Is Bank of America’s Loan Forgiveness Program One Big Joke?
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Will Bank of America's Principal Forgiveness Program bring borrowers back from the brink of foreclosure?
Thousands of homeowners underwater on their Bank of America mortgages could receive one of the 200,000 letters the bank is sending out offering partial loan forgiveness. According to Bankrate.com, BofA borrowers have to clear a pretty significant series of hurdles in order to qualify for the “principal reduction program”:
To be eligible for this principal reduction program, a borrower must:
- Owe more on the mortgage than the home is worth.
- Have been at least 60 days behind on the mortgage payments, as of Jan. 31. (I don’t get it either but that’s the rule.)
- Have monthly housing expenses of more than 25 percent of gross household income. The expenses include mortgage principal payments, interest, property taxes, homeowners insurance and homeowner association fees.
- Have a loan that is owned and serviced by Bank of America, or serviced for an investor who has given the bank the authority to do this type of modification.
We already know that major lenders are being pretty tight-fisted when it comes to new mortgages, so this program probably won’t have any real impact on the bank’s bottom line. It’s likely just a way for Bank of America to improve its tarnished image.
Still, what kind of message does the “principal forgiveness program” send out to borrowers? And do you think it’ll keep people at risk of foreclosure in their home?
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[…] reading through some of my favorite real estate news sites when I stumbled upon an article by Candy’s Dirt about Bank of America. When thinking about how this was good marketing, I suddenly realized how bad […]
[…] reading through some of my favorite real estate news sites when I stumbled upon an article by Candy’s Dirt about Bank of America. When thinking about how this was good marketing, I suddenly realized how bad […]
Prediction: This will happen for 1% of what they will deem "eligible buyers". Reason? Simple. Working WITH BofA on your mortgage is a joke. When I was laid off in 2009, I immediately contacted them for assistance, asking for a HAMP modification. Sent all the documents to them – 7 times. They could never find it! I'd be told one day I was approved, documents are "in the mail", never to arrive. Next day I'd be told I was not approved and the declination letter was "in the mail" – also never to arrive. Ratcheting things up their food chain doesn't work either because I've gone to the head of their mortgage company and to Brian Moynihan himself. They think they are teflon and can do as they please. They have no interest in working with anyone. This is just a media shell game. Nothing more.
Drew if it's only 7 times that you send them documents it's nothing… Try 18 times! I hope and I pray they all die from slow death and long suffering. This is a crazy does anyone know how to go further with this issue? I just want to move on without Bof A in my life?
Prediction: This will happen for 1% of what they will deem "eligible buyers". Reason? Simple. Working WITH BofA on your mortgage is a joke. When I was laid off in 2009, I immediately contacted them for assistance, asking for a HAMP modification. Sent all the documents to them – 7 times. They could never find it! I'd be told one day I was approved, documents are "in the mail", never to arrive. Next day I'd be told I was not approved and the declination letter was "in the mail" – also never to arrive. Ratcheting things up their food chain doesn't work either because I've gone to the head of their mortgage company and to Brian Moynihan himself. They think they are teflon and can do as they please. They have no interest in working with anyone. This is just a media shell game. Nothing more.
Drew if it's only 7 times that you send them documents it's nothing… Try 18 times! I hope and I pray they all die from slow death and long suffering. This is a crazy does anyone know how to go further with this issue? I just want to move on without Bof A in my life?
two of the worst experiences I have ever seen someone go thru was with BOA, I will never recommend them to anyone looking for a mortgage.
two of the worst experiences I have ever seen someone go thru was with BOA, I will never recommend them to anyone looking for a mortgage.
Oh wait till I sit down and write about our experience with Wells Fargo! Changed my whole attitude toward these big banks! They probably want the folks to be at least 60 days behind because that way they can initiate foreclosure proceedings while they "negotiate". Wells was working a modification for us (we were never late on a payment, the note ballooned Jan. 1 AND I sent them a payment while we sought financing) while they tried to foreclose on us! I am holding my pen 'till they send us a release of lien. We closed in April and I have yet to hear from them. Comerica has already sent us a release and a thank you note. If I had my way I would slice every single big bank into sugar cubes!
Oh wait till I sit down and write about our experience with Wells Fargo! Changed my whole attitude toward these big banks! They probably want the folks to be at least 60 days behind because that way they can initiate foreclosure proceedings while they "negotiate". Wells was working a modification for us (we were never late on a payment, the note ballooned Jan. 1 AND I sent them a payment while we sought financing) while they tried to foreclose on us! I am holding my pen 'till they send us a release of lien. We closed in April and I have yet to hear from them. Comerica has already sent us a release and a thank you note. If I had my way I would slice every single big bank into sugar cubes!
We didn't set out for this to happen, but Wells Fargo bought our mortgage. I get nervous too when I hear about the big bank boondoggles and hope we don't have to deal with them when the situation is unfavorable to us.
We didn't set out for this to happen, but Wells Fargo bought our mortgage. I get nervous too when I hear about the big bank boondoggles and hope we don't have to deal with them when the situation is unfavorable to us.
if a house is reposeced can a note like that be filed/handle as fraud?
if clearly states that it is been accepted and that you need to do nothing not even pay your monthly anymore.
I`ve just talk to someone from BoA and they told me that it will take from another 60 to 90 day before I recevie another letter confirming the forgivevenss process.
is it someone out there with legal information to help us?
Can you provide more information?
Candy, are you requesting more information about the BofA mortgage forgiveness letters? I too received this letter pertaining to our second. Do you know if these BofA letters are legit and also if their loan modifications through the Home Affordable Modification program are a true option that one may actually be approved for.
Can you email me one at [email protected] or [email protected]? And we will find out!
Try californiafreelegal.com. Ask for Michael Brons.
if a house is reposeced can a note like that be filed/handle as fraud?
if clearly states that it is been accepted and that you need to do nothing not even pay your monthly anymore.
I`ve just talk to someone from BoA and they told me that it will take from another 60 to 90 day before I recevie another letter confirming the forgivevenss process.
is it someone out there with legal information to help us?
Can you provide more information?
Candy, are you requesting more information about the BofA mortgage forgiveness letters? I too received this letter pertaining to our second. Do you know if these BofA letters are legit and also if their loan modifications through the Home Affordable Modification program are a true option that one may actually be approved for.
Can you email me one at [email protected] or [email protected]? And we will find out!
Try californiafreelegal.com. Ask for Michael Brons.
I tried to do a loan modification on my HELOC with bofa and was denied so I opted to short sale house, five days after close of escrow I received a letter from bofa informing me that my loan qualified for the loan forgiveness program and that I did not owe them anything. If I only had received this letter a week before I could have saved my home.
I tried to do a loan modification on my HELOC with bofa and was denied so I opted to short sale house, five days after close of escrow I received a letter from bofa informing me that my loan qualified for the loan forgiveness program and that I did not owe them anything. If I only had received this letter a week before I could have saved my home.
I just had my 2nd mortgage forgiven. Received a check for the escrow refund. BofA said nothing is owed on the 2nd loan. They said there is no catch. Is there?
We may have to ask one of our mortgage experts…
I just had my 2nd mortgage forgiven. Received a check for the escrow refund. BofA said nothing is owed on the 2nd loan. They said there is no catch. Is there?
We may have to ask one of our mortgage experts…
Recieved today a B of A forgiveness letter.. Do I continue to make a payment? How long does this take? and is all forgiven? Really
Recieved today a B of A forgiveness letter.. Do I continue to make a payment? How long does this take? and is all forgiven? Really