B of A post-discharge loan mod charging interest on unpaid interest

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I have clients who received a BK discharge in March 2013. They have been in a trial mod for 4 months and received a letter from BofA that said "Congratulations. Your loan modification has been approved."
The terms are generally favorable except this: Of the $41,864 arrearange, $34,108 is late interest. The terms include this phrase: "I also understand that this means that interest will now accrue on the unpaid interest that is added to the outstnding principal balance, which would not happen wihout this Agreement."
I've heard where a bank will put the unpaid interest at the end of loan with a balloon payment, but it does not accrue interest on the interest.
Has anyone had any experience with fighting this? This seems unfair. I'm continuing to research but hope someone can give me some advice on how to argue with the bank. Thanks,
Laura E. Young
Potier Law Group
5090 E. Los Coyotes Diagonal
Long Beach CA 90815
Phone: 562-986-9900
Fax: 562-986-9100

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