Bank of America (BOA) is telling us one thing and doing another. It is driving me NUTS. Please read the following few sentences:
“Except in . . . GA, HI, MO, and VA (I live in FL) . . .the Servicer (or BOA) will suspend any scheduled foreclosure sale, provided I continue to meet the obligations under this plan, but any pending foreclosure action will not be dismissed and may be immediately resumed from the point at which it was suspended if this plan terminates, and no new notice of default . . . will be necessary to continue the foreclosure action . . . ”
We are currently in the foreclosure process. BOA offered a loan modification trial period. The above paragraph is from the loan modification document. We had to return requested documents by a certain date. Done. We have to make 3 payments on time. They rec’d the payment before the paperwork. First payment done.
A week after paying/signing, I start getting additional copies of court filings from the legal group representing BOA. One is asking for summary judgment. I call the group and explain the papers that were signed and ask them to call BOA. I call BOA the same day and tell them that the foreclosure hasn’t been suspended. They said they would call the law group. Four days later I receive another legal filing. I call BOA again. They said they didn’t know why the foreclosure was still going on because they had told the law group 25 days before, to suspend the proceeding because of the modification. I call the law group again. They said that the agreement that was signed between my husband, I and BOA would not stop the foreclosure proceedings. They said BOA (who is the loan servicer) had no authority to suspend foreclosure. Only Freddie Mac did. So I called Freddie Mac. They say they have no problems proceeding with the foreclosure, as long as the house wasn’t sold.
I have a major problem with this. First of all the Freddie Mac insignia is on the contract. If Freddie Mac’s copyrighted picture is being used without their permission then BOA needs to be sued for copyright infringement.
The above paragraph says that if I don’t fulfill the contract the foreclosure would be “resumed”. I don’t know what dictionary Freddie Mac/the law group is using, but how can something be “resumed” if it was never stopped int the first place??? The paragraph doesn’t say that the proceeding would continue up to the sale of the house. It didn’t specify that the scheduling of the foreclosure sale was the point that the foreclosure would be paused or resumed from. It was ambiguous on where the point is, leaving me to believe that since it isn’t specified, it should be suspended now. It does say that the foreclosure wouldn’t be dismissed. I do understand the difference between a dismissal and a suspension.
At the beginning of the first paragraph it also states that the authority to suspend the foreclosure rests with the “Servicer.” It didn’t say Freddie Mac.
What is the truth?? Is this fraud???
This is a replay of what happened before. I was told that I had a forbearance. I rec’d an acceleration of the note DURING the forbearance. BOA said that during the forbearance they wouldn’t pursue any collection action. They told me it was just a formality. Well if an acceleration of the note isn’t part of the collection process, then I don’t know what is.
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Most trust deeds have clear and unambiguous language regarding forbearance, something along the lines of “forbearance by lender shall not be construed as a commitment for future forbearance.” It means that if they forgive you once, they don’t have to do it again.
This is insanity, but I have seen similar things before.
What happened is this. Your mortgage loan was sold to the Federal Home Loan Mortgage Corporation (Freddie Mac). The servicer of the loan is Bank of America, acting on behalf of Freddie Mac. You made your forebearance agreement with the servicer, but the lawyers handling the foreclosure process are apparently taking their orders from Freddie Mac, not Bank of America. The questions, therefore, are: (1) whether the forebearance agreement requires that the foreclosure proceedings be suspended, so they cannot go forward while you are in compliance with the forebearance agreement; and (2) whether Bank of America had the authority to enter into the forebearance agreement on behalf of Freddie Mac. I agree with your interpretation of the forebearance agreement — they cannot continue to pursue the foreclosure proceedings so long as you are performing under the forebearance agreement. However, the second question (Bank of America’s authority) depends on the terms of the servicing agreement between Bank of America and Freddie Mac, a document you have not seen. You should ask for a copy of the servicing agreement. They will not give it to you. Then what? Well, you may have to hire a lawyer and sue these clowns in order to determine these issues.
Is this fraud? No, it is utter stupidity by some of the most obnoxious and inept bureaucrats on the planet. I hope you win. Good luck.