Home > Avid Law Center, Foreclosure, Loan Restructuring > Friday Foreclosure Story: 80 cents makes the difference

Friday Foreclosure Story: 80 cents makes the difference

Tom Mudie, 56, was approved for a three-month trial period on his loan modification for his home in Largo, Fla. But with a slip of the finger on a telephone payment system, he accidentally underpaid one of the trial payments by 80 cents, putting his house in jeopardy of being foreclosed.

When Mudie lost his job, he applied for and received a loan modification on his mortgage. Before being accepted into a permanent loan modification program, Mudie was told by Bank of America that he had to make three monthly payments on time during the trial period.

According to Mudie, he went to make his trial payment over the phone and accidentally dialed a zero instead of an eight. This caused his mortgage payment to be short because he ended up paying $615.02, instead of $615.82.

When he learned of the error, he was advised to send a check for 80 cents to try to resolve the issue, but both that check and his original payment were returned to him in the mail.

Furious and freighted at the possibility of losing his home, Mudie contacted the media who called Bank of America on his behalf.

Rick Simon, spokesman for Bank of America, told ABC News the company is in the process of converting his trial modification into a permanent one.

While Mudie was relieved to hear Bank of America was in the process of approving his loan modification, he’s hesitant to hold his breath: “Until I see something in print about a new mortgage payment, I am still not sure if I could lose my home,” he said.

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