Bank of America Loan Modification Program Says Ineligible Borrowers Causing Low Numbers
Bank of America stated that the reason for such low numbers in the home loan mortgage modification program is due to Bank of America having such a vast number of borrowers who are ineligible for a home loan modification under the Making Home Affordable Program.
There have been number complaints in the news, in reports, and even on our site here at rwbpress.com that all stems from difficulties in dealing with Bank of America and the home loan mortgage modification program. Homeowners are mostly citing that there is a vast amount of ineptitude on Bank of America’s representative’s part and many homeowners are saying they are spending hours on the phone only to be told no one really knows anything about their particular modification or they can’t help.
Bank of America is said to have more delinquent borrowers than any competitor because, “Overall, we believe we’ve held more customers out of foreclosure,” said Jack Schakett, a Bank of America executive.
Schakett also stated that the company could have pressured borrowers more to complete the necessary paperwork needed to move to a permanent modification, saying, “We clearly didn’t create the sense of urgency.”
Bank of America does indeed have a vast amount of homeowners who potentially qualify for the home loan mortgage modification program but the statements by Mr. Schakett seem contradictory.
If Bank of America has more delinquent borrowers than any other lender, yet has helped more customers stay out of foreclosure, but should have pressed the urgency of paperwork in the modification program, it seems they have, at best, only delayed the inevitable.
Homeowners facing foreclosure who apparently aren’t getting the help they need in the home loan mortgage modification program, as suggested by Mr. Schkett in Bank of America’s lacking to stress the importance of paperwork to homeowners, don’t care about the amount of people Bank of America has helped but are focusing more on the amount of people that they could help.
Do you think Bank of America’s home loan mortgage modification numbers are a result of their massive amount of customers or are they simply trying to confuse and trip up homeowners for the benefit of their company?
Absolutely true!!! We tried calling Bank of Ameirca several times and they told us they couldn’t help. We finally got a rep who said go to the website and fill out this form. We did and had no response for several weeks. Then we called again, filled out the paperwork again and faxed all required documents. Again no communication. We then started getting letters that said we can help you avoide frocllsure you may be eligible for a loan modification. Again, after trying to call Bank of America every day for over 30 days based on a letter they sent, we NEVER had a return phone call … just letters saying we can help, call this number and someone will get back to you in 24 hours. BoA is the pits and your article is correct in that their representatives have no idea what is going on.
This Jack Schakett character has no clue OR is just following the talking points from the Bank of America corporate communications folks.
My neighbor has been trying to get a modification with Bank of America since April 2009. She has never been late, but according to the MakingHomeAffordable program, she still qualifies because her mortgage payment was more than 31% of her monthly income due to a reduction in hours at work. She submitted all the paperwork via FEDEX. She has proof that they received it. They claimed that they did not get it. So she faxed the info in April. They said they have it and she should hear something in 45-120 days. She called every 2 weeks and was told that they are working on it. Forward to July 2009 and they told her she has been talking to the wrong department. She was told to call a different number. After numerous transfers and hang ups, she got someone who told her he can help. They told her since she had sumbitted her info back in April, it is now outdated. She spent 1 hour on the phone providing all her financial numbers again. They told her she qualified for a reduction and to expect a UPS/Fedex envelope with the offer within 45 days. 45 days later, she called and they told her that they had a system change and her old file never transferred to the new system…but the rep can still see it on the old system. They suggested she re-applied. She just gave up and called HUD. Hud referred her to a consumer credit counseling company. The credit counseling folks spoke with her and took all her financial information and while she was on the phone, they called bank America and made her re-apply. The new Bank of America response – Expect something in 45 days…Same as the old response.
What’s shocking to me is the fact that they are just stringing people along, getting their hopes up…and then they just trample all over it. Why can’t they just say yes or no? At least if it’s a no, people will move on.
