A California man won a judgment in small claims court against Bankof America over a failed loan modification.The Huffington Post reports that David Graham was strung along for three years by the bank after he applied for a loan modification under the Home Affordable Mortgage Program (HAMP), the federal program meant to help homeowners keep their property. Graham said he wouldn't have bothered applying had he not been sent the material without solicitation. He supplied all requested data and sat back to wait to learn if he qualified. The program requires that the bank turn around the request with a thumbs up or down no later than three months from receipt of all information from the applicant. If qualified, the program is meant to restructure the homeowner's property loan for a period of five years, with the hope that the financial circumstances of the applicant improve.
During that period, which extended for three years in Graham's case, he paid his reduced monthly mortgage payment every month and on time. He spoke to innumerable representatives of Bank of America who all told him to keep paying the reduced amount and hope for the best.
Graham was eventually turned down. He was then told that he faced immediate foreclosure if he didn't pony up the difference between what he paid and what was owed under the original terms of his mortgage. He sued the bank for that precise amount, saying they strung him along in violation of HAMP's requirements, leaving him vulnerable to losing his home. He won $7,595 and is waiting to find out if B of A will appeal.
A loan modification will not hurt your credit, not getting one and falling behind on your payments can hurt your credit. A foreclosure will definitely hurt your credit.
ReplyDeletecalifornia loan modification
A Loan Modification is... an excellent way to stop foreclosure for anyone who wants to keep their home and can't afford their mortgage payments.
ReplyDeleteloan modifications california