Compass Bank Complaint - Compass Bank Stands In The Way Of Help
DENVER, COLORADO -- Recently I received an email about the President's new Home Affordable program and some expansion to the initial terms. The email stated that the new, allowable LTV ratio was being changed from 105% to 125%. This was great news for me and could potentially save me several hundred dollars per month on my first mortgage loan. However, when I contacted the lender I had chosen to do the refinance on my first loan, I was told that they could not do anything to help me because Compass Bank holds the note on my Home Equity Line of Credit, which is currently in second position. Evidently Compass Bank has a policy that they will not allow a refinance, unless they are moved into first position at the time of the closing on the refinance. With that being their policy, I am dead in the water. No lender will do a refi and agree to put their new loan in a second position, behind Compass Bank's current HELOC. Compass Bank's stance seems to be that if someone is interested in refinancing, they must be in trouble and about to default on their loan, so they want to be sure to move their loan up to first position in order to get their money if something happens. What makes no sense to me is that if someone is in trouble and needs the refi in order to keep up with payments, and Compass doesn't allow it to happen, Compass stands to lose everything if a foreclosure or short sale ends up happening. I would think that they would want to help, not just because it is the right thing to do, but also because by allowing someone to refinance, they are more than likely going to make it easier for the individual to stay current on the second loan as well. Anyway, I am not in trouble at this point, but would still like to be able to reduce my monthly payment through refinancing. Unfortunately, Comapass Bank's policy makes it impossible for me to take advantage of this opportunity. It certainly seems that someone at Compass needs to rethink their position and consider actually trying to help people out during these tough times. I am very disappointed in this company and their apparent lack of compassion. It seems that money is all they care about. I have multiple accounts with them currently from business to personal, which I will be moving to another institution as soon as possible. Thanks for nothing Compass Bank!
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