Consumer complaint received 2017-08-05
Company: BANK OF AMERICA, NATIONAL ASSOCIATION
State: VA
Product: Mortgage
Sub-product: FHA mortgage
Issue: Closing on a mortgage

Complaint:
I am writing to dispute Fed Debt Case number XXXX currently valued at {$12000.00}. I do not owe this money, this debt was paid on XX/XX/XXXX. I am hoping you can help me resolve this significant issue. An error was made in the disbursement of funds at the closing of my home in XX/XX/XXXX. This event was created by Bank of America and a mortgage modification that closed in XX/XX/XXXX. At that time, the modification reduced my interest rate and pulled {$8800.00} from my principal owed to Bank of America that was financed by HUD. HUD placed a lien against my residence for the amount, {$8800.00} and Bank of America noted the subordination amount on my statements of {$10000.00}. This subordinated amount was made up of the {$8800.00} that HUD had paid to Bank of America plus and fees ( Attachment 1, page 2 ). On XX/XX/XXXX, I closed on the sale of this residence at the offices of XXXX XXXX XXXX, XXXX. in XXXX NC. Prior to the closing the office had been provided payoff statements from both Bank of America and HUD. The principal balance at time of closing with Bank of America was {$160000.00} plus {$10000.00} from the mortgage modification, for a total of {$170000.00}. The {$10000.00}, as noted above, was the amount that Bank of America was collecting to pay off the money provided by HUD for the mortgage modification. The law office did a wire transfer of {$170000.00} to Bank of America on XX/XX/XXXX at XXXX ( Attachment 2 ). This amount included the HUD pay off amount and is from the Bank of America Payoff Statement ( Attachment 3 ). I was not aware of any issues with the disbursement of funds until receiving a Notice of Disclosure of Debt with a claim number of XXXX in XX/XX/XXXX. I contacted XXXX XXXX, HUD Debt Servicing Representative, on XX/XX/XXXX at XXXX to address the letter, gain an understanding of what had occurred, and start working with him to resolve this issue. After XXXX XXXX and I spoke, I spoke with the closing attorneys office and requested documentation and to have them contact XXXX XXXX directly to provide him with answers. All my contact with the closing attorneys office was through XXXX XXXX, more than a dozen phone calls. I contacted Bank of America directly several times and asked them to provide documentation that they had repaid HUD. On XX/XX/XXXX I spoke with XXXX, a client representative with Bank of America, and she stated that the lien was cleared and mailed me a statement with that information ( Attachment 4 ). On XX/XX/XXXX, I filled out a Debt Resolution Program Financial Statement and emailed it to XXXX XXXX in case Bank of America did not repay the loan ( Attachment 5 ). I continued to update XXXX XXXX on my communications with Bank of America and XXXX XXXX XXXX. On XX/XX/XXXX, I was informed by XXXX XXXX that he had not had any communication from either Bank of America or XXXX XXXX XXXX and this issue was turned over to the Treasury Department for collections ( Attachment 6 ). Since I became aware of the issue in XX/XX/XXXX, I have had numerous conversations with XXXX XXXX at XXXX XXXX XXXX, XXXX XXXX with XXXX XXXX XXXX - the title insurance company, and Bank of America. XXXX XXXX XXXX speculated in an email that Bank of America is moving slowly and may get to this obligation this summer ( Attachment XXXX ). XXXX XXXX XXXX has requested me to authorize them to contact HUD, XXXX, and Bank of America on my behalf. This request came through the XXXX XXXX XXXX on XX/XX/XXXX, I responded on XX/XX/XXXX to provide that authorization ( Attachment 6 ). On XX/XX/XXXX, I emailed the current statement from the Department of the Treasury with the intent to initiate wage garnishments ( Attachment 8 ). On XX/XX/XXXX, I had another conversation with Bank of America regarding their lack of payment to HUD. After a long conversation with a customer service representative named XXXX based out of Arizona he determined that there was a significant problem on Bank of Americas side and assigned me a new case number, XXXX. With this new case, I am being assigned an executive to be a single contact in solving this issue. XXXX stated that I would receive a call from my assigned executive within 48 hours and if not to call back and find out who it is. I want to get this resolved as quickly as possible. I have filed a complaint with the NC Attorney Generals Office and the NC Department of Justice. The NC Department of Justice has sent three letters to Bank of America regarding this with no response ( Attachment 9 ). I will continue to explore  other solutions to this issue and work with all parties to get it resolved. I paid this loan off on XX/XX/XXXX. Bank of America is holding the money owed to HUD and needs to be held accountable. This event has cost me eight days off work and my family profoundly both financially and emotionally. Thank you for any assistance you can provide,

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 monetary relief