Foreclosure Fraud | Bank Of America’s Christmas Present: Foreclose Even Though Not A Payment Missed

The moral to the story below is if you are put into a “loan modification” your regular payments will not be applied, late fees will occur, your credit will be ruined because you are reported as NOT making your payments when in a modification, and once you sent in your trail payments, they deny you and foreclose.

The part that gets me the most is all those trial payments, even if you made 10 or more of them, are gone, not credited to your account.

From what I have seen, this happens in every single case…

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Bank Of America’s Christmas present: Foreclose Even Though Not A Payment Missed

By George Gombossy

In one of the more bizarre foreclosure cases, Bank of America is threatening to throw a West Hartford family out of their home even though the couple never missed a mortgage payment.

The largest bank in the United States earlier this month notified Shock Baitch and his wife Lisa (Friedman) Baitch that foreclosure action will start today – Christmas eve – unless the couple agrees to put their home up for a forced sale.


Because another unit of Bank of America erroneously reported to credit agencies that the family was seeking a loan modification, ruining their credit rating and as the result putting their mortgage into default.

All this is happening even though the bank – after admitting it erred and sent a letter of apology in September – handed this case to a special unit at Bank of America that is charged with dealing with severe customer issues. It promised  to notify the credit reporting agencies that the couple were not deadbeats, but were good credit risks.

“I have never seen a case like this,” said Manchester attorney Wendell Davis, whose office handles many foreclosures.

Before taking the case, Davis said he thoroughly checked Baitch’s records and found that all his and his wife’s allegations were accurate.

“They have never even been late on a mortgage payment,” said Davis this morning in an interview.

Davis, a member of the Ct Bar Association’s foreclosure committee, said he is preparing a lawsuit to protect his clients because it’s the only way to hold Bank Of America accountable for its actions.

Bank of America representatives have yet to respond to the last issue. As soon as they do I will update my column in (In full disclosure I own several hundred shares of BofA stock).

I have forwarded the documents in this case to Attorney General Richard Blumenthal’s office.

I guess what they are doing to his couple is not as bad as what Bank of America did in Florida where it seized a house which a Massachusetts couple had paid cash for. The bank removed belongings and changed the locks on the doors, according to a lawsuit the couple have filed in federal court.

Baitch’s story began about a year ago when he and his wife wanted to refinance their home in order to pay for improvements and to consolidate their debts. Baitch is a firefighter.

They spoke to a BofA loan specialist and asked for the cheapest refinance option. The loan specialist tentatively put them into the “Making Home Affordable program,” which unbeknownst to the couple would signal to the credit world that they were in financial straits.

When the couple received a package of papers to sign, they decided to go with a conventional mortgage because they did not want to have to add escrow costs and home insurance to their mortgage payments, not because they were aware of the ramifications on the loan program.

But it was too late. Shortly after that, in April, Baitch’s wife (whose name is on the mortgage) received a letter from BofA telling her that the credit limit on one of her credit cards was reduced to $18,800 from $30,000. The two weren’t worried because they had plenty of credit available on other credit cards. Baitch said he just figured that the bank was tightening everyone’s credit.

It was only after his wife started receiving notifications from other creditors that several of her other accounts were being closed that the couple discovered what had happened.

Their bank, Bank of America, had reported to credit bureaus that they were in a loan modification program. That was a red flag to many creditors, which either cut their lines of credit or placed their debts in the highest interest rate category – the Universal Default rate.

Baitch met several times with Bank of America managers who promised to correct the erroneous credit report, but were told it was too late to refinance her mortgage because their credit scores had been damaged.

“I begged them that they can’t do that in this case since they destroyed our credit scores,” Baitch told me. “Although they admitted to making the mistake, I was told they cannot change the underwriting rules. So, in a nutshell, the other creditors will not reinstate the old credit limits because they use the current credit reports, BofA will not help because they use the current credit reports, and my monthly minimum payments have more than doubled because of the Universal Default rate.”

Check out the rest here…


6 Responses to “Foreclosure Fraud | Bank Of America’s Christmas Present: Foreclose Even Though Not A Payment Missed”
  1. John Wright says:

    This youtube below is what I think of “Bank of Destroying The American Dream!”

