Bank of America Loan Modifications Have The Worst Track Record

Real Estate Broker/Owner with Equity First Realty VA BKR# 0225058489

Bank of America Loan Modifications Have The Worst Track Record

Bank of America brags it has completed nearly 700,000 permanent modifications including more than 85,000 under the government’s HAMP program — the most of any servicer.
However, that number is misleading when compared to the performance of the other biggest loan serviers. As of the Treasury Department’s most recent report on servicer performance under HAMP, Bank of America had 78,905 permanent modifications — indeed more than any other servicer. But Treasury estimates that the bank has a pool of 375,168 eligible 60-day-plus delinquent loans — far more than any other servicer.
That means Bank of America has granted HAMP mods to about 21% of potential eligible borrowers. The other Big Four banks have done better:

•Bank of America HAMP mods given to 21% of potential eligible borrowers
•Citigroup HAMP mods given to 44% of potentially eligible borrowers
•Wells Fargo HAMP mods given to 37% of potential eligible borrowers
•JPMorgan Chase HAMP mods give to 32% of potential eligible borrowers

Bank of America also is notorious for dragging out trial modifications.

HAMP is supposed to give borrowers who are in default or at risk of default a chance to modify their mortgages and reduce monthly payments, usually by $500. Eligible borrowers are put into three-month trial modifications, and if they make their payments the trial mod is supposed to become “permanent” for five years. But HAMP is notorious for lengthy trials that confuse borrowers and in some cases make their situations worse. 

Of the 76,500 HAMP trials that have dragged on for longer than six months, 32,444 — or 42 percent — belong to Bank of America. 

Bank of Ameica has poor record for granting alternative modifications, aka, “in house” mods

43% of the 524,695 homeowners who’ve had their trial modifications canceled by one of the eight largest servicers have been granted an alternate modification. That’s the case for just 26% of Bank of America’s trial cancellations. 

And the Big Eight have granted alternate mods to 30% of people rejected from HAMP trials. Only 13% of Bank of America’s HAMP trial rejects have had such luck.
A Short Sale may be a better option if you have had a bad experience with Bank of America.

When Should I Begin The Short Sale Process?

Richmond Virginia Short Sale Real Estate Team - The Marcus Rice Team

A Short Sale process should begin immediately. Short Sales are extremely time sensitive and consuming for negotiations. The sooner we can begin the negotiations with your lender, the greater the chances of a successful resolution. There is no need to wait until the lender sends you a notice of default or initiates formal foreclosure proceedings against you.

My services are FREE to the homeowner.

Time is of the essence!

Contact Marcus ASAP for questions and answers to see if a short sale is the best option for you!

Please contact Marcus for a free consultation and we will work with you to either help you save your home or sell it.

WWW.RICHMONDVAHOME.COM for more info or call 804-545-6412


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The Marcus Rice Team specializes in Richmond, Va, Henrico County, Chesterfield County, Powhatan County, Hanover County, Petersburg, Colonial Heights, and Fort Lee Homes and Real Estate for sale. We are tech savy realtors with over 11 years experience. Please join us on our Social Networking Network to stay up to date on Richmond Virgina real estate news and more...

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Marcus E. Rice - Principal Broker, CDPE


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Dave Halpern
Keller Williams Realty Louisville East (502) 664-7827 - Louisville, KY
Louisville Short Sale Expert

Based on BOA TV commercials they are the greatest in everything. Obviously all the Realtors, the short sale borrowers, the loan mod candidates, the economists and the media are wrong.

Dec 25, 2010 09:47 AM #1
Marcus Rice
Equity First Realty - Richmond, VA
Your Richmond & Petersburg VA Real Estate Broker

Thanks a lot, Dave. I totally agree.

Dec 25, 2010 09:57 AM #2
Patrick White
Home Driven Realty, Inc - Baldwin, NY
Driven to bring New Yorkers home

Good Evening Marcus

Thanks for the post. Have a great day.

Dec 25, 2010 02:23 PM #3
Marcus Rice
Equity First Realty - Richmond, VA
Your Richmond & Petersburg VA Real Estate Broker

Thanks Patrick, I hope you had great Christ-mas.

Dec 25, 2010 04:25 PM #4
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