Heloc - Bank Didn't Contact Me About Balloon

Judy Camp

LoanSafe Member
#1
My Ex husband and I took out a HELOC with LaSalle (bought by BOA) back in 2004. Ex Husband and I were divorced in 2008 and I was awarded house along with the first mortgage and the HELOC. His name remained on both loans. I set both first and 2nd up on automatic payments and was never late. My Ex filed bankruptcy in 2012 and was discharged in 2012. HELOC ballooned with FULL amount due (almost $90k) in one single payment in Oct 2014 (predatory?).

I did not realize this because BOA never contacted me to tell me there was an issue with the loan and that it was late or the amount due was changing. Unfortunately I lost all paperwork in the divorce and did not recall it was a 10 year balloon either. I assumed it was a regular loan and I was making more than the minimum payment in an effort to pay down the principal.

In Oct 2016 (2 years after balloon date) I got a letter in the mail saying the full amount was due 2 years ago and I had 30 days to pay it or BOA would start foreclosure. Holy S---t! I called BOA immediately and tried to refinance. I was told I did not qualify for a refinance because my credit report was showing this loan as over 120 days late. So they suggested I go to Loan Mod. Which after 4-5 months applying and appealing, I was declined for a vague reason that it has been too long since balloon date (which they caused).

No other bank or lender will touch me because of the BOA loan showing up as past 120 days due, even though I pay all my bills on time and had 740-760 credit score before this. I have a good job steady job of over 10 years, significant equity in my home, and can afford a refinance or loan mod.

I have offered BOA that I would pay nearly half down if they refinance the remainder. Or if they clear my credit report since this was their error and push the loan balloon date back, I will refinance elsewhere and double my payments in the interim. Those offers were not responded to.

I filed with CFPB and BOA responded that I filed bankruptcy and that is why they didn't contact me, which of course I've disputed by it seems that will go no where. Even though I explicitly said in my complaint that my Ex filed NOT ME. My Ex filed chapter 7 and from what I understand there is no co-borrower stay under chapter 7 so they should have contacted me and I would have done a simple refinance.

I wrote an email to the CEO (actually 3 emails) and filed a complaint to the Illinois Atty General. I'm not sure which one did the "trick" but I was contacted by the "Executive Loan Modification Complaint" department yesterday and was offered two modification programs (15 yrs at 3.75% and 40 year at .75%). I asked about trial period, she told me that there is no trial period since I am working with the executive department and these were permanent modifications.

I followed up with some questions yesterday about the two programs because quite frankly .75% for 40 years seems like a red flag to me. In her response today she is telling me there will be 3 month Trial periods. I feel like they are already going back on their word. Meanwhile the foreclosure process still moves forward under the trial period and my credit report still gets dinged (crushed is probably more appropriate) .

With all the horror stories about trial periods and bank not offering permanent after successful trial period and pursuing foreclosure during the trial period, I don't feel good about their offer at all.

I can't find anything on the internet that says banks must contact borrower about payment change or problems with the account. All the stories are complaints from people that feel they've been harassed. Obviously this is the complete opposite. I got monthly statements which shoes my payments being applied to principal and interest and I didn't pay much attention to them since the payment were set up on automatic. But now that I look at them, what I thought was loan balance is "payment due".

I may be able to borrow money from family, but that is quite embarrassing, will put certain stress on that family, and is my last resort. I'm wondering if I have legal basis to defend and counterclaim that will make BOA take me seriously and do the loan mod. Ideally, I'd like a regular refinance since I work very hard to keep my credit clean. Any input?

I am in McHenry County IL.
 
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Judy Camp

LoanSafe Member
#2
I should add I was served March 24th so I need to respond this week to the foreclosure complaint. I have not obtained a lawyer yet because the one I called said file Pro Se, pay it and don't waste your money on a lawyer.
 

Moe Bedard

Call 1-800-779-4547
Staff member
Loan Safe Mortgage
#3
Hello Judy and welcome to the LoanSafe forum.

I'm sorry to hear about your problems, but not surprised. I would not worry about a lawyer or complaints at this point. The problem is your ex-husband filing for BK and since he was on the mortgage, you have been negatively affected.

If I were you, I would jump on their offer now without any hesitation. Sure, there are some bad stories and people who have not received a permanent loan modification, but those are rare.
 

Judy Camp

LoanSafe Member
#4
Hello Judy and welcome to the LoanSafe forum.

I'm sorry to hear about your problems, but not surprised. I would not worry about a lawyer or complaints at this point. The problem is your ex-husband filing for BK and since he was on the mortgage, you have been negatively affected.

If I were you, I would jump on their offer now without any hesitation. Sure, there are some bad stories and people who have not received a permanent loan modification, but those are rare.

Hi Moe,

Thank you for taking the time to respond. I have been offered to chose between two loan mods (under trial periods) , just curious have you seen that before?....a choice?

Thanks,
Judy
 

Moe Bedard

Call 1-800-779-4547
Staff member
Loan Safe Mortgage
#5
Hi Judy,

You are welcome.

Yes, I have heard of that before. They are not common. These deals are often offered only through the office of the president.