My name is Nirav, I am a physician in Tampa. I would like to tell my story how big banks can ripp you off.
I have big account with Bank of America for last ten years. Usually I have very pleasant relationship. We thought of building house of reasonable size in Tampa. As it has to be construction loan we started looking at diffrent options with other financial institutions. As I was willing to pay 20 percent down, getting construction loan was not a problem. I did get good rates from different bank.
My local branch in Carrollwood, Tampa asked me to talk to Frank Mace ( works with mortgage loans for Bank of America). I did talk to him briefly couple of times on phone. He was never available physically to see you. As I have other accounts with Bank of America, I decided to go with Bank of America for ease of my handling.
This was my biggest mistake of my life. Closing was on Sept 9, 2005. This is how they cheat. Once they processed my loan, we have to talk to Dallas branch for all questions, most of the time they are not there, not even their supervisor is reachable by phone. ( Eventhough they record in their answering machine that, "if you are not satisfied with me you can call my boss ", that is just a bogus claim, their boss will never answer. This is just small thing. This is how I got ripped of.
My loan would be initially constrction and than will be converted to permenent loan. I had 10 year ARM. I suppose to have fixed rate for ten year. When I was talking to Frank Mace I told him it will take at least 16 months to finish the house (This is the case in Bay Area and he knows about it, this is his business, it takes 6 months to get even permin to build house !!, And I had reapetedly made him clear of that fact)
Now he sends me contract more than 200 pages fine letters. On summary later says 10 year arm 5.5 interest rate, than LIBOR.
1. During construction phase I will pay LIBOR which is typicall at least two points higher, I would not lie I realized that before closing. But it was too late in process, so whatever time my house is being build I would pay susbstantially higher interest than my contracual rate. So, I lost thousands of during construction phase.
2. Biggest surprize I got only after18 months in to loan. When there was time to convert loan to permenent phase I was told that, they will have to redo my loan !!. In contract my construction phase was 1 year. And it was told to me that is typical and you can extend it. They did tell me coast to extend loan is 500 dollars for 3 months, but nothing more. So I did get two extensions. Everytime they send me letter for extension it was written that if I want to protect rate I will have to pay percentage of loan, they did not mention about anything more. I presume they were talking about construction part of loan and as it was only for few months I should not pay extra to keep rate only for few months. But.. When we convert loan to construction loan, my loand was considered default, and they will have to re do loan and my intereste rate will be one percent higher than it was promised. Even they have changed the loan my new rate will be affective only for original ten years ( including construction phase of loan!!)
So, eveven though my construction was finished as planned. I was robbed in at least 25000 dollars over life of loan. This is even after being so called premier client with Bank of America ( I have premier banking account). I never got rate I was promised through, I never received 5.5 percent) and I paied thousands of dollars extras without any fault,
Now I am trying to move somewhere else !! And there is nothing like customer service dept at Bank of America, I have still yet to talk to Frank Mace. Even efforts from my personal accont manager from Bank of America has failed.
NEVER go with Bank of America mortgage.