B of A building faces foreclosure

The irony surrounding the Atlanta skyscraper is pretty tall, even if the company doesn't own it.

By InvestorPlace Jan 9, 2012 2:55PM
Atlanta’s Bank of America Plaza is one of the 10 tallest structures in the U.S. And thanks to troubles at its namesake Bank of America Corp. (BAC) and other tenants, the skyscraper could be one of the tallest foreclosure tales of the financial crisis.

News came out recently that the company that owns the office building is struggling to meet its debt service as offices remain empty and the real estate crash continues to take a toll.

The Altanta Journal Constitution newspaper writes that, ”a company that specializes in  troubled loans is making preparations for a possible foreclosure [of Bank of America Plaza] while  negotiations continue on a deal to try to prevent the property from  being seized by the lender, according to a report by Trepp, a real  estate research firm.”

To be clear, the tower is owned by California-based commercial real estate firm BentleyForbes — not Bank of America. BentleyForbes bought the 55-story tower at the height of the nationwide real estate boom under the premise that it could get big rents for tenants clamoring for office space.


Obviously, things have changed. For both the housing market and for BofA, which went from a leading financial stock to one of the most hated companies in America.


The $363 million loan on Bank of America plaza went to LNR Partners in February, while a second loan had been in default for non-payment.


Obviously Bank of America isn’t the one holding the bag on this property, but it’s hard to ignore the direct relationship between the boom and bust or real estate and the boom and bust of U.S. financial institutions over the last decade.


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162Comments
Jan 9, 2012 6:25PM
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I hate BofA.  After being a loyal customer for 28 years they jacked up my CC rate in early 2009, even though I was never late with a payment.  I owed a whopping $2,800 on a line of $5K which I always paid off with my tax refund.  Talked to three Managers, no one could help me.  So what did I do?  I yanked all of my accounts (checking, saving, IRA, CDs) and moved all of this money to a small regional bank based in my hometown which has a GREAT rating.
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I encourage everybody to move their money out of large corporate banks & go local.  And that goes for everything too: no starbucks, mc d's, etc.
Jan 9, 2012 8:34PM
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I personally know at least 50 people who have or had either Bank of America mortgages and or Credit Cards, some of which I've worked with in trying to come to payment terms in the midst of this financial crisis. I have seen Bank of America refuse payments because they were not enough, I've seen them jack 4% credit cards to 30% overnight on otherwise great customers, and have witnessed their collection department harass people with one collection call every 5 minutes from 8:00 a.m. to 10:00 p.m. They have foreclosed on people who could make a reduced payment, and rather than work with them because of illness, death of a spouse, unemployment or other hardship chose to foreclose. Perhaps if they chose to work with their customers instead of putting them on the street they might not have found themselves in this position. Personally ... I hope they loose the building. May it be the first of many. 
Jan 9, 2012 3:25PM
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Good to see. Unfortunately they don't own the building. Let's hope they become homeless too like they've done to so many Americans. Death to BofA. I would love to see them completely fail.
Jan 9, 2012 6:26PM
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ATTN: John N. L  Explain this to me if you think you know what you are talking about.

In 2009 my home loan with TBW (Taylor Bean and Whitaker) was sold, given, transferred to or whatever to BOA. Without notice. Since 2009 all payments  made have been placed in an escrow account with BOA, (BOA REPORTING LATE PAYMENTS ON MY CREDIT THE WHOLE TIME). Four months ago BOA got it processed. Now when I make my payment they want to know when I will pay the past due charges, the title transfer, and title process fees from 2009, when I sold my home??????. $2600+ and I have never sold my home.

 

I knew what I was paying, I knew what the payment was, I got the loan on the house, I make my payments on time, I did not ask BOA to take it over and F it up. But they did, and at my expense.

 

So as far as I am concerned, if this situation puts BOA in a bad position or out of business good  it is the least that they deserve for what they put everyone through, you obviously don't have a loan with them that you didn't apply for, but I do. SO F  BOA..............

 

Jan 9, 2012 3:31PM
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Foreclose and throw BofA out into the street.
Jan 9, 2012 10:07PM
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Realizing that BofA does not own the building, I still think it couldn't happen to a nicer group of people who would be forced to move...BofA having to moved out of building being foreclosed somehow seems bitter sweet.
Jan 9, 2012 8:01PM
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B of A came to me with a modification proposal, 1/2 payments for a six month period "until they figure out what to do with my loan", I swear that was the closing sentence,, I was about 12 days late on my payment, not running behind, well I took the 6 months,, the solution they came up with,, extended the loan for 5 years, for a total of 35 years, increased the montly payment by 189.00 due to late penalties and interest.

