BAC mortgage screwed me up

Archived From: Finance
  • Page :
  • 1
  • Text Only
Voting History
rated:
I had taken mortgage through BAC a little more than 2 years ago. I setup auto withdrawals from my checking account. Last year, they lost my paperwork and sent someone over to my house in early November 2012 to get the paper work signed up again. We signed it and returned it back to BAC. I had an inkling that they may screw up my auto-payments so I watched them withdraw in November and December 2012. I thought - wow! finally a bank that has its systems working. I watched it for 2 months and let my guard down. Big mistake!! They did not withdraw in January and February. I did not suspect anything. Now I get a letter in mail saying I am late for 2 payments and the matter has been sent over to their collection department. When I go to their website to make a payment (I have the money), I am asked to provide reasons for not paying. Of course, all the reason hold me responsible for this. Tomorrow morning, I am going to call their customer service department and see how I can salvage the situation.

I want to reach out to people who have been through a similar situation and any outcomes/tips they can share. Especially, the impact on credit score and how that impact can be avoided, if at all. TIA.

Member Summary
Thanks for visiting FatWallet.com. Join for free to remove this ad.

You really didn't notice 2 mortgage payments not being deducted from your checking account?

Like I said, I just let my guard down. There are a ton of auto payments in my checking account and it works so I give it a cursory look once a month to make sure that there are no unknown withdrawals.

I recommend you read the terms and conditions associated with your auto withdrawal set up. For example, I don't know if you used BoA's bill pay system or if you set this up from your BAC mortgage. Did the new paperwork you signed change anything about the mortgage itself, such as account number? That seems unlikely. Did your auto-pay setup have sort of expiration date, such as the end of the year?

You need to assemble all the information you can so you can frame your argument properly, even if it amounts to begging. Good luck.

Why would you sign up the paperwork again? If they lost it, it is their problem.


I am not saying to be mean, but what are the chances that while you sign the paperwork again, they might change something.

If you have the copy of all the paperwork yourself, you can offer them to make photocopies, but you should not just agree to re-sign the paperwork. Sounds very irresponsible.

If you were to play tough and mean, you could: (A) not sign the paperwork, and (B) stop paying the mortgage. Without mortgage paperwork, there is no evidence that you owe them anything. That will teach them a lesson.

Since they lost the paperwork, technically, I could have played them around. However, I am an honest guy. However, this is how I get rewarded! I am now potentially going to take a ding on my credit history because I chose to do the right thing and sign the paper work they lost.

chambu said:   Since they lost the paperwork, technically, I could have played them around. However, I am an honest guy. However, this is how I get rewarded! I am now potentially going to take a ding on my credit history because I chose to do the right thing and sign the paper work they lost.No good deed goes unpunished.

Looks like BAC did not screw me (directly) after all. Statefarm, my checking bank did. I setup autopay through statefarm where it receives the bill from BAC directly and does 'efile'. I see a copy of my mortgage bill from BAC in my statefarm account. It is setup to automatically pay 100% 10 days prior to when the last date of payment on the bill. It seems that statefarm did not receive the bill in January at all. It received the bill for the month of February but because it did not receive it in the month of January, it did autopay in February!!! I had to 'file' the bill in statefarm account.

Basically, I can't blame BAC alone for this screw up though I need to understand why they did not send the bill in January. I did see the bill from February in my Statefarm account.

I have gone ahead and paid for the last two months and will follow up with both banks to see how this situation can be salvaged if at all.

"Set and forget" is the worst bill-paying strategy ever.

Personally, I don't let a single vendor auto-debit from my checking accounts. Even if I did though, I would make a point of verifying that everyone got paid every month, especially the mortgage. Chambu - there's no blame to go around on this one. This is all on you.

Never trust automated payments for something important. /thread

dcwilbur said:   "Set and forget" is the worst bill-paying strategy ever.

Personally, I don't let a single vendor auto-debit from my checking accounts. Even if I did though, I would make a point of verifying that everyone got paid every month, especially the mortgage. Chambu - there's no blame to go around on this one. This is all on you.

It's a moot point in this case, but if the auto payment were set up with the vendor and the vendor failed to pull the payment, then IMO it should be the responsibility of the vendor to refund any late fee and to remove any bad credit report information -- unless the terms and conditions indicate otherwise. I agree that it's best practice to confirm a payment actually took place, auto payment or no.

I'm refinancing through BAC and I'm not impressed - I've had to fax the same insurance info 3 different times.

Regarding your billpay situation, you are putting all your eggs in one basket (Statefarm) and that isn't wise.

Like dcwilbur - I don't let anyone auto-debit from my account.

