Consumer complaint received 2025-06-19 00:00:00
Product: Mortgage — VA mortgage
Issue: Struggling to pay mortgage — Foreclosure
Company: BANK OF AMERICA, NATIONAL ASSOCIATION
State: GA

Complaint narrative:
This is a complex area of law, and our observations about the Note and Deed of Trust taking " two distinctly different paths '' and the potential lack of assignments are at the XXXX of our foreclosure defense arguments, particularly during and after the XXXX financial crisis. 
Here 's a breakdown of why banks still attempt to foreclose and the legal arguments that arise in such situations : Which is The Nature of Securitization and the " Split '' * Promissory Note : We are told that this is the borrower 's ( us ) promise to repay the loan. It's a negotiable instrument, meaning it can be transferred from one party to another. 
* Deed of Trust/Mortgage : This is the security instrument that gives the lender a lien on the property. It's recorded in public land records. 
* Securitization : In mortgage securitization, a large number of mortgage loans are pooled together and sold to a trust ( like the XXXX XXXX XXXX XXXX XXXX ). Which we understand that This trust then issues mortgage-backed securities ( XXXX  ) to investors.We were noted as being in this XXXX XXXX XXXX XXXX So this forward * The " Split '' : The core issue we are identifying is the potential " split '' between the physical possession of the original promissory note and the legal ownership of the mortgage/deed of trust. When loans are securitized, the note and the deed should be properly transferred to the trust.Not so from the beginning in our case and Why Banks Still Foreclose ( and the Challenges we the Borrower 's Face ) * The Servicer 's Role : Even if the loan is securitized, a " loan servicer '' is typically responsible for collecting payments, handling escrow, and, if the borrower defaults, initiating foreclosure proceedings. The servicer acts on behalf of the trust ( the owner of the loan ). 
* " Holder in Due Course '' / Standing : For a bank ( or the servicer acting on behalf of the trust ) to foreclose, they generally need to prove they have the legal right, or " standing, '' to do so. This usually means demonstrating they are the " holder '' of the promissory note ( or a lawful agent of the holder ) and the beneficiary of the mortgage/deed of trust. 
* Endorsements on the Note : Just like a check, a promissory note is typically endorsed by each party it's transferred to. If the note was transferred into a trust, it should have a chain of endorsements showing the transfer from the original lender ( XXXX XXXX  XXXX ) through any intermediate entities ( sponsor, depositor ) to the trust or its trustee. 
* Assignments of the Deed of Trust/Mortgage : The mortgage/deed of trust also needs to be assigned to the new owner ( the trust ). These assignments should be recorded in the county land records.

* Pooling and Servicing Agreements ( PSAs ) : These are complex contracts that govern how mortgage loans are transferred into a securitization trust and how they are serviced. PSAs often contain strict requirements for the transfer of notes and mortgages.In which we have 2 PSAs with different distinction and dates.

* " True Sale '' Requirements : For a securitization to achieve certain tax and legal benefits ( like REMIC status ), the transfers of the loans into the trust must be " true sales. '' This implies a clean, legally compliant transfer of all necessary documents.

* Deadlines and Procedures : PSAs often have deadlines by which loans must be transferred into the trust and specific procedures for doing so ( e.g., physical delivery of original notes, proper endorsements, recorded assignments ).

* Foreclosure Defense Arguments : * Lack of Standing : This is our most common and powerful defense. If the foreclosing party can not prove they are the rightful owner of both the note and the mortgage, they may not have the legal right to foreclose.

* Breach of PSA : If the transfers of the loan into the trust did not comply with the PSA 's requirements ( e.g., missing endorsements, late transfers ), it can be argued that the trust never validly acquired the loan, and therefore the foreclosing party lacks standing.

* " Show Me the Note '' : This popular phrase refers to the demand that the foreclosing party produce the original promissory note, properly endorsed, to prove their right to foreclose.

* Bifurcation : If the note and the deed of trust have been separated ( e.g., the note is with the trust, but the recorded mortgage is still in the name of the original lender or an entity that no longer holds the note ), it can create a legal problem for home owners and foreclosure. Some courts have held that " the mortgage follows the note, '' meaning the party holding the note is the only one who can enforce the mortgage.

* Presumption of Regularity : Courts often initially presume that a foreclosing party has the right to foreclose, and it's up to the homeowner to raise these challenges.

* Complexities and Resources : Proving a lack of standing or a PSA violation can be incredibly complex, requiring detailed examination of securitization documents, endorsements, and chain of title. We homeowners lack the legal expertise and resources to mount such a defense effectively. 
* XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX  was designed to simplify the tracking of mortgage transfers in the securitization process by acting as a nominee for the lender and subsequent assignees.We found out that XXXX was not a party in our case However, XXXX  's role has been challenged in many courts, with some rulings questioning its authority to assign mortgages or foreclose. 
* State Law Variations : Foreclosure laws vary significantly by state. Some states are " judicial foreclosure '' states ( requiring a court order ), while others are " non-judicial foreclosure '' states ( allowing foreclosure without court involvement if certain procedures are followed ). The ease of challenging standing can depend on the state 's process. 
* Remedial Actions : Sometimes, if a chain of title issue is discovered, the parties involved might attempt to retroactively correct it with " corrective assignments '' or other legal maneuvers, although the validity of these actions can also be challenged. 
In our specific case : The absence of recorded assignments to a " Sponsor or Depositor as may be required by a Pooling and Servicing Agreement '' is a significant red flag. It suggests a potential break in the chain of title that could be used as a powerful defense against foreclosure. If the loan was indeed meant to be sold into the XXXX XXXX XXXX XXXX XXXX, and the proper transfers and assignments did not occur, the foreclosing entity might not have the legal right to do so. 
So here we are facing foreclosure : of our home sold on XX/XX/XXXX in the mist of an unanswered XXXX  and Given the complexities, here we are facing foreclosure and suspect these issues we are examining our specific loan documents, the Pooling and Servicing Agreement for XXXX XXXX XXXX XXXX  XXXX, and relevant state law to determine the best course of action. 
In XXXX XXXX XXXX XXXX XXXX

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