Learn how Bank of America has held grieving parents hostage for 15 months

Most don’t believe that it’s possible, but I’m often ask how Bank of America has held grieving parents hostage for 15 months because they don’t understand how it’s possible for a bank to have anything to do with grieving the loss of a child.  It appears that their inaction will cause the time to grow at least another 2 months if they don’t act on Monday, October 27, 2014.

Tammy Santomango purchased her home with the help of her parents, Thomas and Mary, as co-signers using a FHA mortgage on February 20, 2004.  They never knew that by co-signing for the mortgage, they would be pawns in a game that Bank of America plays to make money with FHA insured mortgages.  Tammy was killed in a tragic automobile accident on July 21, 2013.  Shortly thereafter, they asked for my assistance to sell Tammy’s house because as co-signers of the loan, it was affecting their credit.

Tammy Santomango was killed July 21, 2014 in an auto accident.

Tammy Santomango was killed July 21, 2013 in an auto accident.  Her parents are being held hostage by Bank of America because they are not following Fha guidelines for Tammy’s mortgage loan.

FHA doesn’t make mortgage loans but sets rules and regulations that loans are made under and therefore these loans are insured by the agency.  Tammy’s loan is an FHA mortgage as it was assigned case number 483-4301497-729 when it was issued.  The FHA rules and regulations say that this property must be processed just as any other loan in default.  With that information, Thomas & Mary has completed every request from Bank of America timely even when it’s cost them time and money.  There has come a point where the requests have become ridiculous said Thomas.  We’ve signed the same 4506T form so many times I’ve lost count.  Form 90045, the Approval to Participate in a Short Sale has been issued more than once.

Over the past fifteen months, five separate offers have been presented to Bank of America that should have been accepted as they all conformed with the established PreForeclosure Sale program.  The current offer was to close on October 17, 2014, but even with the assistance of HUD’s National Servicing Center Office of Single Family Asset Management, the file has not been processed timely by Bank of America.  Having worked with HUD’s Loss Mitigation programs for over six years, understanding how to present the information to the lender is critical to gaining approval.  This offer is packaged properly, but Bank of America doesn’t have any sense of urgency as their investment gains additional money for each additional day they keep the mortgage active and in default.  Because the loan is insured by FHA, a claim will be filed and the lost interest will be paid to the investor.  With current interest rates so low, there is no benefit to Bank of America to process these files faster.

With the understanding that Carol Galante is leaving her post as Commissioner of the Federal Housing Commission before the end of this year, it would be a great final chapter for her to help distressed homeowners by taking the fox out of the hen house by issuing one final mortgagee letter reducing the amount an investor may claim IF the distressed homeowner was not processed timely.  Complaints filed against the FHA Case for investors not following rules and regulations should have an impact on their claim.  If the investor/servicer doesn’t provide timely assistance, reduce the amount of interest they can claim from Fha.  Until investment rates go above the rate of the loan in default, the continued slow walking of these files will continue as there is no deterrent and the investor is making additional money while their hand is in the cookie jar without fear of getting caught.

As for Thomas & Mary, if Bank of America doesn’t process and issue closing instructions on Monday, October 27, 2014, yet another Buyer will fall away from this property, after spending close to $1,000 for inspections and an appraisal.  What else will this this do?  It will add another couple of months that Bank of America will hold Thomas and Mary hostage as well as the American Taxpayer because it’s the taxpayer who will ultimately pay the claim for the insured mortgage.  Oh, I almost forgot, it will also keep a house from being a home as it sits empty while the neighbors wonder who’ll cut the grass the next time it needs cutting.

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