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Loan Modification Gone Bad ?

Discussion in 'Bank of America Mortgage Help' started by rcparts, Jan 25, 2013.

  1. rcparts

    rcparts LoanSafe Member

    In 2011 I started having trouble meeting my financial obligation with my mortgage with BOA. Leading to my hardship was the economy going bad and my kids and their kids coming back home to live. For awhile I supported up to 3 families (10 people). I was the only one working. I fell behind in payments. Talking with BOA they suggested I try for the loan modification. Of course I had to be 3 payments behind before I could apply. So I did that. Well I qualified !

    I had to go thru the 3 month trial. Making 3 payments, which I did. Then it would turn into a permanent modification. After 3 months I didn't receive any notification that it was going permanent. I called my personal account manager assigned to me and asked what was going on. She said it would take time to get it into normal service and to continue making the new payment per the loan mod amount. I have done that making an additional 10 payments on time. Yes this has been going on over a year. I have been in phone contact with them every month.

    The entire time I've been able to watch my account online how they were applying my payments. My online account was showing they were making the old payment erratically, not the new modified payment. The old interest rate was showing.

    Only in the past 30 days they have updated the interest rate to the correct rate and posted the new payment amount I should make. Prior the old payment showed and the old interest rate.

    Then I see they reversed all the payments made since the 3 trial payments and then applied that amount to the principal.

    2 weeks ago I received a letter from BOA and they stated my loan is in default and BOA will be foreclosing if not brought current. Couple days after that I received a letter from JMA services representing BOA to work on a program to bring my account current.

    This got my attention....

    Phone call to my manager about these letters she said not to worry, my permanent mod loan is approved and it takes time to follow FHA guidelines to bring it into normal service. I told her I'm not sure I can believe her. She went out of her way to say TRUST ME your fine. And that I would continue to get those "form" letters.

    I did call JMA and informed them my loan is not in foreclosure per my BOA manager.

    Today another letter from JMA stating I need to contact JMA on this matter.

    I'm beginning to wonder if my BOA manager is lying to me to get as many payments from me before the send the Sherriff with foreclosure papers.

    Sorry if my post is confusing...I'm frustrated.
  2. Cat Damiano

    Cat Damiano Mortgage Wars

    Welcome to the forum and thank you for joining...........

    Since your loan is an FHA loan, there are avenues you can take to escalate your file directly to FHA to see what exactly is going on.

    Here are some steps you can take to get help for an FHA loan;

    1) Call the FHA National Servicing Center (“NSC”) at 877-622-8525 to file a complaint:
    They are responsible for assisting FHA borrowers who have had difficulty working with their lender. You will need to provide the NSC with your FHA case number. Get your case number from your lender, or your FHA case number can be found in the top left corner of your HUD 1 settlement statement received at closing.

    2) Contact FHA Commissioner Carol Galante:
    Direct: 1-202-708-2495.

    3) Call the FHA Outreach Center:
    1-800-CALL FHA (800-225-5342)

    Also with BofA you can reach out to the executive team to see if they can help here;

    Direct: 1-704-386-5687
  3. Kenupstate

    Kenupstate LoanSafe Member

    Tell her to put it in writing
  4. rcparts

    rcparts LoanSafe Member

    I wish she would. Highly doubt that would happen. Tried with other requests and they don't do it. Can't even email anything with this department.

    Cat, thanks for the contacts to try.

    I'm getting close to the point of walking away. It should'nt take them so long to get this back into normal service, I would think.

    Reading thru what this forum has to offer I thought I should check my credit report. BOA has me listed as over 180 days late. So now I have another issue to discuss with them. Plus the fact they reversed many of my payments. I'll only have a fraction of the interest to write off on my taxes.

    Great forum. I'm learning alot. Can't afford a lawyer to consult. Wish I would have found this place sooner.
  5. Worried.homeowner

    Worried.homeowner LoanSafe Member

    Is your modification FHA-HAMP? I am going through an fha-hamp mod with BOA. I have similar fears and frustrations-- you are not alone. You need to stay on top of them and always double check what you are told. Check your county recorder office often and contact the FHA servicing center. FHA was not much help for me because things appear to be going as they should, toward permanent modification. But since you have not received permanent papers they will likely be of more help to you and at least check into the actual status.

    Because I was current going into the trial, I needed to make four trial payments. After that I was told to keep paying that amount while it was under review. After four out of trial reduced payments they sent me permanent mod papers that I signed and returned the end of December. My first mod payment is due March 1 and I have been told it will likely take another 6 weeks after that for the modification to be applied to my account and the file closed.

