Bank of America loan modification is a scam!

bank of america loan modification mortgage scam

BANK OF AMERICA loan modification SCAM! BOA forces homeowners into FORECLOSURE!

I have been caught up in this Bank of America loan modification scam like thousands of other Americans and needed to write about it.

The following info about bank of america loan modification scam is real because I have lived through it and am still fighting it at the time of this writing. It’s been months with no end in site as of now.

BOA accused of paying bonuses for foreclosing on homes

NEVER use Bank of America for any loan or credit card! Bank of America will steal your home with foreclosure scams!

Bank of America loan modification is a scam. I have been trying to work with Bank of America for 10 years, asking for help when we fell on hard times. My wife lost her job when they had cut backs, and within a year, I found myself looking for work due to the economic conditions of the recession in 2008.

Like many other homeowners after the 2008 recession, our house is $90,000 underwater and we had no income coming in, with a baby on the way. The perfect storm for AWFUL!

I called Bank of America asking if I could make half a mortgage payment to buy more time to look for a job. I was out of work for 6 months and confident I would just need another 2 months to find something.

In the 10 years of having this Bank of America mortgage, I was ALWAYS ON TIME with my monthly mortgage payment, and in fact, early by a week at times.

BOA accused of paying bonuses for foreclosing on homes

Bank of America loan modification is a scam. Bank of America wouldn’t listen and didn’t care to help. Their answer was, “sorry sir, any payment not paid in full will be seen as partial payment and will be returned to you.” Even if the BOA mortgage payment was $1 short, it would be returned. That’s what Bank of America told me.

I was a loyal customer and ALWAYS paid on time. It was very hard. There were months we went with much less groceries, barely making it, and only paying half of some utilities.

I always put the mortgage first, cancelled cable tv 2 years ago and haven’t had a house phone in 20 years. There was nothing else to cancel. The cars were paid off. The house and utilities and bills and medical expenses and kids required 2 incomes but we couldn’t afford daycare so my wife stayed home. We were barely making it, if we made it at all, on my income. I made it work for 5 years and then the recession hit.


Time and again, Bank of America would not help and would not listen. Then BOA pulled their HAMP loan modification scam, suggesting that I miss 2 months payments to show a hardship so they can work on a loan modification for me.

This is what they tell ALL BANK OF AMERICA MORTGAGE HOLDERS. You must miss 3 months of mortgage payments to show a financial hardship in order to apply for the bank of america loan modification scam.

I didn’t feel right about missing mortgage payments at all. I finally decided to miss the 2 months and filled out all the paperwork they sent for the home loan modification. It took days to get the tax forms, pay stubs, medical records, utility bills and anything else they required to prove a hardship.

After 6 weeks I received a letter from Bank of America loan modification dept. saying I didn’t fill all the forms out correctly. This is exactly what happens with ALL Bank of America mortgage holders going through their loan modification scam. You can find this info all over the internet.

This is BS! I was very careful since I knew everything depended on these forms. I’m always very thorough. So I tried again. BOA sent all the loan modification forms a 2nd time. About 6 weeks later I receive a letter saying they misplaced some forms.

Bank of America loan modification is a scam…here we go again, round 2. 15 weeks into this chaos.

In the meantime, the rep assigned to work with me is NEVER AVAILABLE. Bank of America will not talk to you. You are assigned a rep and they are never around.

I left many voice mails, which went unanswered. No one at BOA will talk to you. They transfer you to your loan modification rep, who is never available.

It took me a month of trying before I got someone at the bank to talk to me besides the rep they assigned to me.

I could go on and on how Bank of America screws their customers over. I started doing research and found so many common threads with other Bank of America customers. Everything that happened to me has happened to thousands of others. Missing paperwork, stringing customers along, not letting you talk to anyone.

Do you know why Bank of America does this? Because while you’re frantically trying to get everything in order to give your family a 2nd chance, they are delaying and working on foreclosure proceedings behind the scenes.

Bank of America loan modification is a scam. Bank of America will milk the loan modification all they can so you miss payments and look bad. This is the final blow and all they need to force you into foreclosure. Now BOA has you where they want you.

Did you know that when BOA forecloses on your home, they don’t lose money? Nope! Our government bails them out so they are paid back. This is why they don’t care about helping their mortgage customers. They take your house, get bailed out and resell it to someone else.

Bank of America Horror Story


If you file for bankruptcy, I recommend chapter 7. It is not scary, and it will protect you. Include your home in the chapter 7 bankruptcy. The bank CANNOT touch you or harrass you to pay back the difference after foreclosure or ever! If you decide you want to walk from your home, you can. The bank CANNOT come after you at all. Never EVER sign a reaffirmation with the bank either! I suggest you get an attorney and if they say sign a reaffirmation letter, do not do it! An affirmation letter excludes the bank from your chapter 7 bankruptcy.

