Consumer complaint received 2015-06-17
Company: BANK OF AMERICA, NATIONAL ASSOCIATION
State: TX
Product: Mortgage
Sub-product: FHA mortgage
Issue: Loan modification,collection,foreclosure

Complaint:
My client is attempting to short sale her property, which she vacated in XXXX. The bank has been notified on several instances of the vacancy status, including filing a Occupancy Certification notating the vacancy ( attached ). The Occupancy Certification was reviewed and noted by the bank QA department on XX/XX/XXXX. The bank also regularly sends correspondence to the seller 's current address, which is different from the subject property address. 

We obtained HUD and bank approval for an offer and were set to close on XXXX XXXX. Unfortunately, the buyer was unable to obtain final financing approval even though he was prequalified. We had a back up offer, and notified the negotiator via XXXX on XX/XX/XXXX, of both the inability of the current buyer to close and that we had a back up offer. The back up offer, prequal letter, and preliminary XXXX was sent to the negotiator via the Equator system as a message with the documents attached on XXXX XXXX. The negotiator responded via XXXX on XXXX XXXX, stating, 'I will initiate the decline for you today, once it is completed you may submit your new offer. ' ( Copy attached. ) When I checked XXXX on XXXX XXXX, the file had been completely shut down. I unsuccessfully attempted to reinitiate it via XXXX. I then attempted to contact the short sale department, but the phone number had been disabled. I was instructed to contact the Customer Relationship Manager. I spoke to the CRM, XXXX XXXX, on XXXX. She said she would look into the file and call me on Monday, XX/XX/XXXX at XXXX XXXX CST. After not receiving a call at the designated time, I called and spoke to XXXX of her colleagues. She unsuccessfully attempted to open a short sale file for me in XXXX. 

On XX/XX/XXXX, I called again to attempt to reach XXXX XXXX and was successful. She stated my client must pursue a modification before she would be considered for a short sale or deed in lieu. This is not the proper process for an unoccupied property, per HUD Mortgagee Letter XXXX, dated XX/XX/XXXX ( attached ). The borrower is required only to have a credit score & lt ; XXXX and be & gt ; 90 days delinquent on the loan. My client meets these requirements. I requested to speak to a supervisor. The supervisor, XXXX XXXX ( I believe ) restated the incorrect understanding that per HUD regulations, the borrower would be forced against her will to participate in a loan modification process, even when having no desire to retain or ability to afford the property, before she would be considered for a short sale. XXXX stated the modification review process would take at least 30 days, then she 'd be required to miss a payment before she could be referred for the short sale. He stated that unfortunately, the borrower would miss the opportunity to sell the property to the ready and willing buyer who had submitted the new offer. I informed him the property was well documented as an unoccupied property, and per the above referenced HUD document, the seller was not required to go through the loan modification process. He was not able to agree. 

The bank is acting in direct opposition to HUD guidelines by insisting the seller must pursue a loan modification for an unoccupied property against her expressed will. They are denying her the opportunity to avoid foreclosure and forcing her to turn away a ready and willing buyer. They are causing grave potential harm to my client and increasing her risk of foreclosure.

Company public response: Company chooses not to provide a public response
Company response to consumer: Closed with non-monetary relief