BOA Responds to my Blog on Supposed Modification Denials

BOA Responds to my Blog on Supposed Modification Denials

(UPDATE: I have been contacted by numerous homeowners who describe being told the exact same thing I was about how BOA handled this.)

On May 16, 2012 I published this blog post (click title to read it): DOJ Settlement Results in BOA “Denying” Thousands of Mortgage Modifications? (huh?) The gist of the May 16 blog post is that I recently spoke with a customer service type supervisor from Bank of America’s “Office of the CEO and President” who stated that BOA is sending denial letters instead of explanation letters for borrowers who have already placed requests for mortgage loan modifications but who may now be eligible for mortgage relief pursuant to the settlement between the 5 largest mortgage loan lenders/servicers, the U.S. Department of Justice, the U.S. Department of Housing and Urban Development, and the State Attorneys General. These servicers/lenders include Bank of America, Wells Fargo, Citi, JP Morgan Chase, and Ally Financial/GMAC. My article commented that this made no sense, and surely letters of explanation should have been/be sent instead of denial letters.

One way or another, my blog post caught the attention of some higher-ups at Bank of America, and that very same day I received a phone call from Bank of America, wanting to discuss the content of the article. I ended up having a lengthy (and interesting) conversation with someone at Bank of America (California office) who is in a public relations type role. For ease of reference, I’ll refer to this person as “the BOA rep.”

I was informed, that, upon initial inquiries of others “in the know” by the BOA rep., the BOA rep. does not believe that BOA is sending denial letters instead of explanation letters for borrowers who have already placed requests for mortgage loan modifications but who may now be eligible for mortgage relief pursuant to the settlement between the 5 largest mortgage loan lenders/servicers, the U.S. Department of Justice, the U.S. Department of Housing and Urban Development, and the State Attorneys General. The BOA rep. asked me to identify the particular case at issue, so as to further investigate and to try to ensure that it is handled properly. I will discuss the same with my clients, and so identify them and their case if that is what they prefer.

The BOA rep. and I spoke for over 30 minutes, both about the case at issue and other mind-boggling experiences I have had with BOA in foreclosure, mortgage loan modification, and other mortgage relief cases. I believe that the conversation was enlightening for both parties, and I hope that it will lead to some improvements. We agreed to leave the lines of communication open for this and other matters.

While attempting to counteract bad press was clearly a motivator for Bank of America and the BOA rep., I do appreciate the follow-up from BOA and will accept that some persons at Bank of America are working hard to do the right thing. I agreed to publish this update, as I believe that it’s important to put forward objective and balanced information, and to provide proper context for important matters like this.

McGrath & Spielberger, PLLC provides assistance to borrowers in need of mortgage relief services, such as mortgage loan modification, foreclosure negotiation, refinancing, and deed-in-lieu or other negotiated settlement resolutions.


McGrath & Spielberger, PLLC provides legal services in Florida, Georgia, North Carolina, Ohio, South Carolina, and Tennessee, as well as in some Federal courts. The Firm offers full scale representation, as well as limited scope services, as appropriate for the situation. Please be advised that the content on this website is not legal advice, but rather informational, and no attorney-client relationship is formed without the express agreement of this law firm. Thank you.


10 Responses to “BOA Responds to my Blog on Supposed Modification Denials”

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  1. Bill says:

    I like that you are kind enough to post anything about this settlement agreement. I have been on the phone with every agency involved with this settlement and no one has any answers (it’s like being on a hamster wheel). I have been dealing with the Bank of America and I can tell you they have not changed in anyway from this suit. I had gotten denied for the DOJ (according to my Rep) before it was even really public. which confused me being he didn’t know about the progam until I mentioned it. I have been back and forth for the last month every other day. Haven’t been able to get my rep on the phone since Monday. I don’t believe they are going to help anyone. I have been in battle with them since the conception of my loan back in 2005.I wish everyone luck who has any dealing with this Bank.

    • kosmo says:

      I received a denial letter as well regarding the DOJ program. I am concerned however because she immediately told me that it was theHAMP I was denied for not the DOJ. When I told her the letter mentions the DOJ as the program I was denied for she was shocked as well. She then told me theonly thing she could do was apply for a captilization modification but once again no guarantee and that I would know something MAYBE by Tuesday of next week. My sale date by the way remains for 09/04/12. I now realize they will continue to stall me until they foreclose. I am desperately seeking help if anyone has any information. I donot want to file bankrupcty and I donot want to go into foreclosure. Only thing I regret is holding on to hope for the past three and a half years believing they were willing to assist me in avoiding foreclosure. My husband and I have a good income and not understanding why they donot want to work with us. .

      • Kosmo, I hope that you have had some progress on this issue as the foreclosure date approaches. Both HAMP and the DOJ/National Mortgage Settlement do contain some prohibitions against foreclosing while a loan is under review for a modification, but those prohibitions do have some conditions, and I have observed that the banks and/or their agents (including attorneys) often ignore these prohibitions.

