“Notice of Intent to Accelerate”

Notice of Intent to Accelerate
Former Countrywide Mortgages were issued “Notice of Intent to Accelerate”

Bank of America has started issuing a , “Notice of Intent to Accelerate,” typically to loans that were previously Countrywide Home loans. Countrywide home loans were purchased by Bank of America and that is who you now make your mortgage payments to. If you’ve received one of these notices I’m fairly certain you are not current on your mortgage and for most, severely behind. So you’re probably wondering what this means in the scope of your foreclosure process.

Rest assured you won’t be losing your home in 30 days, probably not even 60, but do expect your Notice of Default to be delivered shortly thereafter.   A Notice of Intent to Accelerate is essentially the banks last attempt to let you know that you are nearing the end of your “grace period” and you are going to incur more fees, such as legal fees affiliated with your Notice of Default and the remaining of the foreclosure process. Hopefully, if you’ve reached this stage you have explored the best option for yourself and your household.  Whether you are considering a short sale or foreclosure a notice of Intent to Accelerate is a time to “get real” about your situation.

After you have received your Notice of Intent to Accelerate, roughly 60 days later, you will receive a Notice of Default. Your Notice of Default triggers the foreclosure process. Typically 60-90 days later you will received your Notice of Trustee Sale. While there is very little consistency from the banks, there’s no way of knowing who will be on time or who might slip through the cracks. What I can tell you is, that, one of my clients was 14 months behind on their mortgage before they received their Notice of Intent to Accelerate. After that it was 45 days until their NOD. Another one of my clients was 11 months behind and just out of a Bankruptcy and they received their Notice of Intent to Accelerate.

No matter what you choose to do, be sure you are aware of your time lines. Talk to a professional who can help with this process. It will not go away. Please call (916)230-3880 or email Jen@JenKlein.com.

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17 thoughts on ““Notice of Intent to Accelerate””

  • Alfredo

    I am jumping back in into short sales. give me a shout I would like to know you fees and do you do work all over CA

    Reply
    • Jen Klein

      I have experience negotiating throughout California. My office is in Northern California. What area are you in? Jumping back from what?

      Reply
      • brian messick

        Hi, i need help with a loan mod with B of A. letter of intent to accelerate expires in aug 31, 2011. they i have over 90 hours of logged phone time with them and have gotten nowhere. please call if u can 916 730 – 6141

        Reply
  • Don Brown

    I lost my job have not benn able to find another one at 66 yrs old=I am 2 months behind on my mortage payments and probably will be walking away-Not able to make the $2k monthly payments=Prior to that i attempted to refinance and do a modifacation and no one would help=i received my notice of intent to accerlate=received new billing showing that i am past du also on my taxes and home owners do i still need to pay the taxes and homeowners insurance=i had a man come by this morning checking to see if i was the owner still in the house or a tenant=what do i do and what or my options=i am i looking at being sued if i don/t pay=thank you very much for your time=my mortgage is with bank of america

    Reply
    • Jen Klein

      I’m sorry to hear about your situation. Unfortunately there are several people in your situation and each is a unique situation. First of all, you must figure out what you’re ultimate goal will be: keep the house, move, rent it out, etc. Unfortunately, the true reality of being able to keep the house may not be the answer that you really WANT. So I would suggest trying to look at it from a purely financial standpoint and considering what your future will look like. Sometimes it is best to cut your losses and move on. In that case, I would suggest you consult with a tax professional. They should know the full scope of your financial situation and give you some insight on where you may fall within the deficiency laws and judgments. In simple answer to your questions, you can look at modification, deed-in-lieu, short sale, and foreclosure. These are typically the most often used.
      If you would like to know more about how we can help please email me at JK@RosevilleAndRocklin.com or call me (916)230-3880, so we can look at the specifics of your situation. Thanks for the comments.

