Consumer complaint received 2017-09-28
Company: BANK OF AMERICA, NATIONAL ASSOCIATION
State: AL
Product: Mortgage
Sub-product: VA mortgage
Issue: Struggling to pay mortgage

Complaint:
Subject : Bank Of America ( BOA ), I was forced into a Deed In Lieu and Loss of VA eligibility when other options were available. Reference Loan # XXXX I am a 21 year ( XXXX ) Military veteran. I am currently employed as a XXXX XXXX with XXXX XXXX XXXX XXXX XXXX XXXX ( XXXX ). 
On or around the later part of XX/XX/XXXX, I received a letter from the Department Of Justice informing me that I was among a settlement class of more than 200,000 XX/XX/XXXX and XXXX Borrowers who qualified for Loans and were charged higher fees or placed into Subprime Loans ( see attached article ) XXXX XXXX XXXX XXXX was found liable for fraud over defective mortgages sold by its Country-wide  unit. 
Around this same time ( not knowing very much about the DOJ action or what impacts it had on my mortgage situation ) I made every effort to seek relief and assistance from Bank of America in order to retain my home, to include considering a short sale ; however, due to the housing market at the time this approach was also unsuccessful. I worked feverishly to put myself in the best possible situation to reestablish my finances in the hopes that if I had to lose my house the cost would be minimal and the adverse effects less severe. I consulted my assigned Bank of America representatives in the later part of XX/XX/XXXX and was informed that the Deed in Lieu process would be a less harmful option. At no time was I informed regarding a pending principal forgiveness offer. 

On or about XX/XX/XXXX, I received a letter forwarded to my current residence at XXXX XXXX XXXX XXXX, XXXX Ala. XXXX from Bank of America. The letter is dated XX/XX/XXXX ( See attachment ) It was sent to my previous address at : XXXX XXXX XXXX XXXX XXXX, Ala XXXX. The Bank of America letter is a principal forgiveness offer resulting in part from the DOJ  settlement. This offer would have reduced my principal from {$400000.00} with a monthly payment of {$2400.00} to a new principal of {$240000.00} with a monthly payment of {$1400.00}. This would have been just the remedy I needed to retain my home and continue to re-establish financial stability ; however I was not afforded the opportunity to accept it. 

Note : This principal reduction offer is dated XX/XX/XXXX. The same date that the Deed in Lieu action became final. ( See attachment ) At no time prior to leaving my home was I informed by BOA of any special relief that was available for mortgage holders that were affected by the pending legal judgment that would aid me in retaining ownership of the property. In XX/XX/XXXX, I received restitution associated with the judgement from the DOJ in the amount of {$2200.00}. As a consequence of BOA not informing me in a timely manner that this modification option was available to me, I lost my home and entire VA home loan eligibility benefit. 
The attached loan offer document shows that the current loan had a monthly payment of {$2400.00} with a Balance of {$400000.00} the modification offer, if I had received it in a timely manner would have reduce the monthly payment to a manageable {$1400.00} per month and reduced the overall balance on the property to {$240000.00}. I would still be in possession of my home and my well-earned VA benefit. 

Consequently, the VA payout to BOA for the higher guarantee amount of {$410.00} instead of {$240000.00} voided any remaining VA benefit that I could use to purchase a new home. Bottom line, my financial situation is greatly improved ; however, due to me losing my VA eligibility I must now wait a total of 3 to 7 years to qualify for a FHA or Conventional home loan.

Company response to consumer: Closed with explanation