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Bounced Mortgage Check and My Dad’s Back Credit. – Mary

“Dear Steve,

My father and his brother got a loan to purchase a house for their mother about 12 years ago through BOA. Apparently, back in April of this year my dads brother wrote the April mortage check for the payment and it bounced. The next month my dad writes the May mortgage payment and so and so on. Well here it is July and my dad’s credit card limits with BOA start getting cut in half. So he calls them up to find out why and they tell him that the mortgage just got caught up in June but that the loan went 90 days past due to the bounced check, which my father never knew about. So he asks them how come he wasn’t informed?? They gave him 2 addresses, one to his mom’s house in which BOA had the wrong zip code and the other to the PO Box of his brothers business. They never contacted him through his home address and his mom says she never received a letter from them either. My dad has perfect credit and has never made one late payment. The same with the loan in question, 12 years and not one late payment, nothing. But they are giving him the run around and telling him that there is nothing they can do to get the negative mark on his credit removed. So, I guess my question is what can he do since he was unaware there was a situation with a bounced check??




Dear Mary,

I’m hard pressed to see where your father has a case here. It is the responsibility of the customer to make sure that they are receiving statements. If he had not been receiving statements on his mortgage account he should have proactively contacted Bank of America to inquire why.

It does not sound like Bank of America misapplied the payment that resulted in the deficiency. They applied the payment, but it bounced. A fact that you uncle clearly knew about and does not appear to have told your father. I wonder why? If he had, this problem would also have been averted.

I’m not clear from your question if your dad and uncle were rotating making the payments. If only one payment was missed your father would be sitting at 30 days past due as each subsequent payment would have been applied to the previous month. To be 90 days past due three payments would have had to either not been made or bounced.

The best course of action your father can embark on now is to bring his mortgage current, correct his address with Bank of America, and give his brother a swift kick in the ass.

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About Steve Rhode

Steve Rhode
Steve Rhode is the Get Out of Debt Guy and has been helping good people with bad debt problems since 1994. You can learn more about Steve, here.

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