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Bank of America loan modifications has worst track record

Bank of America brags it has completed nearly 700,000 permanent modifications including more than 85,000 under the government’s HAMP program — the most of any servicer.

However, that number is misleading when compared to the performance of the other biggest loan serviers.

As of the Treasury Department’s most recent report on servicer performance under HAMP, Bank of America had 78,905 permanent modifications — indeed more than any other servicer. But Treasury estimates that the bank has a pool of 375,168 eligible 60-day-plus delinquent loans — far more than any other servicer.

That means Bank of America has granted HAMP mods to about 21% of potential eligible borrowers. The other Big Four banks have done better:

  • Bank of America HAMP mods given to 21% of potential eligible borrowers
  • Citigroup HAMP mods given to 44% of potentially eligible borrowers
  • Wells Fargo HAMP mods given to 37% of potential eligible borrowers
  • JPMorgan Chase HAMP mods give to 32% of potential eligible borrowers

B of A also notorious for dragging out trial modifications

HAMP is supposed to give borrowers who are in default or at risk of default a chance to modify their mortgages and reduce monthly payments, usually by $500. Eligible borrowers are put into three-month trial modifications, and if they make their payments the trial mod is supposed to become “permanent” for five years. But HAMP is notorious for lengthy trials that confuse borrowers and in some cases make their situations worse.

Of the 76,500 HAMP trials that have dragged on for longer than six months, 32,444 — or 42 percent — belong to Bank of America.

B of A has poor record for granting alternative modifications, aka, “in house” mods

43% of the 524,695 homeowners who’ve had their trial modifications canceled by one of the eight largest servicers have been granted an alternate modification. That’s the case for just 26% of Bank of America’s trial cancellations.

And the Big Eight have granted alternate mods to 30% of people rejected from HAMP trials. Only 13% of Bank of America’s HAMP trial rejects have had such luck.

How you can force your loan servicer to get off the dime and approve your loan modification – especially if they have been jerking you around

  • In your loan modification application, include a Qualified Written Request that requests a copy of the note. If they cannot produce it, which is highly likely, you’ve got leverage against them to negotiate aggressively, ie, get a principal reduction along with better interest rate terms. This will likely an in-house modification deal, not a HAMP deal.
  • NEW: Robo-signing scandal may give legal leverage for approval Read More Here
  • Watch the Q&A Coaching Videos for more help:

# HowTo Package Your Loan Mod Application Kit
# HowTo Phone Negotiation Tips
# HowTo Complain & Motivate When Getting the Run Around
# HowTo Follow Up by Phone, Fax, Mail
# HowTo Use a Qualified Written Request
# HowTo Fight Rejection Tactics
# HowTo Stop a Foreclosure Sale In 1-Day

Loan Modification Help To Get Approved Faster: Learn how to package your loan modification application, get effective coaching to get to the front of the line and combat the stall tactics servicers are using
Click here to get proven help with your home loan modification

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Technorati Tags: bank of america loan modification numbers, bank of america trial modification numbers, bank of america loan modification stats, bank of america trial modification stats

Related posts:

  1. Bank of America faces pressure from faith-based groups over loan modifications
  2. Q: Do home loan modifications get approved by Bank of America?
  3. Bank of America faces fines or regulator actions from faulty foreclosure documents
  4. Bank of America loan modification program blames borrowers for low approval rate
  5. Bank of America to clarify HAMP terms for customers

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12 Responses to Bank of America loan modifications has worst track record

  1. g binder on 05/11/2010 at 09:03

    we got a loan mod approval letter from country wide and began making our new lower permanent
    mod pmt. then months later B of A aquired country wide. they told us that we were declined
    by country wide. we told them we have a letter that states otherwise. thay said we only go by what it says in the computer. we were about to file a complaint against b of a but they
    told us about the new government plan. they told us it was better and we would qualify for it and our payent would be lower than the first loan mod. so a year later and 7 trial pmts
    later, of course they told us 3 trial pmts we got a denial letter saying we didn’t send all
    the requested docs. we had been in constant contact with b of a and they never requested any
    other docs. we called them and some lady told us all the docs were in our file. we asked why
    7 months later did we get this letter that is a complete fabrication. she said she will appeal it for us. we asked why? you just told us that letter was sent in error just fund our
    our loan we made our trial pmts on time. they refused to commit if anything else would keep
    our loan from funding. we informed them that we talked to hud and they told us under the new june guidelines they are required to offer us perm loan mod after we make the 3 trial pmts on time, and all the docs should have been reviewed before the trial period. they
    don’t seem to think they need to be in compliance, but i’m sure they took the $1000 that
    they get once a trial period starts. we have gone to hope for help and filed a complaint with the occ. I’m sending a complaint letter to the sec of the treasury, ftc, bbb,calif
    state attny general, us attny general. I also am sending letters to the media to see if any
    of them will expose B of A. you need to do a full blitz on these banks to force them to quit
    screwing around. anybody who lives in the Los Angeles area and wants to protest in front of B of A email me at [email protected]

  2. sandra berson on 04/12/2010 at 10:37

    My lender is BOA. IInitially, they told me that they lost all of my documentation which I faxed to them also some via Fed-Ex. I had to re-submit and they continue to use stall tactics. I qualify in all areas for a modfication and am a single-parent raising three school-age children. They have been suggesting forbearance, short-sale, deed-in-lieu of, etc…everything and anything other than what I need, want and qualify for which is a permanent modification. Now, they tell me they are waiting for investor’s signature and it is just one excuse after another. What is happening to countless homeowners is nothing short of tragic and there seems to be no light at end of tunnel. I would appreciate any suggestions and welcome comments

  3. Jim Stevenson on 10/01/2011 at 18:47

    In a recent update by ProPublica about what has been happening to people seeking loan modifications, Bank of America takes it on the chin again. Frances Gomez lost her home in a foreclosure that shouldn’t have happened while she was going through a loan modification with Bank of America. She is still having trouble with Bank of America. You can see more on her plight in the 01-10-2011 blog post on “Looking For Underwater Mortgage Relief From A Loan Modification, Think Again.”

