A California homeowner sued Bank of America in small claims court and won $7,595 from the bank after it burned him on a mortgage modification.
“It was a good victory for me and I think for homeowners around the country,” Dave Graham told HuffPost.
Graham, who lives in Big Bear City, Calif., applied for a loan modification under the Obama administration’s Home Affordable Modification Program, which is supposed to give eligible borrowers a “permanent” five-year modification if they make reduced payments during a three-month trial period.
Graham said his trial dragged on for 18 months. He said he made every payment until Bank of America told him in May that he didn’t qualify for HAMP, and that he’d lose his home unless he paid about $7,000 to make up the difference between his normal monthly payments and the reduced payments he made during the trial period.
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