    I do not even have to wonder what Thomas Jefferson would say about Bank of Betraying America, because he already said it:
    Thomas Jefferson 1802 – ‘I believe that banking institutions are more dangerous to our liberties than standing armies. If the American people ever allow private banks to control the issue of their currency, first by inflation, then by deflation, the banks and corporations that will grow up around the banks will deprive the people of all property until their children wake-up homeless on the continent their fathers conquered.
    This is why I have created one of the powerful BofA protest sites west of the Mississippi, and prepared for this legal battle for one year, while I have united Senators, Congressman/women and 25 law firms. Below is a youtube that will tell you the rest of story.

    Let he who has ear, let him hear that all roads lead to Rome, or should I say

    Listen, I need a few good Americans to be part of the largest online blogger protests that Bank of Destroying America has ever seen. Bank of Abusing America has taken our country from us AND I AM HERE TO TAKE IT BACK!

    Therefore, if you are interested in joining me in the epic battle against Bank of Defrauding America, please do not hesitate to visit my blog, or let me know that you like to join me at

    What does this mean to Bank of Betraying America? It means that the American people are going to kick their A@S@S!

    Divided we might have fell America, but UNITED WE MUST STAND

    My name is John Wright AND I AM FIGHTING BACK!

    John Wright

  2. Sonya says:

    I know how these people feel. I NEVER DID THEIR HOME MODIFICATION!!! But, the INTENT TO FORECLOSE LETTERS CAME 5 MONTHS IN A ROW WITH ME ARGUING ON THE PHONE THAT I WASN’T EVEN LATE ON MY PAYMENTS!!!!! I started reading the internet is the only reason I checked my credit. Sure enough they had reported that I hadn’t made a payment in 4 months!!! Bank of America is the biggest FRAUD GOING!!!!
    I HAD TO HIRE AN ATTORNEY because I live in a non judicial state. They were setting me up on paper to foreclose!!!!

  3. Jeff Jackson says:

    Wow! When I read how much money people are putting up in an attempt to save their homes, I can’t believe how hopeless fighting foreclosure is. I mean, there is no stopping this train once it leaves the station. 40k!!?? That is a huge amount of money. I feel sorry for everyone involved in this mess, and a Government that could care less.

  4. Collene says:

    We lost our home in a wrongful foreclosure. We were not in arrears and they sold it 10 days before our due date without our knolwledge. After paying almost 40,000 in atty fees in MA we ended up with a Judge that ignored the facts of law, the expert witness testimony, the depositions and interogatories. Please Help

  5. Marla says:

    Didn’t we not long ago hear that all these big banks don’t foreclose on someone who didn’t deserve to be foreclosed on? You had the big guys on camera saying that all the forecosures are on the up and up. This leads me to believe that these top guns have no clue at to what is happening with this mess, they don’t care or they are simply stupid. I am for all of the above. God help us all.

  6. DanJS says:

    Get ready for the next and final step of America’s mortgage foreclousure scam:

    Foreclosure on every single mortgage in every bank’s mortgage portfolio!

    Why? …Because they can! The courts are saying they can!

    Why not? …Because it makes no difference if an investor or morgage holder has “standing” provable by presenting an actual note signed by a borrower who the bank says is “in default.” As long as MERS or a “duly appointed mortgage servicer” “swears” that all documents are present and accounted for and that due process has not been violated…. especially in a “non-judicial state,” the foreclosure can proceed without proof of a title chain from borrower to “note owner.”

    “Produce the note!”? “Sure!” say the attorneys…. “No problem! How many copies do you want? We’ll just turn to our “note manutacturers” and produce four or five… at least one for every “note owner claimant.”

    You say there’s only supposed to be one note per property? Isn’t the “property” the notes themselves? We’ve got a “cookie cutter” in back and well-paid cronies who will serve as “robo-signers” or “rocket-docketers” to make sure every home with a mortgage gets foreclosed on.”

    Perjury? Accountability? Indictments? Forfeiture of all assets? Breaking fraudlent trusts? Punitive, multiple fines? …. Those are such archaic, “quaint” terms. After all, our US Constitution is a “living and changing document.” Why should any persons and property it formerly protected be “tolerant and accepting”of these changes in their culture and legal and financial environment?

    Honest US Senators, US Representatives, Governors, and Attorney Generals and justice seeking journalists with integrity , courage, and moral backbone? How amusing! If they existed at all, they’d be loudly vocal. Do you hear the mighty, indignant noise of their silence?

    Pity! This was once a land of heroes, not scoundrels… The America that once was the land of true patriots, not snively, comfort-seeking politicians.

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