Bank of America Complaint - Bank of America's Home Loan Modification Process is a Nightmare
I am a self-supporting 64-year old single woman and I own condo in South Florida. In the last two years my equity disappeared until I was seriously "upside down".
Since my debt-to-income ratio also suffered, I was excited when I read that Bank of America offered a Home Loan Modification Program which I might qualify for. After completing an online form, I was sent an initial package of paperwork. It took some time and effort to get all of the required documents, but I sent them back. BOA replied with a package offering temporarily lowered payments (reduced by about $70 a month). Although this was a disappointingly small reduction, I was happy to get anything.
For the next eight months I continued to make the lowered payments, even though the 6-month trial had ended. Each month I spoke to a different customer service representative when I made my payment. I asked them if everything was OK. That's when things got strange. One month a representative told me that my original documents had been shredded because I didn't put my loan number on each page of documents I'd originally sent to them. She told me I had to resend everything, which I did.
The following month I made a payment, checked my status, and was told again that my new documents had been shredded because my account manager must have left the department, so they routinely shredded documents, "for privacy reasons". I faxed them again. The representative then proceeded to charge me a pay-by-phone fee in error and told me it would be credited back. It was not.
The next month I finally got a call from an account manager who told me he needed still another document. After some work and research, I got the document. Many phone calls and some time later, the information was in the hands of a man who assured me everything was proceeding on schedule.
A week later I got a letter advising that I need to enter credit counselling as a condition of the reduction in my loan.
Before I got a chance to call one of the approved credit counselling agencies, I received a call advising that I need to arrange a time for a notary to come to my home so the final arrangements could be completed. I called and provided the two alternate times and dates. The next day I received another call from a different person, asking for the exact same information.
Last night I got home from work to find a Fed Ex package containing the documents which provide my new, permanent payment.
After almost a year of frustration, aggravation, and unbelievable incompetence, Bank of America has negotiated a. 02% decrease in my interest rate.
The net reduction in my monthly payment? $18.00
I figure BOA must have spent hundreds of dollars in Fed Ex shipments, document preparation, filing (and shredding) costs, and man hours.
But the important thing is that their program will now aide me in keeping my home in these hard times.
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