This in no way a unique example of the way Bank Of America handles those who apply for loan modifications.  Actually, when we read the factual statistics on loan modifications working…we find most DON’T.

Let’s go back to early 2009, a  family finds themselves struggling to make the mortgage payment due to cut backs at both working parents employers.  They would sell the home, but, unfortunately find they are nearly $150,000 upside down in negative equity.  They call BofA to apply for a loan modification, and they are instructed to continue making the payments and fill out all of the documents they received from BofA to find out if they were eligible.

Ok, it’s 18 months later…almost the holiday season of 2010 and finally after calling every month to find out if they were going to be able to get their loan modified. They were declined.

This young family had to make some hard decisions, they had fallen behind on all of their credit obligations to stay current on the house in hopes of getting a lower payment…they called us and asked us about a Short Sale.  After discussing all other options the Short Sale worked best for them.

So, in November 2010 the home was listed for Short Sale, remember about 18 months ago the homeowner was about $150,000 upside down?  Homes now have depreciated all around this seller due to all of the foreclosures and the price has fallen an additional $25,000 +++

Spring 2011, a long HAFA approval process and approval to sell…finally from BofA.

I just talked to the sellers, they have found a beautiful home a couple of blocks from the one they are selling and get this…nearly double the square footage for HALF of what they were paying with their current mortgage!  As I listened to our client tell me that all they wanted was to do a loan modification…I have to wonder if BofA did them an unknown favor by saying no???

 

 

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