    I am also being reported as late through the entire process because the trial/partial payments you make are only held in a suspense account that is not applied to the "late" payments. I plan to address the reporting after the mod is closed (assuming that happens as it should) because they claim they will correct this at that point. I panicked after reading horror stories of revoked mods and sneaky foreclosures and asked how much it would take to bring my account current. I was under the impression that it would only be the difference in my trial and original payments (only $160 a month) plus the $50 a month late fees and maybe some other small fees, which should have totaled to about $2000. (I was told going in to this that each partial payment would be held until it added up to a full payment and that would be applied to the past due amount on the account, so I made sure to set aside that amount incase the mod was not approved. This is NOT true.) I was told at that point that it would take about $4000 to become current. I have not been able to view anything on my account so I had my manager look into where this amount came from. At some point in the middle, they took the amount of one original payment out of the suspense account and applied it to the principle.

    So, it appears that they can do whatever they wish with the trial/partial payments. So even if I had given them $4000 to try to become current, they could have taken that and then moved more money from my suspense account to the principle and claim I am still delinquent. I also face the issue of not getting credit for interest on my taxes and even worse-- if anything goes wrong, they could decide to apply all of the partial payments I made to the principle and say I owe complete payments and fees for the months since I began the trial. I wish they were more upfront about how this all works and, like you, I wish I had found this forum before all of this.
  6. TomEason

    TomEason LoanSafe Guide

    Thanks for your posts. If it were me, I wouldn't waste any more time on the phone. I would instead send letters to the various entities. I further recommend you file a complaint with the CFPB (this can be done online). Good luck.
  7. rcparts

    rcparts LoanSafe Member

    Recieved another letter today stating notice of intent to accelerate and foreclosure. Also today missed a certified letter that I need to go pick up at the post office. I'm sure that has to do with intent to foreclose.

    I have not sent any letters yet. I guess I'm ready to walk away. They have misappropriated applying the funds to my permanent modification. At least I have that well documented. The loan is at 209,000 right now and the house is valued under $150,000 the last time I looked. I guess I'll call my personal manager and tell her I'm not going to make any more payments. I'm sick of dealing with this with no final solution in sight.

    I guess I can at least file complaints. Whats the CFPB ?
  8. Cat Damiano

    Cat Damiano Mortgage Wars

    It is the Consumer Financial Protection Bureau;

    File a complaint regarding your servicer with the federal Consumer Financial Protection Bureau: https://help.consumerfinance.gov/app/mortgage/ask
  9. rcparts

    rcparts LoanSafe Member

    Letters from BOA stated on March 13 if I was not up to date they would accelerate to foreclose. After this date my loan was moved into the foreclosure department. I started getting calls from BOA asking my intent. I asked them theirs and why they can't seem to fix this. Everytime I got BOA on the phone whether It was me calling them or them calling me harassing me it would take at least 1/2 hour to explain how they messed up my loan. I was assigned to a lady in the foreclosing dept to handle my loan. I explained to her what was going on. She said to fax her the original loan mod papers. I did plus a detailed document on my loan on how the funds were misappropriated. We then talked and she said she would escalate the loan.

    In the meantime I continued to get letters of intent to foreclose. I was about ready to give up and stop making payments starting 5-1-13. Truly frustrating situation.

    Yesterday my she called and said the loan was fixed. She said she had to go about 2 levels up to get this done. What ever that is ? She said the loan had been having funds misappropriated from the beginning of the modification. It took everything to not say DUH! She asked if I wanted to make my 5-1 payment over the phone. I said hold on let me check my loan online. My loan WAS fixed and I could make payments on the WEB again. So I did ! Hurray ! BOA is fixing my credit report, she said that information was not correct and I have been making payments on time.

    It appears you need to stay persistent with these huge faceless companies it is possible to get wrongs fixed.

    Almost a 1 1/2 years this is finally over. Well almost, I still need to checkup on they correcting my credit report.
  10. jhn_plsn

    jhn_plsn LoanSafe Member

    Glad to see you were taken care of in the end. I can say from my experience with both companies who I dealt with on my first is that the collections department does not seem to see or pay attention to any notes from the modification department. That is if they are even entered or visible to anyone investigating the loan. It does not seem that difficult, yet like so many things in corporate America the systems have become so convoluted in tracking and complexity that nobody can get their head around the info.

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