Loan Modifications are a SCAM…Officially.

loan modifications are a scamYou might have thought I was being melodramatic. Maybe a bit boisterous or a little too “harsh” on the Banks, but as of today, you know why. The Loan Modification protocol at Bank of America is designed to trap homeowners and ultimately put them into a foreclosure. Read the full story here.

A lawsuit is being filed in Massachusetts  where 6 former Bank of America Employees have signed affidavits saying the Bank told them to “lie to Customers” and delay the loan modification process as long as possible. Bank employees were also bonused based on how many Foreclosures they initiated! Keep in mind, it was their own customers they did this to!!!

For the past 2 years, I have been screaming from the rooftops about the Loan Modification process at Banks and how they trap people with these “trial modifications”. Check out this YouTube video I did on the subject back in April of 2011: Click here to watch the video.

This is the type of thing that should not be tolerated in America. This is the type of thing that makes people lose faith in the system. Someone should go to JAIL over this! Good, hard-working Americans were being lied to by their Bank and had their homes taken away, all in the name of making a profit. Many of these homeowners were solicited by the Bank to get this wonderful thing called a loan modification. The whole thing makes me want to puke.

So what will the Bank’s punishment be? A fine. Probably a few million dollars that won’t even be a speck of dust on their balance sheet.

Do YOU want things like this to continue? If so, then leave the system just like it is. Companies will continue to do whatever they want, break the law, lie to people, cheat the system, and all in the name of making money. And if they get caught, they’ll just pay the fine and move on.

Come on America! We are better than this!

Guests on The Mr. Credit Radio Show today:
Jarod Cauzza, my personal Attorney with Neil-Dymott. He is a Trust Attorney in San Diego.
Dan Osgood, my Financial Planner in San Diego.
Bekah Stone, Bank Negotiator and San Diego Real Estate Agent.

Listen to today’s Mr. Credit Radio Show Podcast below:
Hour 1 – 
Hour 2 – 



Categories: Bankruptcy, Buying Real Estate, Estate Planning, Financial Planning, Fixed Income Investing, Foreclosure, Government Absurdity, Law, Loan Modification, Mortgages, Radio Shows, San Diego Real Estate Market, Selling your home, Short Sale, The Life Plan, The Mortgage Debt Relief Act

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2 replies

  1. good show today just wish you had the sale price ranges to see what was sold to see if homes realy went up 25% or more Date: Tue, 18 Jun 2013 22:20:15 +0000 To: mike63monza@hotmail.com

  2. Mike, we did! I listed out almost all of San Diego County, but keep in mind, it was just for year-over-year from May 2012 to May 2013 median home prices in each area. You can check it out yourself here: http://www.utsandiego.com/news/business/real-estate/recorded-home-sales/