Bank of America Fraudulent Loan Modification Practices

Aug 25, 2009
review #155810

It is not news that there are hundreds of thousands of troubled homeowners in the country. It is not even news that the lenders refuse most who request help.

But, are you aware of the fraudulent practices that the lenders are using to deny loan modifications?

Here is my story:

In July 2007, we re-financed with Countrywide in order to get out of an ARM that was about to go up astronomically.

In order to get the loan through, the value of our home was appraised over what is was really worth. In addition, only my husband's name was put on the loan since the credit cards are in my name.

The loan is an interest only arm that does not include taxes and insurance. The payment is $3407 and my husband takes home $1300 per week. I am a stay at home mom with 2 young children.

In September of 2008, we were struggling to pay our bills. The value of our home was plummeting. We weren't behind yet, but were about to be. We pro-actively contacted Countrywide in October 2008 and asked for help.

Here is a time-line of events:

October 2008 - Sent Countrywide hardship letter. Husband withdraws $25K from his retirement fund to pay bills. This money must be repaid quarterly - $1000.

December 2008 - Countrywide refuses loan mod without a reason.

March 2009 - Obama plan underway. Contact Countrywide again. They say they can't help because we make too much money. Because they added husband's net income to his gross income and used that figure! Request that they re-open our case.

May 2009 - Told by Bank of America rep John McFarland that they will not help us since it is not their fault we are over-extended.

July 2009 - Contact Bank of America's Barbara Desoer to request a loan mod. Cannot pay August mortgage payment. Faxed new hardship letter and required documents.

August 2009 - Assigned Bank of America Negotiator Melissa Henderson.

August 21, 2009 - BOA Melissa Henderson calls to inform me that our request is being denied. She informed that we meet all of the requirements under President Obama's HAMP program, however, because my husband borrowed money from his retirement plan (which is depleted and we are still repaying), we do not qualify for a loan modification. She said that we are current on credit cards and car payments and therefore do not fall under the guidelines for assistance.

This is outright fraud. The HAMP stipulates that retirement accounts cannot be used to determine financial status and in addition, being behind on anything (credit cards, mortgage, etc.) is not a HAMP requirement.

Think I am only one person? Wrong, go out to www.loansafe.org and read the thousands of horror stories.

The lenders feet must be held to the fire! If we continue to let this happen, our country will be in worse shape than it is now!

Joanne in Hopewell

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Anonymous

May 05, 2013

You mentioned that your husband "takes home" $1300 a week. HAMP is based on gross income not take home. Your house payment has to be over 31% of your gross income. The HAMP law isn't as helpful as everyone thinks it should be because we all live on our take home pay. I don't work for BOA and my advise is free but NEVER, EVER make a mortgage loan on an ARM. Most people do this when rates are low and when they are there is only one way they can go.....up!

0 0 Reply
BofCustomerSince1976

Sep 28, 2012

we'd never made a late payment...
we both lost our jobs because of the "economic crisis in america"....
couldn't refinance without any employment!
applied for the loan modification program but didn't qualify the first time...
we went through the "loan mod" process again and were told we qualified....
but only after falling behind!
"congrats!....you're on your way to a more affordable mortgage!"
(their ACTUAL statement!)
after many months of jumping through their hoops and over their hurdles and
experiencing the "lost paperwork" syndrome they finally
sent another letter again stating congratulations!
here's your loan modification:
but they didn't lower the interest rate....
they didn't put the delinquent payments on the back end...
they didn't help by lowering the balance...
they actually UPPED the mortgage payment and demanded a check to bring the loan balance up to date!
too bad we couldn't afford to retain legal representation...
i KNOW they were just setting us up to foreclose...
so with all the equity we had...
and love of our home and location...
we ended up having to do a REVERSE MORTGAGE just to keep our home!
i think we got away from the evil bank just in time...
but i guess i shouldn't complain....
we're still here where we always wanted to be...
while so many americans have lost their homes after
... Show more

0 0 Reply
there oughta be a law!

