Getting screwed by Bank of America

[harleytexas]

My wife and I have been getting the run around from Bank of America and need some help. Please read what she has written on her facebook and if you can help, we would appreciate it. I've been on here a long time and think of you as friends and I hope that I can get some help.

Thank you

Rick and I are going through something right now that is tearing us both apart. Some of you already know but I am regretfully writing this as a plea and to inform you all of what's happening. To be honest, I am incredibly saddened and ashamed of what has happened.

To start with, when we bought this home, our mortgage was placed with a company called Taylor, Bean, and Whitaker. The company was shut down by the federal government due to fraudulent practices. See here http://www.justice.gov/opa/pr/2010/June/10-crm-703.html and here http://online.wsj.com/article/SB124940991556305327.html. Of course, there is lots of information about it all over the internet. The way that we were effected by this is that they never paid our home owners insurance or taxes even though we were charged for them in our mortgage. When they were shut down, the loan was transferred to Bank of America. They quickly charged us for the insurance and taxes and a couple of mortgage payments that were made by us but not credited, charged us penalties and raised our monty mortgage payment by over $300 a month to make up for the shortfall. We could not afford this and spent a day on the phone telling them so. We were finally told that if we would do a home loan modification, we could get our payments back down to an affordable amount. We did NOT buy a home outside of our budget. It's 1000 sqare feet and very modest. We simply wanted to own our own home. Our payments on our home that was under $100,000 end up being over $1000 a month. More than we could afford. When we bought the home, we were told that with taxes and insurance, it should be around $800 a month. Not a problem for us.

So, I did some reading and research about how modification worked and spoke to several representatives over the phone from Bank of America and it seemed like a good solution for us and them. We applied back in June of last year and everything was going smoothly. We were given a lower trial payment to make for 3 months supposedly to see if we could handle the amount and pay on time. We made those payments in July, August, and September. We were told that our final paperwork would be sent to us within a few weeks time and to keep on paying the lower payment in the meantime. We felt optimistic that everything would go through smoothly and sat back to wait. The paperwork didn't come and we started calling every 2 weeks and were repeatedly told that everything looked good, we were in the approval process and to wait for our paperwork. It has not arrived to this day and we have paid a total of 8 payments of the trial amount. Last week, we received a letter of intent to foreclose. Of course, we were upset but felt it must be some mistake and I called Bank of America right away. We were told that because we had fallen behind in our payments, the letter was very much accurate. Of course, they could see that we were in the modification process and that I had been paying what I was told to pay all of these months but it seems that due to the missing payments from the previous mortgage holder and the fact that I have been paying less than the full amount set by Bank of America, we are now almost $4000 behind on our payments. We are not in foreclosure yet but that process will be started if we do not come up with the money plus our normal mortgage payments by March 16th. This is causing Rick and I unbelievable stress. He has high blood pressure and has been having chest pains. Neither of us are eating or sleeping well and my own health issues have been much worse as well. We have looked into everything we can think of to stop this process to no avail. I do have a "negotiator" through Bank of America whom I can not get on the phone at all. I have started to research and it seems that Bank of America has been sued numerous times for doing this exact same thing to other people. In my research, I have found literally hundreds of complaints online. See here http://www.consumeraffairs.com/finance/ba.htm here http://www.complaintsboard.com/complain ... 59706.html and here http://moneywatch.bnet.com/saving-money ... -club/971/ In fact, here is google's entire list... faESQ8ccnMDxwoadz3vdCTVLpNw&pf=p&sclient=psy&safe=off&aq=0sx&aqi=&aql=&oq=bank+of+american+modification+com&pbx=1&bav=on.1,or.&fp=681127d0c6f645aa

I feel that we have been lied to and manipulated in order to take our home from us. We are both very hard working and have what we have only because of that. Rick and I started with literally nothing and have done all that we can do to build a life together. We feel that it's all falling apart through no fault of our own. We have been told that our only options at this point is to pay the money or file for Bankruptcy. We do not want to do that. We WANT to pay our bills. We only want to be treated fairly. I am in tears writing this and I have cried many of them since February 15th. It has been very difficult for me to deal with this along with the happiness of having so much of my family back in my life. I feel so helpless and just don't know what to do next other than call Bank of America every day to find out if there has been a decision made on the modification. If we are approved, the money owed would be added to the end of our loan and forgiven. However, I do not trust that a decision will be made within the next month that it HAS to be when we have been waiting 9 months already.

