Foreclosure in Pollock Pines>Question Details

Tileman, Other/Just Looking in Pollock Pines, CA

I have a question about Bank of America Loan Modification

Asked by Tileman, Pollock Pines, CA Wed Mar 16, 2011

I have a question, Bank Of America is the servicer for Freddie Mac, you have an arm, and upside down, your husband is working self employment and you get retirement, we are of age 65 , you get turned down for HUD after 2 years of going through paperwork and waiting , and then Bank of America offers to renegotiate after and you go through the process again for 6 months to get a different loan called in house loan where they will get the investor, Bank of America turns you down and says you don’t make enough money and they put you in foreclosure. How do you explain this?

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Personally a lot of this 'modification' stuff is a game. I'm finding (and we handle lots of short sales and distressed home owners) that all the while they are putting you through the ringer of a modification they are accepting some type of payment from you.

We're finding that the 'trial' period for getting a loan modification is often at a higher monthly payment then the homeowner was originally having difficutly making. In your example they collected, assumably, 2 years of payments instead of the alternative which would be having the house go into foreclosure. It's a shame and darn near a 'bait and switch'. My advice is to contact HAFA/HAMP and have them look at your situaion. Google government plans in your area for modification help while staying away from 3rd party individual companies. Sorry but there are too many giving the good ones a bad name that I would avoid anything that isn't sanctioned.

Also, keep trying with your current lender. Their story seems to change every 30 days when different reports are due. Don't give up. Good luck to you.
1 vote Thank Flag Link Wed Mar 16, 2011
We like the answer by Justin: "1st, Do not trust any thing BofA says on the phone. 2nd, you need to speak with a real estate attorney, 3rd, you need talk with local short sales real estate agent. 4th, you need to determine if the loan you have is recourseable or non-recourseable."
0 votes Thank Flag Link Wed Mar 16, 2011
Explain it easy: WELCOME to the world of real estate involving Banks !

Lynn911 Dallas Realtor & Consultant, Loan Officer, Credit Repair Advisor
The Michael Group - Dallas Business Journal Top Ranked Realtors
0 votes Thank Flag Link Wed Mar 16, 2011
It appears that banks motivation in their "loan modification" programs is 1. delay foreclosure 2. delay any resolution in favor of the borrower. 3. delay taking accounting losses against the value of the "asset" they own (your mortgage).

Continuing a charade of pretending to offer loan modifications serves the primary goal which is delay. Delay is the goal of the higher ups in bank management, even though it is not in the best interest of their stockholders, the public, the borrowers, the nation, nor even in the best interest of the bank itself. This is the rational choice for the executives to make, considering the fact that the top executives continue to pull in gigantic salaries and bonuses.
The lower level employees handling the borrowers requests are lied to by the executives so that they unknowingly rebroadcast those lies to the upside down borrowers.

Some loan modifications do get made, despite the odds being stacked against the consumer, but only in token numbers.
0 votes Thank Flag Link Wed Mar 16, 2011
Jim Walker, Real Estate Pro in Carmichael, CA
If you have been served an official Notice of Default, it is time to start speaking with some professionals. I suggest speaking with an accountant, real estate attorney, and Realtor. You could start with a Realtor who could give you some ideas, options, and plans...and the attorney and/or accountant could advise you on liabilities.

Unfortunately, banks really seem to be putting innocent people through the ringer with these loan modifications. I have yet to meet someone who has successfully completed a loan mod. If you'd like further information on the short sale process check out the referenced page below. Or, if you'd like to know other options on slowing down the foreclosure process shoot me an email or give me a call.

0 votes Thank Flag Link Wed Mar 16, 2011

I have experiance with this situation. first do not accept any forbearance agreement with BofA. this is usally a 3-6 month plan. After the 6 months, you are forced to make your normal payment plus a portion of the payments in a arrrears, makes no sense. BofA is one of ,maybe the worst with short sales and modifications. Thier internal systems and processes are a total failure. You are correct, if you get a modifcation package and can get it into the right persons hands, they wil bury you in paperwork and re-faxed/re-mailed duplicate paperwork.

if you are in forclosure, 1st, Do not trust any thing BofA says on the phone. 2nd, you need to speak with a real estate attorney, 3rd, you need talk with local short sales real estate agent. 4th, you need to determine if the loan you have is recourseable or non-recourseable.

I am local to you and can put you in touch with local agents.

all my best to you, stay strong.
0 votes Thank Flag Link Wed Mar 16, 2011
We were with HAMP for 2 years every month they would change the processing papers , they turned us down. struggeling to keep our payments. We have been making our payment on an arm, but now Bank of America is saying we have to make double. Than Bank of America is trying to get us a loan on forbearance. Each week is something different. Bank of America will not take any payments now, and saying we are in foreclosure, even though the representatives in Bank of America says it is preforeclosure. My husband is a Vietnam Veteran, he is a tile contractor, he is 67 years old, he gets retirement. How can we save our home and show that we can make the payments. Its the arm that destroyed us. With a diffetent type of loan we can do this,, we have the money to make payments, he's still working and thats a miracle here in California.
0 votes Thank Flag Link Wed Mar 16, 2011
I have delt with Bank of America ALOT through the short sale process. I have had problems with situations that simply don't make sense. You see, the problem is that we are thinking logically and Banks follow their interpretation of investor guidelines. I have had luck with calling BofA's executive office and asking to talk to an Advocate. They will hear your side of the story and let you know if they can help. I have had good luck with this.
The pn# is 704-386-5681. Please call them. If you need further help, please let me know.
Jill Berni
0 votes Thank Flag Link Wed Mar 16, 2011
The banks are governed by banking rules and because they own your collateral they can foreclose if you are behind on payments. You do have some other options still which is to hire a legitimate legal firm to represent you and to review your modification for a fee with no guarantee of a modification. Short sale the home, file bankruptcy or let it go to foreclosure. Before you do any of these options it is advised that you speak to both a real estate attorney and a CPA. If you are able to bring the payments current you would avoid the home foreclosing or possibly do a work out with the bank to bring the home current.

Best of luck I know it's a tough situation to be in.

Sandy Farmer
Realtor, GRI, CSSN
John Hall & Associates
0 votes Thank Flag Link Wed Mar 16, 2011
Give them a call. I have nothing to say about them. I will not promote them.
0 votes Thank Flag Link Wed Mar 16, 2011
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