Consumer complaint received 2018-02-22
Company: BANK OF AMERICA, NATIONAL ASSOCIATION
State: MI
Product: Mortgage
Sub-product: Conventional home mortgage
Issue: Trouble during payment process

Complaint:
- Our loan was originated with BOA in XXXX. During the mortgage crisis in XXXX and requested and were granted a loan modification which reduced our interest rate to a market rate - this was in place for 5 years. 
- BOA placed insurance on our property in XXXX, though we had maintained it with independent insurance companies. We provided proof of same back then. 
- Shortly afterwards, BOA either sold our loan servicing or otherwise placed it with XXXX XXXX. The issue with the insurance continued and we could get nowhere as BOA said they were not servicing loan anymore and XXXX had noting about it. XXXX also loaded many additional fees compounded from same. 
- When the 5 years of modification was expiring, we approached XXXX about extending the modification. on more than 6 occasions, we provided all necessary documents and each time were advised we had not complied with completing paperwork ( note we were familiar with it having a successful modification in XXXX ). 
- During this time, additional fees mounted and we were ultimately chronically late as some of our funds were directed to late fees, etc. which should not have been charged. 
- Several years ago, XXXX either merged or otherwise became XXXX. They too would not address the old insurence and the loan remained a mess and late. 
- Last summer ( XXXX ) we received notice from XXXX and also BOA that BOA would begin servicing our loan in XX/XX/XXXX. Due to the above mentioned delinquencies and accumulated late charges and fees ( insurance ), it went to BOA as late and also with approximately {$20000.00} in old fees. 
- We were excited to be going back to BOA because we had the successful modification with then and shortly thereafter reached out to them about a new modification. 
- I spoke directly with a loan modification representative who advised what needed to be completed and we discussed the terrible history of our loan. 
- We immediately ( within days ) completed and send all of the required documents for the modification request. We were told that they would ultimately want three trial payments at their terms and to hold off on our payment until the trial was issued. 
- We were granted a modification, however instead of reducing our payments, perhaps thru interest reduction or other means, they increased it and upon asking why and what the breakdown was, we were advised such a break down would only be available after the trail was completed.

- During discussion with BOA modification department staff ( not my assigned representative as I could not reach her thru inbound calling ) I was advised that only a few hundred dollars of my monthly expenses was considered in the evaluation of my modification request - I was stunned and I asked for reconsideration. 
- They processed my request for reconsideration and time went by with no payments as we awaited the start of the trial, after reconsideration. After being told I would hear from the representative who handles modification reconsideration within a few days to perhaps a week, I reached out and got someone who reviewed the file saying I have been contacted by the representative who left me a message. A week later he and I spoke for the first time and he reiterated he had called and left a message - I asked the number he had called ( note my contact numbers were on my online account and many of the modification request forms as well ). The number did not even resemble my number, neither the area code or other numbers. 
- They finally started the process of reconsideration and it came back weeks later they would not modify their offer or they would decline, no other options. They simply advised they did not find it necessary to consider my expenses. 
- I then got notifications from their site and letters in the mail indicating more time was needed for the reconsideration - possibly another 30 days. 
- I contacted BOA in XX/XX/XXXX, now at least another 30 days with no payment and said I would make the three payments which it was being considered so I could get on track. 
- In the course of approximately 45 days, I made the three trial payments to which I was later advised I should not have because it may jeopardize a modification. 
- Regardless, by mid XX/XX/XXXX, the XXXX, XXXX and XXXX trial payments were made. 
- in late XX/XX/XXXX I talked with my original modification account representative and advised I would not take the modification as they were actually just tacking on the disputed amounts and planning to recapitalize to collect interest on it. She advised I needed to send a notice or letter indicating I was declining. I did that day and loaded it on the Loan Modification system. 
- She also said they still showed the loan was a month late so I made yet another payment at the end of XX/XX/XXXX. I also asked what the new normal payment would be without the modification and she researched and told me the exact amount. 
- I received notice from BOA which indicated the payments were still late and nothing had been applied to the account since XX/XX/XXXX. It also showed new insurance being escrowed and paid however I had been paying my insurance directly. 
- I also had tried to obtain a car loan and was advised my credit had dropped to below 600 and the mortgage was the big reason. 
- Since it was XXXX, I made the next normal payment at the exact amount she advised in the first week of XXXX 
- I called to discuss the errors of the new insurance escrow and payments, late payments being reflected, no payments being applied to the account since XX/XX/XXXX ( note there had been 5 payments between mid XXXX and early XXXX ). I was advised the last many payments were not being applied during the modification process. Thus I had made payments and they were holding them and not applying them. 
- The representative I spoke with in XXXX told me they still were not treating the modification as being not accepted though I had loaded a letter indicating such weeks earlier. 
- She advised I needed to submit a new notice indicating I was " opting out '' of the modification. I did so within a day and loaded it. She also got a customer service representative involved to get the payments applied. She also advised the amount I was told to pay was incorrect. 
- Customer service applied the payments bring everything up to date but the loan has been marked as last since BOA took it back though 9 payments had been made in 7 months. I do not believe they applied them as they were actually received as they all show being applied at XX/XX/XXXX. Much more principal should be applied. 
- Their advice and actions have killed my credit, resulted in additional interest, interfered with my insurance, all starting with poor processing issues back in XXXX and insurance placed on the account.

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 non-monetary relief