SIGforum.com Main Page The Lounge Bank of America to Pay $6 Million to Bankrupt Couple Evicted From Home
Main Page The Lounge Bank of America to Pay $6 Million to Bankrupt Couple Evicted From HomePage 1 2
Go | New | Find | Notify | Tools | Reply | |
| Lawyers, Guns and Money  |
So on one side you have a borrower who signed a contract, that isn't really a contract because it can be "modified" if it ends up being more difficult than anticipated to keep the promise to pay and on the other side you have the "Incompetent malevolence" of the lender who wants enforcement of the contract.... I'm not saying people won't default, but if the Courts are going to make "modification" an actionable process that is going to make the results of lending very unpredictable, which in turn will increase the overall costs for everyone. Lenders like predictability. They want to know exactly what will happen in the event of default. "Some things are apparent. Where government moves in, community retreats, civil society disintegrates and our ability to control our own destiny atrophies. The result is: families under siege; war in the streets; unapologetic expropriation of property; the precipitous decline of the rule of law; the rapid rise of corruption; the loss of civility and the triumph of deceit. The result is a debased, debauched culture which finds moral depravity entertaining and virtue contemptible." -- Justice Janice Rogers Brown "The United States government is the largest criminal enterprise on earth." -rduckwor | |||
|
Member |
I am not sure how to respond to this issue. In 1999 my wife and I bought a small house in Florida with the money from the sale of our first house. We paid for it in full, no mortgage. In 2004 when the housing boom started in our area we resisted the urge to buy a bigger house, we did not want a mortgage. We saw what the prices for the homes in the area were and based on the average pay in our area I knew this was going to end up bad. It did. Fast forward to when mortgage modifications were made available I was the one who felt screwed for doing the right thing. I asked my self "why did I do the right thing" why was I being screwed. Why were people who could not afford their nice big house being rewarded by being aloud to keep them. I was told when I bought my first house If I could not make the payment the bank would take it weather it was worth more or less than I paid for it. So in the end did the bank screw up, sound like it. Did the home owner who was making their mortgage payment based on the contract they signed screw up, sounds like it. There my be some members here who took advantage of the home loan modification program and I am in no way picking on you or anyone. The Second Amendment to the United States Constitution. A well regulated militia being necessary to the security of a free state, the right of the people to keep and bear arms shall not be infringed. As ratified by the States and authenticated by Thomas Jefferson, Secretary of State NRA Life Member | |||
|
| I believe in the principle of Due Process  |
Contracts can be modified. There is often a provision in the writing to spell out how to do it. The problem here isn’t modification, but that the bank kept negotiating with one hand while it kept enforcing the default with the other. There are a certain percentage of borrowers who like not making payments so dragging the modification process out while foreclosure is in abeyance suits them just fine. I‘m not informed why the modification process went awry. The loans are owned by trustees for pools of investors, with the bank a mere servicing agent, so that might be where the uncertainty and incompetence popped up. Luckily, I have enough willpower to control the driving ambition that rages within me. When you had the votes, we did things your way. Now, we have the votes and you will be doing things our way. This lesson in political reality from Lyndon B. Johnson "Some things are apparent. Where government moves in, community retreats, civil society disintegrates and our ability to control our own destiny atrophies. The result is: families under siege; war in the streets; unapologetic expropriation of property; the precipitous decline of the rule of law; the rapid rise of corruption; the loss of civility and the triumph of deceit. The result is a debased, debauched culture which finds moral depravity entertaining and virtue contemptible." - Justice Janice Rogers Brown | |||
|
| Page late and a dollar short |
A bit long response but necessary for the whole story. Up here we used to have a statewide bank called Michigan National Bank. Always had an excellent relationship with them. We changed our home mortgage to them once and remortgaged to take advantage of better rates in the mid 1990's. That company was Independence One. Independence one in the late 1990's sold the mortgage off to Norwest Bank out of Minnesota. Norwest subsequently sold the mortgage off to Wells Fargo. That was a treat. When mortgage rates fell during the early 2000's we tried to remortgage it. I was told that "we didn't owe enough" and "we needed to take cash out to make it worth their time" to write it. We had our reasons for letting the equity stay where it was. We went with another mortgage writer who agreed that he would write us if and when we found another house he got the mortgage. We agreed, and he did about six months later. Things fell into place. We were called about two weeks from the remortgage closing by W-F asking why we did not go with them. I gave them the person's name who refused to write us and told them to ask him why he was rejecting business. And yes, the guy that wrote the "not worth it" mortgage got ours and several referrals he wrote subsequently. And is still getting referrals from us. Now to Michigan National. They merged