Consumer complaint received 2022-04-07
Company: BANK OF AMERICA, NATIONAL ASSOCIATION
State: TN
Product: Mortgage
Sub-product: Home equity loan or line of credit (HELOC)
Issue: Trouble during payment process

Complaint:
In XX/XX/XXXX, we modified our home mortgage with our mortgage servicer Bank of America using the U.S. Department of Treasury Home Affordable Modification Program ( HAMP ) Home Affordable Modification Program ( HAMP 1 ) and the Second Lien Modification Program ( XXXX ). Bank of America modified our first mortgage of {$360000.00} with an interest only variable rate of 6.375 % and extinguished or XXXX balanced out our second mortgage of {$92000.00}. We signed and agreed to a modified single mortgage of {$380000.00} with a fixed rate of 3.5 % which yielded a total monthly payment of {$2300.00}. The first payment due to Bank of America was XX/XX/XXXX. The second mortgage was extinguished under the second lien modification program XXXX guideline requirements from the U.S. Department of Treasury. 
We have continued to pay this modified mortgage payment on time to Bank of America until they sold our single modified loan to XXXX. XXXX  in XXXX of XXXX. See the consistent payment history from XXXX XXXX covering XX/XX/XXXX to XX/XX/XXXX. 
In XXXX of XXXX, we received a statement from XXXX XXXX XXXX  claiming that we owe them {$100000.00} for the second mortgage that was extinguished by Bank of America under the HAMP and XXXX guidelines in XX/XX/XXXX. We also received notice for foreclosure on our house dated XX/XX/XXXX, from XXXX, XXXX, XXXX, and XXXX XXXX which is XXXX XXXX XXXX  attorney. We contacted XXXX XXXX XXXX and spoke to an account manageXXXX XXXX XXXX. We advised him that this was all incorrect information because our loan was modified in XX/XX/XXXX. He advised they own the note and that we owe them {$100000.00}. He advised that a loan modification was never recorded by Bank of America to the deed of trust in our local register office. He advised that if there was proof of a modification on file that they would have never pursued to file the deed of trust filing and foreclosure process in XX/XX/XXXX. He advised me to send him proof of the loan modification. We did. 
We contacted Bank of America and provided them with all our previous account numbers to request a copy of our loan modification agreement documentation. Unfortunately, they had no record of our previous first mortgage, second mortgage, nor the loan modification. This was very disappointing customer service from Bank of America. We contacted the Housing and Urban Development office outreach program who directed us to the Department of Treasury to inquire about any extinguishment proof and they also assisted us in obtaining a copy of our loan modification agreement from our current mortgage services provider XXXX XXXX. We emailed the signed loan modification agreement and website link https : XXXX to show the detail required guidelines service providers were supposed to follow under the Home Affordable Modification Program ( HAMP ) Home Affordable Modification Program HAMP 1 and the Second Lien Modification Program ( XXXX ) directive XXXX. This information was sent to XXXX XXXX at Real Time Resolution and their attorney at XXXX, XXXX, XXXX, and XXXX XXXX. to review. We expected that would clear up all the confusion to help Real Time Resolutions realize that their pursuit of collection on a paid off XXXX balance second mortgage loan was incorrect and that it was paid off and extinguished back in XXXX with the Second Lien Modification Program ( XXXX ) using funds provided to Bank of America from the Department of Treasury. 
My credit report has shown the extinguished second mortgage as XXXX balance after our loan was modified in XX/XX/XXXX. 
We received a notice of sale postponement from XXXX, XXXX, XXXX, and XXXX XXXX. advising that foreclosure sale postponed from XX/XX/XXXX, to XX/XX/XXXX. 
We are filling this complaint because we are constantly being asked by attorney 's if we need help to file bankruptcy and asked by investor if we want to sell our home to avoid foreclosure. This feels like XXXX XXXX XXXX is trying to complete a foreclosure money scam that was set up by Bank of America because they neglected to properly record our loan modification in XX/XX/XXXX and have totally erased all our past mortgage documents to prevent us from obtaining evidence of our loan modification. After almost XXXX XXXX XXXX Bank of America and XXXX Bank XXXX New York XXXX have sold a modified extinguished XXXX balance second mortgage loan note XXXX XXXX XXXXXXXX XXXX  so can attempt to collect {$100000.00} or force foreclosure sale to collect the {$100000.00} from my primary home. Please help us defend our consumer rights!!!

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