While in Trial Payment I was Declined for BofA

[phoenix1979]

Recently on Loansafe.org I had a post to share my success story.


However, when I called back to schedule my third payment another customer representative told me that my application was declined. I was never sent any notification. The only thing I was sent was a forbearance package, however, I did not accept the package because I thought I was on the Making Homes Affordable plan. The most hurtful thing was that the first Bank of America customer representative scheduled my trail payments at the end of each month therefore making me late on each payment and incurring a penalty fee of 103 dollars.

I am not sure why the Home Retention Team told me I was approved then declined my application without any notification. On top of this action I was charged more late fees in a time when I am truly enduring financial hardship. At this point without the modification I will most likely not be able to keep my house.

I truly believed in Obama’s administration plan for providing clear guidelines for the banks to follow. However, it seems that the Banks have their own internal guidelines – to maximize their profits with the stimulus package funded by the blood and sweat of hard working Americans.


I don't know what to do now.

[ama125]

Which Home Retention Team were you working with...Dallas? Have you emailed OOP yet? If not, see the sticky thread at the top of the page.

[phoenix1979]

Hi,

I am not sure which team. I thought there was only one but it is true that the give you the run around. Every call is different. This call is the first time that the guy seems honest. The BofA rep said that the reason they sent my forbearance is due to the application decline. Other reps said I was ok.

I also sent emails to:
barbara.j.desoer@bankofamerica.com.

Thanks,

Phoenix.

[phoenix1979]

Followup - I called BofA again and found out that in actuality, my loan was not denied. The forbearance package was a pre-cursor to getting my modification. Since I did not send in the forbearance package my application was cancelled.

It seems like there are a lot of inexperienced customer service reps at BofA giving out conflicting information. Here is an exact time line of what happened to me. I am posting this in hopes of helping someone in the same situation:

• Got approved for HMA mid July 2009
• Started Trial payment within two weeks (end of month)
• Received forbearance package mid Aug
• Called the number on the package to ask if this was the MHA program. The rep told me that this was not the MHA and I can choose to accept it or not. Basically on a high level Bank of America is working with the company issuing the forbearance in order to protect you from foreclosure while they work out your modification details. If the inexperienced rep leads you to believe that if you pick this program you will give up the MHA program, then call your bank to ask for details.
• Ignored the forbearance package
• Call to make second trail payment end of August. The first rep I talked to said I was denied probably due to my financials and there was a second department that approves the loan. I asked for contacts to the second department to find out why I was denied and he did not know.
• Very angry and frustrated I called again after work. The second rep, and older experienced lady told me that I was not denied and they were waiting on the forbearance paperwork. It just so happens that the day I called was the last day that I could turn it in. So basically I have to wait until Friday to re-apply for the program and go through the trail payments again.

So basically engaging with two bad customer reps ruined my modification process. My advice is that at the first sign that you feel the person you are talking to is inexperienced find another one. One major clue is that the do not know how to work the IT application. My more experienced rep said that she had to switch to multiple screens to find out what exactly happen.

[ama125]

Originally Posted by phoenix1979

Followup - I called BofA again and found out that in actuality, my loan was not denied. The forbearance package was a pre-cursor to getting my modification. Since I did not send in the forbearance package my application was cancelled.

It seems like there are a lot of inexperienced customer service reps at BofA giving out conflicting information. Here is an exact time line of what happened to me. I am posting this in hopes of helping someone in the same situation:

• Got approved for HMA mid July 2009
• Started Trial payment within two weeks (end of month)
• Received forbearance package mid Aug
• Called the number on the package to ask if this was the MHA program. The rep told me that this was not the MHA and I can choose to accept it or not. Basically on a high level Bank of America is working with the company issuing the forbearance in order to protect you from foreclosure while they work out your modification details. If the inexperienced rep leads you to believe that if you pick this program you will give up the MHA program, then call your bank to ask for details.
• Ignored the forbearance package
• Call to make second trail payment end of August. The first rep I talked to said I was denied probably due to my financials and there was a second department that approves the loan. I asked for contacts to the second department to find out why I was denied and he did not know.
• Very angry and frustrated I called again after work. The second rep, and older experienced lady told me that I was not denied and they were waiting on the forbearance paperwork. It just so happens that the day I called was the last day that I could turn it in. So basically I have to wait until Friday to re-apply for the program and go through the trail payments again.