      Reply
  • jenette watts

    if you receive a letter of intent to accelerate should we continue to make lump sum payments the modification dept keep saying no just hold on to all of your money until i receive the Hamp appt in the mail fill it out and once they receive the completed appl that will put the forclosure on hold. I’m wondering if i owe 17.000 that:s including late fees and interest i want to send 6.000 in increments and I”m
    wondering if they”ll send the money back

    Reply
  • loida fernandez

    we recieve our notice of “intent to accelerate” a week ago. is there any chance we can still keep the house. if not what can we do to keep the house? need help!

    Reply
    • Jen Klein

      If you’d like to keep the house, you’ll need to contact your bank immediately and work out a repayment plan or some kind of modification. Just be careful how long you wait, you may incur more penalties and interest which get harder to overcome. SUGGESTION: ask the bank if they can tack your delinquent amount to the back of your loan, but if you do this confirm with them how it will report on your credit, if the tack onto the end of the loan, your next payment should show current.

      Reply
  • Simone

    I signed up in feb 2010 for a trial modification ( i was extremely sick ) with b of a, and made every payment on time. I rec’d in sept. a notice of intent. They said I was past due 3 months payments. It was the difference between the reg pmt and the trial pmt. Don’t ever go into the modification program. It will mess you up. I had to file ch 7, but I did come up with all the payments in feb. 2011. House was discharged in bankruptcy and now I’m like, why do I want to hold onto a house loan for 245,000 when the value is 95,000? My credit is ruined. Oh and my modification is still at the underwriters. I have been waiting for over a year. Making all of my payments. I bet it will be in review in 5 years too. Bank of America is the worst. They accept my payments and why would they give a modification to someone who pays the entire bill? Also I had no business getting a loan at the time and will rent forever, I’ll never take out a loan for a house again. And since this one is discharged I’m walking away.

    Well I just made my last payment and will stay there until I get evicted, probably 6-8 months . My question is, since I received the intent to accelerate in sept, 2010 and paid the amount they needed, will they send me’ another intent, or will they just send me’ a notice of default after 60-90 days? I still have health issues and can’t afford to make a 2000.00 payment when I can rent some where else for $1000.00.

    Thank you

    Reply
    • Jen Klein

      I’m sorry to hear that you are ill and the bank is not working with you. Unfortunately, you are not alone. If you were current and have gone behind again, it should reset your time line and you should get another intent to accelerate. The notice of intent to accelerate is just another late notice essentially, with different words, a little more threatening. Overall there’s no way of knowing what and when they’ll give you the next phase, most of the time they don’t even know. I wouldn’t be surprised if their mismanagement buys you more time in the house. Sorry I can’t be more definite with time, but there’s no logic involved. One thing I will point out is depending on your area, you may be a target for BofA now. They are under new management and the new “legacy” loans are going to be attacked more aggressively, so just be aware. Good luck.

      Reply
    • D Lee

      I have also been working with Bank of America (originally with Countrywide)since 2008-2009 (Countrywide “fraudulently” refinanced my mortgage 3 times within a year, unsing the same appriasal and never disclosing that my property was valued at about half of what they were financing for me!)
      I just received my Notice of Intent to Accelerate because I was only able to make a partial payment for August (when my ex-husband Quit claimed the deed to me-since he moved out 2 years ago) and B of A is still “holding” that partial payment (I guess because my modification paperwork has been with an underwriter for almost 2 months). I’m not sure what I will do at this time, I love MY house (We had it built in 1995) and my daughter & I still want to live there! There are at least 6 houses in my neighborhoold (of 90 houses) that are available at this time to buy or rent and they are all valued for a lot less than what is owed on them!

      Reply
  • angela shellhaas

    I am with boa and was with countrywide. I have fallen 3 months behind due to unexpected expenses. I recieived my letter to accelerate about a month ago, and they are asking for 1800.00 on December 7. I am in the process of catching them up, but am not going to be able to do that amount by the timeline they gave me. My house is small and my mortgage payment is only 580.00 a month. I am also a single parent that gets no child support or even food stamps for that matter, cause I seem to make too much money for that kind of help. I am currently under escrow with boa for a mod, but still they have not approved me. I am trying to bring all this current, and hold everything else together on my income, and I am terrified. I hear about all the others that have much higher incomes and mortgages than I do, and I can see that they truly need help as much as I do. But my question is if I get this caught up after the date of the intent to accelerate letter, Dec 5, will all of this still be threatening me?

