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How Banks Put Homeowners in More Jeopardy

We’ve started a petition for Susan Leonard because she is an excellent example of how banks put homeowners in more jeopardy.We hear different variations of Susan’s story every day.

Susan had surgery, missed time at work which reduced her income. Following her illness she was laid off from her job. She was able to find another job, but the pay is lower which reduced her income significantly.  Susan applied for a Homes Affordable Modification with Bank of America and was approved for a trial modification. She was told if she made the three trial payments on time she would be considered for a permanent loan modification.

After completing the trial plan Susan inquired with Bank of America and was told that she was approved for the permanent modification, but because the program was so popular they were having a difficult time getting the permanent loan modification packages out to homeowners. Susan was told to continue to make the trial payment amount each month. Bank of America deceived and mislead Susan into believing she had been approved for a permanent modification for 25 months! She made her 26th payment, but Bank of America sent it back to her and told Susan her home was in foreclosure. On December 21, 2011 her home was sold at auction.

Susan has a very modest home with a $88,000 mortgage. She is a hard working American who wants to pay her mortgage.  But Susan’s mortgage had PMI – that’s mortgage insurance. Bank of America would much rather collect on the mortgage insurance policy than work with Susan to keep her in her home. Bank of America put Susan in more jeopardy by leading her to believe that the 26 month trial modification would lead to a permanent modification and then later demanding the arrears. With a reduced income and the belief that she would be paying the new modified payment for the life of the loan, she could not possibly pay the past due amount that Bank of America claimed she owed. Bank of America set her up to fail!

Unfortunately, Susan’s story is not unique.This is happening to homeowners across the country. It’s by far the most common story HSITrust hears from homeowners.

Join us in demanding that Bank of America rescind this wrongful foreclosure and discontinue unfair and deceptive practices against homeowners. Please sign our petition for Susan Leonard.

Help us create change!

  1. Michael Szalay
    February 15, 2012 at 8:08 am

    Wells Fargo is doing the same practice with my loan. Their nuts! Customer Service is something to behold. They want you to fail is dead on! They realize that you are suffering…and they put more pressure on you. They want me to have another stroke!!!!!!!!!!!!!!!! Having a stroke is not fun! I would ask Wells Fargo Customer Service how they would feel if they had a stroke, loss of wages, waiting months for Social Security to kick in. The government wants you dead! They make you suffer if you are disabled…5 month waiting period with no back pay of onset of disability and then an additional (2) months before you receive your first payment. The Bank does not want to hear any of this. No compassion…they demand a ridiculous amount of payment they know you are unable to meet. Let’s bail out the banks again!

  2. Nina Rodriguez-Reyes
    March 2, 2012 at 10:25 pm

    Reading Susan’s story is almost like reading my own! I was told the same thing. I went into the Make Home Affordable application thinking this was finally a way the banks and government was going to really help regular people like me. I also was granted a trail amount of almose $200 less a month than my regular payment. I then called Bank of Am and was told to “just keep paying the trail payment and that the modification was in process and would take a few months” prior tio this, sometimes I would not buy groceries but would somehow make my house payment. This reduction helped me so much. Then 7 mts later, i get a letter that I am 7 payments late, and would face forclosure! THEY SET ME UP TO FAIL!. I feel the people I spoke with didnt know what they were talking about or didnt even look up my loan, I think they were overwhelmed with calls and just said anything to get you off the phone. I hated calling because I had to be prepared to be on the phone for 1-2 hours and transfered 3-8 times. By the time I got off the phone, I was in tears of exhaustion and overwhelmed that when I called this huge company, I was nothing to them, and my home meant nothing to them either. My home isnt a mansion, it is also only an $88k home. but its my home. I even called the president of Bank of Am, got a call from someone who said he would get something “in house” to help me, but it was another put off. I finally had to file Chapter 13 bankrputcy to try to catch up, and avoid forclosure. I called Bank of Am again last week and asked if now I can get a modification, i was told to fax several docs which I did. $25 worth of fax fees, today they called me and said that until my loan is caught up, $7200.00 my” provider will not consider a refinance or modification”. I told them that the chapter 13 is paying off my passed due amount and he, Julio said no, regardless of my chapter 13, I was still in their eyes, Bank of Am, late 7 mts, and it would be denied. So did I want to go thru that again?” I told them my attorney told me the passed due amt is in the chapter 13, he said it isnt. I called my attorney and he will call them for me.. I just wish someone at Bank of AM would know what they are talking about, not give you the run around, work with you and just help. We arnt asking for much, just some help, I just need a break, I just need about $200 to make ends meet monthly. I am hispanic and handicapped, it was suggested by a friend that there may be discrimination. I dont know, I am just a human being asking a huge company for some compasion and help.

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