To be honest, what we need is money to keep our home. We are willing to do anything that we can to keep our home. I am literally sickened to have to put this out to you and I am sure there are some of you who are sickened by me asking as well. I do not blame you. I would have never in a million years believed that I would make a plea this way but our home truly does mean that much to us. I am posting my paypal address on the off chance that any help can be given and we would be more than happy with what you could send. It is doniaecker@hotmail.com

I feel horrible about posting this. My face is burning with shame and I am nauseous as well. I am simply out of ideas.

[CounterCircular]

You have not mentioned calling/sending a certified/registered urgent letter to your congressman. The way the government has bailed out banks and the awareness of how banks are continuing to screw people is out there. I had a situation where I was getting no resolution or response and my congressman within maybe a week had things on track for me.

Send them the info you sent in this post, include to them your account number, etc....what they'd need to know to look into it. I guarantee your negotiator WILL take calls from a congressional office. I admit many times i've felt elected officials have their own agendas but was frankly very surprised not only how quickly they responded to me but they also resolved my issue completely. The key is making sure you get it certified/registered return receipt requested and call when mailed to stress urgency, that they please read your letter. When they do, I can only hope he or she gets the ball rolling on your behalf. Believe it or not, I think many congressional members would read something like this and get pissed, especially knowing banking issues these past few years and how consumers were screwed. The last thing a bank wants is a congressman or woman on a mission to save a citizen. I hope you will consider this. Also, unless you just don't want the pubicity, call 60 minutes, or your news station. BoA doesn't want the pubicity. Consider also your attorney generals office. If you have records of making payments to the company prior to BoA, and BoA "sold" your mortgage to them in the first place, but your records clearly show you paid all you were required but the company mismanaged your payments, seems perhaps you have a lawsuit you could file. It's like buying a car from a dealership. You then make payments regularly as scheduled, always on time to whatever lending firm you used. But say the dealership didn't pay or defaulted with the auto manufacturer, the auto manufacturer doesn't then come after you. That is what BoA is trying to do to you and many other citizens.

I'd also demand, in no uncertain terms, to speak to the BoA president. Don't back down. Make them realize you won't be shoved under a carpet.

[Jefe]

I hate saying this, since I don't like lawyers, but it sounds like you need to add your name to the list of people who have filed a lawsuit against Bank of America. Maybe there is a class action suit you could join with little expense on your part?

Another option might be to talk to your local state representative. They have ways of correcting wrongs done to people by state government. It may be that they can put you in touch with someone in the office of your representative in Washington, DC.

Or you might try calling your Congressman directly. Call all offices of members of the House Banking Committee. I was under the impression that there was a moratorium on all foreclosures due to the rampant mistakes being made by the mortgage companies.

[schwenko]

I'm not sure what the situation is in your neck of the woods, but you might consider taking your situation to a consumer reporter for your local media/television.
Companies get real nervous when television reporters show up with a camera crew, asking very embarassing questions[:D]

[SallyLightfoot]

Just to be clear: You need around $4,000?

If that's all, it seems like a modest amount you might be able to raise through family and friends.

I'm willing to kick in something, but not for nothing. When the dust settles, I'm going to need a digital copy of your entire new wave collection. [:)]

[harleytexas]

My wife is trying to do a lot of these things right now, thanks for the suggestions, so far we have raised very little of the money, most people are ignoring us or just giving us good wishes which is nice, but can't help us keep the home......and my new wave collection might take a while to digitize for you. lol

[Bitter Almonds]

<p align="justify">Oh, man, as soon as I see the name of that bank I make sure to find out how I can change things. AAA does their automobile insurance through that shitty bank and treats the coverage as a "loan" - meaning that unless you pay the entire year's worth of insurance (about 1100), the bank will shove an interest charge for the remainder until the whole fuckin' auto insurance is paid off. They're probably THE worst bank to deal with, followed by wells fargo and chase.

Sorry to be so unhelpful, but I agree that shit like this needs a lawyer who has handled cases against this fucking bailed-out bank[}:)]


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[coop41]

I debated answering this for awhile but thought I could at least give you some thoughts. Seeking legal advice is highly recommended and I am not an attorney nor do I pretend to know the laws in your state (Texas?). I do have 26 years of mortgage experience and am fairly comfortable with some aspects of your case. Feel free to shoot me an email as well and I would be happy to send you my phone number if I could in any way help.

