More mortgage stuff...

[C_Felix]

Got a letter....

According to Bank of America we didn't pay our mortgage from Aug of '09 until April of '10. (Which isn't true, but that's not what I want to inquire about.)

The letter continues to tell us that we have until Dec 8th to pay just under $20,000 so we aren't in default...

"BAC home loans reserces the right to accept or reject a partial payment of the total amount due without waiving any of its rights herein or otherwise. For example, if less than the full amount that is due is sent to us, we can keep the payment and apply it to the debt but still proceed to foreclosure since the default would not have been cured."

Here's my question...

"If the default is not cured on or before Dec 8th, the mortgage payment will be accelerated with the full amount remaining accelerated and becmong due and payable in full, and foreclosure proceedings will be intitiated at that time."

The empasis is theirs.

Now...what do they mean by all that accelereated stuff?

[Lothian]

Now...what do they mean by all that accelereated stuff?Brought rapidly forward in time. i.e They want all the money due now rather than over x years

[ServiceSoon]

I assume they want you to pay principal and interest.

If took a loan for $100,000. You actually own them $150,000 based on your loan agreement.

[drkitten]

Here's my question...

"If the default is not cured on or before Dec 8th, the mortgage payment will be accelerated with the full amount remaining accelerated and becmong due and payable in full, and foreclosure proceedings will be intitiated at that time."

The empasis is theirs.

Now...what do they mean by all that accelereated stuff?

Basically, if you default on a debt, it's a standard term in most lending agreements that the entire amount owed (principle and interest) is due immediately. This makes it easier for the bank to start the appropriate proceedings to collect its money from presumptively deadbeat customers. Otherwise, the deadbeat customers could argue that "well, we only owe you $20,000 on our $150,000 mortgage, so you can only claim $20,000 from the repossession and if you seize and sell the property, you get $20,000 of the proceeds and we get the remainder."

[Corsair 115]

Got a letter....

According to Bank of America we didn't pay our mortgage from Aug of '09 until April of '10. (Which isn't true, but that's not what I want to inquire about.)

The letter continues to tell us that we have until Dec 8th to pay just under $20,000 so we aren't in default...


As an aside, I'd just like to remark that it boggles my mind that a bank could make that kind of huge error in its recordkeeping.

[drkitten]

As an aside, I'd just like to remark that it boggles my mind that a bank could make that kind of huge error in its recordkeeping.

I'm afraid it no longer boggles mine, simply because Bank of America has such an abyssmal track record during this particular mortgage crisis. Especially with the robo-signing fiasco. I'm expecting it to be slapped with some pretty ham-handed judgments before the dust clears.

[WingerII]

As an aside, I'd just like to remark that it boggles my mind that a bank could make that kind of huge error in its recordkeeping.

On the contrary, Bank of America seems to excel at it:

consumerist.com/2010/10/bank-of-americas-greatest-foreclosure-fck-ups.html

(+5 internets to anyone who wants to make that clickable.)

[Spindrift]

On the contrary, Bank of America seems to excel at it:

consumerist.com/2010/10/bank-of-americas-greatest-foreclosure-fck-ups.html

(+5 internets to anyone who wants to make that clickable.)

http://consumerist.com/2010/10/bank-of-americas-greatest-foreclosure-fck-ups.html

[C_Felix]

Okay...after a bunch of phone calls...

I was making $40,000 a year.
Got forced out of that job and now I make $19,500 a year.

Mortgage was $1250 and it was doable.
When I went down to $19,500 we applied to have it changed.
It was changed to $950 and they were going to sort through our paperwork, income, expenses...etc...and determine how much we could pay.

April 09 comes around, and we get a letter stating, "We sorted through all your stuff. We think you could pay $1250"
We write back, "No, we can't. We would like to pay $950. We don't care if we have a 40 year mortgage...please work with us so we could keep our home."

We didn't get a response, so we kept paying the $950.

Turns out, and I found this out today, that since we weren't paying the $1250, none of what we sent, since it was a partial payment in their minds; none of what we sent in was counted as a mortgage payment, since it wasn't the $1250.

They put all that money aside in a credit account for us.

I found this out today.

