Consumer complaint received 2016-06-13
Company: BANK OF AMERICA, NATIONAL ASSOCIATION
State: CA
Product: Mortgage
Sub-product: Conventional adjustable mortgage (ARM)
Issue: Loan modification,collection,foreclosure

Complaint:
Loan Modification with Bank of America with devastating results : I am a senior citizen living on a social security budget. I was unable to keep up the payments of {$1000.00} per month for about 9 months when I was given a modification with Bank of America in XXXX, XXXX, at that time I had paid three months of trial payment, I owe about XXXX for late payments and penalties before I made the trial payments. I am XXXX due to XXXX, my doctor can provide proof on my condition. BofA 's notice and instruction on how to sign the Modification Agreement was dated XXXX XXXX, XXXX but I did not receive the letter until XXXX XXXX, XXXX, the letter stated that I must return the signed agreement by XXXX XXXX XXXX, given the limited time to respond acceptance of the modification agreement, I panicked and signed the lengthy modification agreement that same day, the document was in small print but at that time I believed that the outcome could not be worse then the original modification because BofA was there to help and would be fair to consumers. Especially the fact that I have been a loyal customer with them for the past 30 plus years. 

The modification was completed in XXXX, XXXX. When I made the first payment, I then realized the loan had a principal balance of {$200000.00} instead of the original principal balance of {$140000.00}, plus a new balloon payment of {$140000.00}, and the remaining loan term of 20 plus years became 39 years. Interest remained the same as the previous modification of 2 % adjustable every few years. My monthly payment was {$100000.00} before the modification, now it is {$1000.00}. 

I called BofA several times, the first XXXX representatives were very impatient and told me I had signed the modification agreement and I was aware it was a new loan because of prior modifications, that there is nothing I can do. I was never informed that it would be a new loan, the document I signed stated it was a Modification Agreement. I was never informed of the new terms until the document for signatures was sent to me. I called BofA again in XXXX, XXXX asking them to see if someone of authority at their bank can look over my modification, because owing {$14000.00} does not warrant added principal of over {$67000.00} plus a balloon payment of over {$140000.00}. I called the XXXX program, they told me to get a break down of the charges from BofA. I asked BofA for a break down, they gave me an explanation of how the last balloon payment of about {$54000.00} plus the late mortgage and penalties was added to that first deferred balloon payment and moved to the original principal, making the upfront principal over {$200.00}. But the break down of the new balloon payment of XXXX is not available to me. They would not or could not give that break down to me. 

I have paid 14 years into the home since XXXX, I do not want to prolong the terms to another 39 years, I can not live that long and I do not want to leave a mess for my children to handle. Now the property is under water because of the added principal and new balloon payment, the market value is only about {$320000.00}, now I owe more than {$350000.00} - more than {$200000.00} in debt than what I owe a few months ago. I am in poor health, I can not handle the stress to be in a worse financial situation than before and to have all my hard earned equity wiped out. I feel like I walked into a trap of disguise that BofA was there to help. I want to receive proof that Bank of America is the owner of my mortgage debt, I want to receive a written break down of how the increased principal and the balloon payment are consist of, I want to reverse the modification or amend it to a reasonable amount based on the nine months ' late payment and late fees.

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