After receiving permanent modification..

Cat Damiano

Mortgage Wars
Sep 10, 2007
10,541
39
48
Colorado
www.loansafe.org
I received the paperwork, which at this point amounted to a letter saying that I was approved for the DOJ reduction and I needed to make my three trial payments. After that I would be sent a packet for the permanent loan with the details. I questioned the wording on what I posted below, where it says, "You could receive a principal deduction.." and my account manager said it's worded that way because if I don't complete the trial I wouldn't receive it. Sounds a little fishy coming from BOA, but we shall see. Just really happy to be at this stage.
That would be accurate information to cover their butts, of course. Information on a trial approval seems to always be very non committal.
 

rodneyramjet

LoanSafe Member
Sep 30, 2012
14
0
0
I received the paperwork, which at this point amounted to a letter saying that I was approved for the DOJ reduction and I needed to make my three trial payments. After that I would be sent a packet for the permanent loan with the details. I questioned the wording on what I posted below, where it says, "You could receive a principal deduction.." and my account manager said it's worded that way because if I don't complete the trial I wouldn't receive it. Sounds a little fishy coming from BOA, but we shall see. Just really happy to be at this stage.
Hi Cat---would you be able to remove this picture because my loan number is on it. I had cropped it so that my loan number wasn't showing and it didn't appear when I first posted it, not sure what happened. I would edit myself, but the option has disappeared. Thanks so much!
 

rodneyramjet

LoanSafe Member
Sep 30, 2012
14
0
0
Just wanted to post an update. After completing three months of the trial, I received my permanent docs for the DOJ Settlement on July 2, 2013, they gave me until July 15, 2013 to return them. They did not ask for a notary, however I went to a Bank of America Branch and had the Branch Manager notarize them prior to sending them back.

Here are the basic terms: My combined principal balance (the balance after all the fees) was $293K, after deducting my principal forgiveness the new principal balance that I owe is $195K. It appears I have a 24 year mortgage (which is the duration that was left on my original mortgage), with a modification effective date of Aug. 01, 2013. Interest for the first five years is 2.62% with a payment of $1210 p/mo. Interest for year 6 is 3.62% with a payment of $1291/mo. Interest for years 7-24 is 3.87% with a payment of $1311 p/mo.

I am very pleased with the offer and pray that this is the end of my three + year ordeal. I am a widow and work full time in a job that keeps me on the road about 3/4 of the time (much of it overseas). Getting to this stage is nothing short of a miracle, since I'm physically and mentally exhausted after traveling so much, and not home very often. I have done this on my own by being tenacious, sending more than they ask for, calling weekly and sometimes multiple times per week, even when I'm traveling and documenting everything and I mean everything. Sites such as yours, have helped me a great deal when I haven't known what to do next or needed phone numbers to speak to someone who could get me to the next step. Thank You so much for all the work you do here! I will continue to post if anything new comes up.

I do have two questions about terms on the modification paperwork that I'm wondering if you know anything about.

The first regards a portion which reads:
Quote: "the lender may be required to report the amount of principal forgiveness to the IRS and that any tax liability arising out of that forgiveness shall be my responsibility."
I remember reading something last year that said these settlement were exempt from tax liability, is this still the case?

The second regards a portion which reads:
Quote: "On and after the Modification Effective Date, and notwithstanding any other provision of the Loan Documents, if all or any part of the Property or any interest in it is sold or transferred without Lender's prior written consent, Lender may, at its option, require immediate payment in full of all sums secured by the Security Instrument. However, Lender shall not exercise this option if state or federal law, rule, or regulations prohibit the exercise of such option as of the date of such sale or transfer."

The question I have on this would be whether lenders usually give consent to sell property after a DOJ settlement or do Federal or MI laws prohibit them from restricting any sale of the property?

Thanks once again for all of your help! Is has helped me save my home.
 

