Consumer complaint received 2015-09-29
Company: BANK OF AMERICA, NATIONAL ASSOCIATION
State: VA
Product: Mortgage
Sub-product: Conventional fixed mortgage
Issue: Loan servicing, payments, escrow account

Complaint:
In XXXX, my spouse and l acquired a loan from Bank of America XXXX BOA XXXX to purchase a house in XXXX, VA. The loan was split into Loan XXXX and Loan XXXX. Over the years, BOA sold loan XXXX to XXXX, but kept loan XXXX and we wondered why? The amount borrowed for loan XXXX was {$38000.00}. It was at a higher interest rate of 7.625 % compared to loan XXXX. That was all we were told when we acquired the loan and signed the documents. 

We have been paying towards this loan for 10 years, 8 months now. A total of XXXX payments as of the beginning of XXXX, XXXX. So l called to inquire about how much more was left on the loan. However, l was stunned to find out that we have {$33000.00} that we still owe. So upon further inquiry l was told that most of the amount we have paid has been applied to interest. Here is the break down ; Monthly payment of $ XXXXTotal of XXXX payments as of XXXX/XXXX/XXXX is $ XXXXAmount applied towards Principal is $ XXXXAmount applied towards interest is $ XXXXAmount we will still owe in Principal by XXXX, XXXX is {$29000.00}. 

The amount we would have paid by XXXX is {$55.00}, XXXXThe amount we will still be owing will be {$29000.00} plus whatever interest BOA will require of us if we continue to make the same monthly payment of {$270.00}. 

For example, XXXX/XXXX/XXXX, out of a monthly payment of {$270.00}, only {$29.00} was applied towards the principal and {$240.00} went towards interest, a warping 89.10 % in interest! Averagely over 85 % of the money we have paid has been towards interest. 

Much to my surprise, l was further told on XXXX XXXX XXXX when l made the call, that on XXXX XXXX, the loan will have reached maturity by which date, we will be required to pay a lump sum of an additional {$29000.00} in addition to what we have already paid. At that point, l was stunned and l could not believe how a bank that we have trusted over the years to send our hard earned income and our investment to, could treat us with such inhuman loan terms without disclosing the terms to us from the beginning. 

Also, l could not believe that the Government will allow such trade terms to go on in this XXXX. The only thing l think about is BOA has robbed my family of financial resources. When l inquired from the customer service representative as to how we got such a deal, they quickly distanced themselves on XXXX different occasion and told me they did not sign that loan document for me, neither did they offer me that loan. l inquired if some of the amount we have paid could be applied towards the principal? but that was quickly denied and that we were bound by the contract terms then and we only refinance the remaining loan going forward. 

However, l explained that we were never told that over 85 % of the amount we paid we be applied towards interest.The only thing we knew was the high interest rate of 7.625 %. l was also told that l could make extra payment towards the {$29000.00} that will be due in XXXX, XXXX. So that probably explains why BOA retained the smaller loan when they sold the bigger loan to XXXX. 



On XXXX XXXX, l inquired from BOA to know the remaining amount that we

Company public response: Company chooses not to provide a public response
Company response to consumer: Closed with explanation