TACOMA, Wash. - Bank of America is suspending foreclosures because of paperwork issues, and that is a good thing for thousands of Washington residents. But, what should those in limbo do now?
“People need to understand just because the bank filled out the paperwork wrong does not mean that they don't have the right to foreclose”, says Diane Hall Housing counselor with South Sound Outreach Services.
Hall also says keep making full payments on your mortgage, and not partial ones.
“If you are not able to make a mortgage payment, put half of it aside and in the next month put the other half in there and make that payment”, Hall explains. “If they send it back fine put it in a savings account then leave in there.”
Hall tells me making partial payments is risky.
“The problem is it goes into a suspense account. And when it goes into a suspense account you are not sure when they are going to apply that payment and how they will apply that payment.”
You should also spend the time prioritizing your debt.
Hall says, “What are your basic necessities. You have to keep a roof over your head so number one will be that mortgage. If you lose your car, if you lose your ability to drive especially in Washington you are going to lose your ability to be employed.”
Back to those paperwork and call center issues.
Michael Grady of Edmonds who's dealing foreclosure and Bank of America know all about it.
“They're calling me I'm calling them, they won't return my calls I try to call the person who talked to me, they say I can't talk to them," Michael tells me.
Diane Hall says most consumers shouldn't go it alone they should find a housing counselor who has sources inside the banks.
“Unfortunately, even a brand new housing counselor is going to have better luck with the lender than most homeowners do”, Hall explains.
To talk to a housing counselor at the Department of Housing and Urban Development, click here.