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Servicing Problems at Bank of America--Someone needs to be listening a lot better

By
Services for Real Estate Pros with Topkins & Bevans-etopkins@topbev.com

The lead story in yesterday's Sunday Business Section of the New York TIMES focused on Brian Moynihan, the CEO of Bank of America ("Batting Cleanup at Bank of America", written by Nelson D. Schwartz). The article presents a fair picture of the problems Mr. Moynihan is facing and commends his sincere efforts to straighten out many issues at Bank of America, including credit card abuses by the Bank

As a counterpoint, however, Mr. Schwartz,  points out  "if Mr. Moynihan can't get a handle on the foreclosure furor and restore the company's reputation as a fair-minded lender, his wins will continue to be drowned out" I heartily agree.

In connection with representing clients who are behind in their mortgages (1 in 10 of the 14 million Bank of America mortgages is "past due"), I, a Massachusetts real estate attorney with over 42 years of experience in the field, have encountered either insouciance or ignorance in trying to help my Bank of America cusotmers.

Put aside all of the procedural errors which have been made by over-zealous foreclosure mills that have caused Bank of America no end of terrible publicity. Bank of America is by far the worst of all Lenders with whom I have worked in sincerely trying to work with troubled Borrowers who have fallen behind.

Most of the Borrowers I represent were perfectly qualified for their mortgages when they took them out. Circumstances after their purchase or refinance changed. They lost their job; there was a serious illness in the family or a divorce. They fell behind, and they could not then pay.

Now, many of the people I represent are back working or are healthy. They want to get back on track, maybe even able to resume the same amount of payments they were making before their problems. Bank of America is the leader in turning a deaf ear to offers to start making current payments, and develop a solution for the arrearages at a later point. Other lenders have seen the wisdom in this approach, not Bank of America.

I hope there is some person or person at Bank of America who tracks articles or posts about the Bank. Maybe someone will want to speak with me who is sypathetic and has a brain. So far, I have not experienced a relationship with that person. It is really an American Tragedy.

Andrea Swiedler
Berkshire Hathaway HomeServices New England Properties - New Milford, CT
Realtor, Southern Litchfield County CT

Good morning Elliott, It is a crime, at least in my humble opinion. I don't understand how these lenders can continue, they have to know what a negative reputation they have. Somethink akin to Mr. Potter in the movie "It's a Wonderful Life". However they don't seem to care. And this is not a movie, this is a real life crisis we are facing, it affects all of us in one way or another.

Perhaps the CEO of BOfA will have a visit by three ghosts this holiday season.

Dec 12, 2010 10:08 PM
James Dray
Fathom Realty - Bentonville, AR

Been dealing with them for years and nothing has changed

Dec 12, 2010 10:09 PM
Dan Edward Phillips
Dan Edward Phillips, Humboldt and Del Norte Counties, CA - Eureka, CA
Humboldt and Del Norte Counties, CA

Good Morninf Elliott, thank you for sharing your experience with B of A and your thoughts.

Dec 12, 2010 10:25 PM
Elliott S. Topkins
Topkins & Bevans-etopkins@topbev.com - Boston, MA
Massachusetts Real Estate and Title Atty

Andrea--You don't sleep much, either. I am so fed up with B of A, on all levels, not the least of which is their retention policy on checks I deposit for clients after sales. I may write a post about hat soon, too.

Happy and Safe Holidays for you and yours. Let's make it a 2011 resolution for us to meet in person next year.

Elliott

Dec 12, 2010 10:29 PM
Mike Carlier
Lakeville, MN
More opinions than you want to hear about.

You have to give BofA credit for non-discrimination.  They treat everyone equally rotten.

Dec 13, 2010 06:52 AM
David Cahill
Century 21 Cahill Associates - Boston, MA

Elliott,

You are SO right!  B of A has the WORST rep when it comes to short sales.  I really hope that they clean up their act.  I had a deal die last year because my buyers were so frustrated with how long it was taking to get an answer out of them, they walked.

David in Boston

Dec 14, 2010 10:39 AM
Larry Lawfer
YourStories Realty Group - Newton, MA
"I listen for a living." It's all about you.

Another excellent blog, Elliott.  My experinces with BofA are similar to what you write.  The bank has no way to provide a one stop shop place to get information.  When you call in about one issue they inevitably send you to some other group who in turn says that the issue you are talking about is controlled by another group.  I have a client who went through the modfication process and got their final modification with the back insurance, taxes and other costs added on.  When we tried to get a break down of what went where because the amount was well beyond the costs the client was aware of, the bank has, in 7 months not been able to send us any information.

Personally I look at this as an opportunity for local banks making a comeback.

Dec 20, 2010 03:01 AM
Fernando Herboso - Associate Broker MD, & VA
Maxus Realty Group of Samson Properties - Clarksburg, MD
301-246-0001 Serving Maryland, DC and Northern VA

I had to look it up. .

insouciance: the quality of being insouciant; lack of care or concern;indifference  

 

it feels perfect to describe B of A 

Dec 20, 2010 09:58 PM