A letter back in...oh....maybe a year ago stating something like, "This $950 your sending us is all well and good, but, uh, it isn't cutting the mustard.*"

So...I'm getting all my paperwork together, all the letters they sent, all the stuff I sent, all the EVERYTHING and I'm going to call a foreclosure attorney tomorrow.

I guess I'll keep you posted.




*Who the hell cuts mustard in the first place?!

[keale]

Got a letter....

According to Bank of America we didn't pay our mortgage from Aug of '09 until April of '10. (Which isn't true, but that's not what I want to inquire about.)

The letter continues to tell us that we have until Dec 8th to pay just under $20,000 so we aren't in default...

"BAC home loans reserces the right to accept or reject a partial payment of the total amount due without waiving any of its rights herein or otherwise. For example, if less than the full amount that is due is sent to us, we can keep the payment and apply it to the debt but still proceed to foreclosure since the default would not have been cured."

Here's my question...

"If the default is not cured on or before Dec 8th, the mortgage payment will be accelerated with the full amount remaining accelerated and becmong due and payable in full, and foreclosure proceedings will be intitiated at that time."

The empasis is theirs.

Now...what do they mean by all that accelereated stuff?

I used to do mortgages and If I were you I would secure a good attorney ASAP. If you dont it could get real ugly real fast and yeah they could and would try to foreclose on you.

[keale]

Okay...after a bunch of phone calls...

I was making $40,000 a year.
Got forced out of that job and now I make $19,500 a year.

Mortgage was $1250 and it was doable.
When I went down to $19,500 we applied to have it changed.
It was changed to $950 and they were going to sort through our paperwork, income, expenses...etc...and determine how much we could pay.

April 09 comes around, and we get a letter stating, "We sorted through all your stuff. We think you could pay $1250"
We write back, "No, we can't. We would like to pay $950. We don't care if we have a 40 year mortgage...please work with us so we could keep our home."

We didn't get a response, so we kept paying the $950.

Turns out, and I found this out today, that since we weren't paying the $1250, none of what we sent, since it was a partial payment in their minds; none of what we sent in was counted as a mortgage payment, since it wasn't the $1250.

They put all that money aside in a credit account for us.

I found this out today.

A letter back in...oh....maybe a year ago stating something like, "This $950 your sending us is all well and good, but, uh, it isn't cutting the mustard.*"

So...I'm getting all my paperwork together, all the letters they sent, all the stuff I sent, all the EVERYTHING and I'm going to call a foreclosure attorney tomorrow.

I guess I'll keep you posted.




*Who the hell cuts mustard in the first place?!


Listen ive seen this time and again. Get an attorney......a credible attorney with experience in the field. Ive seen banks tell people "oh yeah your qualified for a temp modification just pay xxxx for 12 months and it will become permanent and 3-4 months later here comes the foreclosure without warning. Get an attorney.

[jimtron]

Bank of America is an awful company.

[semi off topic rant] I opened a checking acct with them not too long ago. I opened the acct with $1,000. After a week or so, my initial deposit showed as cleared. A week or two later, I made another deposit--no withdrawls at this point. Then I wrote a small check (under $100), which bounced, incurring a hefty overdraft fee. I contacted them and confirmed that the $1,000 deposit had cleared, but the second deposit hadn't, and because of that, there was a hold on all of the funds in my account. I was able to get the overdraft fee refunded (even though it wasn't a mistake, it was their policy) and promptly closed the account. [/rant-end]

[Corsair 115]

I'm afraid it no longer boggles mine, simply because Bank of America has such an abyssmal track record during this particular mortgage crisis. Especially with the robo-signing fiasco. I'm expecting it to be slapped with some pretty ham-handed judgments before the dust clears. On the contrary, Bank of America seems to excel at it:

consumerist.com/2010/10/bank-of-americas-greatest-foreclosure-fck-ups.html

(+5 internets to anyone who wants to make that clickable.)


No offence, but man, you banking system sure does seem to suck!

[drkitten]

No offence, but man, you banking system sure does seem to suck!

Don't confuse the banking system with the Bank of America. Any more than you should damn British food as a whole because Wimpy's hamburgers are/were so bad.

