Calling GMAC, POAs, and Bank of America Credit Cards

When I first entered into an agreement to buy a short sale home, I had no idea. No idea whatsoever. It's now about seven months later. The saga continues. Deepens. Twists. And I'm way to deep to stop now.

I can't tell you this story here, now, in narrative chronological form.

I will take one from the book of how to stay sane, and deal only with what's in front of me, now, today.

GMAC. They hold a $200,000 second lien, HELOC on The Property. GMAC handles short sales the way GM designed cars. There is a four to five business day wait for them to enter faxes into their system! Their loan modification department has odd business hours -- they don't open until 12 noon on some days! Today, Thursday, when they are supposed to open at 8 a.m., all I could get when I called was a recording listing these hours. This is insanity.

Bank of America Credit Cards. The Owner of the Property owed money ($62,000)to a credit card company called FIA, which was part of MBNA, which was bought by Bank of America. This is another lien that must be released in order for the deal to go through (one of many -- more about that in another post). When we started this ghastly business, FIA was being represented by a sleazy, monstrous debt collection company call Mann Bracken/Axiant. Google them. Complaints, law suits up the wazoo. We were negotiating with them. Then, one day, we call, and we're told -- guess what? Mann Bracken has declared bankruptcy. Hallelujah I tought to myself. Bank of America will be easier to deal with. After all, they are the ones who have agreed to the short sale on The Property. Why would they kill the deal?

WRONG. The Bank of America credit card operation has proven to be almost as bad as Mann Bracken. Talk to their representative and you hear not absolutely one trace of concern about causing an unnecessary foreclosure. Bank of America credit cards has absolutely no chance whatsoever of collecting a single dime on their lien, yet they seem to be quite willing to spitefully refuse to discharge the lien.

And, oh yes, Powers of Attorney. You need them to talk to people on the phone. Every company wants a different authorization or Power of Attorney. There is a new New York state statue for POAs. The NY State Dept. of Finance, however, has its own form....yikes!

Do I sound bitter? Am I a crackpot? I don't know at this point.

But it sure feels good to vent.

ADDENDUM:

An Open Letter to Brian T. Moynihan, President, Bank of America

Brian T. Moynihan
Chief Executive Officer
Bank of America
100 N. Tryon Street.
Mail Code NC-1-007-18-01
Charlotte, NC 28255
January 7, 2010
Dear Mr. Moynihan:

I am writing to call your attention to a serious breakdown in the management oversight at Bank of America, a breakdown that involves one division of the company working against another.

This issue is detrimental to the interests of your shareholders -- and in addition, is a troubling example of how financial institutions can engage in socially irresponsible practices that promote home foreclosures. In this case, the foreclosure that is being forced will result in a
loss of revenue to the bank and to the underlying investor in the loan.

[gory details ommitted]

It is widely acknowledged that foreclosures promote neighborhood deterioration and further destroy home values. It is national policy to work to prevent foreclosure, and I'm sure it is the publicly stated position of the Bank of America that foreclosure should be averted if possible.

I hope you will help me resolve this matter in a way that will best serve both your shareholders and the public interest. I have filed authorizations from the homeowner and the credit card holder that give the bank permission to discussion this matter.

[gory details ommitted]

I have written to you in hope that your office can intervene constructively in the case. I would prefer to resolve this by working cooperatively with Bank of America, rather than to escalate
my grievance and bringing it to the attention of my congressmen, Senators, and regulatory officials at the Federal Reserve and Treasury Dept. I will not be willing to standby and experience a huge loss of my resources and to witness a shocking return to business as usual
and anti-consumer practices at an institution that has received a massive government bailout.