Racing Against the Odds to Evade Foreclosures

Bank of America struggle hard to alter the loans to stay ahead of the deadlines given by the government.

The employees have to keep a track of how much hard work they have to put in to meet their target. They have a cardboard thermometer located just outside the command center in third-floor. This thermometer helps the employees to realize the degree of their achievement and how much more they have to strive to get at least 125,000 borrowers to sign up for the loan modification program.

This institute just like the lenders experiences numerous challenges while dealing with the crisis of foreclosure. However, the bank is racing against time as the November deadline is approaching closer. Unfortunately, the Bank of America is lagging behind the other banks in terms of loan modification as reported by the Treasury Department. The efforts of the company were greatly hindered due to a shortage of staff members, moreover, their computers and fax machines had to be adapted to match the scale of the loan modification program. Their efforts were stalled to a greater extent due to their traditional way of modification as they demanded income documents and other paperwork to be completed before the modification process is approved.
It was only in August the bank allowed certain flexibilities and some modifications were done in absence of the required documents. To add to the problems of the borrowers, the Bank of America misinformed them about their failure to qualify for the foreclosure-prevention plan by the administration as their loans did not have the backing of the government based mortgage agencies like Fannie Mae or Freddie Mac. The bank claimed in the letter to the borrowers that, “Bank of America is not actively participating in this program.” The bank ceased to send these letters only after a reporter questioned them about the letter. According to the representative of the bank, this issue is being reviewed and that she has no idea as to how many borrowers got this letter.

Although, the lenders are pressurized by the government to help as many borrowers as they can, somehow the employees of Bank of America fell apprehensive about the fact that if all the cases are genuine and if all the borrowers asking for help actually need it. Jerry Durham, the vice president of home retention in Bank of America feels that, “There’s a difference between hardship and entitlement.”

Popularity: 3% [?]