Bank of America
BANK OF AMERICA has received $52.5 Billion in Troubled Asset Relief Program (“TARP”) Funds and is therefore required to have a loan modification program in place in place for borrowers such as Plaintiffs. A homeowner is eligible for a modification under the Making Home Affordable Program if the borrower meets certain criteria. For example, the borrower’s home must be an owner occupied single family 1-4 unit property; the home must be your primary residence; it cannot be investor-owned, vacant, or condemned. Moreover, your loan amount must be equal to or less than $729,750 and your loan could not have previously been modified under the Making Home Affordable Program.
Despite the fact that many borrowers qualify for a modification under the Making Home Affordable Program, BANK OF AMERICA has failed to make reasonable efforts to contact many of its borrowers to determine their eligibility for the Making Home Affordable Program. If you have tried to obtain a loan modification with AURORA have been ignored or denied, call us now at 1-800-872-5925 as we may be able to help you.
BANK OF AMERICA Has Signed A Contract With The US Government Agreeing To Perform Modifications
BANK OF AMERICA is one of many Residential Mortgage Servicers committed to the Home Affordable Modification program through a formal Participation Agreement with the United States of America. The Participation Agreement can be found here.
As a recipient of TARP funds, and pursuant to the Participation Agreements, BANK OF AMERICA is subject to the U.S. Treasury’s modification program guidelines for the Making Home Affordable Program. Said guidelines, promulgated on March 4, 2009 clearly require "[A]ny foreclosure action…be temporarily suspended during the trial period, or while borrowers are considered for alternative foreclosure prevention options. In the event that the Home Affordable Modification or alternative foreclosure options fail, the foreclosure action may be resumed.”
The Servicer Participation Agreement also requires that BANK OF AMERICA review the eligibility of any borrower who asks to be considered for the Making Home Affordable Program. The plan requires, in pertinent part, the following steps:
- Request the monthly gross income of the mortgagee
- Capitalize the arrearage
- Target a front-end DTI (debt-to-income) of 31%
- Reduce the interest rate to a minimum of 2% reach the DTI target.
- Extend the term of the loan up to 40 years to reach the DTI
- Forbear principal to reach the DTI
As a result, if you have been wrongfully denied a loan modification, Howard Law can represent you as we have been successful at obtaining many loan modifications for borrowers who have tried unsuccessfully on their own. If BANK OF AMERICA does not respond favorably to our negotiations, we can seek an order from the Court that your foreclosure sale should be postponed indefinitely until BANK OF AMERICA determines your eligibility for the Making Home Affordable Program.
BANK OF AMERICA Is Legally Bound To Comply With The California Attorney General’s Settlement With COUNTRYWIDE
Many loans that are now serviced by Bank of America were purchased from Countrywide. If your loan was originated by Countrywide and later purchased by Bank of America, then your loan may qualify to be modified pursuant to Countrywides settlement of a lawsuit filed against Countrywide by the Attorney General of California. In June 2008, The People of The State of California, by and through the Attorney General’s office of the State of California, filed a complaint against Countrywide Financial Corporation and Countrywide Home Loans, Inc. which sought restitution, injunctive relief, other equitable relief and civil penalties based on the fact that “Countrywide’s lending practices turned the American dream into a nightmare for tens of thousands of families by putting them into loans they couldn't understand and ultimately couldn't afford.”
On or about October 20, 2008, CFC entered into a Stipulated Judgment and Injunction (“Settlement”), in which CFC confirmed it expected to provide up to $8.68 billion of home loan and foreclosure relief nationally, including $3.5 billion to California borrowers.
Pursuant to its terms, the Settlement will enable eligible subprime and pay-option mortgage borrowers to avoid foreclosure by obtaining a modified and affordable loan. The loans covered by the settlement are among the riskiest and highest defaulting loans at the center of Americas foreclosure crisis.
Assuming every eligible borrower and investor participates, this loan modification program will provide up to $3.5 billion to California borrowers. The full text can be found at http://ag.ca.gov/newsalerts/release.php?id=1618#attachments. The Settlement is attached and incorporated herein as Exhibit C.
To qualify for a loan modification under the Countrywide/Bank of America settlement, you must meet the following criteria:
- Your loan is “Seriously Delinquent”, meaning 60 or more days delinquent; and
- Your loan is serviced by BANK OF AMERICA and/or COUNTRYWIDE; and
- Your first payment date was on or before December 31, 2007; and
- Your loan is secured by an owner-occupied 1-4 unit residential property ; and
- Your loan is a Subprime 2, 3, 5, 7, or 10 Hybrid ARM or Pay Option ARM; and
- Your Loan To Value (“LTV”) is 75% or more.
If you qualify for a loan modification under the Settlement, we can help you in your goal to obtain a loan modification and save your home. If you have tried without success to get Bank of America to evaluate you for a loan modification, we may be able to help. Remember, the Settlement is binding on BANK OF AMERICA, as they now directly or indirectly own and/or service most, if not all, of COUNTRYWIDE’s residential mortgage loans. Call Howard Law now at 800-872-5925 to speak with one of our representatives to see if you are an “Eligible Borrower” under the Settlement