with Standard Federal S&L and became Standard Federal Bank. Each step of the way their service level went down. 2003 I went to them for a loan on my 2002 Harley. They refused to do a vehicle loan but generously offered to do a personal loan at 15.5%, sure, I'll jump right on that for a 15k purchase....Because of that they lost two auto loans within the next twelve months that we did. So Standard Federal then merges with LaSalle Bank out of Chicago. When we did the earlier mortgage we did a bridge loan. When the first home sold and we cancelled the auto draft payment we were advised to notify our financial institution so they would cancel the payment as a backup. Well, they attempted to charge me a discontinuance charge even though they could not show me where that was allowable in either my agreement or in their policies. The branch manager finally agreed to do it without a charge "as a courtesy this time only" in a condescending loud voice that was overheard by everyone in the bank. So, I drew that account with them down after changing my direct deposit and went into the branch to close it out. The person handling the closing made the remark "you have been with us for sixteen years, any reason for closing?" To which I relayed the above story together with the part of the manager's attitude that day and that if he would notice that after that incident a year before the only activity on that account was withdrawl, a direct response to that. A few years ago LaSalle sold out to Bank of America, still under that ownership today. -------------------------------------—————— ————————--Ignorance is a powerful tool if applied at the right time, even, usually, surpassing knowledge(E.J.Potter, A.K.A. The Michigan Madman) | |||
|
semi-reformed sailor |
when BOA started charging us for fees for every translation, I went into the bank and withdrew ever cent we had with them and cancelled out credit cards, then I cut them up and left them on the managers desk..he asked what the deal was and I told him. We took our savings and checking to the state employees credit union to them. I've been very happy since then (2004 ish) BOA lost our home mortgage, car note, kids car note and our normal banking Fuck 'em "Violence, naked force, has settled more issues in history than has any other factor.” Robert A. Heinlein “You may beat me, but you will never win.” sigmonkey-2020 “A single round of buckshot to the torso almost always results in an immediate change of behavior.” Chris Baker | |||
|
| His diet consists of black coffee, and sarcasm.  |
Regardless of what the homeowners' part in this - which is only speculation - BoA should not have initiated the foreclosure and eviction with the bankruptcy in progress. The time for them to call dibs was at the actual hearing. | |||
|
Member |
When I think of BoA, I think of this: https://youtu.be/AaBJHaUXvww?t=1s | |||
|
| No double standards |
I saw a cartoon years ago of an atty addressing the judge on the bench. The caption read "your honor, the $1M award will only cover my fee, the victim should get something out of this".  "Liberty lies in the hearts of men and women. When it dies there, no constitution, no law, no court can save it....While it lies there, it needs no constitution, no law, no court to save it" - Judge Learned Hand, May 1944 | |||
|
| No double standards |
Seems BofA said "oopsie", finally cut a check. I hope there some extra money in the check, after all the hassle, oopsie doesn't quite cover the damage. The wife and I have been assisting a friend to change banking for their trust. We can cross BofA off the list. "Liberty lies in the hearts of men and women. When it dies there, no constitution, no law, no court can save it....While it lies there, it needs no constitution, no law, no court to save it" - Judge Learned Hand, May 1944 | |||
|
| It's pronounced just the way it's spelled |
When I lived in S FL, BOA was the poster child for predatory lending. Add to that their policy of not requiring any state or federal ID to open an account, allowing illegals, money launderers and other criminals to open bank accounts, they are scum. | |||
|
Told cops where to go for over 29 years… |
B of A lost my business when they made it easier for illegal immigrants to open an account than it was for citizens. As for the modification issue, I went through that in 2010. Bought a house we could easily afford in 2006. Problem was that when the bubble burst in 2008 my wife’s income (who worked for a mortgage company) was cut in half and then in late 2009 she was laid off. I tried to honor my obligation, but with more than a 50% reduction in income we were struggling. Refi was not an option since the home had lost considerable value in 2 years as the housing market tumbled. We tried repeatedly to do a modification but our experience was similar to what was reported in this case - send it all in, wait, check on it be told it is in review then too much time has passed and need to send updated documents in. Then too much time has passed and file closed, have to start again. Lather, rinse, repeat. We cut expenses where we could, I sold off personal possessions, I took a second job, was working every hour of OT I could get and we were still getting deeper in financial straights each month. The pressure was now causing problems in the marriage. After 14 months chasing a modification (an exercise in pure futility), I took a step back and reassessed from a position of logic instead of emotions. We decided that we had to do what was best for us financially, and make a financial decision instead of a emotional/moral obligation one. As another poster said, it is “business” and businesses are not bound by any sense of morality - if it’s makes financial sense they will walk away from agreements and contracts as well. The decision to