I am a borrower who was never delinquent. The US government solicited me into the Making Home Affordable Program, now HAMP. I first applied in August 2009. After months of supplying paperwork I was told I was in a "trial" modification. I was instructed to pay the modified payment "instead of my usual payment." That was February of 2010. I have made 7 "modified" payments. Every month Bank of America reports me as delinquent. Every month Bank of America charges me late fees, penalties and interest.
I never missed one payment . BOA has ruined my credit. I was told by a customer service representative that I am almost 3 months behind on payments. (I never missed a payment,) I was also told that it would cost me $7,000 to get OUT of the modification. That was last month, and more fees have accumulated since then. I also was told by a customer service representative that once my account reaches 3 months delinquent, they will send out an Act 91 notice which states that they are beginning foreclosure. This should be happening shortly. HOW IS THIS LEGAL?
Bank of America is using a Government program to target at risk borrowers, lure them into what appears to be a financial solution. This manipulates the borrower into coming up with funds to stay current because of the lure of the promised lower interest rate, and a more affordable mortgage. The banks knew that there were large numbers of borrowers on the verge of falling behind. They just didn’t know exactly who these people were.
The Making Home Affordable program allowed them to identify these at risk borrowers! Huge percentages of borrowers are now being declined and foreclosed on after making timely payments for lengthy periods of time, sometimes as long as 18 months, (the trial payment was supposed to be 3 months.) The banks give shoddy explanations or none at all for declining borrowers who have made these payments in the hopes of achieving this allusive goal. The excuse that the borrower has not complied with paperwork demands is an obvious scam, as most of us have documented proof that we have if only someone will ask for it.
I was approved for a trial modification on February 27, 2010. I was and am current on my loan . All my taxes (which I paid separately , were up to date.)
Now 7 plus months later, Bank of America is claiming that I am 3 months delinquent on my mortgage. I have made each and every payment on time.
A modified payment that they instructed me to pay (IN WRITING.)
I am absolutely trapped now. I will have to come up with thousands of dollars to get out of the modification, to be back in a mortgage I cannot afford.
But if I keep paying this modified payment. They can foreclose on my home, while I am still paying.
The banks are using the HAMP program to identify at risk borrowers and foreclose on them while continuing to collect payments.
The banks refer to this as DUAL TRACK.