Bank of America has had some spectacular screw-ups when it comes to foreclosures recently, from foreclosing on an elderly couple who supposedly paid their mortgage too early to incorrectly repossessing a woman’s pet parrot. Add to the list of horrors this tale from Texas, where one homeowner, Brad Gana, had his home destroyed by Hurricane Ike, and then had the remnants foreclosed upon by Bank of America after the bank took out an insurance policy on the non-existent home and raised Gana’s mortgage payments:
Hurricane Ike destroyed dozens of homes in Seabrook. Many families are just now rebuilding, but when Brad Gana tried to pick up the pieces, he learned that Bank of America was trying to take what little he had left.
“I was shocked when they said they were foreclosing on it,” Gana told investigator Amy Davis.
Gana was working overseas when the hurricane hit, destroying his home. But even then, he said he never missed a mortgage payment. It took him days to figure out why Bank of America was foreclosing.
“It wasn’t until about 20 calls that someone said, ‘We had a homeowner’s policy on your home that you reside in, and your monthly payments have gone up,’” Gana explained. “But they never notified me that my monthly payments had gone up.”
Even after Gana’s attorney managed to halt the foreclosure, “Bank of America removed Gana’s personal effects from the property, including tools and collectibles that are now also gone.” “Bank of America is ruthless in their incompetency,” Gana said. The bank claims that it attempted to tell Gana about his higher payments, but kept having their notices returned. (Gana’s mailbox was destroyed by the storm, and he was living overseas when BofA changed his mortgage payment.)
Bank of America has been the clear laggard when it comes to getting borrowers into sustainable mortgage modifications, even foreclosing on some borrowers after they had their modifications approved. Of course, since Bank of America’s CEO Brian Moynihan has hyped the benefits of faster foreclosures, perhaps the bank doesn’t see these miscues in quite the same light as everyone else.
(HT: Harry Bradford)