Loan modification,collection,foreclosure

Posted on Posted in Mortgage

review

After an initial denial of a modification request based upon a job loss resulting in an income decrease of XXXX figures, Bank of America sent us a ” settlement offer ” which stated unconditionally that our second mortgage of XXXX would be reduced in principle to XXXX, with resulting payments, etc, and not to accrue interest. The letter stated that it was a ” settlement in full ”. There were no conditions mentioned, nor any restrictions. We contacted our ” recovery analyst ” with a few questions. Would there be any pre-payment penalty? No. Were there any conditions on the settlement, including conditions on the sale of the home? No. After making these payments for 8 months, we decided that since were were no longer under water, to get a better handle on our finances we needed to sell and move into a rental home. Nearing the close of escrow, after a request from the escrow agent, B of A stated that the payoff balance was XXXX! The original XXXX, less the payments we had made since the ” settlement in full ”!! They have told us that the payoff can not be paid from the proceeds of the sale of the home. This is the XXXX time this was ever told us. We spent thousands on repairs and inspections. We will now fall out of escrow. After being lied to ( It ‘s the law ” they told my husband. I, an attorney called back and stated I wanted the Code section on which they relied, then they stated it was probably an internal rule ). They consider this a short sale now. My request ( which would be for them to accept the XXXX, XXXX without regard to the origin of the funds, so we can sell our home, but I know this is not realistic ) is to provide better communication and information. Also, B of A has a ” notice ” problem. This condition was never stated in writing, nor orally. They MUST be required to publish this information. It is a critical condition and materially affects the terms of the ” full settlement ” which is not really a full settlement, more like a conditional forbearance. They have a legal problem with this, and when they get someone who has the time and patience, they will be facing another class action. What I really want now is to let our first foreclose, and let B of A get 100 % of NOTHING.

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