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Thank you for sharing your experiences re the way that Bank of America manages the Make Home Affordable (MHA) program, painful as they have been. I published your entire comment in the hope that it might help others with BOA and other banks. You certainly set the record straight.

There is a very simple solution. Clearly, the case of David Russell is fraud committed by BofA. Throw one or two executives in jail, and I can assure you such fraud will stop very quickly.

The problem is that our laws are too weak in protecting citizens and too strong in protecting fraud by businesses. David Russell’s situation is not a mistake – it is outright, willful, deliberate fraud. If the same bank stole a loaf of bread from a convenience store, the person would be thrown in jail. But they can steal with impunity from most taxpaying citizens, and we allow it. We do not prosecute it. We encourage it.

Your story was so compelling that I also published it on my recent post: Mortgage Modification: How Banks Take Homeowners for a Ride. Thank you for bringing such horrible tactics to light. I hope that Bank of America is paying attention and will immediately rectify your situation. You’ve done a great public service. Mortgage modification seekers beware.

In February 2010, I was solicited via the Internet by my mortgage lender Bank of America about their Making Homes Affordable Program. I called to inquire, but was told I did not qualify. About 6 weeks later, I receive a FED-EX package about the program. I called Bank of America, was told the documents were sent by mistake and to “toss them in the trash.” That is exactly what I did.

On June 4, 2010, I noticed that $95.54 was missing out of my checking account. After looking through my bank statement my fixed rate mortgage had jumped from $474.03 to $523.75 in May of 2010.

I contacted Bank of America and was told, “This is your new payment as we opened an escrow account to pay your property taxes and insurance for the Making Homes Affordable Program. I explained to 7 people over a 2 hour time period that I was not eligible for the program, never signed any documents, nor submitted an application, and have paid my own taxes and insurance outside of the loan since I first purchased the property.

The bank admitted that I did not qualify for the program, but the escrow account had been set up and it could “never be terminated.” “You will have to just live with it Mr. Russell,” the rep explained. “I told her my taxes are $199 a year and my yearly insurance is $200, but “You’re withholding almost $600 a year!” Her response: “Well, at the end of the 27 years, we will refund you the difference.” I then informed her that Bank of America fraudulently changed the terms and conditions of my loan without permission, my knowledge, or any signed documents. Response: “We do this all the time. It’s perfectly legal for us to withhold for your taxes and Insurance. I stated that my taxes are paid to date and so is my insurance. They can’t legally raise my mortgage! (But they did.)

I explained to the representative that I may not even be able to pay my mortgage next month as Bank of America funneled $100.00 out of my checking account due to the increase. “Well Mr. Russell, if you don’t pay your mortgage, we will simply have to foreclose on you and have the Sheriff remove you.” I explained to her that I have a limited amount of money and pay my property taxes each year with a small bonus check I receive from work. My insurance is paid in small increments monthly, and I can’t afford a $50 monthly increase in my mortgage. The representative then hung up.

I called Bank of America back and basically was told pretty much the same thing after speaking with 4 more people and a supervisor. The supervisor informed me that he could “try to opt me out of the program” (could take months) – you know, the program I did not qualify for and never returned any documents or applications. He said, “Yes sir that one.” I demanded the $99.54 that Bank of America had fraudulently removed from my bank account via auto-pay. The authorization was only for $474.03 a month not $523.75. Response: “It’s not possible Mr. Russell.”

Bank of America fraudulently increasing my mortgage and is illegally withdrawing more than agreed upon. It is quite apparent that Bank of America is committing blatant fraud in order to account for the TARP money they received.

I contacted the “President’s office” of Bank of America. John Priest promised me that he would look into the matter and said this happened to thousands of people. Since then, Mr. Priest has not returned emails or phone calls.

I have spent countless hours on the phone with Bank of America, only to be threatened with foreclosure and the sheriff removing me from my home. The stress is making me physically ill – just trying to figure out how I can stretch my budget further. I have gone without eating to pay my mortgage, HOA dues, property taxes and insurance. My home (condo) takes well over half of what I make just to not go into foreclosure. I’m now ready to let them have it back! I owe 69,000 on a home that’s now worth 20K at best.

