Consumer complaint received 2016-03-23
Company: BANK OF AMERICA, NATIONAL ASSOCIATION
State: NC
Product: Debt collection
Sub-product: Mortgage
Issue: Cont'd attempts collect debt not owed
Sub-issue: Debt is not mine

Complaint:
On or about XXXX XXXX, XXXX, the XXXX purchased the residential real property located at XXXX, Arizona XXXX ( the " Property '' ), a single-family residence of less than 2.5 acres, used as a dwelling, for {$120000.00}. ( See XXXX County Assessor 's Office Printout reflecting that the Property is a XXXX square foot residence. ) The XXXX financed the purchase of the Property with two mortgages from Countrywide Home Loans , Inc. ( " Countrywide '' ) totaling {$100000.00} ( the " First Mortgage '' ), and {$18000.00} ( the " Second Mortgage '' ) ( collectively the " Mortgages '' ). ( See Deed of Trust, recorded in the XXXX County Recorder 's Office on XXXX XXXX, XXXX, at document number XXXX, and Deed of Trust, recorded in the XXXX County Recorder 's Office on XXXX XXXX, XXXX, at document number XXXX, BOA acquired Countrywide in or about XXXX, thereby acquiring the Mortgages. 
On XXXX XXXX, XXXX, the Property was sold in a trustee 's sale, with a bid from a third party purchaser. ( See Trustee 's Deed recorded in the XXXX County Recorder 's Office on XXXX XXXX, XXXX, as document number XXXX. BOA has wrongfully misrepresented to the XXXX that they remain obligated on the Mortgages and has pursued further collection of the Mortgages from the XXXX. In fact, the XXXX have learned that, despite the trustee 's sale of the Property on XXXX XXXX, XXXX, BOA has wrongfully continued to report to the XXXX credit bureaus that the Second Mortgage is active and delinquent. 
Simply put, under long-standing Arizona law, the XXXX have no personal liability on the Mortgages, and BOA has no legal right whatsoever to collect, or to pursue collection, of any further sums from the XXXX. Pursuant to Arizona law, the borrower under a purchase-money mortgage secured by a single-family home on 2.S acres or less that is limited to and utilized for a single onefamily dwelling can not be held liable for a deficiency ( a ) following a trustee 's sale ; ( b ) in an action on the note ( regardless whether a trustee 's sale has occurred ) ; or ( c ) in a judicial foreclosure action. 
Here, because the Mortgage was used to purchase the Property, the Property is 2.5 acres or less, the Property is limited to and utilized as a single one-family dwelling, and the Property was sold in a trustee 's sale, BO A 's sole source of recovery on the Mortgage -- the Property -- has been extinguished. BOA, thus, has no legal right whatsoever to seek collection of the balance owing on the Mortgage from the XXXX ' remaining " assets ''. 
More specifically, A.R.S. XXXX ( G ) provides, in pertinent part, as follows : If trust property of two and one-half acres or less which is limited to and utilized for either a single one-family or single two-family dwelling is sold pursuant to the trustee 's power of sale, no action may be maintained to recover any difference between the amount obtained by sale and the amount of the indebtedness and any interest, costs and expenses. Thus, a single-family home on 2.5 acres or less that is limited to and utilized for a single onefamily dwelling qualifies for anti-deficiency protection pursuant to A.R.S. XXXX ( XXXX ). 
Here, as discussed above, the Property is less than 2.5 acres and is utilized as a single onefamily dwelling. Thus, the home constitutes Qualified Property. Further, as discussed above, the Mortgages were used to pay a portion of the purchase price for the Property. Thus, the Mortgages constitute Purchase Money Mortgages secured by Qualifying Property. As a result, A.R.S. XXXX XXXX ( A ) and XXXX I XXXX ( G ) patently apply to the Mortgages to " obliterate '' any personal liability of the XXXX on the Mortgages. Since the date of the trustee 's sale BOA has consistently misrepresented to the credit reporting agencies that the Second Mortgage remains an obligation for which the XXXX are liable and delinquent.

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