Another Bank of America Horror Story?
Bank of America threatened a Connecticut couple with foreclosure proceedings on their home — scheduled to begin on Christmas Eve — if they didn't agree to a forced sale. The kicker is this: The husband and wife had never missed a payment on their mortgage.
Barry Ritholtz picks up the tale todayon his blog.
Ritholtz cites CtWatchdog:
"The largest bank in the United States earlier this month notified Shock Baitch and his wife Lisa (Friedman) Baitch that foreclosure action will start today — Christmas eve — unless the couple agrees to put their home up for a forced sale."
"Why? Because another unit of Bank of America erroneously reported to credit agencies that the family was seeking a loan modification, ruining their credit rating and as the result (sic) putting their mortgage into default."
(Gombossy's original article tells the exasperating story in detail.)
Of course, this comes on the heels of another case, first reported by Ritholtz, where Bank of America allegedly downgraded the credit rating of a customer whose only sin, according to reports, was to inquire about who owned his mortgage note.
Ritholtz concludes: "Post bailout, the giant banks have become too large to manage themselves. It is not just housing sh%$ holes like South Florida where the banks are paperwork disasters, but apparently states such as Connecticut, also."
As I observed in my earlier article, about Bank of America allegedly cutting a credit score over a mortgage note inquiry: "A single case—no matter how compelling or potentially illustrative of a broader point—isn't yet a trend."
While that may be true, I'm certain my observation is cold comfort to anyone who's had a bank send them a notice of foreclosure in error.
Especially on Christmas Eve.
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