If you’re wondering why Bank of America numbers have increased by 70% in one month, allegedly enrolling more people in the Making Homes Affordable Program, this is how they are doing it. I will never be able to catch up or pay the higher unlawful increase in my mortgage. Did I mention that my taxes, insurance, HOA dues and loan payments have never been late!

I may end up losing my home just for inquiring about the government’s mortgage modification program.

I have spent countless hours on the phone with Bank of America, only to be threatened with foreclosure and the sheriff removing me from my home. The stress is making me physically ill – just trying to figure out how I can stretch my budget further. I have gone without eating to pay my mortgage, HOA dues, property taxes and insurance. My home (condo) takes well over half of what I make just to not go into foreclosure. I’m now ready to let them have it back! I owe 69,000 on a home that’s now worth 20K at best.

If you’re wondering why Bank of America numbers have increased by 70% in one month – allegedly enrolling more people in the Making Homes Affordable Program – this is how their doing it. I will never be able to catch up or pay the higher unlawful increase in my mortgage. Did I mention that my taxes, insurance, HOA dues and loan payments have never been late!

I may end up losing my home just for inquiring about the program.

Thank you for sharing your personal experience with our readers. Your impressive legal credentials and decades of experience as a champion of those most in need add weight to the argument. Your story will help comfort those who (wrongly) believe they
are the ones at fault. I’m glad you found us!

Instead, we received a “loan modification” agreement that offered us NO reduction whatsoever in the amount of the monthly mortgage payments, which had nearly doubled in the several years we had the ARM from 600 per month to almost 1100. When I read the loan mod agreement, I was appalled. In order to get this supposed “modification”, we had to agree that Countrywide could replace any “lost or misplaced” documents if they couldn’t find the originals. And they also included language whereby we would release Countrywide from any liability for its machinations during the refinancing process. No thanks.

I contacted one of our State Senators, who tried to intervene with Bank of America in late 2008. BOA refused to respond. In March of 2009, we were told that we needed to submit all our paperwork again, along with a “hardship” statement. Everything was dutifully put together and sent to BOA once again. Like most people, we did not want to sue. Who wants that kind of relationship with the people who possess the power to foreclose on your home? We ante’d up $10,000 in March of 2009 and continued to pay the 1100 per month (on an 85,000 principal balance). Since March of 09, we have paid almost $25,000 on the mortgage. That $25,000 has reduced the principal balance on the loan by a mere $1000 — what a hoax, what fraud, what plain old chicanery and thievery is this. In the meantime, we continue to receive notices from BOA that our loan is in “default” in spite of the fact that they have gouged us to the point where our savings are exhausted. Bad economy? Who cares? Serious family medical illnesses? Who cares. Income not keeping pace with the mortgage amount? Who cares. Certainly not BOA.

A month ago, April 2010, we contacted BOA once again to try to find out what was happening with the loan modification application we’d submitted over a year ago. Their response: “We have no update.” “But it’s been a YEAR! What does that mean, you have no update??” (And mind you, this is after spending an hour on the phone being clicked from one operator to another, none of whom seem to have the foggiest idea what’s going with the account). “It means, Sir, that we have no update.” End of story.

I truly wonder how many people out there have paid that nonrefundable fee of $400 after having been assured of refinancing, only to be denied after jumping through all the hoops. What a scam! That doesn’t seem like much money until you multiply it out by the likely hundreds of thousands who have been suckered into paying it. Do the math. BOA earns yet more millions in a corrupt, dishonest refinancing scam, while homeowners continue to become homeless. When does it stop? It seems litigation is the only thing BOA understands. Truth and honesty it apparently regards as unfortunate casualties in its never-ending avarice. How many families on the street must we see before a real uprising takes place? How many times historically have the helpless and hopeless been forced to violence or other desperate action in a last bid to save themselves? I am waiting for the full magnitude of this refinancing lie to reach the surface — and it will. Tragically, countless thousands of decent and deserving families will have already seen their lives upended by the time it all comes out in the wash. Brace yourself, America. If you thought the economic disaster wrought by subprime mortgages was bad, you ain’t seen nothin’ yet. The catastrophic effects of the Great Refinancing Lie will cripple us to the core as a society. I am truly heartbroken by what is happening to my fellow Americans.