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In August 2009 I entered into a trial modification with BOA. On March 30, 2010 I received a letter stating that I qualify for a permeant modification. A few months pass and I did not receive any documents BOA claimed they would send. On 10/8/2010 I received a phone...
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4 comments
Anonymous
#508182

Again, MDK, you are the one who is uneducated. Do you REALLY think over a million people are ALL simple "behind"? LOL For your ignorant information, many of us were CURRENT on our mortgages right up until the BANK ordered us to STOP THE PAYMENTS!

Also, many of these people DID buy homes that they could afford and were well "above" water in that mortgage but because the BANKS got greedy and started their subprime/escalating/balloon/don't qualify loan approval *** with people who had NO way to know better, THEY caused the housing market crash...the BANKS!

THEY caused most of our property values to then plummet until we, too, were underwater through NO FAULT of our own! How is THAT fair? We now owe $200,000 on a home now not worth more than $150,000 because of the BANK?? AND we're paying 5% too?

At any other time in history, people could simply refinance to a lower rate but if they try to do that, BOA and the HAMP "program" screw them up the *** because the homeowners did what they were TOLD to do by people they SHOULD be able to believe and trust! Never in the history of our country has a corporation simply LIED to their customers and CAUSED them to go into foreclosure! Those foreclosures are from LIES by the BANK, ***, NOT lack of money!

Perhaps YOU should educate YOUR pea-sized brain instead of rambling off about things you obviously know nothing about!

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#293663 Review #293663 is a subjective opinion of poster.
Service
Bank Of America Loan Modification
Within the last 6 months, we completed a trial program with Bank of America to reduce our mortgage payment & avoid foreclosure. We were told we completed the program & told the amount we were paying would be our new mortgage payment. About a week ago, we received a...
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4 comments
SekhmetMaat
#650441

Hi,

I would like to share important advise. This helped me when I was in need.

1) I prayed to God daily and I fast. I also paid tithes weekly.

2) I contacted a lot of free attorneys. Do a google search under your zip code. Search for a "pro se attorney", Probono Real Estae attorney" etc.

3) Create a file of ALL documents you sent and received from the bank

4) Contact an organization called "NACA.org" They have helped a lot of people obtain a 2-3% locked intrest rate for 30 years. (I know everyones situation is different and results vary). But they helped many people. Their services are FREE.

Note: Some people are volunteers at NACA.org. They mean well but lack professionalism. So be patient, and keep copies and records of everything.

5) Try to get elected officials to assist on your behalf. Also contact advocates from community based housing programs.

6) Good blessings/Good Karma comes when you help someone in need. Help someone who is less fortunate.

Good Luck

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#274381 Review #274381 is a subjective opinion of poster.
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Bank Of America Loan Modification

Bank of America Home Loans foreclosures

I know that I am not the only one with this issue with BAC home loans. I have had a loan modification in place for over 2 years and they still don't recognize it and have filed foreclosure papers on me, again. BAC did this same thing a year ago and it was dismissed. It still didn't help, and they sent back all my payments or won't accept them. Why can't they, Bank of America, admitt they screwed up and are scamming us hardworking Americans???? I never missed a payment until all this happened and they sent all my payments back. BAC is the reason my payments are "late"; they won't accept them. Isn't there something we can do???? I have been fighting them for 2 years by myself. I lost my job and I have sent all my time looking for work and calling Bank of America. Who can help us fight this large corporation since we are lone soldiers in this battle. I don't want to lose my home!!!
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3 comments
Anonymous
#753496

This is the biggest scam of the century and they are allowed to get away with it !!!!! Same thing with our home loan which originated with Countrywide almost 20 years ago then BAC stepped in and the screwing continued.

Lost our home during Katrina and they took full advantage of that situation. Lousy, heartless, rotten no goods...

Anonymous
#374100

@sauce, comment to yourself. That was not appealing to read your comment at this time of the morning.

For someone to battle a bank to save her home. (AND IT IS HER HOME, IF SHE IS PAYING FOR IT.) Paid off to make it hers?!?! Not everyone feels they need to own a home.. It have been embedded in our minds by the Feds to think so.

It is a matter of pride to say, "I own _______." With that being said, please do not comment anymore. The banks do not deserve to doop us 5 times over like they have especially the last 5 years.

