Loan Gripes

This is an experience submitted by Max of Thousand Oaks, California:

Well, it happened – You know when your heart lands somewhere down in your stomach and the world starts spinning and you wonder what you’re going to do next?

The notice came. I was being layed off. January 31, 2009. (After working for more than 20 years as an I.T. Professional my position was being outsourced.) I was now joining the ranks of the unemployed millions. No more work. No more money. But there was no need to panic. Wasn’t a stimulus package just passed? Aren’t there billions of dollars in bailout funds available for people just like me, who through no fault of their own, find themselves in need of a little help?

So, I called my friendly mortgage holder Bank Of America to inform them of my plight and find out what I needed to do to qualify for their program. What happened next was a good dose of reality. The conversation went something like this:

Me: I have just been layed off and wanted to know what programs you had available to help?
BOA: Is it going to be more than 6 months?
Me: I hope not, but I have no way of knowing.
BOA: Well, our program is only for 6 months.
Me: (Quick thinker that I am) : No, it’s not going to be longer than 6 months.
BOA: Ok, How far behind are you now?
Me: I’m not. I’m current. And I want to work out what I can to remain in good standing.
BOA : Well, you need to be behind.
Me: (And this is part of their plan? Hmm OK I’ll play… ) I probably will be in a few months, what do I do then?
BOA: How much money do you have coming in?
Me: Nothing, I told you I lost my job.
BOA: We can only help you if you have money coming in.
Me: (Thinking quickly again) Well, I should be able to get unemployment- so I will have money coming in.
BOA: Ok, then we will add up what you have coming in and see if your payment can be adjusted to a percentage of that.
Me: What happens with my credit during this time?
BOA: It will still be marked late – but oh there will be a note on it so it won’t be as bad.
Me. What happens with the difference of the monthly payment that is owned each month? (I thought perhaps it may be added into the loan).
BOA: Well in 6 months the balance is due.
Me: WHAT?? ARE You joking?? You mean after being out of work for 6 months I am going to owe a balloon payment of anywhere from $6,000 to $18,000???
BOA: Well I’m sure we would be willing to work out something with you then.
Me: Thank you for the information, (but I don’t think this will work out for me).
(Not forgetting that at that point I didn’t qualify anyway, as I was not behind yet in any of my payments).

This conversation occurred in Feb 09. Has anyone else been helped by BANK of AMERICA recently? Or any other bank? Perhaps there have been some REAL changes to help since Feb? Where are all those BAILOUT funds?? Inquiring minds want to know.

Max