Stop Foreclosure Answer

Prior to elections every year we hear politicians putting their own spin on the truth.  Well, let me tell you – mortgage companies are doing it too. 

If you read the posts on this blog regularly you know that I have been very critical of Bank of America’s performance in the Making Home Affordable Loan Modification Program.  Through the end of September they had approved trial loan modifications for 10.8% of those eligible for the modifications.  (The actual numbers were 94,918 trial modifications out of an estimated 875,917 eligible for them.)  Their performance is the worst of all of the large mortgage companies participating in the program.

So you can imagine my reaction when I saw the spin Bank of America put on their performance in a press release on October 29.

The subtitle of the press release was

Company Continues Momentum in Comprehensive

Effort to Help Struggling Homeowners

The main points Bank of America mentioned in this press release were:

• They had surpassed their target of offering trial modifications on 125,000 loans by November 1.
• They have initiated nearly 20% of all of the trial modifications in the Making Home Affordable Program.
• Their employees have contacted nearly 600,000 people facing foreclosure and have offered trial modifications to 200,000 of these.
• Their employees are working hard to keep as many people facing foreclosure as possible in their homes.  

Anyone who read this press release alone would commend Bank of America for the job they are doing.  Their statistics look great.

Let’s Look at How They Spun the Numbers

I am taking these from the Servicer Performance of the Making Home Affordable Modification Program through September of 2009.  You can read the report by clicking http://www.treas.gov/press/releases/docs/MHA%20Public%20100809%20Final.pdf.  Remember – These are figures on the performance of all the mortgage companies participating in the program. 

• Out of the estimated 3,100,305 loans which were eligible for loan modifications 875,917 were through Bank of America.  They had 28.3% of the total.  45 companies are participating in this program.  Bank of America had far more of these loans than any other mortgage company.  Much of that is due to the loans that they picked up when they acquired Countrywide.
• They extended offers for trial modifications on 156,120 of these loans.  That is 17.8%.  In their press release, they said it was 33% (200,000 of 600,000).  17.8% is quite a bit less than 33%.
• Trial loan modifications had started on 94,918.  That is 10.8% of the estimated 875,917 loans that were eligible.

There have been more complaints about how poorly Bank of America has been handling applications for loan modifications than any other mortgage company.  In fact there was an article in the South Florida Sun-Sentinel on October 29 that hundreds of people facing foreclosure in Florida have filed complaints with the Attorney General of Florida. These complaints were over their failed or stalled attempts to get loan modifications through Bank of America.  The total number of complaints thus far has been 452.

Does it really sound to you like Bank of America is working hard to help people facing foreclosure save their homes? 

If you are facing foreclosure and the Bank of America is your mortgage company, beware of the spin that they have put on what they are doing in the Making Home Affordable Modification program.  Although they claim that their employees are working hard to help as many people facing foreclosure as possible to save their homes, their track record so far does not support their claims.

With Bank of America you will need a lawyer or an expert in loan modifications to help you.  If you try to represent yourself there is too great a risk that you will be taken advantage of. 

Also – learn as much as you can about the foreclosure process and what steps can be taken to save a home from foreclosure.  The process and the steps that can be taken are not complex.  This knowledge will help you tremendously in knowing what is happening each step along the way.  You will also be able to work more closely with the lawyer or expert you hire to prepare your case.  A good source of information is my EBook.  You can get more information on it by clicking Stop Foreclosure.

Much Success,

Mark Elkins