Consumer complaint received 2017-04-28
Company: BANK OF AMERICA, NATIONAL ASSOCIATION
State: CA
Product: Mortgage
Sub-product: Other type of mortgage
Issue: Trouble during payment process

Complaint:
This complaint is submitted on behalf of the mortgagee by his advocate. Mortgagee has been awarded {$76000.00} in Principal Reduction through Hardest Hit Funds Keep Your Home California ( KYHC ). The funds awarded to mortgagee were intended to pay the past due amounts and reduce the principal balance of his mortgage loan, so he may have an affordable monthly mortgage payment. On Tuesday, XX/XX/XXXX mortgagee 's advocate contacted BofA to confirm how KYHC funds were applied to the mortgage loan. Advocate spoke to a total of four BofA representatives. The first representative confirmed the funds were received. He explained that {$67000.00} was applied to principal reduction and the rest was used to cover XX/XX/XXXX to XX/XX/XXXX, therefore XXXX XXXX next mortgage payment would be due on XX/XX/XXXX. Advocate inquired about the new monthly mortgage payment amount, since the principal was reduced by a large lump sum. He said the monthly mortgage payment would stay the same, but she could speak to a case manager in order to receive more information. The representative placed the advocate on hold to transfer the call to the management department, when the call was rerouted to the same customer service department. Advocate explained the situation again to a second representative, who placed the advocate on hold to transfer the call to management, to only have the call rerouted again. The advocate spoke to a total of 4 BofA representatives on that day. Each representative with a different story. Two representatives wrote down the advocate 's contact phone number, in the event that the call was disconnected/rerouted. One representative confirmed the calls should not be rerouted if someone was on hold for a long period of time. The fourth representative claimed the advocate was not authorized on the account. Not one representative returned the advocates ' call. The advocate informed the mortgagee of what had occurred on Thursday, XX/XX/XXXX. She asked him to contact BofA himself, to see if he had a different result. The mortgagee spoke to three different representatives due to the rerouting once he was placed on hold to be transferred to management. The mortgagee is alarmed that not one representative mentioned KYHC and that they all provided different information. One representative advised the mortgagee to negotiate his monthly mortgage payment if he wanted it reduced. The mortgagee is an XXXX year old XXXX veteran. He defaulted on his mortgage shortly after he was involved in a XXXX XXXX where he suffered XXXX XXXX and lost his only form of transportation his vehicle. Through the loss of his vehicle, his wife was unable to comply with her job responsibilities and lost her employment. This created an income reduction to the household, making it difficult for him to maintain his mortgage current. BofA mailed the mortgagee foreclosure alternatives after his delinquency began. The mortgagee 's wife explained to BofA that he had undergone XXXX XXXX XXXX due to XXXX that caused XXXX XXXX XXXX. BofA sent the mortgagee a transfer of mortgage loan notice soon after his wife explained his current health situation. BofA then sent a conflicting notice, informing the mortgagee that they would no longer transfer the mortgage soon after he was pre-approved for KYHC. The mortgagee is currently recovering from XXXX. He is extremely fearful of the conflicting information BofA continues to provide throughout the servicing of the loan. The stress has caused him to lose sleep, which is affecting his health and wellbeing. The mortgagee accepted KYHC funds with the understanding that his monthly mortgage payment would reduce to an affordable amount. He was willing to accept their lean and requirements only because it meant that he would be able to age in place with his wife. It appears that BofA is creating an accounting error and/or misusing Hardest Hit Funds. There is also a great concern for their servicing practices re : rerouting and representatives providing conflicting information. These servicing practices are prohibited under the California Homeowner Bill of Rights and The Unfair, Deceptive, and Abusive Acts and Practices under the Dodd-Frank Act. As a result of these actions, The mortgagee has been diverted from obtaining legitimate information and foreclosure proceedings may be brought against him if he continues to have an unaffordable payment. The mortgagee is fearful of losing his home.

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