In 2009, tens of thousands of homeowners with mortgages serviced by Goldman Sachs subsidiary Litton Loan Servicing entered into trial loan modifications. But fewer than 12% of those same people ever received permanent adjustments to their mortgages, not because they didn’t qualify, but because Litton’s system for handling paperwork was a horrendous mess.
We’ve already written about Bank of America customers trying in vain to prove that they are not dead. But this story is a bit different. A man says he tried to get a modification on his BofA mortgage, but the bank won’t do anything until he can prove he’s dead and that he’s paying child support to children he doesn’t have.