RE: Mortgage Company Claims to be based in India
Complaint
John A
Country: United States
Bank of America took over my friend's ARM mortgage from Countrywide a few years ago. Since then his interest has jumped from 6.9% to 15%. He gets frequent threatening calls from India saying his mortgage isn't governed by laws in America and his interest rate will eventually zoom up to 25% or more.
He put down 30% on his house when he purchased it.
Payments are current and rapidly increasing. Is this legit or a scam?
The callers in India say they are the mortgage company and not a call center.
He put down 30% on his house when he purchased it.
Payments are current and rapidly increasing. Is this legit or a scam?
The callers in India say they are the mortgage company and not a call center.
Comments
Bank of America in the U.S.?
"He gets frequent threatening calls from India saying his mortgage isn't governed by laws in America and his interest rate will eventually zoom up to 25% or more."
"The callers in India say they are the mortgage company and not a call center."
The mortgage is ALWAYS governed by U.S. law, in particular TILA and RESPA, regardless of where it's sold. Foreign courts have no jurisdiction. If that is what they are saying, then their statements are deceptive, and even if the rates are high, you have to ask what else they are saying is false or deceptive as well.
This has some of the markings of a possible Indian "collection" scam, attempting to intercept his payments actually owed to Bank of America, and using threats to panic him into divulging information that might allow them to take his money.
Mortgages generally require that any transfer of the mortgage to a new loan servicer, changes in payment address, or changes in impound amounts for taxes or insurance, be sent via mail. These changes would NEVER be made by phone call alone, and in fact, the mortgage terms would require that notice be sent by mail.
He should be very wary about any suspicious calls, and in particular, threats to send additional money, or make payments, in any way different that the terms of the mortgage, or payment instructions directly from Bank of America.
There are a number of India-based phone scams playing "debt collector", using access to U.S. credit reports and skip trace information, and the same tactics could be used to pretend to be his mortgage servicer, since his mortgage information is on his credit reports.
So what are they asking him to do? Are they asking him to send money to some other address different from that to which Bank of America has asked him to send his payments? Are they asking him to send extra money, "fees", or "taxes" to some other address, or by a different means, such as wire transfer (Western Union, Moneygram, etc), or credit or debit card payments?
What ARE the terms of the Countrywide ARM? Do they in fact increase to 25%, or is this Indian hype, either to scam him, or to close a refi? What are they saying he should do, because of these increasing rates?
He might want to refi out of the ARM terms, but to contact Bank of America, he should contact them here, and not to some suspicious and unverifiable Indian call center. If he has enough equity, he might also be able to refi with another bank.