Anonymous
#373822

I understand you don't want to lose 'your home,' but the home was never yours unless you paid full price for it. Renting is easier anyway, you don't have to worry about some things depending on where you rent. I don't understand why everyone feels they need to own a home, especially with the way things are right now.

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#274168 Review #274168 is a subjective opinion of poster.
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Bank Of America Loan Modification
I have been trying to get a loan mod with Bofa for over a year. According to their numbers, I qualify but they never seem to be able to 'fit' me into existing govt. programs. Some told me an in-house mod was the next step. Others at Bofa have told me that...
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6 comments
Anonymous
#396088

And "Nikalseyn"--YOU'RE A BULLY, a true reflection of BofA and it's practices.

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#265549 Review #265549 is a subjective opinion of poster.
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Bank Of America Loan Modification

Bank Of America in Minneapolis, Minnesota - Why was I declined a mortgage modification?

I was let go from a couple of jobs in the poor economy since we bought my house. My yearly income has been cut over 50% since we purchased in 2006. In attempting to do a Home Modification loan to reduce my monthly payments with Bank of America, it took them 6 months to get the paperwork right. Twice they said they misplaced it, and once I was told they entered it too late. This entire time I was told to continue making my payments on time, because that would help ensure a modification. The reason my modification was ultimately turned down, I was told, was because my payments were always made on time, so obviously I did not need to modify my payment schedule.
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2 comments
Anonymous
#369630

David Puzniak

Mortgage Loan Officer

Bank of America Home Loans

628 North New Ballas Rd

Creve Coeur, MO 63141

david.puzniak@bankofamerica.com

Office: (314) 994-2511

Mobile: (314) 486-2652

Dear David Puzniak & Bank of America:

I will be sending this letter to anyone who will read it and listen to the injustice that we have suffered at the hands of Bank of America and Freedom Mortgage. My intent with this is to have Bank of America honor the agreement that they had made with my husband and I in 2010 about streamline financing my current FHA mortgage with Bank of America. And to also make Bank of America fix some of their current processes that harm families like ours. Below is an approximate timeline of events:

November 2009- We received a postcard in the mail from a company called Freedom Mortgage offering to refinance our home with a new FHA streamline refinance and save us on our interest rate and monthly payment.

November 10 2009- I spoke with Freedom Mortgage about the postcard that was sent to me and to ask questions about how it worked. They said no credit check, no appraisal and no closing as long as I had made all payments on time. I told them sounded good I would speak to my husband and if we were interested I would call them back. They asked if they could send paper work to look at and I said yes in case we decided to accept the offer.

January 5, 2010- We get a letter from Russ at Bank of America offering the same thing that Freedom Mortgage was offering. We called Bank of America because they are our current mortgage company and we thought it might be easier to deal with since they had all of our information already.

February 2010- I call and speak to Russ and ask so questions about their program. He assures it will be very easy and we should consider the offer. I tell him I will speak with my husband and call him back. So a few weeks later we call him back and talk to him on three way together so that Jason can ask the questions we has as well so we can make an educated decision. After speaking to Russ Jason feels confident and says we should proceed. So we call Russ and ask him to proceed.

March 2010- Russ calls and says he needs to go over the numbers again because something is wrong in the escrow numbers and that our payment is about to go up to $1800 a month. He says it’s good we are going to refinance now so we can get the payment down. We are concerned with the payment going up because we are trying to lower our current payment to get out of debt and pay off some bills. So now it looks like we need to refinance just to stay afloat much less pay off bills. I feel bad for people in our shoes that don’t have two incomes to fall back on. I think no wonder there are so many homes in foreclosure. It saddens me.

May 2010- I tell Russ we are going to be out of town and ask if he knows when our closing date will be since we are getting close to 90 days now. He says we will get it all done when I get back in town.

June 2010- When we get back in town Russ is on vacation. I leave a message. When he calls back we ask him about a cheaper rate that is being offered. He says ok he will look in to it for us. He calls and leaves me a message to call him. I call and leave a message for him.

July 2010- I call and leave messages for Russ. He calls me back once and leaves a message for me to call him. I try him back but have to leave message again.

August 2010- I leave message after message for Russ to call me. We really need to get out mortgage closed badly. Finally I call one evening and ask for him, they don’t put me on hold and I hear him say, put her into my voice mail I don’t have time for that crazy lady. I ask to speak to his supervisor immediately. Dave Puzinak gets on the phone and I explain what has happened. He apologies but it seems like he is just sorry that Russ gets caught saying it, not that he really is sorry that he did say it. He says BOA would like to keep my business. So I agree to proceed.

