Mixed messages from the bank on modified mortgage payments
- Learn what to do when receiving mixed messages during a loan modification.
- Know with whom to speak and what to say, when communicating with your bank.
- Keep detailed records of all communications, to hold your bank accountable.
Do bank's foreclose on borrowers that are current on modified mortgage payments?
I applied for a home modification with Bank of America and the documents stated that my payment was now $744 instead of the normal $1700. One month later I receive letter from BOA stating that I am past due on my mortgage. I called BOA and their agent asked me why I only made a partial payment. I told her I was on a modification program. She transferred me to different department and they told me to disregard letter, but the warning letters still kept coming. I called and asked what was going on and was told to continue making my modified payments. One month later I get a call from BOA saying they were going to foreclose on me because I've only been making partial payments. Soon after that, I receive a letter from the bank stating, "You are now up to date and current on your home loan payments." Now I have two different letters telling me two different things. Something is wrong with this picture.
Thank you for your question about the confusion surrounding your home loan modification with Bank of America.
Banks are overwhelmed
You are caught in the unenviable position of being subject to a very large bank that has undergone a significant amount of change in the last three years. Bank of America is struggling with an overwhelming portfolio of mortgage borrowers with unique situations and challenges. Focus firmly on your situation and avoid focusing on Bank of America’s larger issues.
How to react to mixed messages from your bank
Since you are receiving two different messages from Bank of America, the best thing you can do now is to contact the team that facilitated your Special Forbearance agreement and work with them to get the message to the other departments in the bank that you are in their program. Bank of America is not intentionally giving you mixed messages — it is simply the left hand does not know what the right hand is doing.
Continue to follow through, even when frustrated
As unfair as it is, it is up to you to make sure that the collections team knows that you have a valid forbearance agreement in place for your mortgage; you should also not be held responsible for the late fees if the forbearance agreement was in place prior to you incurring those fees, and the agreement makes it clear that you are not responsible for them. Continue to contact the bank and take all the necessary steps to get your situation clarified. No matter how frustrated you get, actively fight for your interests to be protected. If you do not, no one will.
I also suggest you do the following as you make your way through this ordeal:
1) Keep in regular touch with bank and the departments (such as the Special Forbearance team) that are involved in this.
2) Keep a written log. Record the names and phone numbers of the people you are dealing with. Document the date, time, and results of your phone calls.
Finally, additional information is available on our mortgage help page and at the governments Making Home Affordable page.
I hope this information helps you Find. Learn & Save.