A reaffirmation says the bank is included in the bankruptcy but you promise to pay them. In fact, NEVER sign anything after filing chapter 7 bankruptcy. This info came from my attorney.

BOA are filled with JAGOFFS, THIEVES, IDIOTS, LIARS and DEMONS! These BOA idiots can’t tell their ass from a hole in the ground. I don’t care how nice they are to you, there is tons of proof out there. Many X-Bank of America employees have come forward blowing the whistle as to why Bank of America loan modification is a scam. Search for it.

NEVER EVER use Bank of America for a home loan, car loan, credit card or anything!

The complaint says Bank of America crafted a “fraudulent scheme” to process just enough HAMP mortgage modifications to not arouse the suspicion of federal regulators, while also developing “methodical business practices designed to intentionally prevent scores of eligible homeowners from becoming eligible or staying eligible for a permanent HAMP modification.”

Utah Man taking on Bank of America, himself, in court

Bank of America loan modification scam

“Bank of America and its agents never properly hired, trained or equipped a workforce to genuinely address the scores of homeowner complaints and regulatory inquiries, and instead, developed systems and procedures that deliberately obfuscated, misled and otherwise deceived those homeowners and regulators, resulting in ineligibility through no fault of the homeowner,” the complaint says.

To achieve this, the residents say, Bank of America contracted with Urban Lending Solutions to process the modification applications. According to the lawsuit, Urban Lending Solutions hired many temporary workers with no experience and gave them hundreds of HAMP files to service.

Citing some of these former employees, the complaint claims Bank of America agents routinely lied about incomplete or missing documents in order to delay filing. In some cases, the complaint says, Bank of America shredded applications without any review or deleted them from the company’s computer systems.

“Upon the instruction of my manager Jamal Brown, and other managers, I deleted thousands of homeowner HAMP application files from Bank of America computer databases, as many as 6,000 in one day,” said former employee Rodrigo Heinle, according to a testimony in an earlier class action suit against Bank of America included in the present lawsuit’s exhibits.

Another employee who testified in the above case said she witnessed “employees and managers change and falsify information in the systems of record, and remove documents from homeowners’ files to make the account appear ineligible for a loan medication.”

All the while, the residents say, Bank of America collected servicing fees from the homeowners and sometimes advised them to stop paying mortgage payments all together – all to lead them to foreclosure.

“By delaying the process, it didn’t cost [Bank of America] anything and, ultimately, they were paid by the Treasury for these modifications,” said attorney John Adams Jr., who filed the lawsuit on behalf of the homeowners. “In the end, Bank of America created a system of fraud.”

Loan Mod horror story with Bank of America

Bank of America loan modification complaints and scam

Bank of America loan modification complaints have increased substantially in recent months. In terms of helping struggling borrowers modify loans, Bank of America has quite a poor reputation.  Not only has the lender had multiple lawsuits filed against them for the lack of assistance they offer to struggling borrowers, they consistently manage to receive the same complaints over and over again. Here’s a list of the most common Bank of America loan modification complaints:

Bank of America Loan Modification Complaint: The Phone System

Bank of America employees replaced by robots:  Well, not really, but to the borrower waiting on hold for up to an hour at a time and being forced to “select from the following options” over and over again, it may seem that way.

When a borrower finally gets to talk to a human, they get hung up on!  Let’s give Bank of America the benefit of the doubt and say that a majority of dropped calls are due to employees who don’t know how to work their phone transfer system.  If this is the case then what kind of borrower wants to get foreclosure avoidance advice from a lender employee who can’t work a simple phone system (especially when a large majority of their job revolves around working in direct contact with the phone system for a majority of the day)?

Bank of America Loan Modification Complaint: The Filing System

Bank of America’s filing system simply doesn’t work:  A loss of paperwork is expected in any organization, from small town mom and pop shops to the largest business in the world, but borrowers would expect a certain level of competence and consideration from their lender when they are trying to make payments and keep their home.  The problem isn’t limited to a few borrowers, it’s commonplace for nearly every borrower submitting a loan modification package to have their documents lost at least once.  Even worse is that the documents that have vanished without a trace contained the personal financial information that could be in the hands of anybody at this point.

Bank of America Loan Modification Complaint: Inconsistent and Conflicting Information

Another common Bank of America Complaint is Bank Representatives issuing conflicting information.  It is shockingly common for a borrower to be engaged with one representative in loan modification discussions and be assured the foreclosure sale is “on hold,” while at the same time be getting calls from another representative who has no record of this information.  Or worse yet, many borrowers who have been assured their loan modification is complete and being considered, just have their house foreclosed on anyway.

