I called Bank of American in May 2011 to discuss ways to avoid foreclosure. Although I wasn’t late on my mortgage yet, I could see the writing on the wall. I am in the real estate business and my husband is in the car business — both were suffering mightily at the time. I was told I didn’t qualify for home loan assistance because I had refinanced (to lower my payments) in 2009, after the cut off. I was also told they would not entertain any discussion of a modification until I had been in default for two months. I went to the help center in Alexandria, VA and the rep there helped me fill out my application. Some time later it was denied. I was told to make some improvements and resubmit. I was told on several occasions in the interim and thereafter that I should not pay my mortgage or I would have to restart the whole process. I was approved and then the approval was rescinded. I then asked my Congressman to intervene.
My application was resubmitted and was approved again only to be rescinded once more. Finally, in March 2012 I signed the final loan modification documents (I was told BOA was doing me a favor when I was surprised that my monthly payment decreased less than $100). My loan would become current on July 2012 after I paid my three trial payments on time. I ended up with $22,000 in past due balances on my mortgage and a $6000 tax bill because I had only 3 months of mortgage interest to deduct. So for a benefit of $1,200 ($100 less per month), I incurred a $6,000 tax bill. My loan modification cost me dearly.
Fast forward to February 2013. I still hadn’t received my final settlement docs. It turns out that my paperwork was lost because someone had quit. I had to wait for the documents to be resubmitted AGAIN. In March 2013, I signed the paperwork but now my credit would only show me current on my mortgage as of October 2012 (instead of the original July 2012) AND I would not receive the mortgage deduction for the interest I paid in all of 2012. Therefore, I could not itemize on my 2012 tax return. I was told that I would receive the mortgage deduction for 2012 added to the amounts I paid in 2013 but I have no assurances of that in writing.
I was supposed to receive my final loan docs by June 2013 at the latest. Today is July 19th and I was just told it would be another 30 days. That means that this entire process will have spanned 26 months. No one at BOA can help me, my Congressman’s office is unable to make anything happen and I have the worst credit in the world even though I’ve made my mortgage payments on time for the last 15 months. The $22,000 past due balance still shows on my monthly statement from BOA.
I have 24 pages of notes summarized every phone call I’ve had with five or six customer relationship managers (they keep reassigning me), my Congressman’s office, and Freddie Mac. I believe there is something “goofy” with my loan that is causing all of these delays. Perhaps BOA or Freddie Mac cannot find the original loan documents. I am beside myself with stress over this.