Consumer complaint received 2018-02-06
Company: BANK OF AMERICA, NATIONAL ASSOCIATION
State: CA
Product: Mortgage
Sub-product: Home equity loan or line of credit (HELOC)
Issue: Struggling to pay mortgage

Complaint:
We purchased a condominium located at XXXX XXXX XXXX # XXXX in XXXX XXXX CA XXXX. at that time the lender for the developer was XXXX  XXXX XXXX . we purchased the property with a first and second mortgage totaling 100 % of the purchase price XXXX. both loans ( XXXX and XXXX ) were with countrywide. after several years we were having difficulty paying our mortgage and in early XX/XX/XXXX applied for a home affordable modification loan through the XXXX XXXX modification program. by this time countrywide had been purchased by bank of america who purchased both our loans. after sending over all financial documentation as requested by bank of america they agreed to modify our mortgage based on the information received to get payments close to 31 % dti. our financials had not increased significantly in XX/XX/XXXX from the time the property was purchased. b of a on XX/XX/XXXX finalized a modification increasing the mortgage from a 30 year to a 40 year loan with adjustable rates after the first 5 years fixed after the 5th adjustment. there was never a mention of the second mortgage nor do we believe the second mortgage was included on the back end ratios during the modification process as required by XXXX XXXX modification program. the second mortgage servicing rights were sold off by b of a during the modification process telling us that they were well aware of the second mortgage owed on the property. it is on the credit report and on title. the modification was finalized in XX/XX/XXXX and we never heard anything from any institution that the second had been only subordinated or left in place or sold off and still owed and on title. i only found out about the second lien still in place after i did a public records search on the property in XX/XX/XXXX and XXXX XXXX XXXX name came up. after contacting XXXX XXXX XXXX they informed me that the servicing rights to this second loan was sent to them in XX/XX/XXXX ( while we were modifying the first with b of a ) and the original balance of XXXX is now XXXX with fees and interest. i attempted to settle the debt for the little that we have and were told by XXXX XXXX XXXX   that the settlement application was approved for the XXXX originally owed. i believe b of a acted negligently at best and fraudulently at worse during this modification process ignoring the second mortgage and transferring the service rights to another servicer during the modification process. i am unable to receive documents as i have requested from b of a to ensure the second mortgage debt was considered in the back end ratios as required by XXXX. b of a only sends me a copy of the modification agreement on the first but does not show what debts were included in the modification process. i have been advised by my attorney to make one last attempt to resolve this through the cfpb before legal action is taken. once again we feel as b of a knowingly ignored the second lien as to reduce their potential loss on the modification even though they actually increased my financing cost over the life of the loan by financing the terms over 40 years as opposed to the original 30 year term on the first mortgage.

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