September 2010- Dave sends me new papers with the new rate on it and says the processing has to start over because of the new rate. So he says we won’t close this month either.

October 2010- Dave says we missed our window for this month as well.

November 2010- Dave says we can’t close this month because there is a very short window they have to close these loans. And they must be done by the 26th of the month and they are shorthanded and can’t get the paper work processed and completed for this month. I am very disappointed. I even file a better business bureau complaint and they offer me a $25 gift card for my trouble and say it will be done in December for sure. I call another mortgage company to see if we can get it done quicker and to see if I am being lied to. They run my credit and say they can’t help me because my credit score is too low to finance with them. They suggest I continue on with BOA since there is no credit check required.

December 2010- Dave calls for my bank statements so I send them to him. He calls me and asks why I have deposited a $2000 extra in my account. I explain that it is a loan for our Christmas vacation. He says we can’t close because they will think its borrowed funds for closing. But I tell him I have the money to close even if that had never been borrowed and he said yes but that would be too much paperwork so we should wait till the next month. I am beside myself at this point. Money is really tight and my payment is supposed to be more than $300 cheaper a month. And every month I get further and further into debt because I can’t get my house closed and my payment lower. I am scared I am going to lose my house at this point. I have 5 more people in my household to take care of.

January 2011- I call Dave and ask about closing date. He says once again we need to wait one more month till Feb 15, 2011 to get bank statements in with now extra money added to my account. I am livid. I fuss and complain but he says there is nothing he can do and it will be done next month for sure. There is nothing I can do except comply, BOA has my family home in its hands. I pray they can fix this next month because I don’t know how much longer we can hold on to this house without the refinance.

February 2011- I get an email from Dave today saying not to forget to send him the bank statements on the 15th so we can get moving and not miss that window again. I am super excited that he seems to be being proactive. Then 3 hours later I get a call that says he needs me to call him. I call him back and he tells me that because Freedom Mortgage held on to the file or application for 4 months, I am no longer eligible for the no credit check offer and they ran my credit and it’s too low for them to do the loan. I was devastated. I only spoke to Freedom Mortgage One time. I never signed anything or told them that they could do anything. They had called BOA for a payoff quote which I had to pay for even though I had not authorized it in anyway shape or form and they changed my designee on my homeowners insurance through State Farm. How can a company do that? Isn’t that an invasion of privacy? Don’t I have to sign something giving them permission to do all that? And how can BOA back out of a deal just like that? Should they not have to own up to their agreement? Dave has said now after this whole year that it’s Freedom’s fault, I am sure if I call them they will say it’s BOA’s fault, but ultimately my family is the one who suffers because now we cannot refinance our home and will probably lose it because we can’t pay the note every month. I thought President Obama’s mortgage reform was to help people like us, but it has not. So it’s either his fault, the FHA (that’s the other place BOA blames), or one of the mortgage companies fault. But of course I am sure no one will fix this or take the blame. My husband and I both work in education and I thought we were pretty smart people but for the life of me I cannot figure this one out. When we first purchased our home our payment was $1500 a month to Taylor, Bean and Whitaker and we could afford it. We had plans in two years to refinance. Then we get a notice saying they are closing down and Bank of America now has our loan. Then last year for no reason we can understand our payment went up to $1841 but our taxes went down and our homeowners stayed the same so why would it go up?

I am going to send this to everyone on my email list and my face book to let my family and friends know of our injustice before we lose our home so that people will already now it was our mortgage companies fault. I am also sending it to anyone I think might be able to help me get the word out to help some other poor soul from putting their trust into either of these companies. It is wrong what you have done to my family. I hope you open your eyes and do the right thing or that the FHA or someone higher up can step in and make you do the right thing and correct this mistake you have made for us.

Anonymous
#361267

I had the same thing happen to my family. I got to the point that all the savings got dried, so I took a hard decision and stop paying the mortgage.

I have not paid anthing for almost two years, I been saving that money under my pillow and going on a short sale. You may think it was a bad decision, but I think it was just a normal business decision by companies made. Now I have money saved, don't deal with their ***, going into bankrupcy and in a few years I'll be able to buy another house. I think its better than been upside down 200k on a house and dealing with BofA that not willing to help.

