Bank of America is giving us the runaround on our mortgage modification. We are worried that they will foreclose on our home because we followed their modification program! Bank of America will be referred to as BOA for the remainder of this letter.
We started our loan modification process in January of 2010. After filling out all the necessary paperwork, and sending in financial documentation BOA gave us a temporary reduced payment that was meant to help us during the modification process. The reduced payments began in February 2010.
Since then we have received letters stating that BOA is missing some of our information or documentation. It has always been information and documentation that we have already provided to them. We have faxed in our tax statements 3 times. Each time we send in documentation we call to confirm that they have received it and are told that they have everything they need to process our modification. Then another letter shows up in the mail.
The most current letter dated July 20, 2010, informs us that our modification has been denied, supposedly because we didn't provide them with documents they requested. The letter goes on to suggest options such as as a short sale or transferring the deed of our home to BOA!
It seems to be the intent of BOA to give homeowners the runaround, and a discounted payment schedule for just long enough that their payments are 3 months behind. We have been paying reduced payments for 6 months. Our payments were reduced by about 50%. So the total late payment amount is about 3 months worth. Three months late = foreclosure. Now they haven't sent a foreclosure notice yet, but we're pretty sure it's coming.
Did I mention what this has done to our credit? No? Well it's ruined. BOA has been reporting that we are a "severely delinquent" account. We are not delinquent, we are paying the amount they asked us to! Is this part of their plan as well? Once your credit is destroyed and you couldn't get a loan for anything to save your life, where else are you going to go? You can't very well decide to refinance with another company. You certainly can't hire a lawyer, you are applying for a modification because you can't afford the payments on your mortgage.
Now they have you right where they want you. Broke, poor credit, and one way to get out. Give them your home, either outright, just give up and hand it over, or try and fight and end up in foreclosure.
We have followed every direction BOA has set forth, and here we are, with horrible credit and about to lose our home. We are trying to get this information out to warn other homeowners what will happen to them if they attempt a modification with BOA, and in hopes that we can get some help in resolving this issue before we lose our home.
Randy and Berit Raymer
Product or Service Mentioned: Bank Of America Loan Modification.