Bank of America Loan Modification Complaint: Rude Representatives

Sure, dealing with angry and scared borrowers all day can be a taxing job, but there is no need to insult and degrade borrowers calling in for help.  There is no excuse for rude customer service, if a representative is not comfortable working with people all day, they should be in a different profession.  Worse yet, there doesn’t seem to be any type of institutional concern on behalf of Bank of America for how poorly borrowers are being treated.

Representatives of Bank of America did not immediately respond to a request for comment.

The federal government created HAMP in 2009 as part of the larger Troubled Asset Relief Program, or TARP, which was created to help bail out the country’s major banks during the financial crisis.

In an effort to save millions of Americans from losing their homes, the federal government gave the major banks billions to screen homeowners and modify their mortgage loans to make them more affordable.

If the homeowner satisfied the program’s requirements, including financial hardship and a high debt-to-income ratio, he or she would enter a three-month trial payment period. After the successful payments, the modification could become permanent for five years and then interest rates could only incrementally increase.

“In order to frustrate the borrowers and disguise its fraudulent scheme, Bank of America instructed bank employees to falsely inform scores of borrowers their modification application was either ‘under review,’ incomplete or simply had not been received,” the complaint states. “These misrepresentations and fraudulent scheme caused scores of borrowers to send and resend their HAMP modification applications over and over under the false impression and hope of saving their home.”

One couple’s experience featured in the complaint is typical of the accusations.

In 1998, Maria and Jorge Gonzalez Torres bought a modest home in Ocala, Florida for $52,000. After a refinancing, Bank of America began servicing their loan. In 2009, after suffering through the financial crisis, the couple requested a HAMP modification.

According to the complaint, a Bank of America loan representative told the Gonzalez’ to stop making regular mortgage payments to qualify for the modification and sent them an application. After sending it in, bank employees told the couple they did not receive all the documents required. The Gonzalez’ sent in their application and supporting documents more than three times, the complaint states.

Finally, without any written proof, a bank representative verbally told the Gonzalez’ they were approved and requested “trial payments” of $1,200. These payments were never applied, the complaint says, and the couple’s home was foreclosed upon the next year.

“There is a disproportionate impact on Tampa’s own Spanish-speaking community,” Adams said.

Adams said many of the homeowners were not aware of the predatory lending practices of Countrywide, who approved many of these loans before Bank of America took control of the ailing company.

“Bank of America saw these homeowners and said there’s no way we’re going to modify these mortgages,” he said.

Bank of America’s problems implementing HAMP are well-documented.

The bank has one of the worst track records in HAMP, according to the Office of the Special Inspector General for the Troubled Asset Relief Program, a law enforcement agency created in 2008 to target financial crimes.

Bank of America denied more than 79 percent of homeowners, according to a January report by the agency, while more than 36,000 fell out of the program. The agency estimates the bank’s actions have cost taxpayers hundreds of millions of dollars, despite a receiving nearly $2 billion over the years to implement HAMP.

I have worked with mortgage lenders and said I will NEVER work with Bank of America again. They have to prove any loan will not go to them. They always laugh, along with realtors, saying they are in the same boat. They refuse to work with Bank of America.

One other thing. Bank of America said my PMI was finally dropping off. I was fighting for this for 4 years. They misquoted me $80 less per month so I paid $80 less. Due to their clerical error, they said I owned $80. I was upset they screwed up again but paid it over the phone with a debit card. Instead of charging me $80 BOA charged the unathorized amount of over $5700.00!

Not once in their recording did I agree to pay that and not once did the rep mention that. Of course, since that charge didn’t go through (I’m not rich), the payment didn’t go through. This made me late for my mortgage, which triggered foreclosure.

Bank of America admitted their mistake but said they can’t stop the process. REALLY! FU!

Get yourself a good attorney and battle this demonic bank. I also reported Bank of America to the FDIC. That woke them up. They didn’t like that one bit. TOO BAD!


The nation’s second-largest bank is squaring off in a contentious court battle against a Miami real estate attorney who is accusing it of purging 1.88 billion records to conceal alleged fraud.

Bank of America, in a court filing, insists the records were copied, returned to the bank and still exist in its system.

But Bruce Jacobs, a former Miami-Dade County prosecutor, says the bank got rid of loan records he was seeking that he says may be evidence of fraud because the original records may have been altered by the bank.

“Bank of America thinks they’re untouchable,” Jacobs told CNBC. “They think they have so many zeroes in their bank accounts that they’re above the law.”

The bank, while declining repeated requests for comment, called Jacobs’ allegations in a court filing last month “simply a collection of grievances against the banking and mortgage industries generally.”

It said Jacobs’ “baseless charges of fraud, conspiracy, perjury and other allegedly illegal or improper acts” by Bank of America have never been proven. Jacobs “nevertheless continues, without a trace of shame or irony, to recycle these reckless and rejected accusations ad nauseum.”