I also stoped paying my credit cards, but not before consolidating all of them with BofA. So now they got all my dept and they are stuck with it.

My life has changed, I am no longer worried about my bills and I have more money in my pockets, we only buy things we can afford cash and no way I am doing busines again with BofA, NEVER!

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#265007 Review #265007 is a subjective opinion of poster.
Service
Bank Of America Loan Modification
Loss
$1200
I was current on my loan but unemployed when I approached Bank of America about possibly getting a loan modification. They directed me to HAMP. NOw, as a result of the following directions to get into the HAMP program my home is being foreclosed. These "trial payments"...
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13 comments
Anonymous
#666775

I have read these posts and several more out on the internet. We also applied for help after I lost my job of 10 years and my husband was on seasonal layoff.

We did everything correctly and timely (as my case person indicated) and when we were approved for the "trial period" I felt a great relief. After the three month "trial period" I was told that they were "behind on paperwork" but to continue to pay the modified trial payment until we received the final documents which we received three months later (total of six months). Now you need to remember that while you are paying the "trial payment" the difference between the trial payment and your actual mortgage still accumulates (i.e. actual mortgage $1000 - trial payment $800 = difference of $200 which continues to accumulate and show as a past due on your mortgage as each month goes by).

When we received our final documents we found discrepancies -- we had applied money towards our past due balance but that was not figured into the new 30 year mortgage, they use the balance before the applied money and we received a "subordinate note" that would come due if we refinanced, sold or paid off the mortgage -- but the subordinate note was for the past due amount that we had already taken care of. I tried to get someone to explain the documents to me but went through one department after another who couldn't explain the documents, made calls but did not get calls back, etc. etc. etc.

I have been going through this for five months, obviously they are now telling me that our final documents are now not valid. I could go into more details, like how I was told to just "make notes" on our final documents regarding the difference I found and send them back. I asked that if I made changes on a legal document wouldn't both parties have to initial off on them? I was told no, it's okay, the BOA person would make "notes" on our account and it would be okay.

Seriously!? I know better. I finally contacted the Department of HUD which is who the subordinate note would be payable to. I have been amazed at the response I have received from HUD, timely calls back, email responses, great follow up, etc.

Being a "loyal customer of BOA" I never received this type of customer service from BOA!!!!! The people I am working with at HUD saw the discrepancies in the documents and are now my go-between with BOA -- the company that I am a "loyal and valued customer" but who can't call me back, respond to my emails or provide quality information when requested. One thing to remember is the comment I made at the beginning of my post -- they were "behind on their paperwork". After receiving our final documents which was in December and after three to four months trying to get someone to explain the issues I found, BOA told me that they couldn't update the paperwork because it was created in May!

Then why did it take six month from the start of our trial period to receive our documents? I don't have much faith in BOA at this time and don't think I ever will, but I am thankful for the people I am working with at HUD for their assistance and persistence in looking into our situation. FYI -- another agency to call to report problems is the State Banking Commission. Please, Please read your BOA documents before signing off on anything!

If we had not really looked over our paperwork we would have been paying the past due amount that was paid twice! Once in the new 30 year mortgage and secondly through the subordinate note that we were being pressed to sign. Saying prayers that we don't fall into the black hole that most Americans are falling into. And just an FYI to the AllWhiners post -- we were not in over our head, we live in a modest house that we could afford, we don't over spend and never really did -- the loss of a job due to the economy and getting a new job making $15-20,000 less starts to put you in a tail spin that is hard to stop.

We tried to hang on for a year and a half but couldn't pull things back to where we could keep above water.

We never thought we would be where we are today and I won't stop fighting to keep our home. Good luck to everyone dealing with similar circumstance.

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#264537 Review #264537 is a subjective opinion of poster.
Service
Bank Of America Loan Modification
Loss
$130

Bank Of America in San Luis Obispo, California - Modification Nightmare

I've been embroiled with Bank of America *** for 2 years for home loan modification. I have Faxed, emailed, FEDX, thousands of documents, same ones 5 or more times. I call get Voice Mail to call 2 other #s, call 4 and get more#s, I call all and get referred back to original # Agents tell me to call the next week, I call they are gone. I am having serious health and mental problems from the stress. I have documented everything, spoken w/ congressional office. Is there an attorney who wil help me sue for contigency? SOMEONE Please HELP!
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4 comments
Anonymous
#720209

Since 10/1/10 I have been playing the stress game with boa. My income was cut due to my spouse walking out.