  4. Akua Jitahadi on 07/04/2011 at 03:47

    I submitted to Bank of America a request for a loan mod in Feb of this year, today I got a loan mod packet stating I have been approved for a modification, turns out Bank of America is willing to reduce my payments by $25.00 a month. This is a slap in the face as far as I am concern. But hey, they did there job, they did not drag me thru months of paperwork, they answered my request in a timely manner. No one talked to me during this process, just this is what they are willing do to.

    I like to contact groups that are advocating for principle deductions, do you know of any? It seems banks are willing to adjust interest, but it is principle that really needs to be address.

  5. Gail Simmons on 07/04/2011 at 12:31

    $25 reduction offer – what a joke and a crime! Yes, principal reductions are needed.

    I reco the best way to get one (or even bigger and better results) is to put your bank/loan servicer in the HOT SEAT by documenting mortgage fraud with a forensic mortgage audit and a securitization audit to document they no longer have possession of the original promissory note and therefore do not have LEGAL STANDING to keep collecting payments, negotiate any agreements or foreclose on your home.

    In other words, what’s better than a principal reduction? NO MORE MORTGAGE when the judge rules to wipe it out and MONETARY DAMAGES, ie, $$$$, when your bank/servicer gets a judgment of mortgage fraud committed against you. Did you get my special report for more details on these strategies?

  6. T.J. on 23/05/2011 at 15:44

    Well we bit the bullet and are paying an attorney to help get us a loan mod. B of A turned us down for the Making Home Affordable program because they said we didn’t make 12 consecutive payments on the loan mod we were granted. No we didn’t because the mod gave us a new payment of $3400.00 and change. Not to long after we signed the papers and sent everything back notarized our payment went up. I refused to make the increased payments, instead making the payments on the loan docs we signed. And guess what we went farther and farther behind. Now we have no more savings and haven’t made any payments on our first, second and the third we took out to build our pool. Yeah we’re upside down but make enough money to make reasonable payments. They don’t want to modify us guys, they paid a few cents on the dollar for our loans. If they can get us out they can triple what they paid for our properties rather than re-fi us for the next 30 years or whatever clever loan deal they come up with.

    We do need to organize. I live in San Diego county and would be willing to drive a reasonable distance to meet. I was contacted by an attorneys office wanting money to sue B of A for fraud. We have already paid an attorney, we read the glowing reports on the firm but recently found negative on them too. It’s so stressful. Everyday we wait for the foreclosure letter. I’ m going to contact [email protected]

  7. Albert Hinds on 14/06/2011 at 09:36

    I have been fighting BOA for over 6 months now over hoe they input our Loan Modification into their computer on Oct. 15, 2010..

    BOA calculated that we owed 3 month of unpaid interest and then reversed the June and July payments, maid a payment against Principal of $2,472.41 = 3 months interest – $1.00, and increased the Loan Balance by $2,473.41 = 3 months interest (Loan to pay unpaid amounts..

    We owed 1 month for August + June and July that they reversed.

    Thus we owed $1.00 for August after the payment against principal.

    We then borrowed $2,473.41 to cover August, and prepaid interest for September through Jan 19, 2011. Since Interest is paid in arrears next payment would be due around Feb. 26, 2011. Plus a one-time Escrow payment of approximately $1,680.00 to Escrow.

    Instead BOA does a Due Date Adjustment to Sep. 1, 2010, and we have to pay full modified loan payments beginning in September 2010.

    What did we get for the $2,472.41 that we borrowed and must pay back with interest?????

    [email protected]

  8. blanca on 14/06/2011 at 15:19

    I habe thesame problem wit bank of america for 2 years thelolingmethat they losse my paperwork and I dont acualfing for Aloan modificasin when they fanh that we loss the job amwer back

  9. Gail Simmons on 11/07/2011 at 08:22

    You can represent yourself in court, pro se, with the low cost legal tools I give you. You need legal leverage by documenting mortgage fraud or lack of legal standing. Review the free report and look in the Tool Sections for links.

  10. Maria Valdez on 07/09/2011 at 22:59

    I also helped a friend that was in an accident in 2005 and we asked for a forebarence since he couldn’t work. He is lucky to alive. His mortgage holder was Country Wide. So, that was went thru. Then in 2008 or so, he had back surgery and at that time Bank of America bought Country Wide. So,I called B of A to see what they could do for him. My friend got an attorney to represent him. Well, a new trial contract was granted from B of A and his payment was lowered for a 5 year period. Well, my friend was able to make the payments and all was good, until we noticed the payments going up. I mean from 1200-1400-1650 current. So, I called and they told me that the contract was no longer valid. That in the contract they stated if costs go up, so will the payment. That the taxes and insurance of the home went up. Yes, they did go up. N

  11. Gail Simmons on 08/09/2011 at 08:47

    I recommend your friend discover if BofA really owns the loan or if they are committing fraud as a pretender lender when the loan was converted into an investment. Read my expose article:

  12. Katrina on 27/09/2011 at 18:42

    I got a trial loan mod from BOA fot 3 months, $1072 and my monthly income after taxes $1666.00. I have a car loan basically after I pay the mod and my car note I only have $124 left for the entire month. Is that legal?

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