Another day, another foreclosure horror story. From the
St. Petersburg Times:
When James became ill, the couple encountered financial difficulties because of high medical bills. The couple asked Bank of America to modify the loan.
There was a catch. The couple would have to first officially default on their $1,400-a-month payment. The couple did that and entered into the modification plan, which reduced their payment to $916.
Sharon Bullington made the January payment on Dec. 23, and the bank accepted the money, according to court records.
The next month, she made the February payment over the phone. Weeks later, the money had not been withdrawn from her bank account. After Bullington asked the bank about it, a representative told her she had punched in the wrong routing number. In March, the bank kicked the couple out of the modification plan. [...]
One of [Bank of America president Brian] Moynihan's aides, Ana Olivera, told Bullington the foreclosure could not be stopped. She wrote in a two-page letter that the payment due on Jan. 1, 2011, had been made in December.
"In accordance with the Trial Payment Letter dated December 15, 2010, it indicates that if you are not able to make each payment in the month in which it is due, you will not be eligible for a modification under the Home Affordable Modification Program," the letter said.
Olivera told Bullington she could avoid a foreclosure by selling the home in a short sale or by signing it over to the bank.
Yes, the reason Bank of America is giving for foreclosing on the property is that the homeowners made their mortgage payment a week early, in December, instead of waiting until January. Stupid consumer! Always read the fine print!
Bank of America decided to, ahem, "re-review" the case after they were contacted by The St. Petersburg Times. No word yet on what happens to Bank of America customers in similar positions that don't get their story covered in the press.
Given Bank of America's own precarious finances, though, I wonder if the nation would be anywhere near as tolerant of bailing their sorry asses out as they were during the last round of bank failures. After the last few years of reports like this, I'm thinking ... no.
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