Bank of America Tells Borrower His Loan Modification Attempt is Void, Respected Foreclosure Attorney Tim McFarlin Reacts

IRVINE, CA (AttorneyNewswire.com) — July 23, 2010 — Alin Negrila, a San Antonio, TX resident and Bank of America customer, bought his home just before the economy fell.  When it became difficult for Negrila to make his monthly mortgage payments, he contacted his lender to discuss his options.  Negrila was placed on a forbearance plan for six months before Bank of America started the loan modification process.  Then, on June 10, Negrila received a letter from Bank of America informing him that he had 26 days before his home would be sold at auction.  The letter confused Negrila because the information he was sent regarding his loan modification said that he had until June 17 to submit his application.

The lender informed Negrila to disregard the intent to sell letter and to call the lender on the day of the intended sale.  Negrila waited the 26 days and was surprised to learn that his home was already sold to a third part on the day of the sale.  He was told that his loan modification application was null and void since the home had been sold.  Negrila was transferred to multiple departments within Bank of America before being told that his home in fact was not sold to a third party and that the lender still had ownership of the home.  In frustration Negrila contacted a local news station who contacted Bank of America who promised they would instruct one of their home retention specialists to reach out directly to Negrila.

Timothy McFarlin, an Irvine based foreclosure attorney, was disgusted with Bank of America’s actions in this case from the beginning.

“Lenders have been dealing with loan modifications at a steady pace over the last couple of years.  They know that no loan modification is ever completed in just a few weeks, but that’s exactly how long they gave Mr. Negrila to apply for a loan modification before attempting to foreclose.  Even though it was eventually revealed that Mr. Negrila’s home had not been sold, no person should have to live through being told that their home was sold right out from under them when in fact it was not.  That just sounds like a bad prank.  As for the fact that Bank of America ensured the news company that a representative would be reaching out to Mr. Negrila, I’m just surprised that it takes the involvement of a television news crew before a lender like Bank of America is willing to help a borrower.”

McFarlin advises borrowers to contact an experienced foreclosure attorney if it appears that their lenders are offering little assistance with their loan modification.  “If a lender ever gives a borrower only a few weeks to apply for a loan modification, or if the lender ever tells their borrower to ‘call back on the day of the sale’, the borrower should contact an attorney as soon as possible.  These are two red flags that the lender will most likely fail to act quick enough to save the borrower’s home.

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