“Dear Steve,
Bank American gave me a Loan Modification with an interest only on my house. How can i get them to change the Loan?
Bank America gave me a loan Modification for Interest only. How can i get them to change from an interest only
Clara”
Dear Clara,
It would appear Bank of America extended you a loan modification offer that was interest only and you may have accepted that modification.
Was it not clear it was an interest only modification when you signed it?
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The obvious way to change the terms of the loan against your house would be to refinance it either through Bank of America or with another lender. Replacing the loan with an entirely new loan product would terminate the interest only loan and give you different terms.
You should also start by calling Bank of America and asking them if it might be possible to replace this loan with them since you are already a customer.
The wildcard here is what the terms of the interest only loan are and if the current outstanding loan balance still exceeds the value of the home. If it does, refinancing is going to be tough, if not impossible.
The worst case scenario here would be if Bank of America just converted the loan to a lower payment interest only but left you upside down on the mortgage.
You know, it would not hurt to call a free HUD Housing Counselor and ask about what alternatives might be available to replace this loan.
Please post your responses and follow-up messages to me on this in the comments section below.
