Misapplied mortgage payment

ComplaintsBanksBank of America

Complaint

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Lyvonne Rustemis
Country: United States
Beginning in Jan.2011 BOA misapplied my mortgage payment and placed it in Escrow. I send my payments via on line through my personal bank a week to 10 days early so that payment can arrive on time. I'm told I am sending it too early and throwing their system off. However,the bank has misapplied my payments and sends me a statement each month indicating I am late and attach a late fee. I go through numerous departments including speaking with Managers and Supervisors assuring me the problem will be corrected within 24-48 hours. Here it is May and I still am in dispute with the bank and nothing is resolved and no one seems to know what they are doing. I am told to call back 3-5 days and check my status....... surprise the issue has yet to be corrected. I have contacted the State Bank Commissioner in Dover to investigate the problem and informed BOA I plan to go to the Media and provide everyone's name and ID# that I have spoken with. I have never dealt with such incompidant people in my life. Does anyone know where I go from here?

Comments

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  • 0
    Katherine Trent
    | 2 replies
    I had no idea that so many other people were having this problem. We bought our home in 2000, and never made a single late payment with Countrywide. Shortly after Bank of America took over, our payment amounts started changing. I paid the increased amount because they said it was an escrow change. In Fall 2009 they switched us to online billing. By then I had gotten used to a monthly amount, which I paid faithfully on the due date. In September 2010 we got a foreclosure notice, saying that we'd missed 2 payments and they were starting foreclosure proceedings. I called them immediately to tell them they had the wrong customer, I hadn't missed a single payment. They immediately stated that my payments were being applied to my escrow account because of a deficiency in it, and that I had to pay $4000 to keep my house from going into foreclosure. We borrowed against our savings and paid it. Then they started returning my payments, and every month my payment amount would change. Each time I mailed them money they'd mail it back and say we paid the wrong amount. I couldn't believe it. I spent HOURS on the phone, and ended up jeopardizing my job and marriage because I was under so much stress worrying they would take our home (that we built- years of sweat and tears.) Finally after fighting them for a year and a half, I couldn't take it anymore. By then I had lost my job and was in marriage counseling. We sold the (five bedroom, 3000 + sq ft) house and are still trying to put the pieces back together. We bought a 3 bedroom, 1400 sq ft doublewide to raise our family of 6 in. Please, if you're reading this and are  in a position to do something about it, please do. We did try to get a HAMP, which they jerked us around for 6 months and never completed, that's when we decided to sell. I'm now in law school...whatever is going on needs to be addressed, they turned our life upside down.
    • 0
      tj replies to Katherine Trent
      They may find they made a very expensive mistake.
    • +1
      Mary Ann replies to Katherine Trent
      You should have filed formal complaints with your congressional reps, both state and your attorney general's office. Also a formal complaint with the office of the comptroller of the currency. Glad you are in law school. No justice no peace!
  • 0
    marc P
    I have been with Bank of America for 20 years and have had no problems. I love how friendly everyone in the branch is and how much they are willing to help me with a problem. I think most of the problems above have been as a result of Country Wide mortgage. They should get rid of CW and start over.
  • 0
    KK
    Yes, and more yes.  Misapplied payments! We bought our home in January 2011. Everything was fine, so we thought.  We'd made our payments as promised on both our house and a rental property we owned.  Turns out for three months they'd taken the larger payment (our personal home) and the smaller payment and applied it to the rental home payment.  They refused to fix it and began sending foreclosure notices.  I actually know my way around the mortgage business having been CEO of a mortgage company for several years and working in banking and lending for fifteen years.  They actually told me that once the payment was applied to the wrong area they couldn't "back it out and apply it to the correct area". I was paying both mortgages from my bank's bill pay feature so it is all documented,  dated,  and has correct loan numbers on each check.  Long story short,  they did this all total five times.  They refused to fix it,  and eventually caused us to sink into debt that we are still drowning in.  We had to declare bankruptcy to receive the court's protection. Up until Bank of America bought our mortgage we had 800 credit scores and more equity in our homes than we owed.  If the problem had been ours we had the means and legal know how to take care of it. The way they did it,  we had no clue until it was too late. By that time or credit was ruined.  My husband is a decorated 20+yr army vet who retired when we bought this home.  He's had to take a very dangerous job overseas just so we can make it out of this mess.  This will be his second year over there and it's killing our family. I've seen banks do lots of shady things over the years but Bank of America takes the cake.  It's such obvious fraud knowing what I know I do not understand why there aren't loads of b of a employees sitting in jail.   My advice is contact your state banking department,  state attorney generals office,  state Bar association,  and department of treasury. Don't just complain,  make your complaint mean something.  Keep searching for class action lawsuits to sign on to or talk to a lawyer about starting your own.  These people not only ruined us financially, but they have my husband's blood on their hands. He did his duty to his country,  to have to go back to a warzone  because Bank of America screwed us and started a debt @!#* storm is unconscionable.  If there is a hell I hope Bank of America employees have a special section cleared out just for them.
  • 0
    Terry H
    Have been informed by BOA that I am two months behind.  I am paid up.  Was told they had applied my Oct 2013 payment to my Aug 2013 payment and I already PAID my Aug 2013 payment. Then, their payment history shows a due date change in July 2013.  I received a statement in Aug stating my next payment wasn't due until Oct 2013.  I paid accordingly.  Now I have an amount which is not yet applied as a payment as they are telling me it's not a full payment.  I never made less than the payment amount I was required to make.  So how are these funds unapplied. I continue to receive threatening notices to take action before I am foreclosed. My Payments are UP TO DATE!!!  Where do I turn????  I get no where with them on the phone.  Frustrated in PA.
  • 0
    BOAFraud
    If you're in or close to foreclose, watch your escrow analysis. BOA is making a mistake in the amount due. This small "mistake" will cause your monthly payment to increase or cause a shortage to allow them to take your regular monthly payment and use it for the shortage causing you to fall behind, delinquent... Take your home! Add the columns they do not equal the total listed as due. This is usually a small (pennies) amount, but no matter is enough to "short escrow" by creative accounting. CROOKS who prey on the most vulnerable, they all belong in JAIL! Outsmart them, use this knowledge to put a stop to it by paying the correct escrow amount actually due. Even better pay a miniscule few dollars Xtra for the next trick they have, upping home insurance by exorbitant amounts to again short the escrow. You can get your own insurance company while maintaining the escrow requirement for some loan holders. Pay the CORRECT escrow amount due plus a few dollars for cushion.  Good luck!
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