Clerical Error Puts Colorado Couple In Foreclosure

PARKER, Colo (CBS4)– A Colorado couple is fighting to save their home after their mortgage company made a clerical error that put them in foreclosure.

The couple has been working for 2 years to get the situation straightened out. The foreclosure sale was originally scheduled for February 29, 2012, but 4 On Your Side helped to get that postponed.

Alan and Terrie Hall have lived in their Parker home for 16 years. They raised two children there and now want to watch their grand kids grow up from their home base.

“This is the longest I’ve ever lived anywhere, so it’s really important,” Terrie told CBS4.

Alan lost his job in 2008 and hasn’t been able to find another job in the same field since. The couple qualified for and got a loan modification on the house, but when the first payment statement came from Bank of America, it showed that they were $1,242 in arrears.

“It’s a clerical error. We’ll get it fixed. No big deal, “ Alan explains he dismissed the mistake as easy to fix.

Hall called Bank of America like he’s done nearly every week since then. It’s become a full time job trying to correct a simple mistake. He kept extensive notes on all the conversations he’s had with customer service representatives who couldn’t help him. Each time he called he heard the same thing.

“Always hearing we see the mistake. It’s our mistake. We’ll get it corrected. All the while being reported to the credit agencies for being behind,” Hall said.

Then the situation got worse. Bank of America stopped accepting his monthly mortgage payments because the account was showing it was past due. The bank started sending Hall’s checks back to him and started foreclosure proceedings at the same time they were telling him the mistake was theirs and would be corrected.

“This is crazy. One hand doesn’t know what the other hand is doing there,” Hall said.

“We were totally freaking out then,” Terrie added.

The bank did credit the original $1,242 back to his account, but by then the account was $4,186 behind for all the payments the bank had sent back. Then Bank of American sent the Halls a notice saying they owed $4,145 in foreclosure expenses and attorney’s fees to bring the account current.

“I couldn’t believe they were trying to charge us for $4,200 in legal fees,” Terrie said.

After CBS4 contacted Bank of America, the foreclosure was stopped and the sale date postponed by a week. Bank of America e-mailed a statement that said it will be letting the Halls know they have resolved their past payment issues, and will be waiving any late fees and or foreclosure fees.

“How many people have just given up and let them take their home for their mistake,” Hall said.

The couple is not out of the woods completely yet. They’ll need to re-pay the bank those payments that were sent back to them, then the bank will withdraw the foreclosure completely.

–Written for the Web by CBS4 Special Projects Producer Libby Smith

  • C Cyr

    I would love to have a follow up on this…would love to know that this couple prevailed.

  • JJO

    Shame on Bank of America!! Shame on any bank that does this type of thing. It is human to error, but it is just plain cruel to admit the error and continue to do it while people’s life are at stake. I wish there is a way the couple can sue back and get compensation for all the time they spent trying to resolve the issue. I myself will never trust my money to BOFA.

  • Cinnamon

    Most of us that had Countrywide Home loans ended up with Bank of America. Trust me no one wants to them as a mortgage lender! I’ve been working ona modification for 6 months, 3 months ago they stopped letting me pay the mortgage online. Now they can’t have me make any payments! I was 2 months behind due to loss of work and no unemployment. I called to make my Jan 12 payment, did and called a week later to be told I was 4 months behind now?? How? They yanked my online payment history but I have all my one line payments showing for 6 years with 1st Bank – I have onlyl missed two and now want to cure this and no one not even Douglas County is calling me back! Frustrating, the whole mortgage industry needs to be overhauled. The gov gives then 80% of the orginal price right? So why do they want to work with us? I’d be courious to know just how many homes are bank owned now that could have been resolved, I can bet it’s 100’s of 1000’s!

  • Sue Montoya

    My son, wife and three small children lost their home 18 months ago. He is disabled and their income was cut because of the recession. She applied for a loan modification (originally Countrywide, then Bank of American), they would not accept payments (even though she did attempt to), she had to reapply two more times because Bank of America had no clue what was going on. They were waiting for the loan modification to go thru when a notice to vacate within seven days was taped to their door. They had to move because the house was in foreclosure and they did not even know it. They ended up in our barn with all items in storage because they could not find a place fast enough and they were divorced six months later. The story from Cinnamon is accurate. Why do a loan modification when us taxpayers are giving them a better deal? Cinnamon and anyone else needs to watch for vacate notice on the door. Everyone needs to stay away from Bank of America and let them fail (of course, our government will only bail them out)

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