After responding to an unsolicited loan modification offered by her
mortgage company, an Alabama family signs the documents in good faith
and ends up in a loan modification debacle that ends up putting their
home on the path to an accelerated foreclosure and the mortgage company
refuses to take her payments;
Sadly, this family isn't alone when it comes to facing loan modification runarounds, predatory mortgage servicing practices or living with fear that their home will be wrongfully foreclosed on.
This is an email from a homeowner in Alabama
published with their permission;
BofA sent us a loan mod package outlining a reduced interest rate with new terms. They put a note on our account stating that we were approved for the modification that would have reduced our payments by $700.
Believing that this was a reputable company we read the agreement, signed it, then returned it with a cashier's check for the 1st new payment amount.
This started May, 2010.
From June 2010 to present, the loan mod has stalled. We have made our payments as agreed throughout this time then was told on 12/06/10 that the modification had been denied because "client did not comply with request for financial documents".
We never received a request for updated financial documents.
BofA sent an email to the Neighborhood Assistance Corporation of America (NACA) who then relayed the info to us.
I was confused as to why BofA sent their decision to NACA when they were not a part of this loan mod, nor were they aware.
In October 2009 NACA issued a request on our behalf to BofA for the "making homes affordable" mod but we were denied. Now BofA won't even talk to me or accept our payments to bring the account current. It is 2 months behind and due for a current month.
One rep said that they were moving to accelerate, making me believe he meant the loan mod but it actually means to rush for foreclosure.
It's important to note, that prior to their unsolicited loan mod offer, our account was never late.
It seems this entire process was designed to force us into a situation of default so they could take our home.I want to catch it up, try to correct the credit then refinance with a local bank that keeps their loans in house.
I am afraid of these large mortgage companies and their lawlessness.
Alabama homeowner.
Sadly, this family isn't alone when it comes to facing loan modification runarounds, predatory mortgage servicing practices or living with fear that their home will be wrongfully foreclosed on.
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My belief is that there can be no change in terms to the original mortgage agreement without the expressed written consent of the homeowner.
Furthermore, if a change in terms is agreed to by the homeowner (as in the Alabama couple's situation), and those terms are worse (non acceptance of payments and the threat of foreclosure) than what went before, I would call that a predatory loan.
They probably want you to give up and move out then they can sell your house to a family member for pennies on the dollar. Curious, has anyone looked at that angle? Wouldn't be surprised at anything.