Having never been late on our mortgage we decided to apply for modification to possibly lower our interest and payment. We applied in March 2009 and as of today December 17,2009 have had NO RESPONSE from Bank of America. Our payment during the so-called 90 day trial period was reduced $164.00 per month. The last scheduled payment was on Sept.1,2009. Recently we found out that all modification payments have been reported to all three credit bureaus as not paid, behind almost $6000. and has ruined our good credit because of it. I personally believe BOA wants homes in foreclosure so the can write them off on their taxes and also resell them and screw the public and our government. How can they report mortgages unpaid when they are current? Also, the preparers when you call are even more clueless about the info than we are.How does the average citizen dispute these actions and total disregard for our families that have done the appropriate paperwork and are getting the shaft? Nine months to do paperwork…I am certain we are not alone or the only disgruntled Americans.How many do not know that their credit files are reporting as unpaid? My Blessing to All Americans in the same situation as we are.
I am writing this on behalf of my parents. They applied in July for modification with BOA and was told to make a mortgage payment of $300 while the application is in and reviewed. My parents sent in all the requested information to come and find out that they were denied because they were behind and have been only making $300 which shows them that they cannot keep up with the payments. I mean come on $300 is the AMOUNT BOA SAID to make. My mother is usually the one that calls and speaks to BOA. She only speaks spanish so every time she calls in she gets hung up on and transferred all over the place. My mother called in to informa BOA that was the amount they told her to make per month and BOA Customer service told her that the LAW just changed and the minimum payment is now $1500. So my parents reappled and sent in all the requested information. She asked me to call for her one time to check the status for her because she was NOT unable to get through to anyone because they kept disconnecting her. She figured since I speak english than someone would want to talk to me. WRONG! Same thing happened to me (got disconnected, rerouted and had to re-explain myself each time I finally had gotten someone live).
When it came time to make the payment after reapplying the second time, BOA refused to accept the payment. They wanted the whole amount and threatened them that they are going to loose their house. Had to than call BOA and speak to someone in the modification department to make the payment. Now, my parents just received a letter in the mail that once again they were denied. My parents meet all of their qualifications and have provided all the appropriate paperwork and are just getting the run around and denied. Seems like BOA is just giving many homeowners the run around and not helping much.
The Sozo Group http://www.thesozogroup.net We are small legal group out of Denver, Colorado that handle mostly loan modifications. We have 7 legal teams that carry about 100 total cases, with about 30-35 current cases at Bank of America.
It would shock you to see the vast difference between dealing with Bank of America and every other bank out there. Someone at the top of this bank’s food chain is absolutely smarter than all of us, because they have trained every one handling loan modifications to appear as if it is their first day on the job.
I would invite anybody to come sit down in our office for one day, you would clearly see what the problem is at Bank of America. They absolutely have no clue what is going on with the Making Home Affordable Program and its guidelines. I am not just talking about the first tier of defense that they have that takes all the phone calls, I am talking about their managers, and even the next level of managers.
Every time we receive an announcement from one of the servicers (Fannie, Freddie, FHA, etc), it takes our teams about an hour to review the document and update our systems to ensure all of our files meet the parameters.
Let it be clear here America, if your loan is owned by Fannie, Freddie, or FHA, banks like Bank of America are merely servicers and have should have no say on whether you receive a modification or not. Fannnie, Freddie and FHA merely pay Bank of America to process all of your paperwork, or in this case, pay Bank of America to NOT process all of your paperwork.
It would take our 7 small teams about 1-2 days to process and underwrite 98 Home Affordable Applications, and then about another day to get the paperwork processed and sent out. This is not rocket science, it is the same process that every single bank has been doing for years, just with a new set of parameters.
BOA?????? You run a Net Present Value calculation on every file that you take in, correct? A computer tells you whether it is smarter to do a modification than foreclose? I don’t buy that your computers are telling you that only 98 peeople in America have a home that is worth less than what they owe with people that can afford to pay you back. Even simple math and a computer should have fired out hundreds of thousands of permanent modifications by now.
