BofA Tries To Foreclose On Couple That Never Missed A Payment

Bank of America told this couple that their house would go into foreclosure on Christmas Eve, which came as something of an anti-Christmas Miracle to them considering they had never missed a single mortgage payment.

The problems started when the couple looked into refinancing their home and asked the BofA loan specialist for the “cheapest” option available. That rep tentatively put them in the Federal government’s “Making Home Affordable” program, which was developed to help people who are behind on their mortgages.

The couple decided not to use that refinance option but that rep’s action put on their credit report that they were seeking a loan mod and sent out a credit destroying blast to all their creditors. Their credit card limits were reduced to $18,000 from $30,000, all their credit card APRs were jacked up to universal default levels, and other creditors started shutting down their accounts.

Only after escalating through several tiers of Bank of America were they able to get the bank to promise to try to fix their credit lines. The couple will have to go each creditor individually to try to get their lines of credit reinstated. The foreclosure action is still pending. They have hired a lawyer to try to collect damages and prevent foreclosure, thus illustrating the two major principles of resolving hardcore customer service issues: 1. Escalate and 2. Get a lawyer.

Bank Of America’s Christmas present: Foreclose Even Though Not A Payment Missed [CT Watchdog] (Thanks to Doo!)

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  1. Alvis says:

    This man’s name is SHOCK

  2. dolemite says:

    That really just goes to show how jacked up our credit system is. One small error that wasn’t their fault destroyed their credit rating, and it was up to THEM to go spend thousands of dollars on a lawyer to fix the problem?

    Meanwhile, if they wanted to even check their credit, they would have to pay a private company extra $ for the privilege of doing so, and no one would be able to tell them for sure how it is even calculated.

    • Supes says:

      Totally agree. A dramatic reform of our credit rating system is a long-overdue need.

      Some form of credit rating is a necessary evil, no doubt, but the current system is inherently flawed.

      • Puckstopperga says:

        But when the credit reporting agencies maintain a VIP list of politicians, celebrities, etc., the people in power to change things NEVER EVEN KNOW there’s a problem.

        The CRA’s are flatly evil. And corrupt politicians will never pass laws to hold themselves to the same standards as everyone else.

        • FoxCMK says:

          An issue prevalent in all kinds of service industries of all types. In the military, I (not so fondly) recall the process through which I went in order to move back to the continental U.S. after living overseas for a couple of years. It was horrible: $2500 worth of my personal belongings were stolen by the locals who packed my stuff, getting tickets through the base’s agency was a huge pain in the neck, my orders came late, and I had an unreasonably short window of time to get all of my paperwork signed before I had to be on a plane.

          Contrast this with the experience of, say, a one-star General or a General-in-training (O-6). Do you think these VIPs ever have to go through these kinds of hardships? They have no idea that these problems even exist, and those below them who attempt to “resolve” these issues do their absolute best to make sure the higher-ups stay ignorant – otherwise their jobs are on the line.

          You can apply this situation to all kinds of aspects of dependent services – things that you simply cannot manage entirely on your own because someone else is in control.

          • mobiuschic42 says:

            One small problem with your logic: weren’t those Generals once lower ranking officers who probably had to serve overseas? No one goes straight from school to general, dude.

            • kujospam says:

              There are several times you can skip. Examples, earning Eagle Scout, and you skip being a private. Of course you always have boot camp. Also they now have this thing where if you promise to work for the military they pay your college before hand, and then you work for them. You skip private that way also. Also these might not have been problems in all the same countries, times and areas

            • sprybuzzard says:

              Not unless they were prior enlisted. Low ranking officers are treated better than low ranking enlisted, no matter where you are.

    • Loias supports harsher punishments against corporations says:

      Actually, by law every citizen is allowed one free report from each of the 3 credit reporting agencies. Although it does not provide you a free credit score, it does allow you to vet all information used to create those scores for incorrect information. Some states, such as Colorado, also grant by law an additional free report for each agency, granting you as many as 6 free reports a year.

    • outshined says:

      I’m not sure if the law varies from state to state but I believe if you are denied credit, you are also entitled to a free report.

  3. dadelus says:

    Not really relevant, but she should totally change her name to “Awe”

  4. GetOutOfDebt.org says:

    “…the two major principals of resolving hardcore customer service issues”

    Well said.

  5. AngryK9 says:

    BofA screwed up?! What a Shock Baitch!

