Consumer complaint received 2019-10-17
Product: Mortgage — Conventional home mortgage
Issue: Closing on a mortgage — 
Company: BANK OF AMERICA, NATIONAL ASSOCIATION (SC)

- [ ] I went through XXXX to obtain a loan serviced by Bank of America. The home had mold and repairs that needed to be made so we had to go through a rehab procedure. XXXX says online, in literature, at the workshops and in person that there is never a fee for their services, no down payments or closing cost. We began working with them in XX/XX/XXXX and attended three workshops before our process officially began in XX/XX/XXXX and we finally closed XX/XX/XXXX. We had a closing scheduled for XX/XX/XXXX but they could not get things done in time concerning the rehab cost etc. XXXX XXXX ( Rehab Dept ) Director kept changing the amounts after wed already accepted the bid which inflated our loan. XXXX XXXX XXXX, who manages the rehab process, took the inspection report and sent us what needed to be repaired. We were required to get a contractor to give us a bid and once we accepted it then we were to be cleared by XXXX and be able to close. After we agreed with the contractor and signed off, XXXX added things we didnt need like a new roof when the house had a new one and a basement build back that we didnt want or need. The rehab cost went from the {$38000.00} to {$47000.00} to {$57000.00} because the XXXX Director would take off the roof but fluff other numbers and so on. Even after we closed she tried to get us to sign off on a {$66000.00} rehab scope of work which I refused because of the trend of them going up and saying sign this if you want to continue. I found out later that XXXX XXXX XXXX gets a percentage of the final rehab cost so it now makes sense why she kept fluffing the numbers. We only used {$25000.00} though {$57000.00} was figured into our 30 year mortgage. They put around {$28000.00} towards our principle but a couple thousand is still unaccounted for ( {$57000.00} rehab minus {$25000.00} we actually needed to use minus {$28000.00} leaves a few thousand left over ). Then we found out nine months later they charged us the Rehab fee which is supposed to be paid by the lender. The Rehab fee is supposed to be 3 % of the Rehab ( {$57000.00} on one doc ) but they rolled {$1800.00} into our loan which is more than 3 %. Theres also a doc that says the rehab was {$50000.00} and {$1800.00} is still not 3 % of this fee we were never supposed to pay. We were always told the lender pays. When I asked about these discrepancies the Closing Manager, XXXX XXXX asked me, if you knew about the fee would you still have gone through with the loan? I said what does that have to do with anything then he scolded me and accused me of trying to get something from them. When we spoke before this I said I didnt understand the amounts and why we had to bring almost {$19000.00} to close when around {$9000.00} was points we purchased and we were not to pay a closing cost. Without our permission they held {$7700.00} for nine months ( gave me {$1.00} back in interest ). I was told later that due to the confusion at closing they needed to make adjustments and they had to do it that way. All along they say theres no down payment, closing cost and never a fee for their service. The {$7700.00} they held from cash to close overage was placed in the escrow holdbacks to go towards the rehab they said at a later date that we never pre-approved them holding. At one point  they asked for over {$20000.00} in cash to close since we had it in out account. This was decided by Mr. XXXX, the closing manager. There is a contingency of 10 % of the rehab cost which equals about {$5000.00} that got rolled into the loan to cover cost in the event we went over budget. When they surprised us and kept the {$7700.00} cash to close overage and placed it in an escrow holdback account the Rehab Director, XXXX XXXX said it was in case we went over the financed amount which is supposed to be what the 10 % contingency is for so they added an extra {$5000.00} to our loan in case we go over budget. The budget was {$57000.00} and then they felt it was okay to hold {$7700.00} of our money which would give us almost {$65000.00} for rehab and we only needed {$25000.00}. Then we paid out of pocket during the rehab for an HVAC system ( {$7000.00} ) and were not allowed to use our money they had, the {$7700.00} overage they were holding for rehab. I dont understand why our loan had to be inflated again with the contingency fee if they put our overage in escrow for the same purpose. I have been trying for almost a year to have my loan explained. The closing took around six hours after sending us to the bank to get {$22000.00} cash to close but the bank closed early on XX/XX/XXXX to honor the passing of president Bush which the realtor knew about but sent us anyway to buy time. When we returned he and the closing attorney had taken naps per the realtor. Then we were told and given a document saying we needed {$20000.00} cash to close. Mr. XXXX said they were working on the final numbers but in order to close that day we could give the {$20000.00} and Bank of America would cut us a check for any overage. We were asked to sign three different packets with different amounts for our loan and told they were working to straighten out the discrepancies with the lender. One email I