We Have your payments, but we're taking your home anyways....8 MONTHS LATER

Real Estate Agent with Keller Williams Real Estate RS301772

This is one reason WHY I strongly recommend to my buyers to use smaller, locally run banks.  We have some very stable, excellent banks in Wayne and Pike County - people who know your name, who care about their community, who care about their clients.

The horror story below is just one of many more such stories - read the comments too...it will make your hair stand on end.

Original content by Larry Bettag NMLS ID# 158606

So I write this post at the end of last year.  We Received Your Payments On Time but are Foreclosing Anyway!

It was one of the better posts that I've written in that it was featured and I had a ton of comments on it.  The basic gist of the post was that:

  1. I had some clients, 

  2. who were put in a mortgage,

  3. who made payments on time,

  4. The bank acknowledged receipt of the payments in a timely fashion

  5. but they were foreclosing on the clients anyway! 

So what was the reason for the foreclosure?  Because first the bank saidDoes your lender make you feel like a casualty of war that the client didn't make their payments on time.  After spending over 6 hours on hold with 3 different times being disconnected by people with phony names (If I hear the name "Crystal" one more time I'm gonna get my singles out and go to the local strip club to look her up).  We called Crystal at extension ____ back and that extension never existed, nor did crystal.

The bank said "prove that you've made all the payments on time."  I get all of the cancelled checks that the bank had cashed for the borrower and send it to them three different times over a six week period.  In the meantime the bank says that they're proceeding with the foreclosure. 

Finally someone at the bank says, we acknowledge that you paid us and you paid us on time, but we don't know where the money is. 

HUH?????  SAY WHAT????

The bank says they got the money, but since they can't track it in their internal systems, they're proceeding with the foreclosure. 



 So now what?  I've had my clients hire a great attorney.  The attorney pushes back on big bank, but big bank relents.  Big bank says, Oh yeah....we screwed up. 



I get a call about 4 weeks later stating that Big Bank has started again.  We've gone through the entire process of showing them again that borrowers had made every payment and that we can prove it.  In the meantime, customer service says that things are OK.  They give us the number of the rep that says that once again, the clients are clear.  She gives us her "direct line."  However, when we call the "direct line" of customer service, it recognizes the social security number.  In their system, the social security number shows that the borrower is in foreclosure and REDIRECTS us to the general customer service number and we're back to another 50 minute hold.  Of course.....the rep does not exist and the new person has no clue of what we've been through and that we've shown all the proof of payments, etc.

Next thing you know is that the borrower is in the "foreclosure" line of Big Bank telephone system and we can't get through to anyone of any substance. No one knows what's gone on, what's been proven, anything!!!!


The bank is now rejecting their payments because in their system it shows that the borrowers haven't paid on time.  Are you kidding me? 

 At this point, it looks like it's a gold mine for the borrowers (who now have ruined credit because of the bank) since they'll win their suit slam dunk, but the pain and suffering have been ridiculous.  As of now, we're just waiting for our day in court.

It's a shame!!!!! 

Larry Bettag - Regional Vice President, Midwest Region

Illinois FHA Specialist


 Cherry Creek Mortgage Company - Saint Charles, Illinois 

               Equal Housing Logo

An Illinois Residential Mortgage Licensee

Follow me on:

Mortgage Myth Busters


Posted by

Homes For Sale & Local Info for Pike County, Wayne County, & Lake Wallenpaupack in Northeast PA.


Karen Rice Facebook Page Karen Rice's Tweets Karen Rice Instagram Page Karen Rice Pinterest Page Karen Rice LinkedIn Karen Rice YouTube

Karen Rice (that's me!) lists & sells in Tanglwood, Wallenpaupack Lake Estates, Hideout, Indian Rocks, Masthope, Fawn Lake, Tink Wig, Woodland Hills, Walker Lake, Hemlock Farms, & more in Pike & Wayne County.

Comments (0)