Sep 28, 2012

we'd never made a late payment...
we both lost our jobs because of the "economic crisis in america"....
couldn't refinance without any employment!
applied for the loan modification program but didn't qualify the first time...
we went through the "loan mod" process again and were told we qualified....
but only after falling behind!
"congrats!....you're on your way to a more affordable mortgage!"
(their ACTUAL statement!)
after many months of jumping through their hoops and over their hurdles and
experiencing the "lost paperwork" syndrome they finally
sent another letter again stating congratulations!
here's your loan modification:
but they didn't lower the interest rate....
they didn't put the delinquent payments on the back end...
they didn't help by lowering the balance...
they actually UPPED the mortgage payment and demanded a check to bring the loan balance up to date!
too bad we couldn't afford to retain legal representation...
i KNOW they were just setting us up to foreclose...
so with all the equity we had...
and love of our home and location...
we ended up having to do a REVERSE MORTGAGE just to keep our home!
i think we got away from the evil bank just in time...
but i guess i shouldn't complain....
we're still here where we always wanted to be...
while so many americans have lost their homes after
... Show more

0 0 Reply
Kim  New Jersey

Aug 13, 2012

I read all of these complaints and realize so many people are in the same situation as us. Bank of America is the worst. I wrote to our Senator, Governor, Congressman and even wrote to our President Obama. I am finale getting responses from them and people calling our home from programs that may be able to help. I don't know because before I did these letters we hired a law group to try help us with this modification. Been dealing with this since November 2008 when my loan was still thru Countrywide. It has been a ongoing nightmare. Bank of America told us to "show good faith" and we had money saved, we paid them 13 payments in 4 months!!! To then received an "intent to foreclose"!!! Amazing!!! Bank of America does not want to help anyone and it just makes no sense. Isn't it better to work with their current customers to get them back on track and start generating revenue when the customers can start making their payments again. Instead it's better to foreclose on these homes and get nothing!!!!!!!!!!!!!!!!!!! Has is our world ever going to get out of this financial disaster???? Makes me sick!!!!!!!!!!!!!!!

0 0 Reply
nama

Feb 26, 2012

I have been jacked around by B of A for about 3&1/2 years. I was a Countrywide customer with an adjustable rate loan. I bought my home in 1988 on a seller carryback that had a balloon so I had to refinance when the balloon became due. My husband was a construction worker and when building slowed down in AZ he lost his job. I had been trying to work with Countrywide to refinance my loan to a fixed rate when B of A took over. I don't believe I have been lied to as much in all of my 56 years as I have been lied to by B of A "specialists". My sale date is 5-15-12, but my "Office of the CEO & President Customer Support Specialist, Celia Robinson" keeps telling me she will "get to the bottom of this problem" when she accidentally answers her phone(which is rare). Any good advice???

0 0 Reply
Laura

Feb 19, 2012

I emailed Bof A ceo at brian.t.moynihan@bankofamerica.com and cc'd Obama, HUD, and 7 on your side news describing our hardship with the option arm loan. I received an a phone call the next day to modify our option arm loan. We negotiated a rate that would work. It took about a month to finalize. Good luck!

0 0 Reply
Brian

Feb 08, 2013

That's too funny!! I went the same route with Moynihan about 2 years ago after getting denied a mod. In a month, loan approved and payment cut in half. It's sad that we, as consumers, now must now go to the top dog to get results. It's also amazing that if you dig around the internet, you can find just about every crooked CEO's email address.

0 0 Reply
imperial357

Feb 18, 2012

First write your lender asking them to produce the Note then file a civil to bring your lender to the table.


IN THE CIRCUIT COURT OF THE OREGON JUDICIAL CIRCUIT
IN AND FOR LANE COUNTY, STATE OF OREGON
CIVIL DIVISION


GEORGE TRAN Pro Se
645 W18th Ave
Eugene, OR 97402,
Plaintiff,
Vs
John Beaver
Lane County of Oregon
125 East Eighth Ave
Eugene, OR 97401
Defendant.

Stan Surdam
Lane County of Oregon
125 East Eighth Ave
Eugene, OR 97401
Defendant.
CASE NO.:

Complaint for punitive damages for obstruction of lawful remedy

Amount: $499,999 plus legal fees


Obstruction of Lawful Remedy

Plaintiff GEORGE TRAN seeks damages as a result of Defendant John Beaver and Defendant Stan Surdam making legal determination on Plaintiff’s lawful remedy in response to Plaintiff’s current civil action Case No: 1210-05250 filed on March 5, 2010.

