Call Kurtis: Modification Mistake Causes Mortgage to Go Up

SACRAMENTO (CBS13) — The event was meant to help lower people’s house payments.  So why did theirs shoot up?

Corinne Resus and her husband, Hector, say their house payment shot up more than $500 a month after NACA’s (Neighborhood Assistance Corporation of America) Save the Dream Tour.

“Oh I cried, I cried because I was so frustrated,” says Corinne.

They were just one of thousands of homeowners across the country, who camped out for days trying to get a loan modification, lowering their house payment. But after three days outside Cal Expo in October, they were told they didn’t qualify for a loan modification.

“They declined it right there and then,” says Corinne.

But the next month came another surprise. The parents of a newborn and 16-month old say their house payment shot up more than $500 to more than $2,000 a month.

“I said why? What’s going on?” asked Corinne.

Turns out, during the Save the Dream event, someone set up an impound account… a required savings account raising their house payment each month to cover property taxes and insurance… something Corinne and Hector normally paid on their own.

“We save up for it during the year… whatever extra income we have… we set aside money for it,” says Corinne.

When she called to get the impound account removed, Bank of America told her to deal with NACA. NACA said deal with Bank of America.

“It’s time to call Kurtis, it’s time to call Kurtis because I was stuck,” says Corinne.

NACA also sent us to Bank of America, which admitted, they added that impound account.   Quote: “During the modification review, it’s common that a servicer adds an impound account to help homeowners budget the housing payments.”

But the couple says they never approved it.

Bank of America says: “We are not sure what exactly transpired but we do apologize for their experience.”

And the bank agreed to drop the impound account. The couple’s house payment dropping back to something they can afford.

“Relief! We are really relieved and I’m happy,” says Corinne.

As Corinne and Hector found out, removing an impound account is tough. Unless you have a certain amount of equity in your home and good credit, it’s unlikely your lender will waive this escrow requirement.

Bank of America Statement

During the modification review, it’s common that a servicer adds an impound account to help homeowners budget the housing payments.  We have now removed the impound account.  We apologize for the inconvenience that that this caused them.

We are not sure what exactly transpired but we do apologize for their experience.  Bank of America was ultimately responsible for adding the escrow account on to their mortgage.

More from Kurtis Ming
  • Terry Hughes

    B of A did the exact same thing to us in March 2010! Our taxes were paid, our insurance was paid … but they put an impound on our home saying we had not paid our taxes! It took me 4 months of non-stop calling to get this straightened out. They raised our mortgage $800 a month after we’d “inquired” about the Home Affordability Program. We never signed anything!!! After we finally proved we’d paid our taxes & that BofA had fraudulently placed this lien on our home … we refused to ask them for help with anything! I wish my mortgage was not with them!!! BofA IS A MONSTER!!!

    • Bird

      We have a new mortgage that was sold to BofA last month. I was so upset. BofA has done some really bad stuff to people like taking the wrong homes during a foreclosure and not doing anything to compensate the families affected by it. I hear about bad things about them all the time. I worry now about what they will do to us. Hope you don’t have anymore problems with them.

  • Stefano Filippelli

    I am having the same problem with B of A. They attached a $900 escrow to my account and refuse to take it off stating that if I want it off then I have to get out of the loan remod program. I applied a year ago and they have done nothing except attach this escrow account.

    • Patricia Marin

      how you get out of this escrow account

  • Patricia Marin

    I have the same problem I call for two months in half and talk to 34 people and I not receive any answer and they never inform me that they turned dawn my application also they put two notes saying that I not want any help from them and the escrow department turn this dawn to, could some one know what can I do, people told me to hire a lawyer but why I have to hire a lawyer if they make all this problem. I wish this be in the new nation wide so people can be aware.

  • Martin Kempe

    I wish there is a way to sue Bank f Americanfor this, it is a way to scare homeowners from modifications which the government gives a fortune to Banks to help us. Bank of America did this to me and I am sure this is a tactic. I had income and all, and was declined and denied, even applied and went through hell and back with still trying to delete that impound and they would not accept my payment without giving that extra, and I paid all taxes.

  • rosana

    Bank of American is NOT AMERICAN AT ALL. All of those people who have been wronged by them becuase they sought relief thru this FALSE MODIFICATION PROGRAM – should file a CLASS ACTION LAWSUIT against B of A.

  • rosana

    There is interest to be made off your impound accounts and they used thier misleading modification program to bamboozle and trap people into forced impounds. Even before the mod program was available they started pursuing the enforcment of impounds on accounts that did not have one.

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