Discrimination Against Social Security recipients

ComplaintsBanksBank of America

Complaint

0
Patricia Butler
Country: United States
June 6, 2009

Loan #:  002235702
518 S. Indiana St
Porterville, CA 93257


Social Security benefits are not considered income?  What!?

My name is Patricia Butler.  Recently, I have been trying to help my disabled husband get a  loan modification that our government speaks so highly of.   The lender on his mortgage was Countrywide, who as we all know was just taken over by Bank of America.

I have talked to Bank of America six times to get his loan modification done.  The first five times, I was lied to,  asked how much loose cash I had and just pretty much given a runaround.  I figure that they just wanted to let my husband’s home be sold to add to their coffers.  Not once during the first five phone calls to them did they even attempt to help me.  Four of the five times, I was told they would send me paperwork to fill out, I tried to explain to them that the home was being placed for sale by HUD, so I was on a timeline to get this worked out.  Today, 10 - 15 days later, I have still received no paperwork.

I decided to give a phone call to Bank of America one more try.  This time I got hold of a woman named Mary, who actually seemed to care.  I explained that my husband is very ill with end stage renal disease and total kidney failure as well as several other things.  I also explained that the sale of his home and forced move would likely kill him.  Once more I gave Bank of America the information they need to modify the loan on my  husband’s home.  After taking the information, Mary told me that there is a problem because Bank of America does not consider Social Security as income.  Say What!!!!!!?????

My husband has worked his entire life and paid into the system.  He has drawn Social Security about 7 years.  This is the  first that we have been told that it is not considered income.  So why does he pay federal income tax on it?  Needless to say, I am appalled at this holier than thou attitude  that Bank of America has regarding our retired and disabled citizens.

How many more class action suits are going to be brought against Bank of America for their shady practices?  It seems that a discrimination  lawsuit should be next.  This is the same Bank that received how much in bailout money?  Oh yeah, it was 15 billion dollars according to USA today.  And then, according the CNN Money, another 20 billion in cash and 118 billion in assets to take over Merrill Lynch.

What is wrong with this picture?  How much longer will the government allow Bank of America to do this to its citizens?  Where are you, Mr. Obama?  Where are you Mr. Schwarzenegger?  Where are you Mr. Geithner?  Where are you Mr. Donovan?   Don’t you think it is time to look into Bank of America and put a stop to their disrespect of American taxpayers?  Bank of America doesn’t give a damn about anything but the money.  I will fight to the end to keep my husband in his home.  I demand your help and I demand it now!!


Sincerely,

Patricia Butler

Comments

  • 0
    tj
    Social security is income, which may or may not be taxable depending on your other income levels, but there are prohibitions on garnishing this and other similar sources.  Banks are not likely to consider it the same as wage or investment income since they can't get access to it if, for example, you failed to make payments on a loan.  

    In addition, if your husband dies, your SS income may drop.  Separate from what the bank is looking for and will accept in doing a loan, you need to look at what your financial situation is based on your own assessment of your present and future income and expenses.

    Banks are generally looking at both the income stream that will pay off the loan, and the security (the house value) that will protect them if for whatever reason the loan payments are not made.  If the security (equity) is marginal, some of the government programs may provide some additional leeway in loan to value, but only up to a point.

    You are in a very difficult situation.  It is not clear whether a loan adjustment can be done in this case, and although there has been much hyping of programs to adjust loans, they appear to be delivering much less than promised.  You might be able to do a reverse mortgage, but you would want to be sure that would leave you better off than the alternatives, which I assume are continue to pay on the existing loan (which may have reset, etc.), or selling the house if you can to preserve the value of your equity.

    Seek good advise you can trust, and beware of those who might claim they can solve your problem, but are out to rip you off on your way down.

    Good luck.

    Note:  I am NOT a financial advisor, mortgage broker, attorney, accountant, or any similar professional.  The above are simply my unprofessional observations.
  • 0
    Robin Pettus
    I have a lot to say on this issue about what has happened to me but I'm so frustrated as to put it all down. I have been trying to get a loan modification for over 6 months. I am currently on SSI and SSA and they keep putting me off or requiring more docs that I have continuously sent in.  Come to find out, I was told today i couldn't fax any docs in that I have to mail them. Every time I call them I am redirected to many different people who are giving false information.  How do we get help. I was told while I was in review of the modification, all collections would stop and I received a intent to accelerate into foreclosure unless I pay the remaining balance. I have had two nervous breakdowns since all of this has happened and it seems easier for me to walk away or do a quick sale.  But I am going to a lawyer first to discuss discrimination and I believe I could prove it because I have everything documented, and recorded phone calls.  BOA also does not send out correspondence on cases, they will just close them. I called in one day and was told it was still under review, I called in two days later and was told that the case was closed bec I didn't send in required docs which were requested the day after I made the first call (a day before I was told the case was closed)...  WHAT CAN WE DO....
  • 0
    HUD
    http://portal.hud.gov/hudportal/HUD?src=/topics/housing_discrimination

    The above link is to file a complain for discrimination.

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