Cat Damiano

Mortgage Wars
Sep 10, 2007
10,541
39
48
Colorado
www.loansafe.org
Just wanted to post an update. After completing three months of the trial, I received my permanent docs for the DOJ Settlement on July 2, 2013, they gave me until July 15, 2013 to return them. They did not ask for a notary, however I went to a Bank of America Branch and had the Branch Manager notarize them prior to sending them back.

Here are the basic terms: My combined principal balance (the balance after all the fees) was $293K, after deducting my principal forgiveness the new principal balance that I owe is $195K. It appears I have a 24 year mortgage (which is the duration that was left on my original mortgage), with a modification effective date of Aug. 01, 2013. Interest for the first five years is 2.62% with a payment of $1210 p/mo. Interest for year 6 is 3.62% with a payment of $1291/mo. Interest for years 7-24 is 3.87% with a payment of $1311 p/mo.

I am very pleased with the offer and pray that this is the end of my three + year ordeal. I am a widow and work full time in a job that keeps me on the road about 3/4 of the time (much of it overseas). Getting to this stage is nothing short of a miracle, since I'm physically and mentally exhausted after traveling so much, and not home very often. I have done this on my own by being tenacious, sending more than they ask for, calling weekly and sometimes multiple times per week, even when I'm traveling and documenting everything and I mean everything. Sites such as yours, have helped me a great deal when I haven't known what to do next or needed phone numbers to speak to someone who could get me to the next step. Thank You so much for all the work you do here! I will continue to post if anything new comes up.

I do have two questions about terms on the modification paperwork that I'm wondering if you know anything about.

The first regards a portion which reads:
Quote: "the lender may be required to report the amount of principal forgiveness to the IRS and that any tax liability arising out of that forgiveness shall be my responsibility."
I remember reading something last year that said these settlement were exempt from tax liability, is this still the case?

The second regards a portion which reads:
Quote: "On and after the Modification Effective Date, and notwithstanding any other provision of the Loan Documents, if all or any part of the Property or any interest in it is sold or transferred without Lender's prior written consent, Lender may, at its option, require immediate payment in full of all sums secured by the Security Instrument. However, Lender shall not exercise this option if state or federal law, rule, or regulations prohibit the exercise of such option as of the date of such sale or transfer."

The question I have on this would be whether lenders usually give consent to sell property after a DOJ settlement or do Federal or MI laws prohibit them from restricting any sale of the property?

Thanks once again for all of your help! Is has helped me save my home.
In regards to the tax question you will have to speak with a tax professional in your state because as of right now the Mortgage Forgiveness Debt Relief Act is set to expire at the end of this year;

http://www.irs.gov/Individuals/The-Mortgage-Forgiveness-Debt-Relief-Act-and-Debt-Cancellation-

I am not familiar with MI laws as far as sale of property, you may want to either try to google the information or contact a Real Estate Foreclosure Attorney in your state that may be able to answer that for you. Or maybe the state AG office;

AG - Attorney General
 

kms524

LoanSafe Member
Aug 16, 2007
10
0
0
I have waited for most of my modification to actually show online and receive my documents back before I posted on here, but I think I almost done. I started this process in March 2013 right after I finalized my divorce. I was not late and never have been late on any credit I have had including this mortgage so I was concerned when I applied for the modification as I was in the 780-800 fico range on all 3 bureaus, but I needed help and was concerned that my rate could skyrocket any day and really change my payment to an amount that I could not afford. I completed my paperwork in March sent in the divorce decree, paystubs and transfer deed showing my spouse removed himself from the loan, I was in fact divorced and my income dropped in half since I no longer had my spouse income. BOFA determined I was at risk for imminent default.

During the application process there were are few obstacle to get over, I had to sign the tax transcript form several times and in the end they were unable to use it to pull my tax records, so I had to send my last 2 years tax returns and all forms (W-2's, schedules, etc). They also could not read my paystubs I sent by fax and I had to resend those several times. I did have slightly over 3 times my mortgage payments in my checking accounts, but only by a few hundred dollars (I also explained what that money was for so there was no question that it was not actually able to be used on just anything). I also re-loaded my statements and some additional paystubs through the BOFA modification sign on once through the process. My CRM stated although it was not required at the time that since it had been over a month since I sent in the application that It would not hurt to send it in before they ask for the updated financials, so I did that about mid April.

