Bank of America Testify Before Congress
Bank of America Testified Before Congress
Last month I was watching C-SPAN when I saw the President of Bank of America Home Loan division testifying before Congress. This is the first time I have watched one of these done by someone from the banking industry specifically geared toward the home owner. The primary focus of the testimony was the foreclosure crisis and what Bank of America and several other banks were doing to help the situation. My focus is on Bank of America because I happen to have a mortgage with Bank of America.
Bank of America Touting Great Record on Modifications
Bank of America testified that they have had great success with loan modification programs and have saved many homes from foreclosure. However when I talk with anyone who has a Bank of America Home loan they all tell me that they were unable to get a loan modification. Bank of American stated to the Congressional panel that they have been using both the government program and a program that they have through the bank to help modify loans. I have tried several times to have my loan modified to no avail.
Bank of America Testimony
According to Bank of America one must have enough money to qualify for the new payments before the loan can be modified. This is simply not true because the people that I spoke with regarding their Bank of America loans could afford to pay the new monthly payment but yet were turned down for loan modifications.
Bank of America also stated that if the person completes a temporary modification program they would be allowed a permanent modification. This is not true either. There are people who completed the temporary period bur were turned down for a permanent loan modification. I really do not understand this because it causes people to continue to pay a mortgage even though they may still lose the home. The problem with this is that the money could be used to rent a place after the homeowner loses the house.
Loan Modification is a Prop for Bank of America
I feel that the testimony before Congress by Bank of America was full of deceit and misinformation. Bank of America received bailout funds which they have now paid back. I wander how they can think it is okay to foreclose on someone who was a taxpayer whose money was part of the bailout funds. Bank of America or any other bank really should not be allowed to foreclose on anyone's home unless it is clear that the homeowner cannot afford reasonable monthly payments.
The loan modification process is unrealistic in that Bank of America or any of the other banks are not required by law to participate in the programs. There is still nothing to stop a bank from turning down someone's request for modification based on frivolous reasons. In other words just as with the home loans that got us into the mess, there are no penalties for the banks if they do not participate in the programs.
No comments yet.