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Bank of America - Need help with late payment reversal

Discussion in 'BBS Hangout' started by clutch citizen, Oct 14, 2013.

  1. clutch citizen

    clutch citizen Contributing Member

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    So here's the story:

    We're building a new home that was supposed to be finished this month. We've been told that the closing date has been delayed for a second time, and they hope to have is moved in by Christmas.

    We applied for a loan and got approved based on the first delayed closing date in November. Well the approval was only good for 90 days max. We had a 60 day lock and a max 30 day extension.

    Here's the problem:
    My wife has limited credit history but makes good money. The only credit she has is a Bank of America credit card, her car, and our recently-sold-home mortgage. We had a miscarriage back in February, and she forgot to make her credit card payment. The mortgage helped her score a bit and covered that late payment a bit.

    When the lender re-pulled our credit score to reapply for our new mortgage, the mortgage was gone because we just sold our house. So the late payment had a bigger negative impact on her score. This caused us to fall below a certain threshold to finance 95%.

    My wife called BoA to try and get the late payment reversed out of good will on Friday. All sounded positive and even the rep said she doesn't see why it would not get approved. Today, we found out that she was rejected.

    We're pregnant with our first child due in January. I'm hoping someone here works a Bank of America or knows someone that can help us get that late payment removed so we won't be so burdened with penalties from one late payment that happened due to a distracting situation. It was my fault that I didn't think about all finances during that tough time, I just don't want my wife to feel guilty. Her payment before and ever since the late payment have been on time 100%. My credit score is great but only the lowest score is used in mortgage apps. Any help would be much appreciated.
     
  2. bobrek

    bobrek Politics belong in the D & D

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    Did you write a letter to the mortgage company explaining the problem? Generally, if you have a reasonable explanation for a late payment and it is not habitual, they tend to give you a pass.
     
  3. clutch citizen

    clutch citizen Contributing Member

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    We called them instead of writing since time isn't on our side with closing on the new house. My wife called Friday, and they sounded optimistic. She called BoA back today and found out that it was rejected. We explained the reason why she forgot (miscarriage) and that the payments before and after the late payment have been on time and in full. Even the old mortgage was with BoA and no payment was late. But to no avail
     
  4. el gnomo

    el gnomo Member

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    Instead of calling, I'd try going in to an actual branch and pleading your case. It's a lot easier to reject someone over the phone rather than to their face, especially with your circumstances. What do you have to lose?
     
  5. clutch citizen

    clutch citizen Contributing Member

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    We're going to try this as well during our lunch hour. We tried going today, but their locations are closed for Columbus Day.
     
  6. bobrek

    bobrek Politics belong in the D & D

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    I was talking about calling your mortgage company, not BoA (unless BoA is the mortgage company as well).
     
  7. clutch citizen

    clutch citizen Contributing Member

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    Sorry about that. I sped read your post on my phone. Yeah I've tried talking to them first. They said it was a Fannie Mae requirement to have scores and apps in a absolute maximum 90 day validity. Usually it's 60.
     
  8. rimrocker

    rimrocker Contributing Member

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    Bank of America is freaking Satan. Emotional appeals and appeals based on length of service, etc, usually do nothing. They are the epitome of corporate evil in modern America. Too big and too callous.

    Credit agencies are freaking Satan. Emotional appeals and appeals based on error of reporting etc, usually do nothing. They are the epitome of corporate evil in modern America. Too much money and they don't care about you because you're not a customer.

    This is the world we've allowed to come into existence. I wish you the best of luck, but am pessimistic based on my history (and the history of my foreclosed upon former neighbors). Always remember, never get wedded to a house (or car or other major purchase). Be willing to walk away, even at a loss if it is the best option.
     
  9. bobrek

    bobrek Politics belong in the D & D

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    Have you asked your builder for some help/guidance?
     
  10. clutch citizen

    clutch citizen Contributing Member

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    Tried them as well. They are offering no help since I decided to use another mortgage company other than their in-house. We can still cover the new loan parameters, but with our first child on the way in January, we would be in bad shape financially afterwards.

    I almost feel like the builder delayed their closing on purpose because I didn't choose their mortgage company. Friends and family tell us to keep trying even though we've been denied our goodwill adjustment. Reps won't let us get through to the decision makers or supervisors on the phone. Just have to keep trying until someone kindly lets us through.
     
  11. TL

    TL Contributing Member

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    Why don't you try to apply for a loan with the builders mortgage guy? They may have the same underwriting standards, but it should be worth a shot
     
  12. clutch citizen

    clutch citizen Contributing Member

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    They told me that it would be the same as well. Apparently, the Fannie Mae threshold is truly standard across the board. The builder's mortgage actually requires more downpayment and is a full point higher in interest rate. The best they could do is match my current lender.
     
  13. bobrek

    bobrek Politics belong in the D & D

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    Can you try a conventional loan?
     
  14. clutch citizen

    clutch citizen Contributing Member

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    These are conventional loans. The amount over qualified for FHA
     
  15. TL

    TL Contributing Member

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    Can you work with the builder to close on the house prior to it being 100% ready for occupancy? As long as you have a trustworthy builder who will complete the work (or make a side contract requiring him to) and the house is ready enough to finalize the appraisal, you should be able to close before it is done. It may also depend on your builders ability to get a certificate of occupancy before it being done.

    If you close early, the builder should pay your mortgage for a month (or at least the interest and tax portion).

    Are the unfinished items cosmetic or meaningful?
     
  16. clutch citizen

    clutch citizen Contributing Member

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    It's down to a couple frame issues around double studded areas. I'll post the full export here when I get home for more clarification
     
  17. clutch citizen

    clutch citizen Contributing Member

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    Just wanted to give an update. My wife called BoA last night to check on the status of her request, and the first rep said they saw a letter was sent and expected to arrive in 7-10 business days. Due to our pressing time issues, she asked if the rep could see a decision at all. All the re could see was that "Service adjustment has been made, letter sent." Don't want to get our hopes up so we wanted to confirm approval. Rep wouldn't budge on confirming. So we got off the phone and called back.

    The new rep mentioned how it's illegal for them to adjust their report to the credit bureaus. Wife asked for a supervisor and we talked to him. He said the same "illegal" argument but saw the letter in the system. He mentioned that the letter might indicate that they want more information about our situation. Sounded like proof of miscarriage. That didn't sit well with me, but I'm going to wait for that letter to see what it says. I understand their point of view also. They probably get a ton of these requests and get lied to all the time. Supervisor seemed condescending. Wouldn't even confirm what a previous rep saw about the service adjustment being made.
     
  18. JayZ750

    JayZ750 Contributing Member

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    I have nothing really helpful to add, other than to say congrats on the pregnancy. Life's a b**** sometimes, but keep in mind the important thing is you'll have a beautiful baby in a few months, and I guarantee the baby won't know the difference wrt where he/she sleeps.

    Though they will recognize stress. Stay cool, hope for the best, realize you did nothing wrong... good luck
     
    1 person likes this.
  19. clutch citizen

    clutch citizen Contributing Member

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    Thanks. I appreciate that.
     

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