I have been told to get a quick claim deed ( did it) file for divorce (did it) write dozens of hardship letters. Everything they asked for I did. I was told to take in a renter; get a second job (trying to hold my full time down). Sell things .

I once told them that I will put my dog and cat on the corner (they are fixed). They don't want your home and they don't want you to keep it. I am swimming with the loan and they just keep adding fees and things to make it worse. The value is going back up now and I am being pushed into a short sale.

After 23 years this isn't a houe; it's my home with an edlery parent;20 year old cat and ten year old dog. They even offer me 15000 in relocation fees if I qualify. What do you think my chances are? If I do I dodn't get it ( taxes and everything) until after I am long gone.

A co worker said he will deal with boa because they won't go broke. Guess not when they really don't try to help those that need it.

If I had money in the bank or a mansion I caould get a mod just like that.

Anonymous
#719474

Different day, same story, I too have been going through the same with BOA. The latest: My husband called BOA a couple of days ago to check the status of our modification request only to be told by Jewel Stephens that we had failed to send in the application which is an absolute lie, we have actually sent in the application along with the required documents 8 times, yes you read that right on 8 separate occasions we sent everything in.

So, Jewel Stephens with Bank of America said that since we had not sent in the application and documents that they had now sent our file to Charlotte. (have no idea what that means). Also, in a very condescending tone told my husband that BOA does not do principle reductions now or ever. I mention the principle reduction because we had requested one on one of the applications that he said they had never received, obviously he was lying about not only the receiving our application but also regarding BOA not doing principle reductions.

We paid 650,000 for our home in 2005 it is now worth around 250,000 We have not yet contacted an attorney because we see so many scams taking place on people in similar situations. Does anyone have any insight to share?

Anonymous
#388329

Most if not all of us on this blog have been going through the same thing with BAC, we need to form a group and start a protest, something needs to be done and more help needs to be offered to all of us who qualify, wondering these politicians are doing for us...so much talk and no action serious people feel free to contact me at aurocarlos@aol.com lets start today and see if someone out there is willing to hear us and help change this corrupt system that Bank of America is using against all of us trying to keep our homes, I guess this government wants us to be dependant on them and soon there will only be the rich, no more middle class in this country its looking like socialism is on its way.... lets work together and maybe just maybe we can be the ones to make a difference and win our battles.

Anonymous
#342405

I have been going thru the exact same situtation with BOA. I even attend the Home Loan Modification seminar they had in my city and personally handed them the docouments.

Still denied me. They advised me they sent out an application and forms to fill out for the modification, I never recieved them. I called them 2 weeks in a row asking about the forms. One rep told me they sent them, another rep told me they did not send them yet, and a different rep told me they did not send them because I was denied.

I got denied before the "paperwork" was sent out? They can never tell me why I'm being denied. Wow....now I have to move? I am a single mother of 2 children with no child support(the father stop paying).

I wanted to keep our home and a modification is what I needed badly. The house was purchased when the market was really high and now the house is upside down by $70,000. The houses in my area do not sell. So let's see how long it's going to sit.

I have been making payments, but forget it. I will not send another dime.

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#260827 Review #260827 is a subjective opinion of poster.
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Bank Of America Loan Modification

Bank Of America in Seattle, Washington - Loan modification fiasco

My husband I and I applied for a loan modification with BOA and were denied with no explanation. During the process, we had to fax over very confidential documents and were never able to speak to anyone directly. Each time we called, we were sent into an endless loop having to answer the same questions over and over, nothing to do with the modification. We even had contact names and telephone extension numbers and were told that there was no way for us to be transferred to any particular person, not even the one supposedly representing us (in one case, very early in the process, we were actually given the extension number of the person who did a quick run down of our financial situation and informed me that we were "pre-qualified"). Our negotiator left ONE message later in the process and was annoyed because "he'd tried contacting us for ten days" though he left only the one message, without a return phone number or e-mail address. I did try calling the number on our caller ID, but the number did not reach Bank of America. I would like to speak to someone who will help us without the run around. This is the worst bank I have ever dealt with.
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Anonymous
#819057