I use the billers (mortgage, credit card, cable, phone, etc) website to pay through.

While it is technically more "work", and more logins/passwords - it is safer and better for a few reasons:

1) You have proof, usually a confirmation #, that you paid.

2) You are immediately aware of price increases. (Happens with Mortgages too - at least for me - because of local taxes changing escrow amnt).

3) Better use of float time - a number of the vendors I pay allow you to pay on the day it is due and they don't take it out until the next business day - and when that falls on a Friday usually the money doesn't get taken out of my account until Tuesday.

I too have a lot of auto payments - what you need to do is keep a ledger - make sure you write out, every month, all your deductions and additions and reconcile with your bank account, otherwise, you're setting yourself up for a lot of problems down the road.

chambu said:   ...I have gone ahead and paid for the last two months and will follow up with both banks to see how this situation can be salvaged if at all.You keep making mistakes one after another. Why the hell would you pay BEFORE figuring out what went wrong and how to fix it without reprecussions?

You should have asked BAC (and gotten the approval in writing) to ensure there's no impact on your credit once the payment was made. It doesn't matter that it's not their fault. Now that you've paid, they don't have to do anything for you.

scripta said:   chambu said:   ...I have gone ahead and paid for the last two months and will follow up with both banks to see how this situation can be salvaged if at all.You keep making mistakes one after another. Why the hell would you pay BEFORE figuring out what went wrong and how to fix it without reprecussions?

You should have asked BAC (and gotten the approval in writing) to ensure there's no impact on your credit once the payment was made. It doesn't matter that it's not their fault. Now that you've paid, they don't have to do anything for you.

This isn't quite the same as unsecured debt, such as credit card balances. Unless OP is willing to risk losing his house, he doesn't have any financial leverage that I can see.

dcwilbur said:   "Set and forget" is the worst bill-paying strategy ever.

Personally, I don't let a single vendor auto-debit from my checking accounts. Even if I did though, I would make a point of verifying that everyone got paid every month, especially the mortgage. Chambu - there's no blame to go around on this one. This is all on you.
\

I agree with you on blame, but I think you're 100% wrong on vendor auto-debit. OP's situation, as I read it, is because he *didn't* have the vendor (BAC) auto-debit his checking account. Instead, he relied on his bank's billpay system. If he had had BAC auto-debit the amount, then he'd be fine. If BAC didn't make the auto-debit for some reason, then OP could pound on them alone, and I 99.9% guarantee it would be resolved in his favor. By doing billpay through his bank, he's added a third party, which just sets up the situation for finger-pointing.

The only thing I use billpay for is for voluntary payments, mainly charitable contributions. I will sometimes use billpay to prepay a credit card down to zero before the statement date, but that's always backstopped by a "pay statement balance in full" set up from the credit card vendor's site to draw the payment from my checking account on its due date the next month. I think vendor pulls are the way to go.

Chris.

I wouldn't be so sure with BAC: I was in a similar situation: I used the auto bill pay from my bank. They mailed teh check and BAC couldn't find it. I went to BAC payment research and had a phone conference with them and my bank. They ask my bank to re-issue the check. Next day they find the check. A few days later it bounces (remember they ask for re-issuing) and they assess me a $25 for a bounced check. I go again through payment research to make them find the new check. I call them and they promise to waive the $25. Next month they send me a statement asking again for the $25.

If you Google them the only thing working is complaints at the Consumer Protection Bureau, state regulator, and then cc all that letters to the VP at BAC. I am on the fence to go through that hassle for $25 but the OP might like to explore that. Also when making requests to BAC always send them with a delivery confirmation - no phone calls (I still owe them $25 for a problem they fabricated themselves).

From another thread:

glxpass said:   If you've been a BoA customer for a number of years and have had a perfect payment record up to now, it's time to try to leverage that information with BoA,. Cite your history with BoA, take responsibility for the error and explain the circumstances under which it occurred, emphasizing that you made the payment as soon as you realized that it hadn't been previously paid.

I'd try the office of the president. The number seems to be: 1-704-386-5687.

http://www.loansafe.org/forum/bank-america-home-loans/15034-offi...


ETA: While the situation in the other thread is different, the contact information might be helpful.



Disclaimer: By providing links to other sites, FatWallet.com does not guarantee, approve or endorse the information or products available at these sites, nor does a link indicate any association with or endorsement by the linked site to FatWallet.com.

Thanks for visiting FatWallet.com. Join for free to remove this ad.

TRUSTe online privacy certification

While FatWallet makes every effort to post correct information, offers are subject to change without notice.
Some exclusions may apply based upon merchant policies.
© 1999-2014