I don’t believe that you are this dumb Bank of America? Tell us your secret to continue ripping off Americans?
Baof America are terrible business and is not organize at all. What they doing they just gather information from customer and they just want see if customer able contunue make payment. This is not working what they doing. They just playing with customer to get more money. I think customer should be carefully before they submit any docs. This is will not work for Home Affordable Program. Some people are waiting for 6 month and still did not process. They do not want to send any letters that customer apply for Home modification program. What they doing everything verbal and will not benefits for consumers.
A BofA rep just told us on the phone we should not worry that our payment is going to triple because we are not yet behind. To call back after we have missed a few payments. We said we wanted to be proactive. This is for a 2nd HELOC but the BofA rep said they don’t do HELOCs. Then she spoke to her manager and came back on and said “Oh, this is for a HELOC, well you signed the paper and if you don’t pay you are going to lose your house, there is nothing we can do.” We have equity, we have great credit, never missed a payment. I lost my job, got a new one, my wifes income has dropped, we can make our payments, but when they triple that will be tough. No I know since this is a 2nd it does not “qualify” as a loan under the program, and Obama suggested junior lienholders should consider taking principal reductions or even extinguish the loans but I am sure that is for homes upside down. Still, they should not give such bad advice from their employees to callers adn they should work with people.
But this is what we did get. I sent them a QWR and they responded and gave me the contact info for who really owns our loan. Now I can deal directly with them rather than just the servicer BoA. People need to realize most banks are actually only acting as servicers for the actual owners of the loan. And servicers make more money when there are more problem loans. So go figure, all this rhetoric about how many loan mods are being done and how many stick and who’s fault it is really doesn’t matter. Results of keeping people in their homes with affordable payments is what it should be about. No one talks about the adversarial relationship the servicers have with the borrowers. Especially when the largest servicers are actually the largest banks. They actually make more money on servicing money rather than lending it.
So file your QWR, find out who the investor, or owner of your loan is and start dealing with them direct. Since most of the late payments and penalties go to the servicer there is an obvious reason why it’s difficult getting anything done that really makes sense. Good luck!
I got to this financial hardship when I lost my job last year. I am in the same situation as everyone else. I called BOA in Oct and I was qualified for the HAMP loan modification. The rep said in 45 days I will receive papers to sign. Didn’t received any papers. I called again and this time the rep said the reason why I didn’t get the papers was because it needs more financial info. So I gave all info they need which was the same thing of what I said to the previous call. This time the rep said I will receive papers within 2 weeks. Also that day I was 2(two) days behind on payment and she said she will waive the late fee because I am on loan mod. So she took my payment online. It’s been a month no papers showed. I call today Dec 18 to follow up and I spoke with this guy and said there’s no notes or info on my account that I am in loan modification. He gave me another number to call on Monday to talk to this default prevention group. I didn’t wait Monday so I call this 1800# came to find out that this was the collection dept. It’s so frustrating. What’s so funny was I received my bill statement last week and my mortgage payment went up $83.00 more than my regular payment. What on earth are this people doing. They are misleading people and giving false hope to everyone.
We have owned our home for eight years without a late payment. I lost my job and my husband’s hours have been cut, so as we ran out of savings, we contacted BofA about the modification program. We qualified, we were told. Sent in paperwork three times beginning in August, 2009 but all sets of paperwork were “lost” Forward to November, 2009 – we were still current on our mortgage when BofA “lost” our mortgage payment. It has been lost in their system for six weeks now. The payment was sent electronically by our local bank, using “billpay” so the sending has been well documented. No one at BofA knows anything. Payment research has been “working” on it. Today, we are 19 days late on the December payment…the first time ever in all of these years that we have been late. In checking the website today I learned that BofA has paid our state property taxes that were not due yet. We have always paid our own property tax and insurance…What do you all suppose is going on? Did they pay our future installments of property taxes early because they think we are two months late on our mortgage? On December 9, 2009 a modification officer (I phoned looking for the lost payment and got transferred seven times and was on the phone for 2.5 hours) told me they had “found” our paperwork and we should expect a packet from them in 45 days…is that why they paid our taxes? I am really scared and confused. Does anyone have any insight? Thank you most sincerely.
