As suggested by our loan modification negotiator I contacted Bank of America's business card department to attempt to get a settlement on our charged off credit cards, which was not very successful.
The bank was more than happy to settle on these cards, but with payments that were not affordable. We have two business cards one with a charged off balance of over $40,000 and another of over $10,000. The settlement offer was for 3 payments of a combined total of $6,000. Another alternative was to pay back the entire balances and make payments of a combined total of almost $1,000 a month for five years. This is basically the same balance liquidation programs our personal credit cards are on.
It's not that we don't want to pay what we owe on these cards and we will after we finish paying our other debts, but there is no way we can pay these amounts. Even the payment reduction plan is out of reach once we started paying our mortgage again.
So, I emailed our negotiator and let her now what has happened. She has always been fairly quick to respond back to me, but not this time. She could have been too busy or just didn't feel like telling me, "Well, there is nothing more we can do than."
I probably won't hear anything for sure now until Tuesday. But Bank of America I warn you. If you don't approve this loan modification because we owe you other money, you will awaken a sleeping giant, who will strike back with a force you have yet to reckon with.
The fact that we are denied because payments are being added to our debt that have been charged off and are not being paid is ridiculous. That you tell me because our loan is with Freddie Mac is a problem as well and that all loan mods are not created equal is outrageous. That you gave us a loan modification on our rental property over our primary residence is absurd.
The public must be made aware of the inconsistencies with the banks and the whole loan modification process and I might just be the guy to do it.
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