While homeowners struggle to obtain a loan modification under the government's Home Affordable Modification Program (HAMP), some homeowners are being denied for any assistance due to very simple mistakes on the servicers’ behalf. We see this happen all the time here on LoanSafe where people are constantly being denied due to paperwork mix-ups, a short of payment, or not communicating with the homeowner.
Like Tom Mudie, 56, from Florida, who almost lost his home to foreclosure right before Christmas for being eighty cents short on his agreed trial period plan with Bank of America. Prior to receiving permanent assistance under HAMP, homeowners are required to go through a three month trial period. This time often extends to 5-8 trial payments because of mishaps and overwhelmed mortgage servicers.
This is not the only mistake BofA has made recently in their foreclosure practices. Recently BofA has foreclosed on a property that no longer exists and has also initiated foreclosure on an elderly couple for making their monthly payment too early.
Mudie had owned his property since 1986 and because he lost his job in 2010 due to an employee downsizing, he ended up being unemployed for almost a year and reached out to his lender for help. This is when BofA offered Mudie the trial plan in which he was to pay $200 less than his original mortgage payment.
According to Mudie, he went to make his trial payment over the phone and accidentally dialed a zero instead of an eight. This caused his mortgage payment to be short because he ended up paying $615.02, instead of $615.82.
When he called BofA to inquire about his modification they said it had been cancelled because he was eighty cents short and they encouraged him to send in a separate check for the shortage. Once they received the check for eighty cents, they returned it to Mudie along with the payment he made via telephone.
After several attempts of trying to rectify the situation, BofA finally agreed that it was a mistake on their behalf. Mudie is now back in the trial period for HAMP and awaiting a decision for the permanent modification.