Consumer complaint received 2017-07-07
Product: Mortgage — Home equity loan or line of credit (HELOC)
Issue: Struggling to pay mortgage — 
Company: BANK OF AMERICA, NATIONAL ASSOCIATION (FL)

In XXXX, XXXX, my partner, XXXX XXXX and I opened a home equity line of credit from Bank of America, secured by a property we owned in XXXX XXXX, Florida. That loan number is : XXXX. The loan had built into it the ability to make interest only payments for the first 10 year period, which we did.
By XXXX, XXXX, we both were experiencing severe financial hardships due to the severe downturn in the housing market and the ending of our personal relationship. We each spoke to customer service managers at Bank of America to review what loan modifications were available to us rather than face foreclosure on the property in Florida. One of the options outlined included a reduction in the principal balance owed if the loan balance was severely underwater and an extension of the repayment period to 40 years in order to make the monthly payment more affordable. I moved into the condo in Florida, making it my principal residence and applied to Bank of America in XXXX, XXXX, for a loan modification that hopefully would include both options.
I received a letter from Bank of America dated XX/XX/XXXX, stating that they had completed an estimated market value of the condo as part of their review of my request for loss mitigation assistance. The value they cited was {$77000.00} and the loan balance at that time was {$100000.00}. I received a 2nd letter from Bank of America dated XX/XX/XXXX, and the market value they assigned the property at that time was {$75000.00}. I have not received any further communication from Bank of America regarding my request for loss mitigation assistance ; the principal balance as of this date is {$100000.00}. I was told by one of the customer service managers I spoke with that the federally mandated program specifically designed to assist folks who found themselves underwater ended last year but Bank of America took no action to reduce my principal balance. Obviously bringing my principal balance in line with the estimated market value of my home has been one of my goals, but I find myself at a dead end with Bank of America regarding this issue. I have attached copies of both letters, both market evaluations and a copy of my account transaction history during this period which shows no reduction in the principal balance.
I also received a letter from Bank of America datedXX/XX/XXXX, stating that I had been approved to start a 40-Year Amortization Modification Trial Period ; the first payment was due XX/XX/XXXX. I was instructed to make my new payment amount of {$390.00} each month during my 3 month trial period instead of the previous minimum payment due of {$900.00} monthly. I did exactly as I was instructed to do. Please note that in paragraph 4 of this letter and in the info sheet that was attached entitled Frequently Asked Questions I was instructed to pay the new amount INSTEAD of the regular monthly payment amount. I was uncomfortable with the possible effect of making such a reduced payment during the trial period so I contacted Bank of America and offered to make up the difference between the two amounts during the 3 month trial period and was informed that if I did so I would negate the loan modification offer. I have attached copies of this letter and the FAQ sheet.
I successfully completed the loan modification trial period making my payments on time each month, signed the final loan modification agreement, returned it to Bank of America and have received a signed copy of the final loan modification agreement from them. The difference between my old payment amount and my new payment amount has been rolled over and is included in my new principal balance.
However, Bank of America has reported the difference between the two amounts for XXXX, XXXX and XXXX, XXXX as delinquent to all 3 credit reporting agencies for both myself and my ex-partner, XXXX XXXX and have refused to correct their reporting, citing that it is company policy to negatively impact their customers who agree to their loan modification agreements. This has resulted in a drop by approximately 120 points in each of our credit scores. We have each worked very hard at correcting our financial situations, paid as many obligations as we could and have not filed for bankruptcy even though that would have been an easier options. At this point I am extremely frustrated with Bank of America and some of their policies. I am hoping that this formal complaint will result in a substantial reduction in my principal balance and a correction by Bank of America of their negative credit reporting for both XXXX and I.
Please contact me if you need and additional information.
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