Consumer complaint received 2016-04-21
Company: BANK OF AMERICA, NATIONAL ASSOCIATION
State: GA
Product: Mortgage
Sub-product: Conventional fixed mortgage
Issue: Loan servicing, payments, escrow account

Complaint:
This is a multifocal complaint. It will be submitted in it 's entirety to each individual department as instructed by XXXX, XXXX and the Georgia state XXXX Office. 
In XXXX we obtained a fixed rate second mortgage on our home through XXXX XXXX. Country Wide home loans was the originator of the mortgage. Bank of America NA acquired the mortgage when they purchased Country Wide. On XXXX XXXX, XXXX a set of unfortunate circumstances lead to a foreclosure on our home by XXXX, the servicer of our primary mortgage which was an FHA backed mortgage. Our second lien should have, per Georgia law been extinguished and traditionally the monies owed would have been designated as an unsecured loan which we would have continued paying to BofA. This did not happen. According to XXXX in the BofA foreclosure department, a mortgage insurance claim was filed on our account in XXXX. The loan remained designated as a mortgage while " waiting for a determination by insurance ''. XXXX stated the claim was denied in XXXX at which time BofA formally release the lien on the property in XXXX of XXXX and attempted to convert the loan into an unsecured loan and have us resume payments. It remains a mystery as to how they held the lean three years beyond the date of foreclosure even after the home sold in XXXX of XXXX. The loan was rejected by the installment loan department and reverted to the foreclosure department. XXXX stated a second claim for mortgage insurance was filed in XXXX. He also stated that due to " bankruptcy issues with the mortgage insurance companies, 'executives ' are working on a lump sum settlement for all claims. Once a settlement is reached, the remaining balance of this loan will be charged off. '' He described my account as a " foreclosed mortgage carrying a designation of property conveyed by foreclosure '' and further advised me that my account is locked, and that no payments can be excepted pending the insurance determination and no documentation can be released on the account. BofA continues to report this account as an open active mortgage and assigns a new 30 day late payment every month to both XXXX and XXXX. It reports it as an unsecured installment loan with a new late payment each month to XXXX. Obviously, the loan is either a foreclosed mortgage or an unsecured debt not both. If it is a foreclosure, there should be no late payments reporting following the date of the foreclosure. If it is an unsecured loan, why was it not converted to a charge off after 180 days of delinquency and why can we not work out some form of payment for this debt and how have they filed for mortgage insurance on a loan that is not a mortgage? Multiple BofA representatives have attempted to make it possible to accept payment but are blocked by " flags '' presumably arising from the mortgage insurance claim. I attempted to obtain documentation from BofA regarding their description of the account to provide to their credit reporting department pursuant to a request for documentation from that department. I was told that the account was locked, that no documentation could be released and that my " attempts at legal discovery will have to take another route ''. This was a surprising and troubling statement as I am unaware of any litigation involving my account. We simply want to know what type of loan this is and to have it reach some form of conclusion whether it be resuming a monthly payment, a settlement, or a second mortgage forgiveness and to have it reporting correctly to the credit bureaus. Please advise us how to proceed with this matter.

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