80 Cents Almost Causes a Foreclosure

When Tom Mudie was approved for a mortgage modification program, he thought his foreclosure troubles were over.

Bank of America lowered his monthly payment by nearly $200. All he had to do was make the new payments on time for three months and the new amount would be made permanent.

But a simple error, hitting a “0″ on his telephone keypad instead of an “8,” threatened not only to cancel the savings but also to cost him his home.

Mudie paid his second trial mortgage payment by phone. The keypad mistake meant that instead of paying $615.82, he paid $615.02. He was three quarters and a nickel short.

Bank of America spokeswoman Jumana Bauwens said it all boils down to the computer glitch. Just like Mudie, she said, the bank made an error when it booted him from the program.

Bauwens took a closer look at Mudie’s account and said the bank is in the process of crediting him for the payment he made. She said that because the problem partly was caused by the bank, he’s back on track with the plan for lower monthly payments.

“He’s in the process of getting a permanent modification,” Bauwens said. “The paperwork is not finalized, but that 80 cent error is not going to create any additional issues for him.”

When having issues with your servicer, you can always reach out to Fannie Mae or Freddie Mac at FannieMae.com or FreddieMac.com