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Is the Bank Of America loan modification a scam?

I have been working through a modification on my home with BOA since March of 2009... In brief, I made my 3 trial payment ending in August 09 and was moved to approved status in September. I was told in October that I was accepted and that I should receive a package with new loan documents any day. I was told the day before Thanksgiving that it was in underwriting and should close the end of Dec..this didn't happen in Dec, Jan, or February so I called demanding a response one way or the other and I got one. They sent me a certified letter saying that I had 30 days to send 2 alleged missed payments or I was going to be removed from the program. I sent them the payments and was then told that I needed to complete a credit conciliation, which I did.
I continued to make my payments and May 7,2010 I got a letter that said I had been removed from the program because they had not received all of my trial payments. But there was an "in house offer" included with the letter that was the same interest rate that I already had and $12000 tacked onto my loan, raising my payment over $100 dollars from the original amount. Oh, and I have 7 days to return it notarized with my first payment or they will proceed with foreclosure. I called and the BOA rep said that they have all of my payments to date and that my status still shows "under review". I googled Bank of America scam and was directed to a website modificationscam.org and I could not believe my eyes...  I have no idea where the more than $18000 dollars I have sent them over the past year went because the rep who verified that I was current in my modification payments also said they were missing 9 payments. I was only 90 days late when I was approved. This should be illegal!
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May 13 2010 - Knoxville
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Replies (13)

With any loan modification or mortgage for that matter you need someone that can explain the process completely.  That starts with the person on the other end of you knowing what they do and being able to explain that to you.  You signed a note which is a promise to pay and although lenders want to sound like they are there to help it is still a business and they want their money and someone that can meet either the obligations already in place or unload the house to someone that can pay whatever it is worth.  It is not pretty and hopefully with a little work on the phones you can get someone who can help you understand where your money has gone.  It is a big web and there are several modifications lenders may do depending of the origianl loan type.  You always must realize if the home now or in the near future is beyond your means its probably best to move on.  If it is keep trying.  If you cant find someone within the ranks at the lender then you must find good Counsel.

Good Luck!
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May 13 2010
Do you have copies of all checks that you sent? If not , I would order copies from your bank and find good legal counsel. 
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May 13 2010
It should be a crime on what these banks are doing to borrowers everyday.  Especially when they are still receiving money from the Federal Reserve at 0% and lending out to everyone else at 4% or higher!  In the time that I have been dealing with the banks on Loan modifications I have seen and heard almost everything from the banks.  That's one of the main reasons I tell people that if you can get someone to follow up with the banks on a weekly basis DO IT!!!.  I would think you still want to keep the house especially if you made all those payments! I would recommend you making sure you or someone else follow up and get to the bottom of this and tell the bank that you will seek legal action if the games don't stop on their end.  I have successfully secured numerous loan modifications on behalf of my clients and you would not believe the lies and misinformation these banks tell people.  I get everything from hung up calls to dead extensions to managers to people losing paperwork that I have FAX confirmations showing they received it! Hang in there and I would recommend you getting someone to do the hard part and that is understanding the process of a loan modification and the daily following up of your paperwork with the banks!
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May 13 2010
Profile picture for iso good home
Thanks to all three of you.. It really helps to know that I am not the only one who sees that this seems like criminal activity from the bank. My biggest concern is the number of people getting these loans approved seems like very few in contrast to applicants. What I read on modificationscam.org really freaked me out because not only was about BOA specifically but they have made the exact same statements to me, verbatim.
According to the person who posted that page and appears to have some inside info, I am a fool to continue to pay them because I am going to be denied and foreclosed anyway. One person who commented on the page said that they quit paying 14 months ago and they are still in their home waiting for the "30 day notice". Granted I understand that this is not the right thing to do but I have been trying to do the right thing for 15 months only to be in a deeper hole. The payment they offered me is way more than I can afford and more than the house is worth due to recent sales on my street. Do I save my money and wait for my notice or keep fighting and possibly loose everything?
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May 13 2010
You first need to know if you are actually eligible for a loan modification. Many borrowers who try to get the mod done on their own don't know the rules, and the lenders won't make all the rules known. Go to http://www.hampmod.org for more information on this.

You can find out if you  are eligible for the modification, and decide to proceed accordingly.

My experience with Bank of America with loan mods has been OK, but it is with borrowers who are eligible for the program. It takes a long time to get things done simply because they are so overwhelmed right now they just can't keep up with it. The left hand doesn't know what the right hand is doing.

