Horror Stories Abound in the Mortgage World
By: Maynard Joseph Deltona, Fl. (July 16, 2010)
Robert Bellow reviewing letter from BofA
The home foreclosure rate seems to have abated for the time being in Central Florida but continue to be a drag on local economies. There are currently several government programs supposedly available to assist homeowners in the restructure of their mortgages by either lowering the interest rate or the principal balance due. These programs, whose effectiveness has been questioned, are generally available to homeowners who are currently behind in payments or facing foreclosure. The bank holding the mortgage becomes the most determining factor, will they work with you or not and what will the new terms be.
But, what if you have consistently made payments for 15 years and then find that you have a balloon note due at the end? “Everyone should thoroughly read, or even hire an attorney before you sign anything with a bank,” said Robert Bello of Deltona. “I’ve been paying Bank of America $369.58 for 15 years (NationsBank at the time the loan was taken out) and they have sent back my last few monthly payments back demanding payment in full”. “I can lose my house over $7,000.00, I don’t have it”.
Bello has tried to contact and negotiate with Bank of America, with little result. “I’ve called the 800 number, several of them actually, left three or four messages and have gotten no response, including the number for balloon mortgages”. Bello did manage to reach someone who offered the banks’ ”best deal”. Pay a fee of $575.00 and then make seven monthly payments of $1084.00 for seven months, nearly three times his current payment..
“They’re crazy”, said Bello. “I’m not asking them to give me anything for free, just let me continue paying the same amount until the balance is cleared. I honestly think they want to own a house for seven grand”.
A trip to the local Deltona Bank of America branch office on Providence and Normandy Boulevards was fruitless. Bello, a totally disabled Vietnam vet, was informed that the branches have no access to mortgage information and there was nothing they could do.
Today, bank of America reported a $3 billion dollar profit.
