Changes to the Home Affordable Modification Program (HAMP) are expected to improve the conversion from trial loan modifications to permanent modifications.
Supposedly under the old mortgage modification requirements borrowers weren’t required to submit income prior to receiving a trial modification payment. I just about spit out my bagel when I read that. Really… Every mortgage modification I have assisted a client with the servicer required the income documentation and hardship letter, financial statement sometimes bank statements. Don’t forget we’re sending this more than once, usually for two excuses, I mean reasons; 1. The servicer looses the paperwork. 2. The servicer takes nearly 90 days to get someone to look at it and then they ask for updated copies. I’ve spoken with other brokers who will attest to having experienced the same service Mr. Servicer(s).
By fourth quarter 2009 Bank of America had only offered 4% of eligible homeowners trial modifications under HAMP. Wells Fargo’s numbers weren’t much better with 6%. JP Morgan Chase lead the pack with 20%. For 20% to be the leader is pretty disappointing, that leaves 80% of eligible homeowners turned down for trial modifications. Out of nearly 1.2 million trial modifications 66,465 resulted in permanent modifications. Thanks for all of the help Mr. Servicer(s).
The updated process goes into affect June 1, 2009. It will require that services collect three documents prior to granting a trial loan mod: An application, hardship letter, proof of income, such as two recent pay stubs or the most-recent profit and loss statement for self-employed borrowers, and a 4506-T or EZ which authorizes the IRS to release tax data to the servicer. Under the new plan, services will also be required to respond within 10 days to an initial request. Once the documentation is provided, the servicer will have one month to let borrowers know whether they qualify for a trial loan mod.
Previously if the borrower made the trial modification payments it was still a coin toss as to whether they would be granted a permanent modification. Imagine being near foreclosure and finally being put into a trial loan modification. You’re dancing, you think that you just saved your home and your lifestyle. Then, after you make your three to four trial payments on time the servicers tells you, sorry sir/ ma’am you do not qualify for permanent modification. But Mr./Ms. Customer Service Rep. the other person told me four months ago that if I make these payments on time, you would lower my payment. I’m sorry sir/ma’am you do not qualify, call this 800 number, have a good day. Thank you for your compassion Mr. Servicer(s), glad I didn’t give away those boxes.
Here’s the kicker under the revised plan, as long as the borrower meets the modified payment requirements for the three months, the modification will automatically be make permanent. The Treasury Dept. also said it will allow servicers some discretion in making loan modifications permanent only if minor paperwork is missing.
The stability of the loan owner is also taken into account. If the loan owner or lender will benefit from a modification, the servicer is required to grant the modification. Servicers are left to calculate whether the loan owner will benefit from a modification, or if foreclosing on the property is in the loan owner’s best interest.
financial problems. I entered the H A M P program and was told that it would require a three month trial period of a specified payment used as a good faith gesture before a permanent adjustment would be put in place. I have submitted all requested paperwork multiple times and have not missed a beat. With temporary assistance I will be able to recover.
At this point I have just submitted my sixth payment with no resolution from my lender JP Morgan Chase. I am now calling them twice a week to no avail. My wife and I have spoken to at least 15 different representatives, each one unable to answer the most basic of questions and unwilling to connect us anywhere up the chain to find out what is actually going on with our account, up to and including today’s representative who was unable to even locate our account. We have been in constant communication and when we ask if my last call was documented, no one seems to know. It seems as if Chase I did not buy above my means but none the less have fallen prey to un-employment and is doing everything in their power to assist us in losing our home rather than help us keep it. At first we thought that all of this was a result of pure incompetence but now believe these are intentional, evasive tactics being used to cover a more sinister motive. What ever the case it needs to be investigated and these lenders forced to be forthcoming with their customers.
I did not buy above my means but none the less fell prey to un-employment and financial problems. I entered the H A M P program and was told that it would require a three month trial period of a specified payment as a good faith gesture before a permanent adjustment would be put in place. I have submitted all requested paperwork multiple times and have not missed a beat.
At this point I have just submitted my sixth payment with no resolution from my lender JP Morgan Chase. I am now calling them twice a week to no avail. My wife and I have spoken to at least 15 different representatives, each one unable to answer the most basic of questions and unwilling to connect us anywhere up the chain to find out what is actually going on with our account, up to and including today’s representative who was unable to even locate our account. We have been in constant communication and when I ask if my last call was documented, no one seems to know. It seems as if Chase is doing everything in their power to assist us in losing our home rather than help us keep it. At first we thought that all of this was a result of pure incompetence but now believe these are intentional evasive tactics being used to cover a more sinister motive. What ever the case it needs to be investigated.
If it walks like a piggy, talks like a piggy, by golly it’s a PIGGY!
BofA and it’s CEO Brian Moynihan reminds me of that song by John Lennon and George Harrison titled “Piggies” I invite you to listen to this song on youtube and see if it appropriately fits.
http://www.youtube.com/watch?v=sXdKlpBOvs0&feature=related
Have you seen the little piggies
Crawling in the dirt
And for all the little piggies
Life is getting worse
Always having dirt to play around in.
Have you seen the bigger piggies
In their starched white shirts
You will find the bigger piggies
Stirring up the dirt
Always have clean shirts to play around in.
In their ties with all their backing
They don’t care what goes on around
In their eyes there’s something lacking
What they need’s a damn good whacking.
Everywhere there’s lots of piggies
Living piggy lives
You can see them out for dinner
With their piggy wives
Clutching forks and knives to eat their bacon.
Wright vs. Bank of America Lawsuit at: unitedlawgroup.com
When I filed my lawsuit against Bank of America, myself and United Law Group thought of the many others out there in the same situation. It was then that we decided to educate the public on what these piggy banks are doing, as well as unite us all together as one voice. Please help me turn this David vs. Goliath modification process, into a Goliath vs. Goliath.
Please stand with me and United Law Group and send an email to Bank of America that states that we will no longer tolerate their potentially illegal, fraudulent, irregular and abusive business methods.
Divided we might have fell America, but united we must stand!
Please send your email directly to Bank of America and include the following:
1. Your name
2. Your complaint concerning your experience with Bank of America.
3. Please end your email “I support John Wright vs. BofA Lawsuit!”
4. Please send a copy of your email to johns-wright@hotmail.com
5. Please send your email to both BofA link below and the CEO email
BofA Linked Email:
https://www3.bankofamerica.com/contact/?lob=general&contact_returnto=&state=VA
CEO Brian Moynihan:
brian.t.moynihan@bankofamerica.com