Around April 20, 2013 I received my Trial payment package stating to pay my first trial payment June 01, 2013 with final payment on August 01, 2015. I did all of them, calling every week or two making sure nothing else was needed from me and I paid all of my payments by phone pay. My CRM set up all 3 payments in April to come out on the first business day of each month.

August 05, 2013, I received on payment change letter stating my payment was going to change to a fixed interest rate, but this letter was not from the same place I had been receiving all my other documentation.

August 08, 2013, I received 3 copies of the modification agreement for HAMP(no indication of notarization needed, but I got it notarized.)
August 13,2013 called to make sure they received the package (fed ex showed they dropped it off) the BOFA rep stated they did.

August 15, 2013, I received 2 copies of signed modification agreements back from BOFA signed from them (well stamped form them). Also on this same day my principal changed for the few hundred in interest that was not paid through the trial plan and my interest changed to the rate stated in the agreement.

several statement were sent out with all of the changes they were making. I made my first modified payment August 29, 2013 through the phone for September 01, 2013. I still cannot pay online even though my terms, balance etc is all updated, even the money in the suspense account has been applied to principal so I am awaiting that final change and to be back into normal processing center.

My old terms were 33.5 years, rate of 3.75% (not fixed could go to 9.95% if the market changed), I paid my taxes and insurance (that's what the money in my accounts were for) title of old loan was Jumbo Option Arm (should never have been a jumbo it was only a 192k loan originally.

New terms same years 33.2 now, rate of 2.875% for 5 years, then 3.875% for one year and the fixed for the remained of the loan at 4.375%, they now pay my taxes and insurance and the title of the loan now states Jumbo Arm.

I cant wait for the final steps to update online so that I can pay my mortgage on line, I am grateful to now have a fixed rate with a small $80.00 decrease from my old payment amount as every bit helps. I am also still waiting to hear now on my 2nd loan with Wells Fargo for 38k to get that HEline locked in also.

2 of my ficos dropped from the 780-800 to 640's but Experian has remained at 800. I will start fighting that once I have all changes reflected online as well as BOFA sent me a letter stating they were sent the change of coding and remarks to all 3 bureaus from partial payment agreement to modification paying as agreed. there was no reporting done through the process to the bureaus other than an account remark of paying under partial payment agreement.

Thank you for everyone that posted on this site I have read numerous stories that helped me through my process to make it go as smoothly as possible. Best of luck to all.
 
Last edited:

Evan Bedard

Call 1-800-779-4547
Loan Safe Mortgage
Aug 26, 2007
18,837
48
48
San Diego, California
www.LoanSafe.org
2 of my ficos dropped from the 780-800 to 640's but Experian has remained at 800. I will start fighting that once I have all changes reflected online as well as BOFA sent me a letter stating they were sent the change of coding and remarks to all 3 bureaus from partial payment agreement to modification paying as agreed. there was no reporting done through the process to the bureaus other than an account remark of paying under partial payment agreement.

You have been a member here since the first year we started LoanSafe and we appreciate you coming back and sharing your success story in detail. I'm glad to see your hard work and diligence has paid off!

Congrats!!!
 

I'mSickOfThis

LoanSafe Member
Aug 14, 2009
282
2
18
Florida
The second regards a portion which reads:
Quote: "On and after the Modification Effective Date, and notwithstanding any other provision of the Loan Documents, if all or any part of the Property or any interest in it is sold or transferred without Lender's prior written consent, Lender may, at its option, require immediate payment in full of all sums secured by the Security Instrument. However, Lender shall not exercise this option if state or federal law, rule, or regulations prohibit the exercise of such option as of the date of such sale or transfer."

The question I have on this would be whether lenders usually give consent to sell property after a DOJ settlement or do Federal or MI laws prohibit them from restricting any sale of the property?
Hi,
Did you ever find out the answer to this question? They have this on our loan docs, too.
 

