Bank of America sold the mortgage servicing rights of $650,000 home loans to a company called Green Tree. Green Tree said it received no record from Bank of America of Adella King’s loan modification and declared her mortgage in default.
Consumer lawyers in Western Washington say they are seeing increasing instances of banks failing to honor home loan modifications.
“It scared the heck out of me. I pretty much lost it because I thought I was going to lose everything,” said Adella King of Enumclaw.
King says her home of 20 years was foreclosed upon after her bank denied that she had been granted a modification.
King says Bank of America gave her the loan modification – a reduction in her monthly payment – in 2013 after her husband’s death. But later that year, she says, BOA sold the loan to Green Tree Loan Servicing.
“(Green Tree) said they had received the documents but that there was no record of a loan modification,” said King.
After weeks of negotiation, King came home one day to find a foreclosure notice tacked up on her front door.