GOLDEN VALLEY, Minn. - Most people love when the little guy comes out on top in a David versus Goliath story.
Well, Mike Gannon is playing the role of David, after coming out on top in a battle against Bank of America, the company that holds his mortgage.
We first met Mike back in mid-August when KARE 11 reporter Jay Olstad introduced us in a story about his fight to rework the terms of his mortgage. On paper Mike qualified for a multi-billion dollar national mortgage settlement that allowed homeowners to lower their rate if:
- The amount they owe on their mortgage is greater than the value of their home, also known as being "underwater"
- They are paying higher than 5.25 percent in interest
- They are current on their mortgage payments.
According to documentation Gannon fit all those criteria but he says employees at Bank of America said they didn't know if he qualified for the program. Some didn't even know what the program was, so Mike called KARE 11.
Well, it appears his work and diligence has paid off. Gannon emailed KARE Friday with the news that he received a call from Bank of America with the news that they had reduced the rate of his mortgage from 5.75 to 3.75 percent. That drop reduced his mortgage payment about $600 per month.
In truth, Gannon figures the rate reduction actually reduces the monthly interest on the mortgage by about $800 per month, which means even with a lower monthly payment he will actually be paying more toward the principal every month as a result of the agreed modification.
In his email to reporter Jay Olstad Gannon wrote;
Though it's been quite a painful and arduous process, this is pretty much everything I was hoping to get (within reason). It would have been nice to get the principal reduced, but oh well. We're not going anywhere anytime soon, and have no need to sell, so the rate reduction is fine.
Persistence pays. So does an active media that is willing to shine a light on companies that are not living up to their obligations.
We can't thank you and Kare 11 enough for taking an interest in this story and helping to get Bank of America moving on this process. I truly hope that this means that they are starting to act on all of the other outstanding refinance requests that they have been sitting on for the last 6 months.
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