They put me further under water,, now they have it back. I will never do business with them again, even after my credit and damages that were created from this are repaired!

Jan 9, 2012 3:42PM
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I worked at BofA for many, many years.  They laid me off, foreclosed on my home, put a lien on my car, etc.  They are a terrible company to work for.  I hope they fail and BofA exists no more.  Couldn't happen to a more deserving company.
Jan 9, 2012 6:19PM
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I hope BoA gets a 30 day notice and are not allowed to renew after foreclosure just like the general public gets when they foreclose an apartment building. I wonder if they might then understand the pain...
Jan 9, 2012 5:54PM
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Bank of Un-America is the WORST financial institution in this country. They have pulled American flags from some branches, foreclosed on wrong properties, insisted to some customers that they are DEAD, the list of doofus mistakes goes on and on and on........... I would bury my money in the back yard before doing business with these nitwits. Instead of a bailout, they should be CLOSED!!!!!!!!
Jan 9, 2012 7:47PM
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Wesley,
I am not bashing B of A for foreclosing on bad loans, all banks do that. I am bashing Bank of Un-America for removing American flags from some branches, foreclosing on the WRONG properties, refusing loan payments from customers the bank says are DEAD when they are standing right in front of them. And these are not isolated incidents in a few branches. This bank is run by nitwits and is too big to be run efficiently. My wife has been in mortgage banking for 22 years, starting with a small, local bank. Great service, great banking. It has since been bought out 4 times, each time by a larger banking institution, making it harder and harder to maintain quality work and good service. Not impossible, just harder. Think of this analogy. Watch Gordon Ramsey's Kitchen Nightmares, about failing restaurants. The one thing they all have in common is that their menus are too large. Banks could do much better by staying smaller and concentrating on the things they do good, just like any customer service institution.

Jan 9, 2012 5:58PM
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I hope they B of A has a bank in that building! I would love to see them get evicted from the premises once the foreclosure goes down. I hope that there are other big banks that get evicted from premises of other buildings being foreclosed on. They will see what it is like to be kicked out in the cold.
Jan 9, 2012 6:14PM
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B of A's bad karma just keeps piling up on them.
Jan 9, 2012 7:55PM
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Couldn't have happend to a more deserving, slimy group of money-maggots! ...well, except maybe  Goldman Sachs. I fantasize about the new owner throwing them out and renting to another company. LOL

Now...if we could just see all those outrageous multi-million dollar bonuses eliminated. Open-mouthed

Jan 10, 2012 12:18AM
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People should destroy BOA, Chase and host of other predator lenders.  These companies stick it to their customers with their fees like having to pay a fee to pay your bill on time.   Its a disgrace and any customer who pays a fee like that is a moron..

 

These predator companies need you more than you need them.  The only way to put any of them back in their proper place is to stop doing business with them.

Jan 9, 2012 10:40PM
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This is the best news I have heard in a long time, especially today. BofA is a royal pain in the ****!  We have tried to work with them on our mortgage, due to lack of income, and they chose not to. Sent us into foreclosure. Now that we have moved out the fools, want us to move back in and see what they can do. All I can say is hell is meant for you and where ever your business goes may bad luck follow.  Also, there customer service sucks...
Jan 9, 2012 8:53PM
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If BAC goes bankrupt, does this mean I get to seize my own home?

You're no fun...
Jan 9, 2012 8:00PM
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The best example of irony I have ever seen!
Jan 9, 2012 11:24PM
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Y'all are missing the point here.... 1 of 2 things will happen. 1) BOA will buy the building for pennies on the dollar and make out like bandits or 2) the scum bags that run the morally corrupt company (yes, there are actual humans that came up with all these ideas) will create some "holding company" or investment company and buy the building. Then they will lease it back to BOA and make out like the morally corrupt scum bags that they are. Either way, it is irony. Oh, and those "humans" I mentioned, think they are just smart investors.

 

I left BOA 10+ years ago and everytime I see someone I know whip out one of their BOA debit/credit cards I just cringe... that poor sucker. There is a stigma that goes with W.I.C. and welfare checks and I think BOA debit cards are equally embarrassing.  My small town credit union does everything I need and I don't pay a lickety cent for any of their services.

Jan 9, 2012 4:00PM
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Goodness!  Some people can't read or comprehend words.  Bank of America does not own the building!  For those who post that Bank of America should "fail," have you considered how many hundreds of thousands of families would be affected by "Death to BofA?"   Crazy thinking and crazier responses... 
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