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#255047 Review #255047 is a subjective opinion of poster.
Service
Bank Of America Loan Modification
Loss
$2500

Update by user Aug 10, 2011

The email below is incorrect. To contact me for more information on getting on the case please email at: robtalstra33@gmail.com

Original review posted by user Aug 09, 2011

There are 3 main questions that potential clients will always want to know before they decide to join our landmark case. 1. Is this a...
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3 comments
Anonymous
#594218

You should publicize this more broadly on the internet...More complaints...bigger settlements & more favorable settlements! BOA bought Countrywide which made most of the "questionable loans" folks are talking about; however, they also bought the liabilities that come w/ the buy.....my advice to keep the feet to the fire, recuit others similarly affected, focus the damages ..& good luck...if you don't have an atty and at least those who have significant $$ to recover... GET 1-a competent atty in this area ...Not an atty but been around the block..

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#254391 Review #254391 is a subjective opinion of poster.
Service
Bank Of America Loan Modification

Summary of Bank of America's Actions

In October 2008, Bank of America accepted $15 billion in funds from the United States Government as part of the Troubled Asset Relief Program ("TARP"), 12U.S.C. § 5211. In January 2009, in connection with its acquisition of Merrill Lynch, Bank of America accepted another $10 billion in TARP funds along with a partial guarantee against losses on $118 billion in mortgage-related assets. By accepting this payment, Bank of America agreed that it would participate in one or more programs that TARP authorized the Secretary of the Treasury to establish necessary to minimize foreclosures. Consistent with the TARP mandate, the Treasury Department implemented the Home Affordable Modification Program ("HAMP") -a detailed program designed to stem the foreclosure crisis by providing affordable mortgage loan modifications and other alternatives to foreclosure to eligible borrowers. Companies that accepted money under TARP are subject to mandatory inclusion in HAMP as are certain classes of loans, namely those held by Federal National Mortgage Association ("Fannie Mae") and Federal Home Loan Mortgage Corporation ("Freddie Mac"). Bank of America signed a Servicer Participation Agreement ("SPA") with the U.S. Treasury on April 17, 2009 (attached as Exhibit 1 and incorporated by reference) agreeing in its capacity as loan servicer 1 to comply with HAMP requirements and to perfom1 loan modification and other foreclosure prevention services described in the program guidelines. The guidelines issued by the Treasury Department set forth a detailed process whereby a participating servicer such as Bank of America, acting through its subsidiary BAC Home Loans Servicing, must: "¢ identify loans that are subject to modification under the HAMP program, both through its own review and in response to requests for modification from individual homeowners; "¢ collect financial and other personal information from the homeowners to Evaluate whether the homeowner ineligible for a loan modification under HAMP; "¢ institute a modified loan with a reduced payment amount as per a mandated formu la, that is effective for a three-month trial period for borrowers that are eligible for a modification; and "¢ provide a permanently modified loan to those homeowners who comply with the requirements during the trial period. Whether the homeowner qualifies for a modification or not, participating servicers are also required to provide written notices to every mortgage borrower that has been evaluated for a loan modification, whether or not the borrower has been found eligible. Namely those held by Federal National Mortgage Association ("Fannie Mae") and Federal Home Loan Mortgage Corporation ("Freddie Mac"). Bank of America signed a Servicer Participation Agreement ("SPA") with the U.S. Treasury on April 17, 2009 (attached as Exhibit 1 and incorporated by reference) agreeing in its capacity as loan servicer 1 to comply with HAMP requirements and to perform loan modification and other foreclosure prevention services described in the program guidelines. The guidelines issued by the Treasury Department set forth a detailed process whereby a participating servicer such as Bank of America, acting through its subsidiary BAC Home Loans Servicing, must: "¢ identify loans that are subject to modification under the HAMP program, both through its own review and in response to requests for modification from individual homeowners; "¢ collect financial and other personal information from the homeowners to Evaluate whether the homeowner ineligible for a loan modification under HAMP; "¢ institute a modified loan with a reduced payment amount as per a mandated formula, that is effective for a three-month trial period for borrowers that are eligible for a modification; and "¢ provide a permanently modified loan to those homeowners who comply with the requirements during the trial period. Whether the homeowner qualifies for a modification or not, participating servicers are also required to provide written notices to every mortgage borrower that has been evaluated for a loan modification, whether or not the borrower has been found eligible. HAMP and its associated directives also set prohibitions against certain conduct including instituting or