[...] Bank of America Loan Modification Program Says Ineligible Borrowers Causing Low Numbers [...]
I am so glad to have found this article. BofA cannot get away with what they are doing. I, like many people apparently, have been a responsible owner, and have never been late on a payment. I got laid off, and my high mortgage reduced my bank account to the point that now I only have 3 months left until I have no more money left to pay my mortgage, not to mention all the other bills.
I of course called their numbers for the “Making Home Affordable” and “Hope for Homeowners” program and spent over an hour with a representative, answering questions about my income, spending, mortgage, etc.. I was told it was going to take up to 45 days for a response either by phone or mail. When I asked if this conversation and application would be recorded, I was not given a clear answer. But I trusted the system, and I waited.
45 days later nothing had happened, so I called back, and apparently there was NO TRACE that I ever called and applied.
I just called BofA today, and the rep told me that if I am still making my payments, it’s probably the reason why I never got a reply. But the fact that there was no trace of my original application is telling me that something wrong happened here. Is BofA just giving false hope to people? And why punish those who are making their payments, when their bank accounts are depleting?
In the meantime, I am still looking for work, and I a caught in a place where getting help from BofA is clearly a futile attempt, and refinancing isn’t possible because I am out of a job.
Can something be done to escalate this issue via the media perhaps? People need to know that this is going on. BofA can’t get away with this!
SL
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BofA or any other loan servicer is making it so hard for borrowers to get their modification approvals. More state attorney generals should be filing lawsuits against these companies to crank up the pressure to get them off the stick.
Ohio’s attorney general, Richard Cordray, filed suit against HomeEq Servicing, the servicing arm of Barclays Capital because homeowners applying for a loan modification are getting jerked around.
I’ve been going through the same thing as everyone else here. Applied back in September, getting bounced around, no one knows anything, some departments have my paperwork, others don’t… What I want to know: is there someone who really can help? I see a woman above who is offering a service. I am sure they are going to make money on it, but honestly, I’d pay someone to if they could actually cut through all of this red tape and get my modification done!!!
My husband broke both of his legs and didn’t work for almost a year. Then he got a job, but got laid off. I am a real estate agent and business has gone down to about 10% of what I used to make. We both work 2 jobs and have current on all of our bills, but we are almost to the end of our rope. Our savings are gone, our credit cards are maxed and we are in the hole about 700$ a month.
Aren’t all these people out there claiming to help a scam???
I thought I would let you see what 1 day of dealing with Bank of America is like. We have been trying since November 16 when I contacted Making Homes Affordable to just get someone at Bank of America to talk with us.
Here is today: I’d rather give back the &*$%*$ house and file bankruptcy than have to talk to Bank of America again.
I know that’s extreme, But I’m so upset with them right now. Apparently customer care is not in their vocabulary.
Received a call from Collections at 12:45 pm Marquis (who refused to give his employee number) states he is calling per your request on an update to our application for the Make Homes Affordable Program. Per Marquis we do not qualify because there is a late payment showing on our account in the last 12 months and our Lender has paid mortgage insurance.
He then checked to see if we qualify for a modification – said we did and transferred me (could hear him laughing on the phone)
1:01 Connected with Mona #8545 in Tempe.
She see no paperwork on file regarding a request for modification. She took what information I had available and started the application process. A hardship form will be mailed to us to complete and mail back. She said we should receive paperwork for a trial payment period in 45 days, while our request for modification is being processed. We will receive a packet in the mail that must be completed and returned with requested documents.
