Incident = In February 2010 I contacted my mortgage lender Bank of America about their Making Homes Affordable Program in which I was solicited via the Internet. I did call and inquire but was told I did not qualify. About 6 weeks later I receive a FED-EX package about the program. I called Bank of America and was told the documents were sent by mistake and to "toss them in the trash." That is exactly what I did.
On June 4, 2010 I noticed that $199.16 was missing out of my checking account. After looking through my bank statement my fixed rate mortgage had jumped from $424.17 to $523.75 in May of 2010.
I contacted Bank of America and was told "this is your new payment as we opened an escrow account to pay your property taxes and insurance for the Making Homes Affordable Program. I explained to 7 people over a 2 hour time period that I was not eligible for the program, never signed any documents nor submitted an application and have paid my own taxes and insurance outside of the loan since I first purchased the property.
The bank did admit that I did not qualify for the program but the escrow account had been set up and it could "never be terminated." "You will have to just live with it Mr Russell the rep explained." I told her my taxes are $199 a year and my yearly insurance is $250 but your withholding almost 1, 200 a year? Response: "well at the end of the 27 years we will refund you the difference". I then informed her that Bank of America fraudulently changed the terms and conditions of my loan without permission, my knowledge, or any signed documents. Response we do this all the time its perfectly legal for us to withhold for your taxes and Insurance. I stated my taxes are paid to date and so is my insurance, you cant legally raise my mortgage!
I explained to the representative that I may not even be able to pay my mortgage next month as Bank of America has funneled out $199.16 out of my checking account due to the "increase in my mortgage." Well Mr. Russell if you don't pay your mortgage, we will simply have to foreclose on you and have the Sheriff remove you." I explained to her I have a limited amount of money and pay my property taxes each year with a small bonus check I receive from work, my insurance is paid in small increments monthly and I cant afford a $100 monthly increase in my mortgage. The representative then hung up.
I called Bank of America back and basically was told pretty much the same thing after speaking with 4 more people and a supervisor. The supervisor informed me that he could "try to opt me out of the program"(could take months) you know the program I did not qualify for, and never returned any documents or applications I stated. He said yes sir that one. I demanded my $199 back (1/2 of next months mortgage payment) that Bank of America had fraudulently removed from my bank account via auto-pay. The authorization was only for $424.17 a month not $523.75 Response: its not possible Mr. Russell. Because of Bank of America fraudulently increasing my mortgage and illegally withdrawing more than agreed upon I'm sure I will have overdraft fees as I only have $9.00 left in my account.
It is quite apparent that Bank of America is committing blatant fraud in order to account for the TARP money they have received. If you are wondering why their numbers have increased by 70% in one month, allegedly enrolling more people in the Making Homes Affordable Program? This is how their doing it. I no doubt will loose my home as I will never be able to catch up or pay the higher unlawful increase in my mortgage. Mortgage loan # 870986174 Did I mention my taxes, insurance, and loan payments have never been late! I will now loose my home just for inquiring about the Making Homes Affordable program!
Product or Service Mentioned: Bank Of America Mortgage.
Monetary Loss: $70.