Ever since the housing bubble burst, we've run a number of stories about homeowners who had been told the only way they could qualify for a loan modification was to stop paying their mortgage for a few months, only to end up in foreclosure because the lender had no record of a modification application. This is not one of those stories, though the ending is the same.
A real estate agent in New Jersey says he has been making his mortgage payments to Bank of America on time since buying his house in 2005. But when times got a little tough in 2009, he thought it couldn't hurt to ask the bank for a modification.
He was wrong.
"I would have been better going to a loan shark and borrowing all that money," he tells the Newark Star-Ledger. "At least with the street mafia, you know where you stand."