Bank of America increased my Mortgage Rate

jgvansickle · Joined: 07 Oct 2009 Posts: 1

I have a friend who is not too brilliant and I am trying to assist
him.

He has a mortgage and was paying $499.00 per month.
This is a fixed rate mortgage.
Bank of America bought the mortgage and within 2-3
months they raised his interest rate and are demanding
$850.00 per month. He has continued to pay the $499
and now they are foreclosing.

This sounds very not right to me.
Can anyone point me to a site or something where I
can help this guy.

Thanks

m2c · Joined: 03 Aug 2005 Posts: 937

Why do you assume the interest rate has been increased? Have you calculated the rate from a mortgage history and compared that with the figure shown on the note?

More than likely the change (correction?) in monthly payment has to do with the tax and insurance escrow account. Likely there is an escrow shortage also from the figures given. It’s absurd for your friend to loose his home over obstinacy assuming B of A has attempted to explain this to him. Obviously a lender on a whim cannot increase a rate beyond the terms of the note.

MissLA · Joined: 20 Oct 2009 Posts: 10

That's a big increase, I'd go and see what's going on. Sounds like somethings not right, especially when rates are at an all time low and continue to go down. Good luck!

Roger_Silvester · Joined: 29 Jun 2009 Posts: 51

I'd only like to highlight the fact that, 'Banks are trying to repair their balance sheets and consumers are paying the price through higher costs on all their financial products.'

Roger_Silvester · Joined: 29 Jun 2009 Posts: 51

I'd only like to highlight the fact that, 'Banks are trying to repair their balance sheets and consumers are paying the price through higher costs on all their financial products.'