Misapplied mortgage payment

ComplaintsBanksBank of America

Complaint

0
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 incompetent people in my life. Does anyone know where I go from here?

Comments

  • 0
    tj
    Do not limit your disputes to phone contacts.  Always follow up with a written dispute of any errors, and when you are dealing with any company operating in an unreliable fashion, send that written dispute via certified mail, which provides both proof of when you sent it, and when the Post Office delivered it.

    In this case, you are dealing with a mortgage dispute, so it is covered by RESPA.  
    http://portal.hud.gov/hudportal/HUD?src=/prog ... ra/res/respa_hm

    Check your loan documents, and it should tell you how to file a RESPA dispute, in writing, and to what BofA address to send it.  Your mortgage statements should also indicate where to send RESPA disputes.

    Your mortgage holder is required to respond in writing to RESPA disputes within a specific period of time.  If you have problems getting a written response from BofA, you can file complaints with HUD, and with OCC, with your written disputes, backed up by certified receipts, to substantiate your dispute.

    Dispute the incorrect application all your payments that were not correctly applied toward your balance, your current incorrect loan balance, your improper late fees, and any other incorrect fees and interest.  You want not only all payments correctly applied, but any negative credit reporting removed.
  • 0
    tj
    At this point, after months of problems, you might in addition, contact a local TV or newspaper consumer reporter.  Sometimes they can get attention focussed on your problem through inquiries to upper management faster than normal channels.

    Do not, however, fail to send a RESPA dispute, as that is your basis for  getting this mess completely cleaned up.
  • 0
    Momo
    I have the same problem, I paid my January payment a little early and they applied the whole payment to the principle. At the end of January, I received a letter saying my payment is in default. After numerous phone calls, they finally got it together, but I just discovered that a late fee has been applied to my January payment. And my only mistake was to make the payment early.

    My mortgage was originally with country wide, and I had never had any trouble with them. The level of incompetence at BOA is beyond belief, I honestly feel bad for people buying BOA stock, because it feels like a train wreck waiting to happen. They have been in the mortgage business for how long now? And they have yet to get it together.

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