Bank of American Stinks at Loan Modification (Realtor, foreclosure, fixed rate)

[Kevin1975]

Guess this isn't much of a shocker.

REALTOR® Magazine-Daily News-BoA Struggles With Loan Modifications

Daily Real Estate News | October 13, 2009 |

BoA Struggles With Loan Modifications

Moderator cut: copyright issues

Source: Washington Post, Renae Merle (10/12/2009)

[middle-aged mom]

How many loan modifications eventually turn into subsequent defaults/shorts/foreclosures?

I am skeptical of government subsidies that encourage banks to modify loans.

Is the bank who executes the most loan modifications really the winner?

[Rakin]

BOA took over Countrywide Home Loans who created a bunch of the mess we are in today. They have been a disaster and continue to be difficult.

It's something BOA should not have done.

[Brandon Hoffman]

I'd settle for them helping with some of the short sales right now. That's a better solution IMO because it gets the owner out to start over and rebuild.

[Tish Thompson]

BoA also stinks at REOs, customer service, honesty, integrity....need I go on? I've had a few transactions with them...on both sides. None of them closed (or foreclosed) without a bunch of unnecessary stress. I was told things like 'just give up and let it go to foreclosure because we're not going to help you/your client' or 'why do you care, it's not your house'? or even better my buyers were charged a $100 per diem because the BoA loan officer went MIA for 21 days. I explained to them that they needed to remove the charge, they blew me off. I got my broker involved and they told him my buyers had to pay the per diem or they'd cancel the contract. I was eventually able to convince the loan officer to do the right thing....but she should have figured it out on her own. With those types of business practices, I'm not surprised they suck at loan mods. What does surprise me is the amount of business they still manage to do.

Originally Posted by Kevin1975

Guess this isn't much of a shocker.

REALTOR® Magazine-Daily News-BoA Struggles With Loan Modifications

Daily Real Estate News | October 13, 2009 |

BoA Struggles With Loan Modifications

[2bindenver]

What has helped is to have the new buyer get approved for their new loan with the same bank.

Then you could say "Which would you rather have, a performing loan, or a non performing loan? The buyers are waiting to close with so and so out of the such and such office."

[middle-aged mom]

Originally Posted by Rakin

BOA took over Countrywide Home Loans who created a bunch of the mess we are in today. They have been a disaster and continue to be difficult.

It's something BOA should not have done.

It was determined that AIG was too big too fail. Being too big means you have the size to trigger a significant domino effect. In the case of AIG, it was global.

BOA has historically been the largest issuer of letters of credit on behalf of CW. I wonder the impact on BOA if all thoses LOC had been invoked by beneficiaries. Might it have taken BOA down with it? What might have been the global domino effect of a BOA failure?

This was an arranged marriage and likely accepted because the alternative was substantially worse.

I am not sure that those who advocate a " let them all fall" position have any appreciation for the domino effect. Maybe they live up in the hills somewhere, with their own arsenols, waiting for the big bang.

[Rakin]

I've never been a customer of BOA but it always struck me as a decent company and over the years did some good loans for my clients. I'd bet BOA has not paid back those Tarp funds and getting kicked over the bonuses.

The Feds really should have been all over CW & KB Homes (IMO). Of course CW made all those VIP loans to congressmen back in the day so I'm sure it will all be swept under the rug with time.

[TriMT7]

BoA is awful at regular re-finances as well.

I waited over 60 days for someone to get back to me. By that point, I decided to not even bother any more.

[Mike Peterson]

While obviously not the norm I had a good experience with them before it went to BOA.
Our mortgage was an ARM with Countrywide.
We were never late or behind but had about 9 months till adjustment.
They sent a letter asking us if we wanted to modify to a fixed rate, I called and went over things with them. Within 10 days we had the package in the mail, they had a notary come to the house, we signed and it was done.
Mortgage was modified to 3.5% fixed.

I think the key here is that it was right before they merged.