Pursuant of the Administrative Procedures Act (APA) of 1946 and the right of Habeas Corpus, Plaintiff have requested a verification of debt with Chase Home Loan Services following Federal Rules of Civil
... Show more

0 0 Reply
Oscar

Oct 22, 2011

Everybody shoud take BAC to court for these practices

0 0 Reply
Denise

Oct 20, 2011

:( We had a loan modification with Countrywide which was approved march, 2009 then November 2009 was told by Bank of America that it was denied and had to do over which of course they denied a new modification sent a payment in April, 2010 and they sent it back saying house was in foreclosure, we have been fighting it ever since trying to get them to give us a new modification in the mean time fees etc. keep building up.

0 0 Reply
Angie stine

Sep 23, 2011

Email is native43@live.com

0 0 Reply
Angie Stine

Sep 23, 2011

we use to have a mortgage with countrywide home loans they went out of business and bank of America took over our mortgage during this time my husband lost his job and we did'nt pay our payments for several months a year went by and I recieved a letter from Bank of America about a modification plan I thought they were working on it and during this time they were taking my monthly payments for about 13 or more months then they said they rejected the modification plan and my house was still in forclosure so they tried another modification plan rejected it and now we are waiting for a letter saying when we have to move with our minor children because they said we dont have enough income after we paid all of those monthly payments. who can I contact who cares?

0 0 Reply
Belinda

Aug 30, 2011

So I have been trying to get a modification since Feb. 2011. I lost my job in June 2010. I was working w/ a loan modification company(that has been a joke too) I have faxed, emailed, and submitted all required documents to B of A just to have them constantly rerequest the same documents. I was told they were going to try and put me in the "Making Homes Affordable Program". I have done everything they have asked down to get a job! Only to have them rerequest the same documents AGAIN and now proof of my new income. So finally this Mon. 08/28/11 I received a call from my modification company rep telling me B of A is offering me $1381.00 as a new payment. The bank was going to decrease my APR to 4.62% from 5%. I told her "How could that be helping me when my original payment was $1378.00". She said "but that includes your escrow" I told her "SO DID MY LAST PAYMENT". So when B of A said they were going to put me into the "Making Homes More Affordable Program" exactly HOW DID THAT MAKE MY HOME MORE AFFORDABLE?????? :eek

0 0 Reply
aprildpend

Feb 08, 2013 Hartwell, Georgia

I had a similar situation in 2010. I asked for a making homes affordable loan. What I was offered was a loan with points and closing costs, It did lower my payment 70 dollars.. I did sign the papers but was disapointed in the Making Homes affordable Program.,. My credit score dropped 100 points from the new loan. I found out later they did not give me a Making Homes Affordable Loan.. but a whole new loan. I called the other day to get a making homes affordable loan because I discovered my second could be included later. I was told I could not qualify because my new loan With BOA originated in 2010...

0 0 Reply
kent r

Aug 26, 2011

Have been through the same bull,they already ruined my credit and keep comming up with more money i owe them ,even though i was caught up after recovering from their screwed up forbearance program witch is just a way for them to get you behind and collect late fees.I am totaly fed up with these a-holes.

0 0 Reply
Loan Mod. is also a gov. scam

Aug 12, 2011 Sha Tin, Hong Kong

You can thank that *** Obama for all this, little do people know what is really going on behind those closed doors. Hasn't anybody noticed that the gov. loan mod. and bank of america scam have NOT been made totally public ? It is a HUSH HUSH issue and you never hear or see anything on the news about it, pretty weird since 93% of the people that applied for this Loan Mod lost their homes because they applied for it !!! Most of these homes the banks have fore-closed on the investors and banks are buying and renting them to welfare section 8 people and are getting paid $2000-2500 from the government to house them !!!!! Unless you have ALOT of money I would advise everybody NOT to apply from this gov. loan mod.scam, you WILL lose your home and your life savings like all 93% of all people who applied did. I have 3 friends that work for b of a and are specialists and I know what is going on here as well as most b of a employees do. Thi is the BIGGEST all scam in HISTORY !!!! If you are in the program now call them ( loan mod team only ( and GET OUT OF IT NOW !!!! You will owe the b of a alot of money though, trail payments are NOT credited to your loan or to your acct. so you will have to pay back ALL the orginal loan amt payments since the start of the program plus ALL the late fees and other fees with-in 1-21 days or they will fore-closure on you...people do not this and that is why most lost theyre home !!!!! Trust me, I was there and got scamed too, I was lucky enough... Show more

