Consumer complaint received 2016-01-09
Company: BMO HARRIS BANK NATIONAL ASSOCIATION
State: IL
Product: Mortgage
Sub-product: Home equity loan or line of credit
Issue: Loan modification,collection,foreclosure

Complaint:
BMO Harris Bank has offered us what they call a modification with stipulations regarding our second mortgage the stipulation is a " mortgage payment forbearance agreement ''. However this BMO agreement is unfair and totally one sided in favor of BMO. What makes the agreement so bad is that it actually makes a borrower 's situation worst. BMO coerces desperate home owners to sign this deceptive agreement thinking it will help them. The BMO agreement actually creates a financial difficulty for the borrower and makes it easier for BMO to foreclose on the borrower. I sent BMO an e-mail listing my concerns. BMO refused to consider any changes to the agreement. 
Below are the concerns I have with the BMO agreement : 1. The agreement is not written in plain English. The agreement contains complicated legal language more suited for lawyers as oppose to simple laymen like us. 

2. The agreement is completely one sided and written solely for the benefit of BMO. 

3. The agreement requires a large balloon payment at the end of six months. 

4. The agreement calls for us to sign way or waive all of our legal rights in relation to the loan. 

5. The agreement absolves BMO of any and all responsibility for any wrong doing or mistakes in the past present or future. 

6. The agreement shifts the burden of any BMO legal expenses associated with this loan to us. 

7. This agreement should be a stand alone agreement but BMO has tied in to the loan in a manner which is the most adverse for us. 

8. Any attempt by us during the 6 month period to fine another solution to our mortgage situation results in immediate default and foreclosure. 

9. While BMO uses the treat of foreclosure to force us to sign this agreement the agreement states that this is not the case. 

Finally instead of helping us this agreement will make our situation worse. In denying us a loan modification you are still holdings to your normal lending standards. This does n't make sense when you consider that if we could meet your normal lending standards we would have applied for a refinance and not a hardship modification. 

What I have asked is that BMO permit us to continue to pay interest only for 5 years before the principle payback starts. Our request still allows BMO to have an interest paying mortgage with no loss of earnings. We are not asking BMO to take any lost associated with this loan all we are asking for is additional time. BMO retains all of its normal options if we fail to live up to the modification. 

We thought the BMO agreement was going to be a trial period before BMO would grant a permanent loan modification. This is what XXXX did. However not only is this not a trial with a reasonable outcome it is an agreement that leads us into a quick mortgage foreclosure with no legal recourse. 


Since experiencing financial difficulties resulting from unemployment I have now found a new job. We told BMO that we did not want or need a " mortgage forbearance agreement '' because we were now able to pay the full mortgage payment. BMO refused to consider anything but the unfair BMO " mortgage payment forbearance agreement '' and proceeded to foreclosure without offering any other options due to our changed circumstances. I attempted to pay BMO the normal payment beginning the same pay period offered in the unfair forbearance agreement. BMO returned the check. 
Attached are several documents related to my complaint ; 1. BMO " mortgage payment forbearance agreement '' 2. BMO agreement with changes we wanted to make so that the agreement was more fair and equitable for both BMO and us. 
3. E-mail to BMO regarding the agreement and their response. 
4. Our letter to BMO with a check for the normal loan payment amount 5. BMO 's letter to us returning our mortgage payment check

Company public response: Company chooses not to provide a public response
Company response to consumer: Closed with explanation