I have a client that had his pay cut in half in October. He got behind on his mortgage, and slipped into foreclosure. So here is the deal. I can't imagine a private lender in North Texas making this decision. But big bad Bank of America has FHA insurance, so they don't really care!
As of February 20th, my client got six months behind. Not six straight, just six that were rolling 30. On February 25th he mailed a payment of $1,600. Apparently the mortgage company sent the property to the foreclosure attorney's on February 26th. The representative he talked to told him to send that payment, and an extra one in March. Here is the crazy part of it:
Clients past due balance: $9,320
Minus the Payment sent: $1,600
Amount due: $7,720
Amount client has to pay: $3,200
Here is the kicker: The big bank says the client has to pay the entire balance. They will not accept what he has to pay, and even state that they MIGHT send back the $1,600 he sent in. They said that is “under review”!
Then, they tell me the absolute best part!
This is an FHA loan. We can't accept reinstatement agreements on those. If it were a different loan, we could work something out.
I will translate: We have government insurance on this loan, and have no incentive to accept anything less than all of it.
I can't imagine any business man/woman in America turning down $3,200, and sending $1,600 back to someone that is trying to make good on their commitment.
This is absolutely ridiculous. The bottom line is, our government “insurance” allows these mega corporations to act with no consideration for better business, because if they screw the taxpayer, the taxpayer still has to pay them to do it!
Send this to someone, and let them know how backwards the mortgage companies have become!
By the way, that is just the way I see it!