I asked for a call back number and the only number she would give was 1-800-669-0102.
She said she would transfer me to “home retention dept” about assistance with our late payments.
1:24 phone hung up during transfer.
I called 1-800-669-0102 (recorded run around) and 1-800-262-4218 (recorded run around and then hung up on me) and 1-800-669-6650 (recorded run around, but found a button to reach a human).
1:44 Human stated he was in the Home retention dept but that I needed the Default dept and transferred me.
1:54 Debbie in Imminent Dept stated I needed Home Retention Dept and transferred me.
2:03 Hung up on again.
2:17 – Debra ext 9463 in Fort Worth Texas – VERY RUDE. I tried to explain the problem. She asked if the information collected in November was correct. I stated I believe so. She stated that because we had a cash reserve of $2200 we did not qualify for assistance. I said we do not have any reserve. She said ‘well you said the information from November was correct”. She then said “don’t you have a 401K or family or friends who can give you the money”. I stated NO.
She needed your gross income, which I did not have. She said I would have to call back. When I asked for the phone number she gave me 800-669-0102. When I asked how to reach a person, she stated she had no idea and started in again about something – at which point I requested a supervisor.
2:25 Doris – Home Retention Center – no phone number. It’s a call center so you have to talk to who you get. There is no special assistance available, no one on one care. Your information is in the computer and any one of the call takers can help you.
I asked, then why haven’t we been able to get through to anyone since NOVEMBER. She stated she did not know. They are available until 9pm California time, available Saturdays and Sundays.
I have to call back with our financial information (gross, net, bills, living expenses) to have the information updated and reviewed.
I think this shows conclusively how hard Bank of America is working to help homeowners.
By the way this has been a daily occurrence for months. Employees laughing at me. Being hung up on. Being passed from Department to Department. Having the same information requested that has been sent in over and over. It is a joke. Unfortunately it is not funny.
I have been working with BofA all year. On July 20th after BofA took my financials verbally I was approved for Making Home Affordable Plan with a payment reduction of $800/month and I would be recving a fed-x package that would contain the workout offer. I was advised to fax over a hardship ltr, bank statements/paycheck stubs and a breakdown on our monthly expenses and to call back in three to four days to verify that they recvd them. I did exactly that and was told that they did receive our financials. I called in twice a week thereafter. After the 45days still no package – BofA advised me that the modification was still in review and could take 60-90days and to fax over updated financials. After the 90 days still no workout, infact, BofA could not even find in their data base that they even approved us for that payment reduction under the Making Homes Affordable Plan but that they do having three other modification plans to offer. I was advised that my file hadn’t even been assigned to a negociator so I would just have to wait and see. After getting the run around – I ask George w/the retention dept. it makes no sense to me why they are dragging their feet on these modifications, after all this is no time for the banks to be thinking about making more money, they should be thinking about saving money and if the bank forecloses they will lose big time. Well George advised me that “who is to say that after the bank takes the home they will sell it immediately, we may just hold on to the property until property values pick up even if it takes five years.” I am truly amazed –
Bank of America has a plan, we just don’t know what it is yet. I am keeping record of all my phone calls/correspondence I may need it later.
By the way we are still in review-
“Bank of America stated that the reason for such low numbers in the home loan mortgage modification program is due to Bank of America having such a vast number of borrowers who are ineligible for a home loan modification under the Making Home Affordable Program.”
This statement is an ABSOLUTE BLATANT LIE!!!!!!! The real reason is that when you call Bank of America, theie menu system gives you the run around and you get cut off so many times when you call so that you DO NOT even reach anyone at BAnk of America to even talk to them. I called bank of America Customer Service line who transfered me to their Home Retention(Making home Affordable)-this was just another customer service dept located in India and they could not even help! then I called back several times and was bounced around from one dept to another and left waiting on the a dead line for over 45 minutes.
