Bank of America finally ramps up mortgage modification program
Filed under: Company News, JP Morgan Chase, Bank of America
After being named the bank with the worst record in mortgage modification, Bank of America (BAC) has finally expanded its staff to handle the growing number of troubled loans and offer mortgage modifications. At the end of July, the bank had helped only 27,985 people according to a report by the Treasury Department on the progress of the Making Homes Affordable program. That put Bank of America at the bottom of the list.Since then the bank has beefed up its staff and in August it modified 40,000 more loans, according to the Washington Post. Most of the people who have been offered help under the program have yet to complete the process, the bank told the Post, but its goal is to modify 125,000 loans by November 1. Hopefully for the folks who have been battling with the bank this goal will be exceeded.
Citigroup (C) also announced its staff expansion at the end of August. Finally, the two banks that received the most help from the government are fully on board to help with the mortgage modification process. Unfortunately, they jumped on the bandwagon too late to help people who have already lost their homes to foreclosure in 2009.
The Treasury Department's report in July showed that JP Morgan Chase (JPM) had the best record. It had helped 20 percent of its customers by the end of July. Citigroup was in second place by helping 15 percent of its eligible loans. Wells Fargo (WFC) only had a participation rate of 6 percent, and Bank of America was in the worst position with a participation rate of 4 percent.
If we start seeing a dramatic drop in foreclosure rates we'll know that this program is actually having an impact and helping people stay in their homes. When the Obama administration announced the program with much fanfare in February, it promised to help four million people modify their loans. The banks dragged their feet. Many didn't really start cooperating until after the July report that embarrassed them publicly. I don't think any bank wants to look uncooperative when the next report comes out.
Lita Epstein has written more than 25 books including The 250 Questions You Should Ask to Avoid Foreclosures.
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Reader Comments (Page 1 of 1)
9-11-2009 @ 9:50AM
cartmantony said...
After named the worst bank, it's important for BofA to give the answer by helping people with the mortgage modification program
Reply
9-24-2009 @ 1:30PM
abe said...
Bank of America the WORST BANK with their mortgage modification? I couldn't agree more! Worst of Worsts that I say. We've been dealing with them since March of this year re-financing our home. We are not facing foreclosure just wanted to shorten our mortgage and save a year and half of payment. But to this day.......we are still waiting.... Who do we go to file a complaint????? It's very depressing dealing with them. We could go to another mortgage company but that would mean a loss to us since we've paid our fees already!
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10-12-2009 @ 9:38AM
Charles Rice said...
Loosing My Home That I Can Afford
I am writing this letter hoping to get some help from someone. My name is Charles E. Rice Jr. from Katy Tx. In November 2007 my first big dream came true and it was to buy my first new home for my family. Things went so well it was like a blessing that we had dreamed of, my wife Teresa, and children Kendra and Charles Rice III (Tre) was so happy. We really felt like a well grounded family who is no longer renting and I can finally say that something belongs to me. After getting things settle doing the year of 2008 a lot of wonderful memories came about such as: My son graduation party, My first ever birthday party at 44, Big hang out for my sons high school football friends and daughters high school basketball team mates, first big Christmas and Thanksgiving and etc. We also had in the our plans to host my daughters who is a senior in high school this year, a home coming function this month Oct. 24,2009. In March 2009 something happen that we never dream of that would spin out of control and it brought everything to a Halt.
On March 1, 2009 Bank of America (BOA) send us a statement saying that our home monthly payment had been increase from $1,457.00 a fix rate of 5.75% FHA loan to a $2457.00 which is an increase of $1,000.00. Well we did not panic; because we figured during the take over of country wide that our original loan was with could have made a simple mistake. When my wife called and spoke with an employee of Bank of America (BOA), she stated that our 2008 escrow account was out of funds and they paid it. So my wife and I knew our monthly payment was going to go up after the appraisal; but $1000.00 and we felt no way this could be. So my wife question to Bank of America was of the following:
1-How long will I have to pay this $2,457.00 and BOA employee replied until Sept. 2011 until the account is caught up.
2-Did any money from the monthly payment of 2008 go towards the escrow at all and there was no clear answer from BOA.