Michael Naz

Michael Naz
Jan 9, 2011
2,965
38
48
Southern California
hello - there is no prohibition against selling your home after a DOJ settlement mod. the language:

"On and after the Modification Effective Date, and notwithstanding any other provision of the Loan Documents, if all or any part of the Property or any interest in it is sold or transferred without Lender's prior written consent, Lender may, at its option, require immediate payment in full of all sums secured by the Security Instrument. However, Lender shall not exercise this option if state or federal law, rule, or regulations prohibit the exercise of such option as of the date of such sale or transfer."

does not stop you from selling your home but you may have to go through the short sale protocol if you owe more than its worth.

-michael


 

BOAnightmareNH

LoanSafe Member
Mar 19, 2013
9
1
3
Hi everybody, I've been lurking for months. It's a long story! After 4 trial payments, BOA approved our permanent modification in Oct 2011, and we had it notarized and returned it immediately, but they never properly closed it. I continued to make "trial" payments over the phone for months, repeatedly asking them whether there was anything else I needed to do to get the process finished. The reply was always "No, everything is fine, we have all your documents, just keep making your payments." Then, I fought with them to get the modification file re-opened after they closed it a full year later for "missing documents" which they never told me about! After countless phone calls, etc. to find out what they wanted, I re-submitted the one piece of paper that screwed the whole thing (error on a notary page- literally one word was missing!), in early December 2012. In January 2013 I escalated to the OOP, and have been in contact with Ms. McCollum, who is very nice but has been unable to help me get the file finished. It's been "in the closing dept." since December, so it's been there for 105 days. What do I have to do to get this finished? I practically have a panic attack every time I get a letter in the mail from them, because they're those computer generated letters that don't acknowledge that you're in workout, it just sounds like you've stopped paying. Oh and they've been reporting us 120 days late since last May! Which is destroying our credit which I have been working so hard to improve, and we have never missed a payment. Anyway, just wanted to vent, and maybe somebody has a suggestion how I can get them to do their jobs.
Update: I ended up filing a complaint with my Senator's office. I don't think it sped up the process, but at least I got my complaint on file. We had to re-do the "final modification" papers twice since I wrote back in March. I finally received the countersigned documents last month, and my rep tells me that everything is complete, and that the loan has been returned to normal servicing. I am able to pay online again! I received a letter from BOA stating that they have submitted requests to all the credit bureaus to correct all those months they were reporting us late. That letter was from the end of August, but I have not seen anything update yet on my credit report. I called to complain last week and he told me it could take 90 days for those corrections to show. What can I say? I am simply out of patience but it seems there is nothing I can do but wait. Even if the corrections don't show, shouldn't they be reporting us as current for September? I have other creditors showing OK for September on my report.

To top off my frustration, I received a collection call last Friday. Actually, I had 2 missed calls during the work day, and then I picked up the 3rd call later. Yes, I realize that my payment was due 10/1, because I am not a moron, and I ALWAYS pay before the 15th. We are paycheck to paycheck, and this month I have to pay on the 11th. How can they call before it's technically late? It's so insulting. I am so effing sick of BOA. I wish I could afford to refinance with somebody, ANYBODY else!
 

qwerty4

LoanSafe Member
Mar 16, 2011
4
0
0
be careful!!! We did our loan modification if you want to call it that! 38 years 7.625% We were quite frantic when signing our loan as many of you are but at the time all we cared about was not being forclosed on! Holy what a mess. They stated to call after paying our payments for a year to refinance.....NO we cant do that. Fine print! Liars. We have not missed a payment since our so called MOD.
D
 

LovingOcwen

LoanSafe Member
Nov 16, 2013
283
6
18
St. Albans New York
Timmy - I had someone tell me the same thing about not having the documents notarized, because there was no "notary page." Then another rep told me the mobile notary would bring the notary page with them, but yet ANOTHER told me the mobile notary was just a courtesy. In the end, I brought them to the BofA branch and the notary there wrote a line with the notary "blurb" and signed and stamped them. That had better be good enough :)
Hi SmittyM,

