Bank of America (BAC) has been hampered by many things in efforts to modify mortgages. There were plenty of little problems, like adapting its computer systems and fax machines. There were some strategic problems, like its overly conservative approach that required borrowers to "document their income and complete other paperwork before granting preliminary approval for a modification," reports the Washington Post.

It also mistakenly sent a letter that informed some people "they did not qualify for the administration's foreclosure-prevention program because their loans were not backed by Fannie Mae or Freddie Mac." It stopped sending it when the Post inquired about it. The result is that Bank of America is far behind in its effort to meet a November deadline for modifications set by the government. It now seems to be in overdrive, which isn't necessarily a good thing.  

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