Dear Bank of America;
Hi, it’s me, your customer Austin. I’m writing to schedule my mortgage default.
That’s right, I’m ready to schedule my mortgage default. Does that sound strange?
Well, believe me, Bank of America, I had hoped that our relationship wouldn’t come to this. But after months of trying to do business with you, I’ve decided that it’s probably in my best interest to just, you know - “walk away” from my mortgage.
How could it ever be in anyone’s best interest to default on a mortgage? And why would anyone ever want to default on a mortgage?
Well, here’s the deal: I have one of those now-famous “Option ARM” loans on my residence – the interest rate is adjustable, and the loan provides optional payment plans. And yes, Bank of America, you inherited my loan when Countrywide Lending went down the tubes in 2008, and you merged your company with theirs.
And here are some other details about me, Bank of America: I am fortunate to have a great job with a solid income, and I work under a long term employment contract. While my full time occupation is being a daily talk show host, I am also a writer and a public speaker, so I have multiple streams of income. I own real estate in multiple regions of the U.S., and I’m a big believer in real estate as a long term investment. And perhaps most interesting for you, Bank of America, I have a great credit score, and I’m current on all my debt payments.
During the recent real estate “boom,” I took some equity out of my home. Now, in the aftermath of the real estate “bust,” my house is slightly “under water” – not by much, but a little. And the interest rate on my loan won’t begin to move upward for another two years, so I’m not in any crisis right now.
The value of my property has actually begun to move upward a bit in the past few months, but it’s going to be a few years before the value reaches parity with my debt. And that’s why I was thrilled to get that little note you sent me in the mail last summer, Bank of America. Remember? You sent me that nice letter asking if I’d like to have my loan modified to a 30 year, fixed rate mortgage.
I responded quickly to that letter, Bank of America. And I’ve called repeatedly for over half a year. But here’s the sad truth that I’ve discovered about you: you’re not really interested in working with me, because I’m not behind on my payments.
Austin Hill is an Author, Consultant, and Host of "Austin Hill's Big World of Small Business," a syndicated talk show about small business ownership and entrepreneurship. He is Co-Author of the new release "The Virtues Of Capitalism: A Moral Case For Free Markets." , Author of "White House Confidential: The Little Book Of Weird Presidential History," and a frequent guest host for Washington, DC's 105.9 WMAL Talk Radio.