Facing Foreclosure: Denied Loans

By Mary Blake, WBZ NewsRadio 1030

BOSTON (CBS) — HAMP, the Home Affordable Modification Program was launched by the U.S. Treasury exactly two years ago. Since then, servicers have started 600,000 permanent modifications, a far cry from the anticipated three- to four-million loan modifications.

When asked about the ongoing foreclosure crush, James Mahoney, Director of Corporate Communications and Public Policy for Bank of America, frankly admits that they have had to build up the capability to deal with the problem. “To be honest, it hasn’t been perfect,” Mahoney says.

Alexis McGuiness, of Laconia, New Hampshire, is facing foreclosure. She was denied a modified loan under HAMP, and has been battling Bank of America for months.

WBZ NewsRadio 1030’s Mary Blake reports.

“They just give me the runaround. I talk to four different time zones and everyone gives me a different story,” McGuiness says.

New Hampshire Republican Congressman Frank Guinta says it’s time to eliminate HAMP. He says it hasn’t worked, it should be repealed, and an alternative be considered.

Massachusetts Democratic Congressman Barney Frank says the program needs to be tweaked, not scrapped, and argues progress is being made. “The Bank of America just decided, in effect, to set up two banks. One bank to do its regular ongoing business, the other bank to deal with the backlog of bad loans.

The problem is the banks weren’t equipped to handle it. They weren’t giving it enough attention,” says Frank.
The U.S. House votes this week on terminating HAMP. The Senate is not likely to take it up, and President Obama has already threatened to veto.

More from Mary Blake
  • http://www.foreclosuresexpert.com/19916.html Foreclosures Expert » Facing Foreclosure: Denied Loans

    […] Link to original article Facing Foreclosure: Denied Loans […]

  • Petetm

    If Barney Frank is involved, no good can come from it. Thanks again forth district voters!

  • Mark

    Bank of America drags you along with hope than slams the door in your face as they are throwing you out.

  • Grant Hammond

    Barney Frank says “The problem is the banks weren’t equipped to handle it. They weren’t giving it enough attention.”

    Hey Barney, do you know who should have been FORCING the banks to pay more attention to the problem?!? You and your BS Congressmates. Why don’t you do something about this problem rather than gloss over it during press conferences?

  • Caroline

    I agree with Mark. Ttheir proccess is ridiculous.. .they seem to have a script. “sorry your fax was not readable” “You used the wrong ink color to sign your paper” etc….then they say you don’t qualify. Sad for a company that cares about their image.

  • Kevin Investor

    Loan Mods. or Short Sales it doesn’t matter, when it comes to Banks, they don’t have much “common cents”…They will jerk all parties around during the Short Sale process and the qualified Buyer will finally lose patience and walk away. That leaves the Seller and the Broker agravated and the Seller gives up.
    As an example the distressed property in Short Sale is Under Agreement for $250K and falls apart due to the Bank’s uncooperation or stupidity. Then it sells at Foreclosure Auction for $200K. Go figure…??!! I should know, I have bought a few with the above scenario. At least someone is getting a good deal…I guess I would have to thank the so called “bright executives” at the Banks

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