There was a trend in loan modification that those that are CURRENT tend to have a better chance at modification. This was due to the fact that banks are concerned about a home owner paying even after modification (since a majority of loans that are modified subsequently default). Recently, BofA gave me a hard time on two loan mods (that are truly deserving) because the loans were current. I explained that one loan was 60-90 days past due for 10 months this year and that a homeowner should not be punished for doing the socially and financially appropriate thing to do. I also mentioned that the application for modification was submitted three months prior to the curative measures. The response was that we cannot modify a loan that is current. I indicated to them that I have files that we recently approved for modification and they were current too. So, now the new BofA excuse..it is an "investor"" loan and that particular investor does not modify loans that are current. BofA has been using the "investor: line for years.
So I now remind them that under Federal law, if the note obligation was assigned, they are required by federal law to notify the borrower. Not only that, but the new holder of the note must notify them too and since the payments are made out to 'Bank of America", I do not accept their excuse....
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