        • Gullible says:

          Mr. McGrath, Very interesting information you have posted. I have been listening all along to my third account manager and now I’m still waiting to hear if my sale postponement is
          “approved” all this time of sending in documents to see if I can get a mod. They are still reviewing if we qualify or not.

          It’s terrible no one can tell me but account rep. As of Friday morning when we spoke she still didn’t have an answer. The sale is set for sept 4th…. Stupid me should have researched before now.

  2. LMH says:

    I too have been struggling with BAC.

    Here is a question you should ask, because I can guarantee it will come up. Because you got a letter of denial, that would be considered a mod application pass or fail, and you are only allowed two per a five year period. If they are calling this settlement a “mod” as well, and you are denied again, then you cant go back the HAMP process, and you’ll have no recourse and no options as you are only permitted two apps for modification with a five year period , pass or fail. And they will tell you that is a Federal law guideline. So if they tell you the denied for one and to enter you into another, you are now out of luck if you do not get approval, and they will tell you that they made it clear from the get go, that this settlement funding is not guaranteed per applicant, even though you were notified you were eligible.

    Wish you luck.

  3. SLK says:

    And now that the DOJ modification settlement has been in motion for a while you would have thought that the federal government would have insisted that they print this “law” about 2 modifications within 5 years on any of these notices of eligibility. My HAMP modification was denied falsely, stating that it was because I didn’t submit all the documents request which is entirely NOT true. When I questioned it, Bank of America simply said that it didn’t matter because now I’m being processed under the DOJ settlement. So does that mean that they skirted the issue knowing this “law” when I didn’t? And I’m currently appealing the DOJ denial, with only about 3 weeks left to the appeals process before I’m forced to choose to leave my home; either by short sale, deed in lieu or foreclosure. The end result is all the same, my family will be uprooted probably to another city because there’s no affordable rents in our school district. This mess doesn’t just affect homeowners, it affects our children which is the foundation to the future! My income has reduced significantly and yet there’s HUD waiting lists with 3,000 families on it; with the list growing since 2007! I’m a veteran and still can’t get any assistance for housing without being on a long waiting list of at least 250 other families before me. I used to provide jobs for others so they could avoid social service claims and don’t relish the fact that I will need it, but that’s what it’s supposed to be there for…and at this point it’s a farce. I don’t qualify for unemployment (also another situation that needs to be fixed) because I was self-employed, which required a bunch of taxes being shelled out as a small business. Let’s put Warren Buffett into office so that we can have a more equitable nation supported by FAIR tax practices! I will need a remedy within the next few weeks if someone out there can offer any suggestions.

  4. Hickman says:

    I will tell you you are probably right, you did hear him right , we were in loan mod limbo for a long time about 2 yrs ……..We would be approved , denied , they. Said we should have recieved packet we never got , or they lost paper work we would send in , then my husband got great job , then we were denied (again) for loan mod because now my husband made too much money, called spoke with several people to offer a 2000.00 month payment to get caught up, was told a flat No by guy named Henry, he told me that we would have to come up with at least a yrs payment before they would do anything, then was told by a woman we would have to pay 4000.00 a month for any consideration to stop foreclosure. ….Well finacily we could not even pay that , we could 2000. But not a yrs payment or 4000.00, Then we got a lovely booklet on how to leave your home, and that dont believe bankruptcy false claims you will not be able to save your home, we decided to short sale , working with reality co and title co , had several offers turned down each time , once they said our signatures didn’t match, we had foreclosure postponed then had another offer in nov 2011, I then recieved call realistate agent our home was auctioned. …….

  5. kira says:

    After working with a modification officer for the last 6 mos I find out b of a decided to drop me from the modification process because I was uncooperative regarding getting all the paper work they required. I have jumped through all their hoops. I have resent forms over and over when I didn’t cross a “t” right or dot an “i”. I don’t know what else to do. They really want me to loose my house. it is sad

    • Kira, after working so many cases with BOA, it’s become very clear to me that they have intentionally set it up so that it’s very difficult to comply with their “deadlines” and demands. Their plan is to have the borrower “fail to comply” so that they can report your case that way to the government and anyone else: “Well, we TRIED to help her, but she didn’t do her part.”

      Please be aware that you have the right to appeal. If you are interested in a consultation, you can contact my office. Thanks and good luck to you!

  6. JFD says:

    My Wife and I have been complying with BOA request for Documents for over 3 yrs now. At first we were denied but was able to catch up with the mortgage meaning current mortgage plus 1/2 of past mortgage for 6 months $3300 @ 10% interest, until we were caught up. Then we fell behind again about 3 months. Trying to work out with the HAMP program. It is basically a juggle of paperwork and documents with BOA reps.
    My wife has a folder over 5″ thick of documents that has been faxed over to them. Luckily she keeps all records of the fax transactions times, through our home fax. Most documents have been resent several times, in some cases over eight, same exact documents. I believe it goes from fax machine to the waste file. Well anyway we hope that this at least buys us time and eventually catch up with are mortgage again. Thank god I still have a Job and a dream to catch up on the mortgage with BOA.

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