Homeowner to Bank of America: It's not nice to fool homeowners in distress

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Let's face it; The HAMP loan modification program is a process filled with runarounds, frustrations, destroyed credit, broken promises --and all to often, leads to a dead-end. Today, I am happy to pass along the story of a crisis averted.  Read on to find out how one smart homeowner used the resources available to her and--despite extreme pressure to do so--didn't sign a off on a less-than-real deal loan modification. Don't fall for this one!

B of A vs. Obama: Home Modification Practices Border on Fraud?
By Homeowner:
Maria M. Lexington, KY

I should literally be turning hand-stands with joy and happiness after finally getting my Making Home Affordable mortgage modification contract on my desk! Starting at 2% interest rate and gradually topping out at 4.75% on years 8 thru 32. That's right I've got a long way to go, but at least I have a roof over my head, with a payment that really is affordable for my income.

No thanks to Bank of America, I was 48 hours away from being duped into signing B of A -LP (loan processing department?) modification terms contract which lowered my interest rate 2% from 6.875% to 4.875%; but with the rears, fees, and escrow rolled into the principal, my monthly payment was $1 less my original house payment. Still.. I was thrilled about the prospect of having "any" modification and not losing my home.

After a very lengthy and bumpy loan modification process, lasting almost 18 months, I received, via FedEx next day, B of A -LP modification contract (thinking this was my Making Home Affordable, Obama's modification plan).

Received on November 12, with instructions to sign and return by November 23, with a certified check or money order for December 1st payment? I had already made November's trial modification payment, was this to be December 1st payment? They didn't indicate how it was to be credited, plus November's payment had not been credited to the contract balance.

Panic.. 10 days to read all the new terms and legalize. After reviewing, as best as I could, I had four basic questions I needed answers to. Oh no, not the Alice and Wonderland phone torture test again! Got to. Three and a half hours later, transferred from one department to another, disconnections, out-right misinformation, and threats of foreclosure if I did not sign and return by November 23 deadline. I had the answer to my first question, I think? For the next 5 days, I would have anywhere from 4 or 5 messages from B of A asking if I had signed and mailed their modification. What's going on?

Fortunately, I had signed up for Lexington's Community Ventures (not for profit, Making Home Affordable assistance program) and had faxed these modification documents to my case worker. She responded with a few days before deadline, saying this didn't "look like" Obama's Making Home Affordable. Sure enough, with 48 hours to go, another B of A FedEx package shows up. This is the REAL deal, clearly printed that this is a Making Home Affordable modification.

With all kinds of RED flags waving and fast, fast pressure, I guess I should have realized sooner that this was some kind of scam, but still, Bank of America?

I believe that Bank of America has completely and utterly spat on Obama's Making Home Affordable program with total disregard for the spirit (if not the legal) design to help home owners in distress. Next time they need a taxpayer bailout....let them suffer the consequences of their own greedy business decisions."

Maria M. Lexington, KY
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The original Bank of America offer would have actually cost you more money as the lower interest rate but almost the same monthly payment would have meant a much smaller interest rate deduction for your income tax.

I did not understand how you were able to renegotiate the interest lower than what Bank of America originally offered you.

I am not sure that Barack Obama is as innocent as you would like to believe he is. His administration is supporting http://www.parallelforeclosure.com and has stated that in many instances HAMP is just prolonging the inevitable.

Bank of America is ripping people off all the time. This is another reason why prepaid debit cards are becoming so popular - because of banking fees. Its all a hustle scam to rip people off. Banks are corrupt these days and this is why there are so many protests going on. Resist and you go to jail. This is nazi America at its finest.

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