2nd Loan Modification Denied-Can Late Fees Be Forgiven

by Anthony Gooden
(California)

I was approved for a loan modification Aug. 09 and made payment til March2010, however amount is still a little too much to handle. I then re-applied in April 2010, was denied in Sept., was told other programs were available, so waited a couple of months calling to check on progress every Tuesday for two months. Then in October, I was told I was not approved because already had a modification in a 12 month period. My question is can i apply for modification again since it will be a year in November and if not can we get late fees forgiven. Our lender is Bank of America.

Mortgage Loan Modification Answer:

I have heard that banks are telling homeowners that they cannot re-apply for another loan modification after they have been approved and agreed to a loan modification agreement until after 12 months have passed. I have also heard that you must have been current on your payments on those 12 months in order to be considered for a new loan modification.

Having said that, I also know that different banks have different policies that they enforce at their discretion.

As for the forgiveness of late fees, it could go either way, depending on your negotiation skills and how much wiggle room the bank has with your numbers relative to their bottom line.

From personal experience, Wells Fargo forgave the late fees on my second mortgage and CitiMortgage capitalized the late fees (added the late fees to the principal amount of my loan).

My best suggestion would be to consult with a loan modification expert who knows Bank of America's guidelines and policies. As luck would have it, one of my colleagues is a managing partner of one of the nation's largest and best modification companies. As such, they actually have a dedicated rep at Bank of America's loss mitigation department because of the volume of clients they have. Go ahead and fill out the form here and he'll answer any questions you have. If anything at all, you can pick his brain for free. Chances are, he can at least point or guide you to the right direction.

All the best to you and your family.