So basically engaging with two bad customer reps ruined my modification process. My advice is that at the first sign that you feel the person you are talking to is inexperienced find another one. One major clue is that the do not know how to work the IT application. My more experienced rep said that she had to switch to multiple screens to find out what exactly happen.

Did you ever receive the trial plan documents via FedEx or have you just been sending in money with no documents stating the payment amounts?

[hope67]

Phoenix..I think you were given wrong info by the representatives you talked to, including the last one. I must say that I'm totally confused. The Forbearance program has nothing to do with HAMP. You can refuse the Forbearance and it would not affect the HAMP trial.

Did you complete, sign and return the HAMP trial agreement along with the requested docs?

[phoenix1979]

Hi Hope,

I am as totally confused as you when I deal with these BofA reps.

I never received any documents from BofA indicating that I was on HAMP. I only received the forbearance package.

At first I was told the forbearance was not a part of HAMP now they are telling me that they were waiting for that forbearance package because it is part of the HAMP approval process.

I did finally get some results when I emailed the office of the president for BofA (Barb D. ).

However, at this point I have lost hope. I do not understand why they would say that I am on a 3 month trail payment then send me a forbearance package then cancel my loan.

I will keep everyone updated on how my talks with the senior negotiatior goes.

[Hard Times]

phoenix........I agree with Hope above......that perhaps you never filled out and submitted the MHAP documents which is required for the process to begin. Did you submit the required documents for the home affordable plan (MHAP)? Did you write your hardship letter, and complete the other forms?

[Garry]

The big question is did you get the fed-ex package and sign a trial agreement, or did you just start making payments based on what you where told over the phone?

[hope67]

Originally Posted by phoenix1979

Hi Hope,

I am as totally confused as you when I deal with these BofA reps.

I never received any documents from BofA indicating that I was on HAMP. I only received the forbearance package.

At first I was told the forbearance was not a part of HAMP now they are telling me that they were waiting for that forbearance package because it is part of the HAMP approval process.

I did finally get some results when I emailed the office of the president for BofA (Barb D. ).

However, at this point I have lost hope. I do not understand why they would say that I am on a 3 month trail payment then send me a forbearance package then cancel my loan.

I will keep everyone updated on how my talks with the senior negotiatior goes.

Hi Phoenix.. The Forbearance plan is definitely not part of the HAMP process, however, sometimes they offer a forbearance trial plan that could be anywhere from 3 to 6 months long, during that time they evaluate your case to determine whether or not you qualify for HAMP or any other modification plan they have available.

If you never received HAMP trial docs, then you must be on a Forbearance trial. If you feel that the forbearance would be helpful to you then you should accept it. You mentioned that you received the Forbearance package, did you sign it and return it to BOA? If not, when will the offer expire or has it already expired?

[phoenix1979]

Hi,

To answer everyone's question, I was NOT given the HAMP trial payment agreement documents. I just made the payments on my own.

Every time I called in no one knew I was even on the plan. Also when I requested documents to indicate that I was on the trail they said that it is a different department and they don't have contacts.

I think this is where I went wrong, so anyone reading this post, you have to bug the hell out of these reps to send you the document indicating that you are on a trial payment - I was able to find a copy on this forum (do a search).

Thanks for everyone's reply it makes sense now - the reps are very incompetent - be very careful and use this forum to get your questions answered.

Pho

[Hard Times]

Phoenix.....Lets clarify......did you or did you not ever submit the HAMP modification documents to the bank? From what I am reading, I think they confused you, and you never actually applied for a mod under the HAMP program.

Good luck in applying.

