BAC Loan Modification Denied
After 4 months I was told my BAC loan modification was denied because I was current.
I was 2 1/2 months behind on mortgage payments and got an intent to accelerate (foreclose notice) if I didn't come current.
We had been in the loan mod process for 3mos already.
I borrowed money from my parents to keep from losing my house to foreclosure, and since I became current I was denied loan modification.
What a farce!! I've been out of work since 10/2008. We drained our 401ks to make payments and now BAC says we are not eligible for assistance???????
When I called BAC to appeal, I was told I couldn't.
I sent in all the forms and paperwork 3 times. Why wasn't it reviewed before I borrowed money to catch up.
How can they send foreclosure notice when I'm in the process of seeking assistance?????????
Bank of America Mortgage Loan Modification Answer:
by B of A Mortgage Loan Modification Expert - Dan North
Being current is not a valid reason for loan modification denial and you can appeal that. Request that your denial be Escalated to Supervisory level for reconsideration due invalid denial reason given and open violation of HAMP Guidelines. State clearly what you want as a result of the review of denial. Namely an approved loan modification and state the terms you want.
BAC actually receives a $500 incentive bonus and the investor receives a $1500 incentive bonus for modifying mortgages that are current.
Being un-employed is a valid reason to deny HAMP Modification. You have to have income in order to make monthly payments and have the ability to afford monthly mortgage payments.
Home Affordable Unemployment Program (UP)
You could be eligible for the Home Affordable Unemployment Program (UP) but you need to request UP Forbearance before you are 3 months delinquent. So now that you are again current you may qualify.
Here Are The Guidelines Regarding Foreclosure:
3 Protections Against Unnecessary Foreclosure
- 3.1 Suspension of a Referral to Foreclosure
A servicer may not refer any loan to foreclosure or conduct a scheduled foreclosure sale unless and until at least one of the following circumstances exists:
- Borrower is denied HAMP Modification
- Borrower fails to make Trial Payments
- Borrower fails to supply required information
- Borrower declines HAMP Modification
- The servicer has resolved the Escalated Case
- 3.2 Suspension of Foreclosure Proceedings in Process
Servicer must immediately upon the borrower's acceptance of a Trial Payment Plan, and for the duration of the trial period, take action to halt further foreclosure actions and the foreclosure process
- 3.3 Suspension of Scheduled Foreclosure Sale
When borrower submits request for HAMP consideration after a foreclosure sale date has been scheduled and such request has been received no less than 7 business days prior to such date the servicer must suspend the sale as needed to evaluate the borrower for HAMP. Suspension is not required if borrower is determined to be in-eligible for HAMP.
- 3.4 Mitigating Foreclosure Impact
The servicer must take the following actions to mitigate foreclosure impact:
- 3.4.1 Simultaneous Trial Period Plan and Foreclosure Explanation
When a borrower is simultaneously in foreclosure and is either being evaluated for HAMP or is in a Trial Payment Period (TPP), the servicer must provide the borrower with a written notification that explains, in clear language, the concurrent modification and foreclosure processes and that states that even though certain foreclosure activities may continue, the home will not be sold at a foreclosure sale while the borrower is being considered for HAMP or while the borrower is making payments under a TPP. For model language for this notification, refer to Exhibit B. Use of the model language is optional; however, it illustrates the level of specificity that is deemed to be in compliance with the language requirements of this Handbook.
Related BofA Modification Questions & Answers:
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