Overheard:
In 2008 I became a single mother to four children. As you'd expect, there were financial hardships as a result of our separation and ultimate divorce. In April of 2009 I was ONE month behind on my mortgage and called to see if I could have that month's payment deferred. That call began 16 months of Bank of America loan modification hell. It is still ongoing. Even though I had only called asking for a month's deferment, the woman on the phone suggested I apply for a loan modification saying "it couldn't hurt to try." How wrong she was! As a result of Bank of America "helping" me, what was once only one month in arrears has swelled to almost $26,000 in arrears. And even though Bank of America told me repeatedly that they would not just expect me to come up with the arrearage amount should I be declined a modification, telling me there were other programs in place to help with the back due amount, that is exactly what they are doing. If I don't pay the $26,000, they will take my house. I made every modification payment early and I sent every document ever requested of me. In the end, they are going to screw me and my four children out of our home, even though the only thing I did wrong was to follow their advice for assistance.
this is a tough one. I think the first issue is that she asked the bank for help. Banks don't care about people. They care about money. and if they think they can get more money out of you, they'll do whatever they can to get it. but, that's not the point.
ReplyDeleteDeferred is defined as "postponed or delayed". She had already missed the payment and I assume was attempting to, in good faith, let the lender know of her situation. She had already "delayed" the payment on her own by being unable to pay. Her best bet would have been to contact an attorney with Real Estate experience and have them draft a letter. But she didn't do that. She contacted the Bank and asked them to let her postpone that payment. She still needed to pay it.
I don't know what all the $26K entails, but yes, she owes that too. In the end, she should have just not made the payment, written a letter to let the bank know she knew she missed one and attempt to make it up over several months.
And, she is now losing her house and her credit rating because of one missed payment and looking for an easier way out. The easy way is usually NOT easier in the long run.
I think the whole loan modification program is a bad idea. Why? Because how many people actually set aside the remainder of their payment (which would have helped this lady, tremendously) versus how many go spend it on something else.
ReplyDeleteI do agree, Paige, that, ultimately, the debt (all of it) is hers. While fighting this, she's only going to accrue more.
I would have to agree with Paige. If she had explained the situation and made arrangements to make up the 1 month, the bank probably would have worked with her. It is sad, though, that it sounds like they took advantage of her and are definitely screwing her over now. Getting an attorney at this point may help, but will cost an additional fortune.
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