The final docs does come with a notary page. You should have received two copies of the modification to be notarized. The only docs that do not come with a notarized or signature page is the "trial mod" agreement, it is confirmed of your acceptance when you make the first payment. Keep in mind, the perm mod is not finalized until you recieve the sign copies back from the bank, it is written in the package. I would inquire about your signed copy.
Good luck
 

qwerty4

LoanSafe Member
Mar 16, 2011
4
0
0


Unfortunately we did have to file bankruptcy in 2009. Our atty listed our property as secured on schedule D.
We then went thru a loan modification process with Bank of America.
If you would like to call it that, the terms were rediculous but we were under great stress and the threat of foreclosure from Bank of America. All due to the fact that
they really messed up with us. They approved us and sent us a new payment sheet etc., continuted to tell us to NOT pay our full original loan payment amount, as a result
we were sending the new amount which was originally much lower. Well long story short that modification that they said we were approved for never came about. Bank of America is really messed up!! (still is)
So...as a result we ended up signing papers for the following: (2011)
First: $ 239,000 38 years at 6.75% (insane) $1897
Second $16,321 24 years at 9.5% $145
When calling to refinance and get a lower interest rate and now they say the following:
We cannot refinance with them because we did not re-affirm our debt? Was a loan modification not re-affirming? They certainly were eager to approve us for that?
Our atty wrote a letter to tell them it was not possible to do re-affirmation papers now as our bankruptcy is closed and discharged in 2009.
 

Preparingfordefault

LoanSafe Member
Apr 17, 2011
293
7
18
I need advice. My mortgage was permanently modified over 2 years ago and I have a big problem.

One year after the mortgage which includes taxes/insurance was modified under the national settlement program to equal 30 percent of my income I was told that their was an escrow shortage of $5,000 dollars and my payment was being increased by over $400 a month. I freaked and they spread it over 5 years and increased the payment something like $100 a month.

I escalated to the executive office at BofA and they said my taxes doubled (not true) and ultimately after looking into it said that only one quarterly tax payment was included when they calculated my new modified payment. Wasn't it their responsibility to calculate correctly to meet the requirements of the national mortgage settlement???

I felt this was ridiculous and a scam to present a fake lower payment but life was crazy at that moment in time and I didn't pursue- they spread it over 5 years and my payment increased.

BUT Fast forward to year two and I received YET ANOTHER increase of over $400 a month saying that there was a shortfall of $5,000 in my escrow but this year my mortgage has been moved to another service provider and BofA isn't servicing the loan anymore. I freaked again...

I need help! This is going to happen every year which I did not realize when it happened the first time. $400 a month every year because it wasn't calculated correctly to begin with???!!!!

BofA had a responsibility to calculate the loan payment including escrow correctly to 30 or 31 percent of my income including correct taxes and insurance. At this rate and having the shortfall every year the payment is ballooning by over $400 a month every year - Isn't it BofA's responsibility under the national settlement program to calculate correctly including escrow from Year 1!!! They are saying the exclusion in the modification that can raise the payment is changes in escrow requirements BUT my taxes haven't increased from when they calculated the modified payment under the plan.

Help please~ Any advice?
 

Michael Naz

Michael Naz
Jan 9, 2011
2,965
38
48
Southern California
Preparingfordefault - you can correspond with the servicer to get a payment and escrow history. if there are items you are disputing because you have records to back it up, such as your property tax bills, this should get corrected. if you wish to have us correspond with the servicer to ask these questions, just call in or email in for an appointment to see if we can help as far as filing complaints to get the remedy you expect. - michael.
 

BOAnightmareNH

LoanSafe Member
Mar 19, 2013
9
1
3
I posted back in October about our modification finally being completed. Online banking reflected the correct terms, the mod was returned to us, properly notarized, and was filed by BAC at the registry of deeds. At the end of November our credit reports were finally fixed. Our credit scores went up 80 points! I have been making payments online since then. Everything was peachy.

