DENIED by B of A for HAMP after waiting 16 months and multiple errors on their part

stephanies

LoanSafe Member
Jan 24, 2011
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Can Anyone advise me of what my next options might be?

Have a Countrywide Pay Option loan from 2007 on new home construction that I have been trying to modify with B of A since 2008. In Oct 2009 passed the pre qual screener for the govt.'s HAMP. I thought light at the end of the tunnel... then the waiting started. Feb 2010 got my first set of docs to fill out from B of A. They sent the wrong ones. IN March 2010 got the new ones, sent all docs back, April got a letter that we were being put into a trial mod program but needed some docs still. Sent those in. Late April 2010 I called in and told file was complete and with underwriting. Early May called in and was told that the Bank was looking to work with the investor and work out a 2% interest rate loan. So I was pretty hopeful at that point.

Meanwhile, B of A assigned an escrow account to our loan in April 2010, which increased our payments and loan balance. Loan balance was way under the govt limit at this time. Then our file goes into limbo - no trial mod papers or loan payments. I stay current making the minimum on the loan each month, but can't afford the max payment. WE are classified as eminent default since we have a neg amortization feature on our loan and the loan resets next year.

I continue to call B of A every other week for 5 months. Finally, in October, get assigned a contact person at B of A. Tells me my file is in shambles, needs to get new docs again. Fax 40 plus pages new docs end of Oct 2010. Promised an answer in 30 days. Continue to follow up. After 60 days of waiting, email DeSoer's office. in early Jan 2011.

On 1/22 received letter that we were denied HAMP due to now being over the govt limit. We were $33k below the limit when we started the HAMP process with B of A and was told througout the process that it was when we started the process on the balance, not when we got a decision. B of A's 16 months of delays and not processing our file correctly caused this denial due to over the limit as of Jan 2011. Its like they deliberately waited until we were over the limit. They never told us to try and make larger payments to stay under that limit. Bigger issue is B of A adding the taxes and insurance escrow to our account since April put us over the limit. If they had not done so, even now we would not be over the limit.

Called my point of contact in the presidents office yesterday. He tells me the HAMP denial and B of A's "issues" with the process are irrelevant, as the investor refused to lower the interest rate. That is the first that I had been told that, as their letter to me was that the denial was due to we no longer qualified for HAMP as we were now over the limit. I asked who the investor was, he would not tell me. Nor would he tell me when the investor made this decision and based on what. I reminded him of B of A's testimony to congress and their press releases on getting these toxic countrywide products modified and that if their investors would not do so, the bank would sometimes step in and rewrite the loan themselves. He told me he didn't think that there was anything to be done, but he would talk to "his management".

Can anyone give me what my options might be at this point? We are also quite a bit upside down in principal balance on 1st and 2nd loans vs. current market value on home as our neighborhood was a new community and around 40 homes were given back to the banks by builders over the last 2 years. Home is worth around $ 300 k less than what we paid for it in 2007, but was customized so my mom could move in with me, so it will kill her if we lose it. My hope was that I could get the principal reduction as well by B of A that DeSoer is out there promoting as the banks efforts in helping their customers stay in their homes. Does anyone believe that? How is B of A deciding who they help with in home mod's or not? And is there any recourse with HAMP when a servicer botches the process and assigns an escrow without even modifying your loan which then put you over the limit for HAMP? Isn't that changing the terms of my loan ? Was told it would only happen if we got the trial mod or perm mod?

Thanks much!
 

Moe Bedard

Call 1-800-779-4547
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Loan Safe Mortgage
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I think there was a lawsuit over the Countrywide option ARMs, and they agreed to modify them, but that may have been only in certain states.

You can try 866-939-4469, press 2, and when they answer, ask them if they can spare a couple seconds to answer your questions, and if not refer you to someone who can help with technical compliance issues like yours. Tell the HOPE won't help, you need someone more advanced. In the HAMP handbook( www.hmpadmn.com ) there is a section the says the servicer is required to modify the loan if their delay is the cause of you not qualifying. Read the handbook, and be able to cite this section, and be able to even give them the page number.

Also, they should be able to tell you who the investor is.

