2nd Lien Modification Program

Months have passed and it sure helps having a modified mortgage — but what about our 2nd?  I’ve been told at least a half dozen times by Bank of America that it would automatically be modified sometime in the future.  Time passes and all we hear is their on-hold music while we get transferred from one department to another, and back.

Today however, someone at (un)Bank of America admitted the truth (after 7 transfers, 1 hangup, 1 person who said it was automatic (and 5 others who didn’t know anything)) — it’s not automatic, you have to do the entire process all over again from scratch.  Even though you’ve faxed and fedex’d them the details in triplicate (twice) and they managed to modify your 1st, they need it all again.  That’s corporate efficiency for you.  Of course, we’ve been paying our 2nd, so I guess it’s our fault for paying on time.  Today we stop paying (again) and begin the process anew.

Here’s to another 6 months of modification hell…  *Cheers*

P.S. If you want to reach someone at BoA about your mortgage, call 866 422 5871.  It will skip all automated systems and get you right to a real (although probably unhelpful) person.

P.P.S. If you want to start your 1st or 2nd loan mod, call 800 669 6607 and ask for the Default Prevention Department.  They may or may not talk to you unless you are more than 60 days past due on your payments.

It’s been 14 days since we stopped paying our mortgage

…and I confess, I am very happy we did so.

Skip to two weeks ago: I thought everything was going fine with our modification.  We were accepted into the program with a new payment that made sense, we made three trial payments, and were told that our modification would soon be finalized.  Unfortunately, it was not ‘going fine’ for us, it was only ‘going fine’ for Bank of America.

We found out Bank of America has only permanently approved 98 out of a possible 1,000,000 customers who have mortgages that qualify for President Obama’s Making Homes Affordable plan.

We called Bank of America to check the status of our modification and on a whim, asked what would happen if we were not permanently approved.   They told us our mortgage would be late.  Three to nine months or more late.  What?  We made all of our payments, we’d never been late…  From what little they’ve told us, here’s the situation I’ve pieced together, as seen from their perspective:

We have all these customers that owe more than their homes are worth and they’re going to walk away from their mortgages.  But, if we give them a slight payment reduction and make them think it’s going to be permanent, they’ll keep paying us for way longer than they otherwise would have.  When we’ve wrung all the money possible out of their accounts, we’ll deny their modification, and since they never made their “real” mortgage payments during the “trial”, we can say they’re 6 months past due and take thier home that much sooner.  We end up with a lot more money, can foreclose just as fast, the homeowner won’t have as much time to stop us, and then we can sell their houses to someone else!  And oh yea, almost forgot to mention the best part, the government is going to PAY US for up to 95% of the loss we take on these mortgages!  Wow, what a great deal for us! 

“Keep making your trial payments.”  That’s what Bank of America will tell you every time you call.  It’s their mantra.  You can almost hear it in your sleep.  Yea, you will owe thousands of dollars, due immediately upon denial of your modification.  Yes, Bank of America is that much closer to foreclosing every time you make a trial payment.  But just hang tight and keep making payments to Bank of America.  The more you pay, the more they will walk away with when they deny you and then foreclose on your home. You are already many, many, months late, after all.

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