received said theyll keep us posted and we were due back {$10000.00} of the cash to close. At one point we decided to leave and the realtor went to get Mr. XXXX and thats when we met him after waiting almost 4 hours we then stayed another 1.5 hours. After XXXX we we told to sign a few more documents and we could wire the money the following day, we just needed the closing date with wet signatures and they had six days to work it out. As we were driving away the closing attorney ran out to our car and had us come in to sign another document. My husband and I worked nights so after working the night before, driving an hour and a half to close, being bounced around for over six hours, driving back, going straight to work, working all night, staying up that next morning anticipating Mr. XXXX call with the final cash to close amount we needed to wire the bank, we finally got to sleep around lunch when Mr. XXXX called to say everything was official. He said he had emails about the overage which was around {$8000.00} ( should have been {$10000.00} ) and he would make sure we got it back. I finally went to sleep thinking we had our home and would be notified concerning the final amounts figured into our loan due to the we have 6 days comments. This never happened. When I was sent an email with the Closing Disclosure and told to sign it in order to close on time, I said the numbers were wrong and was told this was not final but they needed signatures to move forward. I received the email on XX/XX/XXXX at XXXX telling me to sign and return by midnight. I saw the email and signed but said it wasnt right. They close at XXXX and there was no one to go over this with me. I called our counselor who never responded to that call. For the next few days the closing coordinator kept sending the same document for me to resubmit because it wasnt legible. She said it was finally received two days prior to close. Then at closing this incorrect document was there for us to sign in our packet. I again said it was wrong and they began trying to fix things. It appears to me they jumbled a few rehab docs together, took out fees and rolled the rest into the loan. When my husband went to the snack machine, our realtor told me how good the loan was even with the discrepancies and I should sign it or the seller will walk. This was the experience the whole time. We were told one thing and railroaded into signing something else. We paid an inspection fee of {$550.00} that was to be credited back since its part of closing and they claim to have no closing cost and told us the lender would credit it to us. They also inflated the PITI which covers mortgage payments during the rehab by {$200.00}. So as it stands for the past two two months a rep from Bank of America has been in contact with XXXX  and had Mr. XXXX call to go line by line and explain what the numbers mean since that didnt happen at closing. When he would get to a point he could not explain, he scolded me and would end the call abruptly. For example, he began to explain the discount points we purchased and said, thats were you purchased seven points. I corrected him and said we only purchased six ( we were not allowed any more ) and he said I have an appointment and got off the phone. I have not heard from him or the Bank of America rep since then and it has been over three weeks. From my calculations we have a couple thousand that was taken from the cash to close that has not been explained and a few thousand unaccounted for that was rolled into the loan. The final loan amount is {$220000.00}. {$57000.00} rehab that was fluffed and rolled into the loan based on BOAs closing documents but about {$50000.00} that Mr. XXXX told me was actually used and in another loan packet. We had around {$19000.00} in cash to close that can not be explained. Ive asked for a breakdown of the escrow holdback and was told by the BOA rep that he would get that to me and had put in a request and thats when communication with him ended. The closing disclosure was changed and signed at closing on XX/XX/XXXX. I have asked since then for clarity. The best explanation I received was from XXXX XXXX Director. She once said it appears they submitted one rehab SOW but used another for the loan causing several thousand dollars difference and she said she would ask that the loan be reassessed. The next time I spoke with her ( after many calls and emails were ignored for along time ) to see if they would redo the loan she said there were no errors and threatened to end the relationship if I speak this way again. Mr. XXXX said he would give back the {$1800.00} plus the interest that I asked for which he said was {$2.00}. Also, the PITI that is rolled into the mortgage to cover the monthly payments while work is being done was not needed because the work took three weeks but they would not clear us to begin although they say work should begin within 30 days after the closing. I was told not to move in until the Director clears me to. They waited until the 5th month to allow the work to begin, didnt pay the contractor until the last month clearing us and we moved in after the PITI was used up. I feel this was strategic as they tried to get me to sign the {$66000.00} SOW that would have included the {$7700.00} overage and made the discrepancies make since. I refused and the back and forth struggle began.