I would start by first finding out if you are eligible for the HAMP mod, and if you are, then it's time to document all of your payments and get on the phone with the servicing department. If you are not eligible for the HAMP mod, you can decide if the in house offer is worthwhile in enabling you to keep your home.
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May 22 2010
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I requested a loan modification from Bank of America on February 4th. B of A stated we would receive the application paperwork within 30 days. We have called numerous times over the past few months, each time receiving a new excuse on the complexities of sending an application through the mail. It is now June 1st, and we have yet to receive the paperwork, so we can even apply. Help!

Jennifer
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June 01 2011
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June 04 2011
Profile picture for annie0523
Bank of America is a nightmare, when it comes to getting any type of help! There are hundreds of post regarding their company online. Just do a google search and you will find pages & pages of them! They continue their trail of lost docs, no return phone calls, many fedex packages, lack of training skills etc etc...We have been working with them since July 2010 & still our nightmare gets worse each week. They should be investigated! Even the corporate office doesn't appear to know what they are doing. We have lived in our home approx. 33 yrs and are about to loose it to these incompetent people! We are about to let them have it, just to get out of the mortgage with them. Yes, it has been that bad, the biggest mistake of our lives was asking them for help! We share your anger & disbelief! Best of luck to anyone that is involved with this mortgage company!
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June 05 2011
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I hear you. B of A does stink. If you are fighting with them get help. You can try this site here to see if a HUD counselor can assist or call your local Congressman.

Make sure all your paperwork is in order first. The way I see it B of A got government money, so they have a responsibility to use that TARP money as directed and the government has an obligation to follow up. I hope things get better for you.
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June 05 2011
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I have found the loan modification process through BOA to be a complete fraud. They have no intention of helping you. All they do is stall, obstruct, frustrate, divert and generally wear you down until you quit or go into active foreclosure. It's complete BS. After months of this and having to start the process over for the third time, I finally had to conclude that this was intentional. Their process was designed to do exactly what it does and that has nothing to do with helping the out the mortgage holder. I finally went to a non profit that pretty much confirmed my suspicions. They said that companies like BOA have a success rate under 20%. There's is close to 80%. Skip the process with your big bad mortgage holder. They're criminals.
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March 23 2013
Completing a loan modification with any bank can be very stressful.  I helped a young lady get a loan modification completed, but it took me calling every Monday morning to get an update.  Keeping a log of every phone call, which included who I talked to, date,time and what was said. You must keep copies of every letter you received and everything you send to them. Confirmations are very important. The young lady in the end received a lower interest rate which brought her payment down to what you could afford.  Stay on them and from time to time ask for the supervisor.  The more people that know of your file the quicker it will get done or it will sit on someones desk among hundreds of others.  The best of luck to you!
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March 23 2013
Profile picture for annie0523
Hang in there, BOA customers! After two long years of desperate modification attempts, we finally got approved for an "in house" modification thru BOA. In a few months, it has been a year since being approved and making timely mtg payments. We were in our 4th month of foreclosure and thought we had reached the hopeless end, beginning to pack personal property, then we received our modification packet. To date, we have had no problems with BOA. In fact, we get monthly updates regarding the incentives for making our mtg payments on time. Our monthly payment was reduced by approx. 40-45%. Though our financial picture still looks pretty grim, we were able to stay in our home of almost 35 years. Don't give up the fight, contact whomever you can, to help you with this matter. We found the "Hope" hotline helped us as well. We worked with a great rep there, named Debby. Best of luck to all of you!  I feel your pain...
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March 23 2013
Profile picture for MerylMCulbreath
I thought I am the one having troubled with BOA. My husband and I applied for  a loan modification 2011. They gave us a fixed rate from adjustable and we passed the trial period of payment.Since then, we pay on time for our monthly payment. Last August 26 2012, my husband passed away and being alone, It's hard for me to catch the 6.5% interest rate. I went to BOA after my husband burial and informed them my situation and asking if they can help me to lower my rates and monthly amortization. I was told to submit all the documents needed and I did completely finished. They told me that I was declined for a loan and until now  I never received any declined letter. I submitted my hardship letter and have some source of income but they said that I do not have enough income.BOA also told me  that I do not have any kind of program for me and the only option is to do the short sale. This is  not a good customer service advice from BOA. They have a big post card on their wall that they will help people but I don't believe that they have a good service . I decided to go to State Rep. office and asked some help.The chief of staff office helped me about loan modification and said that I am qualified to reduce my mortgage to 2 up to 3%. I do not know what to do because I do not want to loose my house. BOA rep let u fill up  the survey even the transaction is not done. The  rep is watching me when I do the survey form inside their office , Please help and advice because I am so embarrassed borrowing money from my relatives and my husband relatives to catch up my monthly payment.  Thanks
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March 28 2013
 
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Is the Bank Of America loan modification a scam?
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March 28 2013 | 13 answers
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