Consumer complaint received 2023-09-12
Company: BANK OF AMERICA, NATIONAL ASSOCIATION
State: FL
Product: Mortgage
Sub-product: Other type of mortgage
Issue: Trouble during payment process
Sub-issue: Lien release

Complaint:
Bank of America took over Countrywide XXXX XXXX when it went under. I had two loans with Countrywide - a first mortgage and a second mortgage. When I lost my income in XXXX, I applied for relief with BOA, since they took over Countrywide. I was paying my 1st mortgage one month ( approx {$700.00} ), and then the next month I would pay the second mortgage ( approx {$500.00} ). I was showing good faith in attempting to pay the mortgages, but was not able to pay BOTH mortgages each month. 

I qualified for H.A.M.P. loan for my first mortgage. I was required to make perfect, on-time payments for 6 months = payment probation plan. The second mortgage was referred to a " work-out plan '' through N.A.C.A. agency. ( XXXX ) My home value was approximately {$90000.00}, and my first mortgage was {$110000.00}. So I was upside down. At the end of the probation period, BOA attempted to foreclose on first mortgage, so I called the Help Number in fine print on the probation documents. It was a governmental agency who got on a conference call with me and BOA. A final arrangement was made that my first mortgage was qualified to move forward under H.A.M.P. BOA eventually sent my first mortgage to be serviced by XXXX XXXX, and I sent all my on-time payments to them. I have since always paid my first mortgage on time. 

My second mortgage was sent back to BOA from NACA. NACA said that they could not work out the second because there was no equity in the house value to hold a second mortgage. BOA then sent the second to XXXX. XXXX sent it right back to BOA and said the same thing as NACA, plus XXXX said that they were servicing the 1st mortgage for me and there would be a conflict with servicing both mortgages, since the second was in default and I did not have enough income to pay both mortgages. XXXX sent the second back to BOA with a denial letter. They would not service the second mortgage. I continued to call BOA about the status of the work-out of my second. 

Approximately 6 months later ( maybe XXXX ), BOA sent me a XXXX pkg and called on phone with urgent work-out plan. Sign the docs, get them back asap, and my second would be released through the bail-out plan. If I didn't sign, my first mortgage H.A.M.P. would be in jeopardy!! I was told that the second mortgage was qualified for a bail-out program for two reasons : that the value of my house was so low that it would not cover a second, AND that the second mortgage had been bundled into an asset backed security ( XXXX ) that was sold as XXXX rated investment when it was clearly a sub-prime risky investment product. XXXX XXXX I did exactly as BOA requested. It was in the written documents from BOA that they would record a Release of Mortgage for my second mortgage. I was also required to acknowledge ( signature ) that the value of the second would be sent to the IRS, and I would be required to pay income tax on it. My taxable income rate was approximately 8.5 %. I was a single mother with a school-age child. I was told that the IRS would make payment arrangements with me. I agreed. 

Approximately five years ago, a zombie debt collector ( XXXX XXXX XXXX ) phoned me and said " they were calling my loan '' referring to my second mortgage with XXXX. I was shocked, but I corrected them - saying " you mean you will be filing a Lis Pendens?? '' Since that time, I have informed XXXX that they have no legal standing in this matter, and that I would not be paying them. They have ceased contact with me. XXXX never reported any late mortgage payments to the credit bureau. I have a 700+ credit score for many years now. 

It is my belief that BOA took the second mortgage bail-out money from the federal government program, and then failed to follow-up with the Release of Mortgage. Since this time, there has never been any further written communication from BOA. I have called them on numerous, numerous occasions about the Release of Mortgage. I have called the IRS too. They have nothing. My income tax returns are up-to-date. BOA won't talk about this. They put me on hold, transfer from one department to another, put me on hold. 

This second mortgage is still recorded in my deed records at XXXX XXXX, Florida. I can not find an attorney to help me. Bank of America won't help me. I can not get a home-equity loan or sell my house with this zombie second mortgage on my property record. Instrument # XXXX Bk # XXXX Pg # XXXX And Bank of America will do nothing to make this right. Please help me.

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