essentially walk away was one of the hardest ones I’d ever made. We ended up doing a “short sale” to get out from under the house. Our credit was destroyed, but we avoided further financial ruin in the long run. At the time, we were in a 6.25% mortgage with Chase bank. Had they simply modified the mortgage balance to 4.25% (which was what the rates were in 2009), and extended the loan for the 3 missed payments we probably could have kept it and rode it out. With their refusal to renegotiate or modify, the bank really made the decision for us. Late fees and higher interest was more important to them than making a change which would have brought the loan current and kept it for the original principal. In the end, the bank lost far more between us walking away and then a short sale than they would have lost by approving a modification. I can understand their position, we had a contract. What stuck in my craw was offering the “hope” of a modification when it was clear they never had any intention of considering, let alone approving one. Their business practices did much to assuage my feeling of guilt over living in the house for 8 months during that process without making any payments. The money saved with those skipped payments was a lifeline that let us fix our other financial matters and avoid further hardship. In the end, my primary obligation is to my family and while drastic, and not taken lightly - it was the only available option at the time that made any sense. Six years later and we are doing well. Looking back, I don’t think there is anyway we could have sustained where we were, it was inevitable that we would lose the house, the only real question was when and what else we would lose on the way.This message has been edited. Last edited by: 911Boss, What part of "...Shall not be infringed" don't you understand???  | |||
|
Ammoholic |
I went through the same thing with my mortgage company. Wife and I bought house on two incomes, she split after first mortgage payment. I now had to pay a mortgage meant for two on one income. I picked up a job waiting tables after work. Was working 60-70 hours a week. I rented out two rooms. I ate Ramon noodles and half price food from waiting job. I was running a negative budget for years, every unexpected expense went on a credit card. Finally a lifeline. Mortgage company called or mailed offer for modification. I applied, and applied, and applied, and applied again and again. Every time some document was missing. I spent hundreds at kinkos copying and fedexing in copies of everything, and again some crucial documentation was missing (even though they had a dozen copies of everything). I had cleared all my savings and retirement; worked two jobs; and lived with strangers for years. My loan was a five year ARM. Mortgage was getting ready to go up another grand a month. I was done financially and emotionally. Called mortgage company to call it quits. Told the rep I'd been working on refi for near three years and told him what I'd done the last five years. Told him I had enough money for first and last months rent on a crappy one bedroom apartment and I'd be leaving the keys in the mailbox. They could have it. They had just stalled themselves into owning a house that was upside down by $200,000. I guess he felt bad for me. He told me why it was always turned down, no missed payments. I stopped the monthly drafts with him. This was beginning of the month. Mortgage draft was set for tenth of the month. I received an approval letter dated on the eleventh, one day after missed payment. For five years I struggled, finally I'd be able to live a little more comfortably. Cut it down to one roommate and got a different day job that allowed me to work overtime and dropped the night job. Six years later I am one year away from being debt free and the house is back in the positive territory (barely). I watched all my friends walk away from houses or pick from the scrapheap a cheap house. I should have walked when the wife walked. I would have recovered in two years instead of eleven. In the end I now have a slightly higher than market interest rate, but the lower rates at the beginning of the modification saved me. I promised to pay them $368,000, they will get every penny of it plus interest. It saved me and kept me from walking away. It still would have made more sense to walk right off the bat financially, but pride got in the way of making smart decision. Jesse Sic Semper Tyrannis | |||
|
| 10mm is The Boom of Doom  |
A mortgage is a financial contract. And like any other contract, it is subject to the laws, courts, rules, regulations and any changes to them. It is not a covenant with God. The banks were big boys and knew (or should have known) the score. I was under water for 10 years and earlier this year while still under water. I was paying an above market rate through most of that time and could not refinance due to being upside down. I did not default nor apply for a loan modification. Not because it was wrong or unethical but due to other complications that made it inadvisable. But if I said it wasn't tempting, I'd be lying. The budget should be balanced, the Treasury should be refilled, public debt should be reduced, the arrogance of officialdom should be tempered and controlled, and the assistance to foreign lands should be curtailed lest Rome become bankrupt. People again must learn to work, instead of living on public assistance. ~ Cicero 55 BC The Dhimocrats love America like ticks love a hound. | |||
|
| Powered by Social Strata | Page 1 2 |
 | Please Wait. Your request is being processed... |
|
SIGforum.com Main Page The Lounge Bank of America to Pay $6 Million to Bankrupt Couple Evicted From Home
Main Page The Lounge Bank of America to Pay $6 Million to Bankrupt Couple Evicted From Home© SIGforum 2024