A large group of protestors gathered outside a Bank of America office accusing the company of engaging in unfair business practices after allegedly discontinuing previously approved mortgage modifications that were owned by a company they purchased.
Protesters claim that loan modifications they agreed on previously with different companies were not accepted by Bank of America when their mortgages were bought by the bank, the largest bank in the United States.
Edda Lopez has become the poster child for what many see as the cruel practices of mortgage companies. Over the course of four years, from 2004 to 2008, Lopez lost her husband, experienced a fire, lost her job and suffered from health problems that impeded her ability to pay her mortgage. She successfully convinced her lender at the time, Wilshire, to modify her mortgage for five years so that she would not fall into foreclosure. Lopez was able to successfully participate in the mortgage modification program and avoid foreclosure until her mortgage company was bought by Bank of America. Bank of America says that Lopez’s mortgage modification never had documented approval and that they were not able to qualify her for a permanent mortgage modification that would help her avoid foreclosure.
“When she provided income documentation, it did not match the original amount, which changed the calculation of her monthly payments and made her ineligible for conversion of the trial modification terms to a permanent modification,” said Bank of America.
While it is not clear why Lopez’s income documentation has changed, if this homeowner has been able to successfully participate in the mortgage modification program and avoid foreclosure, why pull the rug out from under her now? This makes absolutely no sense.