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December 18th, 2010

BofA strikes again

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BofA We hear from a lot of disappointed Bank of America customers. Yet I guess when you make 15 trial modification payments on time (when technically you only have to make three) and then out of nowhere BofA tells you that you no longer qualify for a modification and your home is moving to either foreclosure or a short sale, “disappointed” doesn’t really capture the true essence of your emotions.

In the latest tales of missing paperwork, communication breakdowns and out-right oddities, we have another example of how the entire Making Home Affordable system is so totally broken.

This latest example comes from our friend Nick Timiraos at the Wall Street Journal:

Bank of America helpfully sent out a letter last week informing a Brooklyn homeowner that the bank didn’t have all the documents needed to finalize a loan modification application.

“Our records indicate that we are still missing some of the required documents, or some of the documents were sent to us with missing or incorrect information,” said the form letter dated Dec. 6.

But there was one problem: the letter was addressed to the couple that sold the Brooklyn apartment in 1998. It arrived in the mailbox of a Wall Street Journal reporter who bought that apartment and has never had a mortgage on it.

While accounts like this one are seemingly less-harmless than others (the resident didn’t have a mortgage on the property), it is quite unfortunate for those — like our reader who made 12 more trial payments than she was supposed to — who are still waiting for their banks and their government to get these programs right.

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6 Responses to “BofA strikes again”

  1. Tweets that mention BofA strikes again | HSH Financial News Blog -- Topsy.com Says: December 18th, 2010 at 8:57 am

    [...] This post was mentioned on Twitter by HSH Associates, Susan Carter. Susan Carter said: BofA strikes again: … a modification and your home is moving to either foreclosure or a short sale, “disappoin… http://bit.ly/gWCf9h [...]

  2. Arizona Attorney General Files Fraud Suit Against BofA | Welcome to propertiesandnotes.com Says: December 21st, 2010 at 1:12 pm

    [...] BofA strikes again (hsh.com) [...]

  3. Mitch Says: December 29th, 2010 at 12:34 am

    These weasels and the rest of the large banks are out of control. Just this week I was privy to the reality that Chase has outsourced its customer service to some other country, and it’s difficult understanding what these folks are saying to us. That plus things like what you wrote about (I’d read the news story) shows that they still don’t get it, and possibly never will.

  4. Tim Manni Says: December 29th, 2010 at 11:18 am

    Hey Mitch,

    I wonder the same, “Will they ever get it right?”

    Thanks for commenting,
    Tim

  5. s2kreno Says: January 13th, 2011 at 4:22 pm

    It’s no accident that lenders take so long to finalize HAMP mods. Consider this:
    Regular payment: 3,000
    Trial Payment: $2,000
    Amount of arrearages that can be added to the loan balance if a mod is approved in three months: $3,000. Amount the balance can be increased if the lender jerks you around for 18 months: $18,000. In addition, after 18 months you are so beaten down that the lender can threaten you with foreclosure unless you pay the $18k or force to to accept a “private” modification which does not lower your payment with a 2% rate but instead gets you a 4% rate, a 40-year term, and a balloon payment. And if you consider the lender’s fiduciary responsibility to its shareholders it’s doing the right thing. So in the end Congress gets to pretend it has any interest in helping homeowners, lenders get to pretend they are on board, and in the end they get record profits and homeowners get the shaft. All part of the plan or mods would have been overseen by HUD and they would not have been optional.

  6. Tim Manni Says: January 14th, 2011 at 9:41 am

    s2kreno,

    Thanks for the insight. Hmmm, interesting points — mods overseen by HUD, didn’t think of that.

    Hope to hear from you soon,
    Tim

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HSH.com's daily blog focuses on the latest developments in the mortgage and housing markets. Our mission is to relate how changes in mortgage rates and housing policy, as well as the latest financial news, impacts consumers, homebuyers and industry insiders alike. Our 30-plus years of experience in the mortgage industry gives us an edge as we break down the latest changes in an ever-changing market.

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Tim Manni is the Managing Editor of HSH.com and the author of their daily blog, which concentrates on the latest developments in the mortgage and housing markets.

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