Bank of America Performs Poorly with Loan Modifications
According to this story in the Huffington Post:
“Bank of America stands out among the biggest mortgage servicers for an exceptionally poor performance under the Obama administration’s Home Affordable Modification Program, according to data recently released by the government.”
The eight largest servicers have offered an alternative mortgage modification to 44.5 percent of homeowners whose HAMP modifications have been canceled, but Bank of America has offered alternate mods to only 24 percent of the 148,129 homeowners whose trial modifications the bank canceled. For homeowners denied trial modifications, 31.3 percent have been offered alternate modifications by the Big Eight. Bank of America has offered alternate mods to just 11 percent of these folks.
“Bank of America seems to be stubbornly refusing to go along with the program,” said Valparaiso University Law School professor Alan White, who first flagged Bank of America’s standout performance in a Public Citizen blog post.
“BofA has also mastered the art of false hopes,” wrote White. “It has converted only 26% of trial modifications to permanent ones, while servicers as a whole have achieved a rate of over 50% (still terrible, but it’s all relative.) Over half of BofA’s trial modifications are more than six months old, despite the fact that they are supposed to convert to permanent or be canceled after three months.”
Whether with Bank of America or another mortgage company, these loan modifications can often turn disastrous for homeowners. If you are involved with or attempting to receive a loan modification (such as with the HAMP program) and are concerned about the result, please contact Keeling Law Firm immediately for a free consultation.
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