Today I logged on to make the June payment and the online banking is all effed up again. I can't pay online. It's showing next payment due 9/2011, like it did the whole time we were in process of modification. Last week a ton of transactions posted (payment reversals, etc., like they did back in August to bring the account to match the mod terms). The escrow is showing negative $15K, for crying out loud. I spent 30 minutes on the phone this morning being bounced from dept to dept. Nobody can tell me why it's been taken out of normal servicing and the dates changed again. All they could tell me is that it's showing that it's in the closing process (again?!?), I have a new rep assigned but she is not in (of course not). I had to make an appt for her to call me on Monday. So I get to worry about it all weekend.

Has anybody else had this happen? Please somebody else say it happened to them and it turned out OK. I'm completely freaking out. I really hope I'm overreacting, but I don't trust them AT ALL.

Thanks for letting me vent.
 

jrwheeler

LoanSafe Member
Mar 12, 2013
2
0
1
I posted back in October about our modification finally being completed. Online banking reflected the correct terms, the mod was returned to us, properly notarized, and was filed by BAC at the registry of deeds. At the end of November our credit reports were finally fixed. Our credit scores went up 80 points! I have been making payments online since then. Everything was peachy.

Today I logged on to make the June payment and the online banking is all effed up again. I can't pay online. It's showing next payment due 9/2011, like it did the whole time we were in process of modification. Last week a ton of transactions posted (payment reversals, etc., like they did back in August to bring the account to match the mod terms). The escrow is showing negative $15K, for crying out loud. I spent 30 minutes on the phone this morning being bounced from dept to dept. Nobody can tell me why it's been taken out of normal servicing and the dates changed again. All they could tell me is that it's showing that it's in the closing process (again?!?), I have a new rep assigned but she is not in (of course not). I had to make an appt for her to call me on Monday. So I get to worry about it all weekend.

Has anybody else had this happen? Please somebody else say it happened to them and it turned out OK. I'm completely freaking out. I really hope I'm overreacting, but I don't trust them AT ALL.

Thanks for letting me vent.
That is really very strange. If your modification was finalized and you've been making payments online ever since then with no problems, something definitely isn't right. If you can't get any legitimate answers from BOA, here is what you do: Send an email to the CEO of BOA at [email protected] and be very firm in demanding some answers as to what in the heck is suddenly going on with your account. Also in that email, very clearly state that if this is not taken care of and you do not get some answers, you will be reporting this your state's attorney general's office as well as state senator. There are new CFPB rules that were recently passed that these banks have to follow and this sounds like it could be a violation of those rules.

I do feel your pain. We went through a modification back in 2012. It was finalized and made permanent in September of 2012 and it took them until this past October to FINALLY update their systems so that we could make payments online again. The way I finally got that resolved was by emailing the CEO and threatening legal action. I had a phone call within just a few hours from the assistant of the VP at BOA and our account was finally corrected and put back to normal servicing by the end of that week. Sometimes you have to play hardball with these fools. Good luck!!!
 

Michael Naz

Michael Naz
Jan 9, 2011
2,965
38
48
Southern California
BOAnightmareNH - thanks for post and that is not unusual for as many accounts as bofa has in their system.

mistakes are bound to happen and in fact happen every minute at all major companies.

you know the reality, you have the agreements, don't be alarmed.

just corrrespond in writing to bofa and keep track of the conversations and follow up.

make your payments by phone for the time being until its resolved.

if they give you a bogus reason for the screw up or they try to back track, just know there are many options available for you including filing complaints to the regulators etc.

most importantly, don't let this ruin your weekend you know you were perm modified, and mistakes get corrected daily because they don't want undue expenses incurred in defending mundane mistakes that don't cause a significant financial harm to the borrower.

-if you find yourself needing a conference call over to bofa or correspondence help in writing to get more details, let us know just email in below and ask for a time to call over together and get the story they have.