continuing foreclosure proceedings while a borrower is being evaluated for a loan modification, and restrictions on the way a servicer may report the borrower to credit reporting agencies. Though Bank of America accepted $25 billion in TARP funds and entered into a contract obligating itself to comply with the HAMP directives and to extend loan modifications for the benefit of distressed homeowners, Bank of America has systematically failed to comply with the terms of the HAMP directives and has regularly and repeatedly violated several of its prohibitions. Under HAMP, the federal government incentivizes participating servicers to make adjustments to existing mortgage obligations in order to make the monthly payments more affordable. Servicers receive $1,000.00 for each HAMP modification. However, this incentive is countered by a number of financial factors that make it more profitable for a mortgage servicer such as BOA to avoid modification and to continue to keep a mortgage in a state of default or distress and to push loans toward foreclosure. This is especially true in cases where the mortgage is owned by a third-party investor and is merely serviced by BOA because BOA does not carry a significant risk of loss in the event of foreclosure. On information and belief, BOA does not own a significant majority of the loans on which it functions as servicer. Economic factors that discourage BOA from meeting its obligations under HAMP by facilitating loan modifications include the following:2 "¢ BOA may be required to repurchase loans from the investor in order to pennanently modify the loan. This presents a substantial cost and loss of revenue that can be avoided by keeping the loan in a state of temporary modification or lingering default. "¢ The monthly service fee that BOA, as the servicer collects as to each loan it services in a pool of loans, is calculated as a fixed percentage of the unpaid principal balance of the loans in the pool. Consequently, modifying a loan to reduce the principal balance results in a lower monthly fee to the servicer. "¢ Fees that BOA charges borrowers that are in default constitute a significant source of revenue to it. Aside from income BOA directly receives, late fees and "process management fees" are often added to the principal loan amount thereby increasing the unpaid balance in a pool of loans and increasing the amount of the servicer's monthly service fee. "¢ Entering into a permanent modification will often delay a servicer's ability to recover advances it is required to make to investors of the unpaid principal and interest payment of a non-performing loan. The servicer's right to recover expenses from an investor in a loan modification, rather than a foreclosure, is often less clear and less generous. "¢ Fixed overhead costs involved in successfully performing loan modifications involve up-front costs to the servicer for additional staffing, physical infrastructure, and expenses such as property valuation, credit reports and financing costs. Rather than allocating adequate resources and working diligently to reduce the number of loans in danger of default by establishing permanent modifications, BOA has serially strung out, delayed, and otherwise hindered the modification processes that it contractually undertook to facilitate when it accepted billions of dollars from the United States. BOA's delay and obstruction tactics have taken various forms with the common result that homeowners with loans serviced by BOA, who are eligible for permanent loan modifications, and who have met the requirements for participation in HAMP, have not received permanent loan modifications to which they are entitled. In addition to its obligations based on its contract with the Treasury Department, as a participating servicer in HAMP, BOA entered into a standardized contract with Plaintiffs and thousands of homeowners for a temporary trial modification of their existing note and mortgage. Each such modification agreement promises that if the borrower complies with the terms of the temporary modification agreement and the borrower's representations on which the offer of a modification was based continue to be true in all material respects, then the borrower will receive a permanent modification on the same terms. The contract, known as a "Trial Period Plan" ("TPP") Agreement, is for a finite time period- normally three months -and specifies that "TIME IS OF THE ESSENCE." The Trial Period Plan ("TPP") Classes, defined below, made the required payments under their TPP Agreements and expected to receive either a final modification or a denial of eligibility before the end of the trial period. Neither was forthcoming. Despite Plaintiffs' efforts, BOA has ignored its contractual obligation to modify their loans permanently. Because BOA is not meeting its contractual obligations, hundreds of thousands of homeowners are wrongfully being deprived of an opportunity to cure their delinquencies, pay their mortgage loans and save their homes. By failing to live up to its obligations under the terms of the agreement it entered into with the Department of the Treasury, and the terms of the contracts it formed with individual homeowners, BOA has left thousands of borrowers in a state of limbo - often worse off than they were before they sought a modification from BOA. Defendants' actions violate their contractual obligations, thwart the purpose of HAMP, and are unfair and deceptive under state laws.
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Bank Of America Loan Modification