3-How short was our account for it to be $5,000.00 plus dollars debt to BOA, no clear answer again.
4-Requested a document with a Bank of America letter head showing 2008 escrow amount we owe so we could pay it and BOA comment was because it was already figure monthly they want to collect it that way only.
So the wife and I could not believe after not receiving an unclear answer for question 1-4 we were concern. As the months passed by we just continue paying our contract payments of $1,457.00; but the bill was increasing each month. Also we knew that we need to do something fast because we did not want 2009 escrow taxes become another problem on top of our current 2008 escrow issue. So during the Month of Aug 1, 2009 we realize were not getting the help we need an our only choice was to find an attorney that could give us some professional help with this being our first home.
On Aug. 7, 2009 we found this law firm “Adams Law Firm” in our community of Katy Tx. Our first Attorney by the name of Richard Killough read our documents and pull up our tax information on the internet and he was puzzle himself about the money they were requesting. During Richard’s research with Bank of America trying to find out why they were requesting so much money, he email my wife and I saying that he believes that Bank of America may have done something which could be in violation. So about one week later I received and email stating that Richard was taken off our case and took another position in the firm as a consultant, now we went from thinking we had hope to what are we going to do. So we were assigned to another attorney at Adams Law Firm by the name of Ruben Alcantara who state that Richard and him had came to agreement that it might be in our best interest to pay off the requested amount to save the house. On September 14, 2009 at 5:00pm Bank of America finally faxed 15 pages of information and they a new amount of $11,887.00 with a dead line of September 16, 2009. So when the firm started negotiating we thought the Oct 6, 2009 forecloses deadline would be moved and they said no and we were devastated. So my wife and I pleaded with our attorney to tell them that we do not want to loose our home that we can afford. Mean while they tried these different program and found out we did not qualify for none of them because I made too much for a FHA loan modification. There comment was my yearly salary could not be more than 31% of my home loan; but we said we can afford to work something out. Also we thought we where in the clear when Bank of America said they could do a loan for the amount we owe and then we were turned down again. Also about one week before this Oct. 6, 2009 date our attorney made and offer on our behalf saying if we put down $5,000.00 and promise to complete the payment less than 30 days and they said NO they wanted cash all at one time. So after checking to see what the new amount was, we found out that it has increase to $13,875.34.
I am going to close this letter by saying. I can not believe in this country there is no one willing to stand up for some one who is and can afford to pay to keep there home and Bank of America has just been so uncooperative in every way. I feel like my hand are tied behind me and I am laid helpless on my back. I am going to confess that the bitterness that is in my family heart about how this companies can turn there backs on us; we are hard working people who wants to do right. I also feel after hearing so much in the news that Bank of America is out of control and some kind of way our government needs to put them in there place. So I am pleading with anyone who hears my cry if can please help me and my family to keep the house that we can afford. My attorney is so puzzle over this matter he offered to grant my request to write a letter that I may use as I try to patch my life back together so folks will not look at me as a dead bet man. So I do have this letter and other information if needed.
“I hope someone can answer our prayer”
Thank you
Charles E Rice Jr
Reply
10-28-2009 @ 2:39PM
Irma said...
Mr. Rice there is a organization that can probably help you.
It is Acorn. Look them up on the internet and give them a
call and it's free. Hope your situation changes.
10-28-2009 @ 7:50PM
Chris said...
Bank Of America seems to be hiring people off the street. I get different information on my progesss of a modification every time I call. The modification is a VERY difficult, stressful process. I have been working on one for 6 months. Good luck to anyone who needs help in the near future or yesterday.
11-16-2009 @ 6:59AM
kimberly gooden said...
I am also dealing with bank of america. I have given them all the information that they asked for and they still wont approve my modification loan. I am a single parent of 2 kids head of house hold. I have been in my house for 10 years, i have never needed help. Up until august of this year i had problems. I was told that i could go to acorn housing for help, i did. I was told it would take 3 months before i would hear from the mortgage (bank of america)! On november friday the 13 i phoned them. I was told i had been denied. I was thinking why didnt i get a letter in the mail. The rep said Ms. Gooden when you get your income up, call us back. Now my thoughts are if my income was higher i would not be asking for help. So maybe they are hiring people of the street!
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