate info in the hopes that all the other banks do as well.  Mortgages are big risks/investments for them and they want to have accurate details about the people they lend to (especially anything having to do with past mortgage lates)