[psionl0]

From the horror stories I am reading here, I suspect it is only a matter of time before the Bank of America forecloses on the whole James Randi Educational Foundation. :boggled:

[Spindrift]

From the horror stories I am reading here, I suspect it is only a matter of time before the Bank of America forecloses on the whole James Randi Educational Foundation. :boggled:

Actually what will happen is that BOA will accidentally foreclose on themselves.

[Aepervius]

C_felix I am sorry for you, but don't take it bad, by default you should *always* assume with banks that a non positive answer is a negative one, otherwise it *WILL* bring you problem. And it did.

So when you got that first answer telling you it was refused, you should have immediately contacted your bank to solve within day 1) the status of what was paid/unpaid 2) next steps, even if it meant taking unpaid holiday to get a meeting with somebody at the bank.

So maybe I will get angry reply, but as far as i can tell, you were not in right to assume anyhting, and the bank is indeed in his full right to apply as per the contract.

That said, what sort of *STUPID* bank do not send you a green red letter announcing that you are back on payment *BEFORE* going on foreclosure ? My bank would send a letter after the 3rd month, then reminder after the 4 or 5th and only after 6th month react with fiduciary and legal consequence (like foreclosure or forced auctions). Those reminder are apparently automated.

[C_Felix]

C_felix I am sorry for you, but don't take it bad, by default you should *always* assume with banks that a non positive answer is a negative one, otherwise it *WILL* bring you problem. And it did.

So when you got that first answer telling you it was refused, you should have immediately contacted your bank to solve within day 1) the status of what was paid/unpaid 2) next steps, even if it meant taking unpaid holiday to get a meeting with somebody at the bank.

So maybe I will get angry reply, but as far as i can tell, you were not in right to assume anyhting, and the bank is indeed in his full right to apply as per the contract.

That said, what sort of *STUPID* bank do not send you a green red letter announcing that you are back on payment *BEFORE* going on foreclosure ? My bank would send a letter after the 3rd month, then reminder after the 4 or 5th and only after 6th month react with fiduciary and legal consequence (like foreclosure or forced auctions). Those reminder are apparently automated.

We didn't get any answer...

[Corsair 115]

Don't confuse the banking system with the Bank of America.


Duly noted. But on the other hand, I'm reminded of the events of two years ago, and it did seem the entire American financial system was, to put it politely, less than optimal.

[keale]

We didn't get any answer...


Thats the problem depending on which department of the bank you talk to you could get different answers or no answer at all. Get an attorney and make sure you know your rights under your state laws and any recourse you may have. also make sure you have a contingent plan in place whether its a bankruptcy or short sale but know ALL of your options.

[CriticalThanking]

C_Felix - I strongly recommend you document everything you can. Get it all in one place. Write. It. Down. Every conversation you can remember - log it. Every letter.

Sadly, it sounds like you are technically in breach of your mortgage agreement and that they did notify you in a timely fashion and per the contract. The accelleration and partial payment language is all in your contract, which I am sure the majority of people never read. As others have mentioned, an attorney is a good idea. If you cannot afford an attorney, one will be appointed.... sorry, wrong speech. There are advocacy groups that can help you as well. You might start with NACA (http://www.naca.net/) (NOT NACA.COM!!!!!). It is my experience that some mortgage lenders pay increased attention to advocacy referrals. Publicly squeaky wheels, etc. It may not change the answer, but it may get it addressed sooner.

The qualifications for each loan modification type are pretty specific. In order to comply with Fair Lending laws, lenders must treat everyone in the same circumstances the same way. Yes, an oversimplification. If you have expenses the lender is unaware of, you need to let them know. They are trying to get your payment to income ratio down to a standard that is considered livable. If they think you have money left over after reasonable expenses, they can (rightfully, in my opinion) require you to pay more. Capitalization, forgiveness, forbearance, rate reduction/step rate/rate cap, term extension, loan type change, etc options are all explored, subject to any limitations placed by the company who OWNS your mortgage, which may not be Bank of America. They may only be your servicer and have limited delegation to perform modifications. Again - an advocacy group or attorney can be a big help here.

There are also foreclosure alternatives - you still give up the house, but it is less of a ding to you credit.

You can PM me if you want more details on anything I have posted.

Good luck,

CT