Bank of America loan modification victory

Originally posted by Ricky Ostrom

Loan Mods are just a delay tactic by the bank to skim more money from the homeowners. Most people will not qualify for a loan modification, after continuing to pay and waiting 6 months. Of the few that do make it through, 58% default again within the year. The bank already knows this fact.

You are right. Bank of America is extremely dishonest. For the record, some of the “loan modifications” Bank of America approves actually involve the homeowner’s payment staying the same or even going higher. The first “loan modification” that my friend was offered would force her to pay more for her mortgage than she was paying before she started the whole process.

In fact the only way I got an actual modification for her is by reaching out through my Congressman, to the Office of the Controller of the Currency. In turn, they reached out to Bank of America and voila, the loan was modified.

As I said before, they actually don’t want to do modifications. And I understand the free market argument, that homeowners are ripping off the bank, that they made a contract, etc. However, in my book, that argument became invalid in late 2008 when the banks went to DC hat in hand and took 700 billion to save them from impending disaster. Money which they were given with the promise, that, among other things, they would work with homeowners in order to modify their mortgage terms and make these mortgages more affordable.