Sunday, November 10, 2013

BOA Mortgage Modification - a New Way to Scam Distressed Homeowners

BOA Mortgage Modification: a New Way to Scam Distressed Homeowners

As an attorney who represents many homeowners and other mortgage loan borrowers in mortgage relief, mortgage dispute, and foreclosure cases, especially in North Carolina (but also in Florida and Tennessee), I am (unfortunately) accustomed to the silly, illogical, and even illegal actions by mortgage loan servicers, mortgage lenders, and loan holders. Bank of America continues to lead the pack in ridiculous and illegal actions, although Wells Fargo's increasingly bad faith actions in 2013 have it breathing down BOA's neck. 

BOA Loss Mitigation Process

These clients, here in North Carolina, received a mortgage loan modification offer. To be objective and fair, BOA actually handled most of the modification process with fewer errors than usual. The modification period starts August 1, and the agreement specifically states "This means I must make all required payments on or before the days that they are due."

Consistent with my advice and the modification agreement, my clients acted responsibly and made payment approximately 1 week before the August 1 due date. Simple enough, right? WRONG.

BOA called to say that the payment was made too early, that it was not being applied to the modification program, and that payment has to be made exactly on August 1, not before.

I rarely find myself speechless, but . . . wow. BOA continues to lower its own industry low standards. No wonder this embarrassment of an organization is always among the most hated companies in America and subject to so many lawsuits alleging fraud and even intentional efforts to ruin its own borrowers.