After a Trial Loan Modification period with Bank of America I was Denied because Investor is Not Participating in HAMP - Is this LEGAL
by Peter Malka
I was approved for a HAMP trial loan modification plan with Bank Of America. I signed the agreement and made all the payments on time for 6 months!, now I received a letter from Bank Of America stating that my loan is not eligible for a HAMP modification because the investor guarantor is not participating!!?? Which is not a valid reason as I know the only reasons after a trial period plan are : payments out of time, not sending complete information or they aren't true and NPV negative.
But if I was approved for a HAMP Trial Modification Plan with a signed agreement why can they say now that the investor is not participating, why didn't the Bank say this before they approved me for a trial period under HAMP.
Is this legal? Where can I call or go to claim..??Mortgage Loan Modification Answer:
Sorry to hear about Bank of America's denial of your permanent loan modification although you've done everything they've asked you to do during your trial period.
You are right. One of the first things that Bank of America should have done and it is pretty standard practice, is to check whether the end investor for your loan participates in HAMP. This is how they determine which loan modification program you qualify for prior to starting the process. It seems
they did yours backwards.
And if you do not qualify for HAMP, because the investor on your loan does not participate (which is a valid reason by the way), the next step would be for Bank of America to qualify you for their own internal loan modification programs, sometimes called a traditional loan modification
The good news is you can still qualify for Bank of America's traditional loan modification, but the bad news is you will more than likely be asked to re-apply and start the process again unless you can get a manager to expedite a new application for you. In addition, Bank of America's traditional loan application, if you are approved, may have less favorable rate and terms than what is dictated by HAMP
If you would like to escalate a complaint against Bank of America, you can find instructions to do so at the Making Home Affordable website
. The escalation process is detailed step by step on the site.
If you will be communicating your complaint via email, give it some teeth by copying The Escalation Team, the Bank of America Loss Mitigation Officer (by name and title), your Congressman and Senator (both by name and title).
Hope the above helps and good luck. Please come back and let us know your results. Feel free to post again if you have any further questions.