Consumer complaint received 2023-03-20
Company: BANK OF AMERICA, NATIONAL ASSOCIATION
State: MA
Product: Mortgage
Sub-product: Other type of mortgage
Issue: Struggling to pay mortgage

Complaint:
XXXX - took out a primary loan as well as a " soft second '' with Bank of America to purchase a primary/only residence Between XXXX and XXXX mortgage payments became difficult to impossible to make due to difficulties with the mother of my children. My options were either leave myself or evict my children and their mother. I could not afford rent as well as the mortgage nor could I evict my own children. 

XXXX - struggled to make payments on the " soft second '' ( as well as the primary ) XXXX - made a payment " soft second '' after missing several payments XXXX - Bank of America " charged off '' the " soft second '' loan XXXX - the last tax document issued with respect to the " soft second '' was submitted to the IRS was for the XXXX tax year Prior to foreclosure, the primary loan changed servicers to " XXXX '', who did get in contact with me regarding foreclosure mitigation. 
No contact was made regarding the soft second, which I was unaware was charged off. At the time, I thought that loan was lumped in with the primary loan re : who was servicing the loan and handling the eventual foreclosure. I had no reason to think otherwise, given the situation and that both loans originated with the same company. 

XXXX - foreclosure XXXX XX/XX/XXXX - foreclosure complete, with the transaction amount being over {$2000.00} more than the amount owed on the primary loan and about {$10000.00} less than the market value noted on the 1099-A. 
There is no record of any of the excess being applied to the " soft second '' loan, which had been charged off two years prior.

2023 January- the charged off " soft second '' changes servicers from Bank of America itself to Capital Management Services I was not notified of this change. In addition to not notifying me of this change, Bank of America gave the new servicer a contact address that I have no association with ( the address is for a strip mall in a town where I have never lived ) despite Bank of America having sent correspondence to where I lived in XXXX, which is in the same building where I currently reside ( just across the hall from the last address -- it is a 3-unit home ). 

Right around this time, I was in the process of trying to secure a pre-approval for a loan to purchase a home with my wife ( in no small part as means to improve my children 's custody situation ). We went through " hard '' credit checks, and so on. 
Because of debt on my wife 's side of things, we have to pause our search to improve our DTI ratio and the issue with my loan remains hidden. 

XXXX - I still am unaware of the change in services for the " soft second '' ( or that it still exists as I thought it went with the foreclosure ). The discrepancies are found when we go to apply for pre-approval after improving the DTI ratio and my wife receiving a promotion. 
Traversing the Bank of America phone system to try to find out what happened to this secondary loan is almost impossible because the account number is not recognized by their phone system nor is my SSN. 
Bank of America Collections has some record of the account, but only that it has been sent to a new servicer. They seem certain that it was some kind of loan taken out for home repairs or the like as they can not figure out why I would think that it would be associated with the foreclosure, even though it was taken out to purchase the home along with another Bank of America loan. 
When asked for the note, etc., associate with the loans as well as a copy of the agreement ( s ) sign, they are unable/unwilling to provide any information. They say they will send the payment history. They told me that the collections had been sent to an outside servicer and provided the number. 
I called the new servicer and found that Bank of America had provided them with the incorrect address. I requested the send me information regarding this debt. I received a notice/bill, but no information regarding how the service was transferred, etc. I have subsequently requested any and all information they may have on this debt. 

Somewhere in all of this, Bank of America neglected to ethically handle the " soft second '' both by charging it off without notice, despite a recent payment, as well as not applying any excess in the sale to the second mortgage and not getting fair market value for the house to absolve the majority of the soft second along with the primary loan. They also neglected to provide the new servicers information to me and provided that servicer an incorrect address such that I was unaware that the debt had changed hands.

Company public response: Company has responded to the consumer and the CFPB and chooses not to provide a public response
Company response to consumer: Closed with explanation