Patrick's Rants



9/4/2010

Bank Blame Game

Filed under: Money — site admin @ 9:09 am

Bob Cringely writes how he believes that crappy programming at Bank of America that doesn’t integrate with the crappy programming over at Freddie Mac is to blame for his friend’s inability to modify his mortgage loan. I’m guessing the reason is really more nefarious, the banks don’t really care. Someone else is there to take the hazard away from the bank.

Why do I say this? Because I know someone who has tried for nearly a year to get a modification. The bank has asked weekly for the same information. The person on the other end of the line isn’t really able to help, they are a cog that has to be worked to get to the next cog only to eventually be told that the process has to be started over because – well the bank was slow in processing the paperwork and all of the information is out of date. The person I know gave up when the bank called and informed her that she had “fallen out” of the loan modification program, and “when are you going to make these past due payments?” The response? Come and get the house.

Incompetency, ignorance, malice. Whatever the reason, people around the country are given the run-around and are still losing their homes. These are people that want to stay in their homes. Whether they made mistakes in their original purchase and made assumptions about their ability to pay, they still want to pay the bank. I’m not talking about the outrageous ideas about refinancing in a few years when “the home value goes up because they never go down,” but genuine belief that their income would continue to be sufficient to pay the bank. I say if there is something wrong with the software it’s because it was never intended to actually work, but to delay the point in time when the bank has to list the loan as a bad asset.

No Comments

No comments yet.

RSS feed for comments on this post.

Sorry, the comment form is closed at this time.