[phoenix1979]

Hi HardTimes,

I applied over the phone and the rep qualified me. My front-end DTI was 41% and they will bring it down to 31% and she told me the terms which were HAMP terms. But I think you are right something happen where they never got me in the system and the HAMP documents were never sent to me.

I think I was sent the forbearance because my trial payments were being held and was not applied to my regular payments. So it seems like they held my trial payments like I was under HAMP but I was never approved (never got docs).

Thanks,

Pho

[ama125]

Originally Posted by phoenix1979

Hi HardTimes,

I applied over the phone and the rep qualified me. My front-end DTI was 41% and they will bring it down to 31% and she told me the terms which were HAMP terms. But I think you are right something happen where they never got me in the system and the HAMP documents were never sent to me.

I think I was sent the forbearance because my trial payments were being held and was not applied to my regular payments. So it seems like they held my trial payments like I was under HAMP but I was never approved (never got docs).

Thanks,

Pho

I had this happen to me once as well. Actually, it was my HUD counselor speaking to a rep on my behalf. She was told by this rep that I was eligible for HAMP and to send in my financial documents, etc ALONG with a payment amount that would be equal to 31% of gross monthly income (and yes, without having received any documents stating I was in the 3 month trial). I said NO WAY! I would not send them a dime unless I had something in writing. It sounds like you got this same BS over the phone. I would be hopping mad right now if I were you! That is definitely NOT they way they are supposed to process HAMP requests. Did you receive a letter from FedEx with a phone number to call in with your information? I did back in April (it's called a borrower solicitation letter). Mine was on Countrywide letterhead. The date of it is 4/16, but BofA did not sign up to participate in HAMP until 4/17. I am wondering how many of these letters got sent out and how many were acted on appropriately or just lost in the shuffle when BofA assumed all responsibility for CW. In any case, phoenix, you were steered wrong and it's unfortunate that you did not know or realize their error. I would be going off on them right now!

[Hard Times]

Pho.....Yep, you never actually applied under the HAMP plan. You can get the docs to fill out by going to the chase website. You cannot apply "over the phone" for the HAMP.

Good luck applying, if you do. Be prepared to play their waiting game.

[phoenix1979]

Hi Ama,

I am really reall frustrated and since you have the same story I think they are doing this to everyone.

Hopefully you got yours done the second time around.

Thanks,

Pho

[ama125]

Originally Posted by phoenix1979

Hi Ama,

I am really reall frustrated and since you have the same story I think they are doing this to everyone.

Hopefully you got yours done the second time around.

Thanks,

Pho

Still waiting...2nd request went into a black hole somewhere (Dallas, TX in the Home Retention Department). I've emailed OOP but still suspect they aren't doing this right!

[ml888]

My loan was originated with CW and is backed by fannie mae. Due to my unemployment the first half of the year and a 28% reduction in pay I need to apply for a modification. I spoke to a rep back in June and they said I didn't qualify because I was current on my payment and had PMI. I only have 11% equity on my apt. I called two weeks ago and I was told that i qualify for HARP, with some closing costs involved and refinanced to the current rate. I did some calculations and I was still short every month. I again called B of A yesterday and according to the rep, and the calculations that she did I would qualify for a modification. She said to prepare the financial documentation, however, I was not told who to send it to (fax, email or regular mail). My question is, do I have to wait for communication from the bank, or can I send it to a certain address now, where? or can I send it to the OOP attach it to an email to get a quicker response. My funds are now completely depleted and my monthly expenses are greater than my current income so I needed help yesterday and most on this blog. HELP, can somebody give me some insight. Sorry for being long winded.

