Bank of America Complaint - Bogus Loan Modification Procedure
DALLAS, TEXAS -- I applied for a loan modification over 2 years ago - After pre qualification, I completed the 3 month trial payment (at a substantially higher payment amount than the original payment) and was notified that my modification had been approved and that I would be receiving the final paperwork for signature. Although I burned up the phone calling on status of that paperwork, I never received it. After several months, I finally received a call saying that I had to resubmit and go thru this process all over again because they had taken too long to finalize the paperwork and by law we had to redo the paperwork......to make a long story short, I went thru this same senerio 3 times - each time with a different reason for non completion of the loan modification. I learned during this time that the lender and the investor receives incentive payments when the loan application is submitted and accepted by the lender, and when the trial modirfication is in place they each receive monthly incentive payments to complete the modification. In addition, they also charge extremely high interest on top of the amount owed and veery high penalties and fees on top of all that. So - they reset this process over and over again to collect these incentives and fees and in the end they do not modify the loans. Any ordinary citizen would go to jail for this fraud.
In any case, after sending in enough paperwork over this timeframe, the lender claimed that they did not receive documents and again cancelled the modification effort and began foreclosure action. I just received a forensic audit report and securitization report on this loan....unbelievable results. There are substantial legal infractions in both reports. Next step is legal action and possibly attorney general action.
Although the Federal government loan modification program may not be all that was intended, it is apparent that the lenders have exhorted this program for their own benefit. The incentives were set up to entice the lenders to complete loan modifications during a very drastic financial crisis for this country and our people. It is my opinion that the government understood that the banks would NOT be open to modifications unless they received some sort of incentive (ironice since the lenders created a majority of the crisis). However, BoA and other lenders have exploited this effort so that they can collect over ande over with no intention of modifying loans. In addition, they do not even care if the foreclosure is a legal foreclosure and will put not only the customer but also the investor or whomever in harms way to get what they want.
BoA Office of the President recently testified before Congress saying that they could do better on the loan modifications and claims to care and want to resolve issues. I don't think so - until we put some teeth into this whole process it will continue.
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