The articles about Taylor Bean, while accurate, do not in any way relate with what happened to you the best I can tell.
I am not sure you got "screwed" by Bank of America, in fact, it seems like they were the one that got the short end of the stick and are just trying to collect what is owed to them. Their general incompetence in the loan modification process is without a doubt the major issue. I can tell you they are overwhelmed with bad loans and modification/short sale/foreclosure requests and like most banks are completely unable to handle the volume nor do they have staff trained to handle the extremely complicated modification/short sale/foreclosure of a loan. Your one loan seems simple but who actually holds the note(sometimes many entities and many foreign entities- Bank of China was a large purchaser of U.S. mortgage notes) and government incentives make it more profitable for a bank to foreclose rather than modify or short sale. A very high percentage of modifications end up in foreclosure ultimately anyway. Based on the details provided, a modification really wouldn't fit the situation. If they indeed didnt pay your taxes and insurance why would someone modify to make up that difference, they simply need to correct the mistake. You may have been put into a program that won't offer the assistance you really need.

I don't know all the details and the following may or may not apply to your exact situation.
To get back to the problem at hand, if you had a government backed mortgage loan through FHA (or Fannie/Freddie), your taxes and insurance were impounded. It is not uncommon for mortgage companies to not collect enough (or collect too much) or for taxes to increase significantly and that balance is then due when taxes are assessed- you can typically pay it in its entirety or spread it out on a monthly basis. These shortages can be quite shocking to many folks and cause quite the financial hardship. So I would guess they didn't collect enough (which is their fault but not necessarily criminal) or the amounts changed and that is the reason for the shortage. If they collected it and never paid that would be the crux of your legal argument and a modification is not the way you should be approaching this.


When she states they want to take your home away I can assure you, that is most likely the last thing they want. They have plenty.

Asking friends and family for money is likely falling upon deaf ears as many people share your same plight, having lost their homes already or being in fairly similar situations to yourself unfortunately.

The government programs designed for loan modification/assistance are simply laughable at best and don't help very many people.

That leads to the next part, and being in the business, I don't recommend this but quite truthfully, the bank is making a business decision and you should likely start thinking the same way. Too many people end up ruining their financial situation for a longer period by being too emotionally attached to their home. When you consult an attorney they are likely going to present this as a viable option. Bank of America (actually most banks) is taking roughly 18 months on average to foreclose (again, dependent upon states/state law). It is imperative you find out the actual value of your home. Sometimes this alone is eye-opening and will help steer you into the right decision. If a homeowner were under water and were to stop making payments altogether and go through a short sale or foreclosure, save that money and ultimately rent a home, many times in the exact same neighborhood for oftentimes 50% or less than their current mortgage payment, they might be better off. Current mortgage rules require 3 years from a short sale to obtain FHA minimum down financing again. This means you'd have to plan on renting for 3 years before being able to buy again but this will usually allow a person to stay current on every other debt they have. Many times, when you are struggling to make your mortgage payment, other bills fall behind and this ultimately becomes more damaging to your credit and extends the inevitable. Again, I do not recommend the foreclosure approach but a short sale may be the best thing to do. If you live in an anti-deficiency state, they will not be able to pursue any short fall. This, however, will likely take a long time as well (similar to modifying for the same reasons). Getting over the emotional attachment though is the difficult but necessary part. It is, after all, a house.

Again, I can't emphasize contacting an attorney. Unfortunately, good legal advice usually doesn't come for free but they will be able to determine if you were actually the victim of any wrong doing by T,B&W. If you were, I am going to guess they advise you to stop the modification and take an entirely different approach. Aside from being incompetent ot sure B of A plays a huge role in this. T,B&W is the one that screwed you over if they took your money and failed to pay your taxes and insurance. An attorney is going to be able to get all the documentation and put all the details together to figure out the best advice. Another good website to look at is www.consumerist.com, they typically have executive customer service numbers you can call to skip all the untrained clerks, etc. which may help.

Anyway, I can imagine it's a stressful time for you and your family, unfortunately it's a common problem for many americans so I wish you luck and like I said, am happy to answer any questions etc if you'd like. Hang in there.

[SallyLightfoot]

How are things shaping up?
I just sent you a small donation from my partner's paypal account.

[harleytexas]

[quote][i]Originally posted by SallyLightfoot[/i]
<br>How are things shaping up?
I just sent you a small donation from my partner's paypal account.
[/quote]

Things are going slow, but we are trying all different avenues still. Lots of calls, emails and trying to get the money....thank you very much by the way.

We hope to get it together and get out of this situation and when my credit gets better, that they helped screw up, get away from them altogether.

If someone wants to donate, I can give you my address if you don't have a paypal account.

Thank you for any help.