  6. MountainRooster says:

    Seems like falsely reporting someone is in foreclosure to credit agencies should be a crime. Slander? Wire Fraud?

    • Grungo says:

      I think you better start studying harder if you ever hope to earn that law degree from Internet University.

    • corkdork says:

      A tip for remembering slander vs. libel – Slander is Spoken, Libel winds up in Libraries. This example would (might) qualify as libel.

      /IANAL. But I do work with one…

  7. FatLynn says:

    Wait, is this always true? The credit bureaus know I requested a loan mod? PNC said “no chance in hell, see ya” in about three days, but I wonder if the info is used against me anyway.

    • FatLynn says:

      Oh, wait. They reported that they had RECEIVED a loan mod, not that they requested a loan mod.

      • mszabo says:

        Although the request for a loan mod would most likely cause BoA to run a credit check which will ding your credit score. Any application for new credit or change of terms to existing credit will ding your credit score, probably not to the extent of the OP however.

        • FatLynn says:

          My credit score is such that I am not worried about the impact of a hard inquiry or two. Hence the near-immediate refusal of a loan mod even though my income has dropped by 75%

  8. Blueskylaw says:

    Who pushed the big red button?

  9. Kaonashi says:

    All the more reason there needs to be more education on both what determines a person’s credit scores and what triggers a credit report action like even looking into a loan mod without actually requesting one.

  10. Starrion says:

    The last paragraph is the correct one. BofA has absorbed too many banks and is too large and uncoordinated to properly serve the customer or their investors.

    The Justice Department should consider breaking up some of these “too big to fail” banks before they are in financial trouble again. Carving up BofA like a Thanksgiving turkey would be a good start.

  11. SexCpotatoes says:

    Okay, time to make it so that if a bank even accuses you of being behind, or tries to forclose on you erroneously, OR can’t produce all the original loan documents: You get the house, free and clear, AND they have to refund you ALL the past three years’ mortgage payments.

    That should help put a stop to this bullshit.

  12. Erika'sPowerMinute says:

    “Principles,” not “principals.”

    And yes, I know I’m supposed to email the story’s author, but when I click on the link, it wants to launch Outlook which I don’t use. And the email address isn’t written in plain text so I can just type it into the email I do use–so there.

  13. jason in boston says:

    You know…if they would just pay their morga….wait, what?

    Between this and banks foreclosing on houses that are paid in cash, I would like to “borrow” from Chris Rock. I wouldn’t want people to get shot, but I sure would understand. If I was on a jury there would be no way I would convict.

  14. Gman says:

    I know corporations are protected and everything [and that protection is in many cases necessary]. But they should not be able to just commit destruction of people’s lives like this without repercussions.

    Does not have to be drastic, not event monetary. They should just be forces to fix everything that was their fault and put it back to the way it was within a reasonable time.

    Like in this case they should be forced to fix the couple’s credit instead of just saying “oh, you can fix it down the road here is a pamphlet how” [paraphrasing]

    • kmw2 says:

      Corporations are not protected, they can be sued as easily as anyone else with several millions to billions in retained earnings to handle legal fees can be. They can even be criminally prosecuted, if anyone ever bothers. Their “owners” (i.e. stockholders, who generally “own” miniscule amounts of the corporation) are protected from legal action, but that’s not the same thing.

  15. Evil_Otto would rather pay taxes than make someone else rich says:

    Obviously since they requested the loan mod, they irresponsibly bought more house than they could afford, and should be treated as the deadbeats they are. It’s only natural that B of A would start to foreclose on them, they’re just being efficient! After all, they never have the situation where the right hand knows what the left hand is doing. They should RAISE their interest rate to discourage any further legally allowed loan modification!

    (i make my own sarcasm at home)

  16. stevied says:

    all their credit card APRs were jacked up to universal default levels,

    Reminder, universal default levels are not an issue if one does not carry a balance. Obviously the OP was carrying a balance and the rising interest payments became an issue.

  17. Alvis says:

    “That is not enough for Baitch, who calculates that the false report has cost them $150,000 in lost credit.”

    That’s rich. He feels like he’s taken a loss by being able to borrow less money.

    • coren says:

      That’s because he has.

    • dadelus says:

      “Available Credit” is one of the items that is known to be included in the credit score calculation. Losing that much credit will have a serious effect on their score for years to come. So at the very least his financial “reputation” has taken a serious hit which could equate to a loss if they were planning to use their credit rating to make a major purchase (car, home, etc…) prior to BoA jacking up their score.