-michael
 

Michael Naz

Michael Naz
Jan 9, 2011
2,965
38
48
Southern California
jrwheeler - happy to hear they finally corrected it and back in 2012 in your case.

the online payment system would save them a ton of money if they would have corrected it so that you would not have to use phone payment support with a live operator or have to handle paper checks.

its amazing how much inefficiency there remains at bofa....perhaps they are still working on the issue in paying up for past mistakes?:

"Bank of America in talks on $12 billion mortgage settlement

By Katie Lobosco and Evan Perez @CNNMoney June 5, 2014: 11:39 PM ET

At issue are allegations that Bank of America defrauded buyers of mortgage-backed securities by misleading them about the quality of the loans involved.

The securities in question consisted of home loans that financial institutions bundled according to their risk. The products played a key role in the 2008 financial crisis. Loans that were rated as safe began to fail in huge numbers as the housing market collapsed.

Bank of Americadeclined to comment on the potential settlement. The U.S. official said a deal is still weeks away.

The bank already agreed in March to pay $6.3 billion to settle four lawsuits filed by the Federal Housing Finance Authority (FHFA), which has overseen government-backed housing finance firms Fannie Mae and Freddie Mac.... read more at this link."

also
"BofA settles with insulted homeowner

By E. Scott Reckard of the Los Angeles Times
June 5th, 2014

It looks as if Daniel A. Bailey Jr. will be allowed to keep the home where he endured the wrath of Countrywide Financial kingpin Angelo Mozilo — and then skipped more than five years of mortgage payments.

A loan modification, now close to final, would resolve a bizarre chain of events that began in May 2008 when the frustrated North Carolina homeowner sent mass emails to Countrywide executives, begging them to ease his mortgage payments.

Of course I'm nervous; you hear all the horror stories about modifications falling through. But ... she promised that this is really going to happen. - Daniel A. Bailey Jr.

Mozilo, the headstrong Countrywide co-founder who aimed to dominate the mortgage business, wrote an impulsive e-mail meant for colleagues. In it, he called Bailey's plea a "disgusting" example of form letters from troubled borrowers that were then inundating the Calabasas lender.

But instead of hitting "forward" on his computer, Mozilo hit "reply." Bailey got the note and posted it on an online borrowers forum. Before long, the misfired missive went viral.

A day after The Times reported the snafu, TV crews were camped outside Bailey's house and Countrywide staffers rushed to silence him.

Bailey said they offered him a modified loan, but one that he still couldn't afford. That's when, he said, he was promised a special bonus — he'd never actually have to make payments, and the bank would never foreclose as long as he kept his mouth shut.

And that's what happened — at least until last summer.

Bank of America Corp. had taken over Countrywide in July 2008 and Mozilo departed. Then in August, the bank finally took notice of the situation and sent Bailey a letter demanding $98,462 in missed payments, interest and penalties, or else he would get kicked out.

Bailey insisted that Bank of America was obligated to honor the agreement that Mozilo's damage-control squad had struck to silence him.

And in December he went public with his plight, telling The Times that the oral deal entitled him to live for free in the two-bedroom, 938-square-foot bungalow he had called home for more than 20 years.

Bank of America spokeswoman Jumana Bauwens said at the time that Bank of America could find no documentation of such an agreement. The bank confirmed that Bailey had skipped 62 straight monthly payments and conceded that "it is unusual" to go unpaid that long without foreclosing.

Its statement said "foreclosure holds" — seizures halted by changing regulations or investigations into abuses — caused some of the delay.

But within a week of publication of the Times story, the bank had sent Bailey papers to apply for a loan modification, and by February he began negotiating new loan terms.

Bailey, a photographer whose income plummeted during the recession and never recovered, has made three trial payments on a modified loan.

"The permanent modification documents will be generated by the end of the month," the bank spokeswoman said...." read the rest of the story at this link.

-michael
 

BOAnightmareNH

LoanSafe Member
Mar 19, 2013
9
1
3
Thank you, jrwheeler and Michael, for your quick replies, and reassurances. I did just email [email protected] to escalate immediately. I have had better results dealing with the OOP than with regular customer service. I want to stop this in its tracks before it creates a huge mess. Last time it took several escalations, and I also got my senator's office involved then.

Taking a deep breath, waiting for the phone to ring.