7-Cent Underpayment Costs Family Their Home

August 10, 2009 No Comments »

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A family with a history of delinquent mortgage payments has lost their home after underpaying the mortgage by seven cents back in January, according to the Detroit Free Press.

The Deckerville, Michigan home owned by Creg and Bonnie Berger is now owned by Bank of America, who assumed the Countrywide-issued mortgage when the companies merged last year.

Apparently the couple was inadvertently issued a money order from the post office for $440, when the actual amount needed to make the mortgage payment was $440.07.

The couple failed to notice the mistake and were deemed four weeks late on the mortgage, but later caught up in April, though Bank of America rejected their payments, according to the couple’s lawyer.

Last week, the couple “rejected a reasonable offer” to get the mortgage back on track, and subsequently saw the home purchased by Bank of America at foreclosure auction for $42,708.

Bank of America’s lawyers offered to reinstate the mortgage for $8,390 to cover $7,171 in back payments, but the couple apparently doesn’t have the means to accept that offer.

They now have six months to make an agreement with the bank or face eviction; BofA spokesman Rick Simon said the bank had made “determined efforts” through the years to keep the borrowers in their home, including delaying foreclosure.

Stories like these at a time like this make it hard to determine who is to blame; the mega banks who issue the mortgages or the homeowners who may be taking advantage of a national crisis.

Clearly there are unfit borrowers that may be using the mortgage crisis to buy more time or even avoid foreclosure, but the banks have most certainly played a large hand in the crisis as well.

In this case, it seems as if the family hasn’t been able to afford the mortgage because the father is struggling with a business startup, and not so much because the mortgage has been deemed “toxic.”

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