In regards to the government settlement, I received paperwork from BofA to start the loan modification process. The paperwork they initially required was very simple to get and the paperwork specifically stated 3 documents that needed to be sent to them with the provided Return Envelope.
Two weeks later. After several phone calls, faxes, and mail communications, they actually needed more paperwork that wasn't initially stated in the documents. They also required a Tax Form 8879e (E-file signature page) that does not exist if filed via Turbotax (there are several forums about this 8879e Tax Form and many of the comments and questions were in regards to BofA documents requests). BofA was also requesting my Tax PIN# and other information, but after talking to the IRS, they said that I should never give out that information and they weren't even sure why BofA would be requesting this information. After explaining my conversation with the IRS to BofA on at least 3 different occassions, BofA finally accepted my 2011 Tax Returns. Keep in mind that there was a 2 week deadline to turn in all the paper work initially requested, plus the additional documents that were requested over the phone. I almost forgot to mention that they even 'lost' a page of my tax return that they supposedly needed to further verify that I filed my 2011 Tax Returns. And to make sure that all document requests have been fully received, my last choose three methods to get the information to BofA. I send a complete set of documents by:
1. Certified Mail
2. Fax with appropriate C/O and contact information
3. BofA Return Envelope
Two weeks after their acceptance, I get a confirmation call from another BofA representative that handles the remaining process. The BofA representative sends me my loan modification paperwork to be signed, notarized, and sent back using their Return Envelope.
After I call to confirm they have received the paperwork, I also confirm my new payment and effective date. At this point, I make sure that I know what was to be expected as my new monthly mortgage payment. I ask twice of the BofA representative to confirm everything and even I repeat back to the representative just to make sure that we have the same understanding per the documents signed and notarized.
So I make my new payment as defined under my new loan agreement.
I check my account to make sure that the payment was accepted and I notice that the payment is in a 'MISC' holding account for partial payments. I call to find out why it hasn't been fully processed and the BofA representative has to do some research to find my recent documentation. I have the representative put a note on my account saying that the terms of my loan needed to be updated and that the amount paid is my new monthly payment. At the end of that call, I ask if there was anything that I needed to do at that point and the reply was "You don't have to do anything on your end."
One week later, I check my account again expecting to see updated information and to verify that my new payment has been correctly applied to my account. To my grief and dissatisfaction, it has not. Again I call BofA to find out what is wrong this time. Apparently, after being transferred three times, and finally being transferred back to the initial department called, the BofA representative told me that I need to be transferred again. Before I was transferred, I told the representative that I am very frustrated that I've been transferred three times before I got to her and I ask her why am I being transferred to another department. I believe she understood my anger as she went on to explain that there are departments within departments and a call may not be transferred appropriately. Luckily, she was able to get me to someone that seemed to be able to help me.
The new BofA representative told me that their systems haven't been updated to reflect changes to my account and that is the only way to correctly apply my payment in the MISC account. But they have all the paperwork stating my new loan conditions with the effective date. This representative told me that they would request an update to my account so that the payment could be processed. They say this request should take 24-48 hours and that my account would reflect the modifications.
It has been about 28 hours since I last spoke to BofA and my account still hasn't been updated. My payment is considered late in three days.
As you can see, this process is very cumbersome and frustrating. Not only do you have to make sure that your documents are in complete order to their specifications, but you also have to call BofA several times to make sure that they are doing their jobs as well.
BofA's process for loan modifications is very inefficient to the point that I feel it is borderline fraud. I had to be 100% proactive that my paperwork is well documented and that BofA is doing their due diligence. I see this as BofA's way to try and get the consumer to fault on the process so that they can blame the consumer and not themselves on the failures of the process. I sincerely believe, from my experiences described above, that BofA is not interested in their customers nor do they take loan modifications seriously.
This matter is currently not resolved.
Product or Service Mentioned: Bank Of America Loan Modification.