Mortgage loan servicing and foreclosure abuses were at the heart of the landmark $25 billion agreement in 2012 between the nation’s five largest mortgage servicing companies, including Bank of America, and the Justice Department and 49 state attorneys general to compensate homeowners who were hit by the housing crisis.

The settlement focused on what the Justice Department called “mortgage loan servicing and foreclosure abuses” as a result of the housing bubble. Many of those abuses involved what is known as robosignings. The loans are supposed to be endorsed with correct signatures when they are processed, and not at a later date, which the Department of Justice says happened in thousands of cases.

The Miami case began in 2013 as a foreclosure lawsuit in Miami-Dade Circuit Court against a couple who own a condo in Bal Harbour, Florida. After a financial setback, the couple sought a loan modification from Bank of America, which serviced the loan, held by Bank of New York Mellon. Bank of New York Mellon sued for foreclosure. Originally, Bank of America was not a party to the lawsuit.

The foreclosure case was settled last year, and the couple, who had to file for bankruptcy, remained in their home.

However, Jacobs, who represents them, filed a countersuit against Bank of New York Mellon in which he made serious allegations against the two banks.

What Jacobs said he discovered over several years — according to court documents filed in his numerous foreclosure cases in South Florida and reiterated in an interview — are allegations that Bank of America deliberately acted improperly.

CNBC Investigation: Foreclosure Record Purge 
Attorney Bruce Jacobs

According to a timeline Jacobs spelled out in court records, he said he learned in 2015 that a company called SourceCorp did work for Bank of America. The company’s name appeared on loan records he had obtained through the discovery process in a separate Miami-Dade County foreclosure case. Jacobs said he found that odd because he had never heard of the company.

Court filings show that Jacobs filed a notice to take a deposition on Nov. 2, 2015, asking for more information about the loan in the case.

The following month, he filed a “notice of intent to serve (a) subpoena for deposition” on SourceCorp. That notice asks for “any relationships, agreements, work orders, instructions” related to the loan and Bank of New York Mellon and Bank of America.

In January 2016, a court-ordered subpoena was issued and served on SourceCorp.

Then in February 2016, SourceCorp turned over a copy of a contract with Bank of America.

Jacobs said he was stunned to learn through discovery in another case more than a year later that Bank of America had ordered SourceCorp to purge its records.

“And what I found out later is that as I’m going though that whole process, Bank of America has ordered SourceCorp to do a military-grade purge of all of their records, everything: 1.88 billion objects of data, metadata, encryption keys,” he said.

Jacobs points to two emails he received from SourceCorp as part of the discovery process that he says alerted him to the purge.

The first email, dated Feb. 16, 2016, described what SourceCorp called “a final summary of the Fastrieve Purge Project.” The document shows the purge took about three months to complete.

Jacobs said he obtained a second SourceCorp email from June 16, 2017. It said Bank of America “had us execute an extensive project to purge all of its data, which we were obligated to do.”

The email was from Dimple Sehgal, corporate counsel for SourceHOV, which is SourceCorp’s current name. Sehgal did not respond to multiple requests for comment via email and voicemail.

Jacobs has now subpoenaed SourceCorp to appear for a deposition in connection with the records purge.

A “statement of work” between Bank of America and SourceCorp describes how the bank’s loan documents would be imaged and ultimately purged from SourceCorp’s system, according to a document turned over in discovery.

“Image storage and final disposition will be in accordance with Bank of America protocol currently in place,” the document states. “All images will remain in FASTRIEVE until such time they are archived in Bank of America iPortal repository. In no case will the images be purged or deleted without Bank of America approval.”

The red flag, according to Jacobs’ court filings, is when Bank of America actually ordered SourceCorp to start purging the 1.88 billion records: Nov. 13, 2015, which was 11 days after Jacobs filed the notice to take a deposition about the loan in the case. He said the purge continued even after the court-ordered subpoena was served on SourceCorp.

In addition, Jacobs said a Bank of America flow chart he obtained as part of the discovery process shows the note endorsement process.

“The flow chart shows that Bank of America corrected the lack of endorsements on original notes in open, active foreclosures by using unauthorized workers to surrogate sign endorsements on original notes with rubber stamps,” Jacobs wrote in a court filing. “Later, Bank of America continued the surrogate signing process for loans about to be referred to foreclosure.”

In another court filing, he wrote that Bank of America “stonewalled discovery with scorched earth tactics to hide evidence of its ‘delinquent note enforcement process’” involving SourceCorp.

Here’s just ONE lawsuit Bank of America got nailed on. This bank was bailed out by the government during the housing crisis. BOA almost went under but our government bailed them out. WHY? Well, one reason is, BOA is used to launder money.

I hope this post on Bank of America loan modification being a scam to take your home, was of help.

Good luck.

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