HLS, I saw a piece on “60 Minutes” a while back where former Countrywide (later folded into B of A) loan officers and servicers were interviewed who stated they (as loan officers) were compensated judicously (mostly with usurious points charged the [often subprime] buyer and the use of YSP’s). The servicing employees in their divisions which ran the HAMP mod program and “Deed in Lieu Plus” programs had absolutely NO CONTROL over their employees in the loss mit division, who would be initiating simultaneous foreclosure on the same property. So what was going on was that borrowers working with the servicing dept to apply for and process a mod were being foiled by the loss mit dept who was initiating the steps of foreclosure on their property with their trustee (“Recontrust” in CA). Of course, most “trial mod” and some “deed-in-lieu” applications never got approved and processed because the delinquent trustors lost their homes to foreclosure in the interim. To the untrained eye, this all looks like a “comedy of errors” perpetrated by the right hand opposing the left hand. But it was all part of a grand plan for B of A to “pretend” to be “helping” delinquent borrowers by publicizing their “help-line” phone numbers. This was also borne out by my own experience assisting a delinquent Countrywide loan-mod applicant AND a Countrywide “Deed in Lieu Plus” applicant, BOTH of whom got foreclosed upon mid-stream. Only the deed-in-lieu applicant received $3000 about ten days after their foreclosure to vacate the property and leave it “broom swept.” The dissed loan-mod applicant received nothing, and, in any case, had already vacated the property and moved away at the time of the trustee sale.
This would all be palatable to JQ Public if B of A didn’t receive any TARP funds, only to screw with borrowers minds’ in attempt to prolong the foreclosure mess for the rest of us.