They purposely do this just so that they DO NOT have to help- really it is so that they get to keep all the Government’s bail out money and at the same time continue to collect high interest rate mortgage payments from home owners struggling to survive! Bank of America are bunch of thieves!
It is so difficult getting hold of anyone of the line at Bank of America who can give you a straight answer, let alone even pick up the phone…
I have been calling Bank of America almost every day, and I get the same thing each time – I cannot reach anyone at their Default Prevention department. Why? It’s because thI spend hours on the line waiting only to get the line cut off. This happens with every call, and I have called several times every day!
Why is Bank of America doing this to home owners who need their help? They received a government bailout which wqas our hard earned TAX payers money! Why is the government helping these thieves by giving them our money?
Actually when you think about it – Bank of America gets our tax money from the government plus the mortgage we pay every month. Who is the winner here? Bank of America of course! Does the government care — NO NO NO! I am juts one paycheck away from going into a Loan default – like millions of Americans-yet bank of America wont even pick up the phone!
Thanks you President Obama — why the hell did I vote for you?
This is so scary!! The other thing homeowners need to be aware of is the fact we are submitting ALL our pertinent information and have no idea where or who has privy to it. OUR GOVERNMENT SHOULD BE ON THIS!!! Can homeowners not go directly to Fannie Mae/Freddie Mac?
Yes this is very scary now BOA have my complete history, SS number, income tax returns, bank accounts, credit cards accounts and more in their files and still they turned me down on a loan modification. My credit score is 722 and never have been late on a house payment for my entire life. What is wrong with this picture? My house note is way over the 31% qualifications. I was asking for help due to my income is low and now having health problems. Same old story Americans they don’t want to do this type of loan. The only loans they want is new finance, re-finance, equity cash outs and making a small killing on the foreclose properties. Even Attorneys cannot figure out what Bank of America is doing. Thanks Mr Presidents Obama, Bush and Clinton for nothing.
I encourage you all to take a look at LoanSafe.org…a great support network for all in the modification process. You will get an education and a shoulder to cry on.
Does the fact that Bank of America is currently in litigation with the SEC and could potentially face charges of 4.5 Billion have anything to do we this, I think so. I honestly believe as someone who calls B of A everyday as a 3rd party advo, (I experience the same thing as mentioned by others) that they would rather foreclosure on these properties and hold on to them awaiting prop values to rise in the next 5 yrs. These pool of mortgages make up a substantial part of their portfolio and could be later leveraged.
I have been dealing with these boa bastards since 2008, can you only imagine the times i have spent on the phone with them. I have been put all over the place. No one of the representatives have the same information, everytime you call it’s a different story. I was told i was qualified for a modification and i will be getting paper work i have waited already 2 years. Then when i call back they say i am not qualified, I finally lost my job and could no longer afford payments, so i am behind, my house in the foreclosure process, i had to pay boa 5000 to get out of it and put me on a repayment plan for 2400 until oct. unbelieavable! I hope and pray we can make it for that long. No one wants to help you at the bank of america cause no one has a clue what they are doing.
We were supposedly put on the modification program in August of 2009. We just received a letter stating that we only need to make one more payment to complete our modification. We called this afternoon and spoke to Jason who says he does not show that we have ever been on the modification program and that we now owe $13,000. Luckily my husband has kept all letters and we are taking them to an attorney ASAP.
Is anyone out there who received a Bank of America Home Modification Agreement from Countrywide in April of 2009, sent it in, signed notarized, paid on it for months and then been informed that it has been lost or that simply has been not approved.
We received no notification that there was any problem with the Home Modification that we accepted from B of A in April 2009. We have been paying the payments based on the modification we received and now we are back to ground zero after a demand notice from B of A. Needless to say there was a substantial difference between interest rates.
We conformed with the requirements in April of 2009 but now with the additional mortgage payments based on a loan we never agreed to we are substantially above the base debt for reconsideration.