Bank Of America Auto Loan

What goes around, comes around

But there was one huge problem with the bank’s actions. The couple didn’t owe the bank a penny. They paid cash for the single-story, 2,700-square-foot home. Still they had to go to court to prove that the bank didn’t have a right to foreclose on their property.

Bank of America was ordered by a judge to pay the Nyerges’ $2,500 in attorney fees.

One would think after their ordeal the Nyerges wouldn’t have trouble collecting their just due.

But, oh no.

After five months of calls and writing letters, the couple still hadn’t seen their money from Bank of America. Here’s where it gets delicious.

The couple sent their lawyer, the sheriff, and a moving company to a local Bank of America branch. They had court permission to seize branch assets.

“I’m either leaving the building with a whole bunch of furniture, or a check or cash or something,” vowed the Nyerges attorney, Todd Allen. 

No seizure was necessary. The couple was eventually given a check of more than $5,700 to cover the court order and other expenses.

A bank spokeswoman issued a statement apologizing to the couple.

Love, love this story. It’s about time a bank gets what it has given to beleaguered customers.

New Mortgage Limits Proposed

I want you to think about this fact reported yesterday by the Post staff writer Dina ElBoghdady : Most people who took out a mortgage last year to buy a home ended up spending more than a third of their income to pay that loan and other debts.

Why is that important to know?

Federal officials are now proposing that loans not backed by the government limit a borrower’s total debt — including credit cards, auto loans and student loans — to 36 percent of his or her gross monthly income, ElBoghdady reports. Mortgage payments would be limited to no more than 28 percent of a borrower’s gross monthly income. Additionally, borrowers would be required to have a 20 percent down payment.

Greg McBride , chief economist at Bankrate.com, says that what matters most is a borrower’s “residual income.” A family that makes $10,000 a month would have $7,200 left to spend if a quarter of their income goes toward the mortgage. By contrast, a family that earns $4,000 a month has less than $2,900 left, giving them a smaller margin for error.

Marc H.