    Reply
    • Jen Klein

      They will continue to pursue you for the amount owed until it is all current. You may want to call them and work out a payment arrangement in writing. However, you must stick to that time line. Any variance of that time line, will allow them to accelerate their loan. Circumstances become greater when the Notice of Default is filed, depending on which state you are in.

      Reply
  • T.L.

    Recieved my notice of intent from BOA two weeks ago. Actually, received two! One said our balance must be paid by Dec 22, the other by Dec 29, with an acceleration date of January 9th. I have called the bank and told them that we will be able to pay our past due balance in full by Feb. 2, as we owe about $3000. We have been making full payments every month, but have been unable to pay extra payments to bring the account current (we fell behind when my husband was out of work due to illness about a year ago). I don’t know who I should talk to to make sure that our home doesn’t go into foreclosure in the time it will take us to get the funds together…or who I should talk to to ask for the four week extension we will need to get the money. The only people that talk to me in the office just tell me that they will make a note of it to my account…and I’m concerned that it won’t be enough to slow the process. Should I be concerened, or just continue with my plan? Will paying my past due balance halt the process??

    Reply
    • Jen Klein

      I’m sorry for your misfortune. Unfortunately, the “plan” may not halt the foreclosure process. Unfortunately, the wheels may have already started on that path. You will need to contact management. AND insist on speaking to the person who can make the decision to keep your file out of the attorney’s hands. You may want to get a signed agreement from a specific person with a direct contact name and number to follow up with if it does move forward. Once your file is sent to the attorney, foreclosure proceedings begin and the attorney will levy more fees onto your loan. YOU MUST BE PROACTIVE AND PERSISTENT IN INSISTING THAT YOU NOT BE PUT IN THAT PILE! Do not just assume it will work it self out, that is not the case. Good luck to you and if you need help on escalation, let me know. For the most part just don’t hang up the phone until you’ve gotten everyone’s contact information.

      Reply
  • TD Global

    Due to my job lose in 2010 we are now facing foreclosure. We were current up till Oct of 2010 when we were put into an unemployment forbearance. We paid the forbearance amount until January as we attempted a loan mod. We were denied every time because we have too much money in savings. They refuse to even talk to us until we have no money in savings at all. The money came from a small inheritance. Since I still have not found a job and now am facing surgery we can not afford to spend all our savings just to keep the house. We have no debt except my student loans and the house. If they would just lower our interest and use current market value of the home we would have no problem with the payment. Is there any chance at all of keeping our home and forcing the bank to do a loan mod?

    Reply
    • Jen Klein

      Unfortunately, you are one of many. Just so you don’t waste any more time “forcing the bank” will not happen. Most of the nation feels this same way in regards to the bank. Unfortunately the bank does not care. I would not sacrifice my savings in attempt to save the home either. I would pursue the modification, however typically they are not principal reductions. You may received some temporary rate reduction in the form of a modification, but I’m not sure that is a long term solution for your needs. So often, people accept this “modification” when even the modification is still out of their comfortable reach. Simply prolonging the inevitable. The idea they bank may modify note down to market value is highly unlikely; VERY rarely do you see principal reduction. Ultimately, I would say continue on the path of a modification, however, don’t let it get so far you lose the chance to short sale. This can be a slippery slope. Approach it with real expectations, which may be moving. This may not be the best news, but it’s an honest and cuts to the chase. I’d hate to see you lose your cushion while trying to save this house. It’s not home, just walls and a roof. You and your family’s overall health and well being are ultimately what makes a home. Good luck and feel free to check back in with me on next stages of the process.

      Reply

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