    • partofme says:

      This sounds exactly like a line of logic a corporation would use.

    • dolemite says:

      Being able to borrow money isn’t necessarily bad though. Sometimes you can borrow at say…5% interest to invest in something that pays 10% interest….or use credit to buy something like…a foreclosed boat that costs $20,000, then turn around and sell it for $40,000.

    • Wombatish says:

      As others have stated, available credit is an important part of score calculation and that dip in his available credit will show for years and years to come – making future rates much higher, and possibly even denying them purchases – while no, he hasn’t actually lost wealth, he HAS very seriously lost potential wealth.

      Besides, the reason it sucks so hard he took such a hit is that the banks and mortgage companies have made credit scores such a big, fragile deal in the first place.

      He has a right to be upset. No, it’s not like the bank fished into his pocket and took $150,000, but a few years down the road? He might prefer that amount to what he will have lost if this mess isn’t 100% sorted out (very unlikely to happen), especially if they had any big purchases planned, or any unplanned but necessary big purchases (like, oh say, they try to downsize their house if the loan mod was due to lost income/job loss and not just looking for a nicer deal) or emergencies.

  18. keepher says:

    This is not the first time BofA has been contacted for information and have the customer get screwed in the deal.

    I just don’t get why people still think dealing with them is such a hot idea.

    • c!tizen says:

      It’s not always a choice. When I bought my house the mortgage company I went with sold my mortgage to BoA, or Bank of Ass-hats as they’ve been dubbed. If I would have had a say so I certainly wouldn’t have went with BoA.

  19. outoftheblew says:

    “… and now I am literally and financially paying for it,” Baitch said

    I’m curious what OTHER way you could “literally pay for it,” if not financially.

  20. P41 says:

    The only thing missing is them refusing future mortgage payments thereby making them behind and subject to foreclosure and demanding full payment of all late fees. Not that we’ve seen that happen. Nah.

    I notice no one has commented that BofA refuses to let them refinance, because they have terrible credit…Even though BofA is the one who falsely ruined their credit.

  21. 420greg says:

    The credit card reform act prevents universal default, and raising interest rates on already existing balances. Did the OP get the terminology wrong?

  22. Marko723 says:

    Glad I live in Canada….

  23. Eugene says:

    Wells Fargo pulled similar with me, started getting collection calls even though I had never paid a late once.

    • Happy Tinfoil Cat says:

      I don’t know if this makes any difference but both Bank of America and Wells Fargo are run by the mafia. It’s funny how they always act like you’d expect them to.

  24. brownhb says:

    Ack! Who has $30,000 available credit for credit cards?/

  25. MountainCop says:

    I have to disagree with 1. and 2. above:

    1. Get a lawyer
    2. Sue the living hell out of BoA, and get it out to the world (AP, Reuters, etc.)
    3. BoAs first settlement offer – counter with the full amount and actions outlined in the suit (including all legal fees, court costs, etc.)
    4. Second settlement offer – counter with TWICE the full amount and actions outlined in the suit, including all legal fees, court costs, etc.

    Rinse, repeat. And count and include all the extra cash, interest, etc. that you had to lay out because of their bonehead errors.

    The only way to handle bastards like this is to play total ‘take no prisoners’ hard ball. Playing nice and trying to resolve it internal to the company will get you nowhere very quickly. They have only one interest in mind, and it isn’t you. The only thing that will motivate them is when they get the 2 X 4 upside the head, and they finally have the epiphany that they will lose a buttload of money if they keep screwing with the system. Be absolutely prepared to go to court and not take any crap off their lawyers. And be prepared for an appeal.

    When it hits their bottom line and some VP’s and legal counsel’s heads are on the chopping block, believe me, they will be highly motivated to settle.

    • Talmonis says:

      The issue here is that not everyone has the money to take on a multinational corporation in court for the YEARS that they can hold you up in litigation.

  26. Fred Garvin says:

    I have a BoA mortgage and never been late and pay extra each month.

    I’ve considered contacting them about refinancing at a lower rate. After reading this article, it seems I should be very careful.

  27. YokoOhNo says:

    the cause of this is too may regulations…it’s confusing to the 1000’s of liars, er lawyers, who are employed by the banks to create confusion and that should be outlawed.