Consumer complaint received 2016-12-24
Company: BANK OF AMERICA, NATIONAL ASSOCIATION
State: NC
Product: Mortgage
Sub-product: Home equity loan or line of credit
Issue: Credit decision / Underwriting

Complaint:
I received a Loan Modification from XXXX in XXXX XXXX, under the Home Affordable Modification Program ( HAMP ) on my First Mortgage. It was a blessing to have received this opportunity to save our home. XXXX XXXX, XXXX changed my life forever after XXXX year old mother who went to XXXX XXXX/XXXX/XXXX. I stepped through XXXX. I was XXXX when I received a letter from Bank Of America ( BOA ), signed by XXXX XXXX dated XXXX XXXX, XXXX. The letter stated " We are pleased that you have successfully received a FINAL MODIFICATION of your First Lien Mortgage under the Federal Government 's Home Affordable Modification Program. Because of this, you are also approved for a Modification of your Home Equity Line of Credit under the Federal Government 's Second Lien Modification Program ( also called 2MP ). This Program can provide you with a Low Interest rate and affordable Home Equity Payments. The Modification of your Home Equity Line of Credit will be effective on XXXX XXXX, XXXX ''. There was no request for Trial Payments or any financial documents. The letter had a caption that read " You 're approved for a Home Equity Line of Credit Modification. Return your signed Agreement by XXXX XXXX, XXXX ''. So that is exactly what I did. We started making regular new monthly payments according to an executed 2MP Home Affordable Second Lien Modification agreement. The agreement had been signed by me on XXXX XXXX, XXXX and sent back to Bank Of America. The agreement was then signed by XXXX XXXX of Bank of America and returned to me on XXXX XXXX, XXXX. We started making regular monthly payments of {$65.00} as per the agreement, which we have made on time for over 4 YEARS. We did n't initially request this 2MP Agreement. BOA reached out to us initially because we had been approved through XXXX for our First Mortgage ( HAMP ) Loan Modification. I have been through quite a lot but I am a man of XXXX. After the XXXX financial crisis, business income was only a XXXX of what it had been. I ultimately had to file for Chapter XXXX bankruptcy. Knowing we filed Chapter XXXX, XXXX still approved our Loan Modification without any court approvals. I was quite pleased that BOA had also approved our 2MP Loan Modification. For over 4 years BOA has accepted our payments, but refused to adhere to the agreement that they sent to us and was executed by both parties. 
During the last 4 years we have had several Customer Relationship Mangers from BOA who have given us conflicting information about why they have not changed our statement to reflect the terms of the executed agreement. They will only explain over the phone that the agreement is null and void only because they never received court approval which is not required on a chapter XXXX. BOA first said they were waiting on court approval which I had no idea I needed. One BOA rep said we should have sent it with the agreement. Nothing in the agreement signed by both parties stated I needed court approval. We asked our Attorney, in a three way conversation with BOA stated a court approval was not necessary in a chapter XXXX, nor would the courts provide court approval in a chapter XXXX. He explained to us that the courts had no interest because no payments are being made to the courts in a Chapter XXXX. In a Chapter XXXX all debts are 100 % discharge. I called the Bankruptcy Court and spoke with XXXX XXXX. She confirmed that the court does not provide court approvals on a chapter XXXX. XXXX also stated that the BOA attorneys should know that. BOA said our Attorney & the Bankruptcy Court was wrong, and I needed to get court approval. BOA is breaking the rules of this executed loan agreement and using unfair practices against 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