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Old 10-06-2011, 04:08 PM   #21
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Finance Buff, I'm not understanding why you think the bank can withdraw the offer. I agree that modification is something they don't have to offer---but once they do, isn't it legally binding?
The offer was conditional on receiving payments in a specific time period. None were made in that time window although one was made before the period started. A judge later decided that one should count although it wasn't literally what the offer was. I only said the bank is punished for doing something it didn't have to do in the first place. If banks learn a lesson from this case, fewer people will get a loan modification.
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Old 10-07-2011, 10:47 AM   #22
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The offer was conditional on receiving payments in a specific time period. None were made in that time window although one was made before the period started. A judge later decided that one should count although it wasn't literally what the offer was. I only said the bank is punished for doing something it didn't have to do in the first place. If banks learn a lesson from this case, fewer people will get a loan modification.
Did you read the article?

A payment was made by Jan 1st. BofA decided it wasn't valid, even though they accepted the payment, because it wasn't made ON January 1st. As in, the payment wasn't received EXACTLY on January 1st.

"By not making January's payment on January 1st, the Bullingtons had failed to comply with HAMP's terms." [emphasis added]

But the Bullingtons had already paid for January and the check was accepted.

HAMP, which is the loan modification program, in no way dictates that a payment has to be made EXACTLY on the due date. That's not only asinine but it's not what the program requires. It's also impossible to make a bank payment EXACTLY on January 1st; it is a bank holiday after all.

This is simply a case of BofA losing a payment in their vast system and the BofA bureaucrats refusing to acknowledge it. To make it some kind of moral lesson against mooching homeowners is stretching what happened to an extreme.
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Old 10-07-2011, 04:38 PM   #23
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Which month the payment is for is pretty clear if you are current with your payments. If you are current, and you make a payment on 12/22, it will be applied toward January. Once you are behind, it's not that clear. If you didn't pay for October and November, and you make a payment on 12/22, the bank will accept it, but is it for the payments you owed for October and November, or is it for January as required under the loan modification? It's not clear. Applying the payment toward back payments seems to be just as reasonable as applying it as the required payment under loan mod. That's why I said the borrowers wouldn't get into this mess if they stayed current and the bank wouldn't get into this mess if they didn't offer the loan modification.
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Old 10-07-2011, 04:50 PM   #24
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Fair enough, if that's what happened, though it's not clear that they were late. In fact, the article title is,

"Florida Couple Foreclosed On For Paying Mortgage Early" [emphasis added]

Considering that BofA apologized, and the story made the news, and a US Rep and State Senator got involved, it would seem that any assumptions would come down on the side of, "The bank screwed up."

'Sen. Fasano said yesterday he found the whole situation "wild, just wild."'

But, hey, you can read whatever you want into the story.
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Old 10-07-2011, 05:08 PM   #25
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Fair enough, if that's what happened, though it's not clear that they were late. In fact, the article title is,

"Florida Couple Foreclosed On For Paying Mortgage Early" [emphasis added]

Considering that BofA apologized, and the story made the news, and a US Rep and State Senator got involved, it would seem that any assumptions would come down on the side of, "The bank screwed up."

'Sen. Fasano said yesterday he found the whole situation "wild, just wild."'

But, hey, you can read whatever you want into the story.
I agree it's not clear. You never get the whole story from articles in the media. In the borrowers' mind the payment was intended for January. From that point of view, it was early. From their account's point of view, it may not be early; it may be late. Reporters didn't ask or report on this critical question. "Florida Couple Foreclosed On For Paying Mortgage Late" wouldn't make a good headline, would it?
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Old 10-07-2011, 05:24 PM   #26
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I agree it's not clear. You never get the whole story from articles in the media. In the borrowers' mind the payment was intended for January. From that point of view, it was early. From their account's point of view, it may not be early; it may be late. Reporters didn't ask or report on this critical question. "Florida Couple Foreclosed On For Paying Mortgage Late" wouldn't make a good headline, would it?
It could have been made clear when it was for if the people put "January" in the memo line... or something that indicated it was for the loan modification....

Remember, the bank is big... there is a lockbox person who has NO idea there is a modification going on... etc. etc. etc...

Also, they could have sent the check to the person doing the modification who would have known what it was for...
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