0 0 Reply
Cyntihia H

Aug 04, 2011

I personally got fed up with the Bulls**t that bofa put myself and my family through. Took almost a year to get approved for a loan modification only to receive a NOF (notice of foreclosure) after being in the modification for 13 months and them telling me that we no longer qualify. And to make matters even worse the $1,756.23 we paid for 13 months ($22,830.99) plus the $1,500.00 we paid for 4 months ($6,000.00) during the trial period ($28,830.99) wasn't even credited to our principle balance. So they are basically saying that we were just renting our home, and now it's time to get out. A family member referred an attorney that has a mas lawsuit against bofa with over 3 thousand people in it. My husband and I contacted them and spoke to a gentleman by the name of Corey and he explained to us in full as to why this is happening and told us what they could do to help. So far everything that they said would happen has infact happened. My name has been added as a complaintant in the lawsuit, and now bofa has been calling me on a regular trying to work something out with me. Can you believe that? I couldn't receive a return call from them to save my life, now they are calling a few times a week, and they are not asking for money. As Corey told us, we just continually tell them to call out attorney. They know we are serious now. The foreclosure sales date for May 5, 2011 has passed and we are still living in our home. The lawyers got the sales date stopped, and it loks like they... Show more

0 0 Reply
Claire M

Aug 03, 2011

We have been trying to get a modification since February 2009. We were told (by phone) to make three payments of approx. $1600 July 2009 and we did and of course we were then denied, saying we did not qualify. At different times I was working (husband has always worked) and then they said we made to much. We have been given the run around all of this time. We have applied for forebearance, ( I had surgery)modification, 7 different times, all the while going for periods not paying. Our loan payment was orginally $1900(approx) and at one point last year our monthly statements had ua paying $3400, which of course we couldn't. We have now been told to pay approx. $2000 on a trial modification, however $69,000 was added on top of the original loan, which is missed payments, taxes,insurance and late fees. We asked for a breakdown, but have yet to receive it and if we don't agree to this amount they said they won't do the loan Can't they take the fees off, because now the loan is more than the house. We can now make the $2000 payment, but there is no guarantee they still won't foreclose. What I have written does not begin to explain the *** we have gone through. This is fraud, dragging things on and charging extra feesand basically lying.

0 0 Reply
TexasFire

Jul 30, 2011

:( BOA bought my loan from Wilshire in April 2010. I had to lease the house in August 2008 as it would not sell in the 18 months on market prior to new home being finished. Hurricane Ike hit the next month and markets crashed the following week.
We met with Wilshire rep at a workshop and the loan officer offered a loan mod to get it out of the ARM and into a fixed rate. I had advised her we would be 30-60 days behind for a couple of months due to out of pocket expenses from Ike. She promised to have it fixed. We sent letters and documents she requested and was placed into a "Trial" modification.
I started getting suspicious as I had done a mod with Wells Fargo years ago after getting laid off and it was quick and and without a "Trial".
After the 6 month trial, we kept paying payment as each month they said they were backed up (January 2009 - August 2009, well over 6 mos). In September when calling to make payment, Wilshire said we were not eligible for the program as this was an investment property. I told them well your company put it in the program and EVERY correspondence identified it as such. It took 6 months for them to reassign it to a new "Trial" program and then they sold the loan the next month.
Our first clus was when BOA sent a foreclosure notice. We contacted them immediately and advised we were in a trial modification agreement. We faxed all of the Wilshire docs over and
... Show more

0 0 Reply
Cassandra

Jul 22, 2011

No need to tell my story because its been told by each of you. Applied for a mod before I was behind. Told that I had $200 left over based on his calculation. And then I became behind by one month. Once again, denied over the phone and given no reason. Called back about three months later...this time I applied over the phone, was accepted and told to forward paperwork. Well what do you know...some of the paperwork (paystubs) were missing. Of course, I had to start over. This time I went one of the phony outreach events, personally gave the paperwork to a rep who said she was sending it to the back office because she could no handle FHA financed loans. Never heard from them again until they sent a federal express package stating that they were sending an appraiser out to my home to collect my loan documentation. Really BoA...do I or other Americans look that ***. Why would an appraiser need to review my loan documents. *** no...take your home and in five years I'll be a homeowner again because me and other Americans would have cashed out on this multi-billion dollar lawsuit.

0 0 Reply

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