[ama125]

Originally Posted by ml888

My loan was originated with CW and is backed by fannie mae. Due to my unemployment the first half of the year and a 28% reduction in pay I need to apply for a modification. I spoke to a rep back in June and they said I didn't qualify because I was current on my payment and had PMI. I only have 11% equity on my apt. I called two weeks ago and I was told that i qualify for HARP, with some closing costs involved and refinanced to the current rate. I did some calculations and I was still short every month. I again called B of A yesterday and according to the rep, and the calculations that she did I would qualify for a modification. She said to prepare the financial documentation, however, I was not told who to send it to (fax, email or regular mail). My question is, do I have to wait for communication from the bank, or can I send it to a certain address now, where? or can I send it to the OOP attach it to an email to get a quicker response. My funds are now completely depleted and my monthly expenses are greater than my current income so I needed help yesterday and most on this blog. HELP, can somebody give me some insight. Sorry for being long winded.

You will likely get a quicker response by emailing OOP (see here: Escalating your Making Home Affordable Program request to the Office of the President)

[TLuster]

ok...I'm scared. After finding this website (thank you thank you!!) and emailing Barb D. I got a contact in home retention. He was nice young man who called me every monday and gave me an update on my request for a loan modification under Obama's MHA Plan. Yesterday I got approval over the phone from BOA for trial payments for the MHA plan. They said starting next month, I will make trial payments for 4 months and then they will work on a permanent modification. I danced through my day yesterday so Happy that after 6 months of phone calls and faxing financials I had succeeded!!!
Did I???
I did not get any paperwork...should I ask for it? What exactly is the MHA application? I have sent in tax forms, pay stubs, utility bills, hardship letters, bank statements, and a Financial Hardship affidavit (all of these:4 times!!). Should there have been an actual application?
Please, good people of The Loan modification Forum!!!!...TELL ME WHAT TO DO NEXT. How do I ensure that my modification happens?
MamaBear

[davephx]

I have been told about 12 different times the Trial Mod package has been sent but never has (with Citi but common with all servicers)

The Oct 6th new streamlined doc directive now does away with needing the Trial Mod agreement probably realizing so many are never sent. It use to be you weren't technically on the trial until you and the servicer signed. Kind of hard if you never get.

My understanding is that now its the BIG final mod package that is critical which is "suppose" to be send after you make the 2nd mod payment.

[hope67]

Originally Posted by davephx

My understanding is that now its the BIG final mod package that is critical which is "suppose" to be send after you make the 2nd mod payment.

Yep "supposed"! from what I have been reading here, they don't even send the final modification package AFTER the 3rd trial payment, they ask people to keep making their trial payments until they receive the final agreement!!

[davephx]

In my case ... yet to be for sure... with failed for months attempts to get Trial Mod docs, I have verified twice with different people gazing into their computer screens that they now "see" my after 2nd trial payment final verification doc being hauled into the big UPS truck on October 6th. Well, they see they were actually sent.

This is the first time anyone has actually seen sent from all the "send him" requests since July. So if the big UPS truck finds me they are actually on schedule to get me the BIG package.

However, it almost took an act of God to get to this point. Only the supervisor of supervisors (Management Group) that was actually able to do something. I had to crawl up the food chain to get to the top of the heap to get anything done. Obviously this shouldn't have been needed.

Now I wait for the UPS track with the friendly gal that usually delivers to me.

Than I still have to submit and wait who knows how long for final approval or ... I hate to type the word denial after all this.

[Garry]

Originally Posted by davephx

In my case ... yet to be for sure... with failed for months attempts to get Trial Mod docs, I have verified twice with different people gazing into their computer screens that they now "see" my after 2nd trial payment final verification doc being hauled into the big UPS truck on October 6th. Well, they see they were actually sent.

This is the first time anyone has actually seen sent from all the "send him" requests since July. So if the big UPS truck finds me they are actually on schedule to get me the BIG package.

However, it almost took an act of God to get to this point. Only the supervisor of supervisors (Management Group) that was actually able to do something. I had to crawl up the food chain to get to the top of the heap to get anything done. Obviously this shouldn't have been needed.

Now I wait for the UPS track with the friendly gal that usually delivers to me.

Than I still have to submit and wait who knows how long for final approval or ... I hate to type the word denial after all this.

Right on Dave, I'll have my fingers crossed for you.