If you don't qualify for the loan, the escrow account is suppose to remain, but I think there may be a process to reverse it in some cases.
 

freedomwon

LoanSafe Member
Oct 30, 2010
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California
Here are the links to the Countrywide complaint & stipulated judgment in California. You will need to read through & see if the details of your loan applies.

http://ag.ca.gov/cms_attachments/press/pdfs/n1582_draft_cwide_complaint2.pdf

http://ag.ca.gov/cms_attachments/press/pdfs/n1618_cw_judgment.pdf

BofA would not give me any clues as to who they decide to help. Most Countrywide loans went into the MERS database. You can go to this link & find who your investor is: https://www.mers-servicerid.org/sis/
 
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RESTReportMatters

Mortgage Expert
One thing is that you should write in to Bank of America correspondence department, 800-520-5019 fax line, and ask to know who the investor of your loan is along with address and contact information, and you will get a response to your written request. Include your loan number and property address and your contact information and type it don't write it. Make sure the fax goest through. Once you know who your investor is (by the way check if its fannie mae or freddie mac first) then contact the investor/owner and get them to see what the middleman servicer, bank of america is doing in your case. Also, if you saved some money, then bring your arrears back down if they agree to modify your loan but only if they do agree to modify. Don't bring the arrears down if they don't agree to give you a specific modification, a HAMP or an internal mod. Remember, over 100,000 loans a month are modified and an additional 20,000 are HAMP and this is publicly published as of November 2010. The loan lookup tool for fannie and freddie are here: Does Fannie Mae Own Your Mortgage? Loan Lookup Tool is fannie and freddie is https://ww3.freddiemac.com/corporate/. Hope this helps!
 

stephanies

LoanSafe Member
Jan 24, 2011
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Thanks much for the feedback. Very helpful. Went on the MERS website and looked up my loan. They have it listed there and show the MIN number and that the MIN is current. And that Merrill Lynch owns my note. B of A bought them in 2009. So really, my loan still is with the B of A family?.....Is it possible that MERS is not updated, as it only shows the original loan date and no new transfer history, but I also was reading the Merrill Lynch sold off its mort loan portfolio at a loss of billions of dollars in 2009. Could B of A not know who now owns my loan, due to these multiple acquisitions and divestitures?

And could part of the problem with my original modification request process back in early 2010, before we exceeded the HAMP limit at the end of the year be that they don't know who owns it currently? What happens to a HAMP request if the servicer doesn't know who to contact, if it was bundled with a bunch of other securities and sold multiple times? That could explain the delay and why I went into limbo from April to end of year?... thanks again for any insights on this issue and my options.

And thanks for the HAMP website link. Quickly reviewed the HAMP handbook and could not pinpoint the section about the service delay part, but will print it out and go back over it again more thoroughly and call the number that you suggest.
 

RESTReportMatters

Mortgage Expert
Thanks much for the feedback. Very helpful. Went on the MERS website and looked up my loan. They have it listed there and show the MIN number and that the MIN is current. And that Merrill Lynch owns my note. B of A bought them in 2009. So really, my loan still is with the B of A family?.....Is it possible that MERS is not updated, as it only shows the original loan date and no new transfer history, but I also was reading the Merrill Lynch sold off its mort loan portfolio at a loss of billions of dollars in 2009. Could B of A not know who now owns my loan, due to these multiple acquisitions and divestitures?

And could part of the problem with my original modification request process back in early 2010, before we exceeded the HAMP limit at the end of the year be that they don't know who owns it currently? What happens to a HAMP request if the servicer doesn't know who to contact, if it was bundled with a bunch of other securities and sold multiple times? That could explain the delay and why I went into limbo from April to end of year?... thanks again for any insights on this issue and my options.

And thanks for the HAMP website link. Quickly reviewed the HAMP handbook and could not pinpoint the section about the service delay part, but will print it out and go back over it again more thoroughly and call the number that you suggest.
I wouldn't trust MERS to be right and that's why I advised to write in to bank of america to request to know who your investor is. Since the California ruling that MERS can't foreclose in its own name, it has become clear that any loan that passed through MERS may have serious challenges because the transfer of the mortgage may have been accomplished out of compliance with local county laws requiring transfers being recorded in local public records and the county recorders who are elected officials
 

freedomwon

LoanSafe Member
Oct 30, 2010
2,794
23
38
California
I wouldn't trust MERS to be right and that's why I advised to write in to bank of america to request to know who your investor is. Since the California ruling that MERS can't foreclose in its own name, it has become clear that any loan that passed through MERS may have serious challenges because the transfer of the mortgage may have been accomplished out of compliance with local county laws requiring transfers being recorded in local public records and the county recorders who are elected officials
I agree that the MERS database doesn't always have updated information but can be a good place to start. A QWR letter is a good idea as well, providing a reply comes back with the information, it will be more up to date.

I had previously read about the California ruling concerning MERS being unable to foreclose in their own name. Sounds like that will further complicate things for the banks to move forward with foreclosures. Sounds like good news for those that are planning their exit strategy.