Consumer complaint received 2024-06-30 00:00:00
Product: Mortgage — Home equity loan or line of credit (HELOC)
Issue: Struggling to pay mortgage — Foreclosure
Company: BANK OF AMERICA, NATIONAL ASSOCIATION
State: VA

Complaint narrative:
1- XXXX XXXX entered a special forbearance with XXXX XXXX and Bank of America after the start of pandemic 2- The forbearance ended in XXXX of XXXX with both banks 3- XXXX XXXX, after the forbearance did not offer any post forbearance modification. 
4- XXXX XXXX started working with both Bank of America Did XXXX in good faith post-covid forbearance modification process 5- XXXX XXXX did not offer any standard post forbearance modification option if any sort and asked for lump-sum payment for past due balance. 
6- XXXX XXXX XXXX frequently attempted to convince the bank to offer a payment option. XXXX XXXX did not offer, but and kept requested to apply for forbearance. Despite applying multiple time for forbearance XXXX XXXX denied all application without a good cause without offering any alternative option. The borrower repeatedly requested the servicer for loan deferment, of the lump-sum amount, if modification is impossible, the bank did not accept it. The borrower asked for trial payment, the XXXX again rejected. 
7- After multiple attempt that the borrower tried for loan modification failed the borrower applied for Virginia Mortgage XXXX XXXX. XXXX XXXX XXXX approved for the funding in XXXX of XXXX. 
8- XXXX XXXX XXXX listed both XXXX XXXX and Bank of America as mortgagers. XXXX XXXX intended to use the fund to bring both loans current, with {$50000.00} he was approved to. At the time of application the balance on both of balances were below {$50000.00}. 
The borrower Mr XXXX XXXX owed around {$35000.00} with XXXX XXXX and roughly {$10000.00} from Bank of America. 
9- The servicer was informed about the XXXX XXXX  XXXX in the same month. 
10- XXXX XXXX created repeatedly obstacles to prevent Mortgage assistant fund from paying the back due balance on behalf of mortgagee and as well created obstacle paying the second mortgage XXXX XXXX XXXX hoped to pay. 
The XXXX initially falsely claimed to the HAF fund, that the balance in XXXX of XXXX was above {$50000.00}, which was totally false. After repeated calling and even XXXX way calling with Mortgage assistant fund and XXXX XXXX, XXXX XXXX accepted the mistake and promised that they will correct the mistake. 
After significant intentional delay caused by XXXX XXXX of few months and charging additional fees. XXXX XXXX twice rejected the fund for coming months claiming that the total balance with all legal fees, which was not legitimate fees, have gone above {$50000.00}. The issue brought to the XXXX, and XXXX XXXX XXXX made XXXX payments in between XXXX and XXXX of XXXX, to bring the mortgage bellow {$50000.00}. After all the attempts made by XXXX XXXXXXXX, the servicer created another problem by reporting Mr XXXX XXXX property as Investment property, that again caused the denial of the Mortgage Assistance Fund distribution twice more. Because of XXXX XXXX XXXX and lack of servicers desire to modify XXXX XXXX contacted XXXX XXXX, to report the servicer. 
XXXX XXXX XXXX  XXXX expired without distribution, XXXX XXXX did not offer any alternative on how to bring the mortgage current. XXXX requested servicer to modify the loan and do not reject modification without their informed consent. But the servicer rejected again the modification without informing FreddieMac within XXXX hours with a foreclosure threat with pending date XXXX The borrower diligently was working with Bank XXXX XXXX XXXX The HELOC holder of the loan ), informing BOA XXXX pending Mortgage Assistance Fund. But Bank of America, despite receiving all documents from XXXX XXXX to modify the loan, set a foreclosure date for property in XXXX of XXXX. 
Mr XXXX XXXX, informed Banks of America about the situation, as well the fact that Bank of America has all documents including employment and Business P/L etc, they should postpone the foreclosure date. Bank of America did not change its decision despite having all documents XXXX hour before foreclosure date. Mr XXXX XXXX Bank of America, that if they dont stop the process the Mortgagee has not option but to file for bankruptcy, which it is not an ideal option, but it really affect XXXX XXXX XXXX XXXX and XXXX XXXX. 
The issue about the foreclosure sale date simultaneously reported to XXXX, XXXX. But both entities condoned the Bank of America decision. I was told by the Bank of America to XXXX XXXX, that there is a coordination between first XXXX XXXX ( XXXX XXXX ) and second XXXX holder XXXX Bank Of America XXXX XXXX on the decision to foreclose the property, seemingly both party benefited from the foreclosure transaction, while the mortgagee was losing everything as result, despite working in good faith with both banks to keep his home. 
12- XXXX XXXX XXXX as last resort had to declare bankruptcy just to save his property, with the prospect of losing its credibility in business. 
13- XXXX XXXX was pushed to bankruptcy by XXXX entities and deserves for compensation to make him whole. 
14- mortgage servicers engage in outright deceptions and abuse of the homeowner. 
The XXXX was negligent and the deceptive practice and caused inappropriate foreclosure costs and impose other invalid fees caused homeowner falling behind on payments to justify the foreclosure. 
XXXX Both companies involved in dual tracking. While iostensibly negotiating with the homeowner to modify their loan both companies were also pursuing foreclosure. The dual tracking might have result in a foreclosure taking effect before the loan modification application is complete if the XXXX XXXX did not filed for bankruptcy in timely manner, while Bank of America even admitted they had all documents for modifying the loan but did not cancel the foreclosure on XX/XX/XXXX of XXXX. A practice which XXXX laws often prohibit this practice altogether, and federal law restricts its application, while caused XXXX XXXX to suffer financially as a business owner for any business and personal future for the rest of his life. 
16- XXXX XXXX XXXX not have party does not have standing to foreclose, since the mortgagee has changed several times, and the information they have received from previous servicer is inaccurate or XXXX be altered. Plus the fact that the foreclosing party failed to follow the procedures required by state law. 
17-Mr XXXX questionable and negligent and incorrect amount to Mortgage Assistance XXXX to reinstate the mortgage, made it impossible for homeowner to bring account current, that is. 
Mortgage servicers also engaged in outright abuse. For instance XXXX XXXX pile up excessive fees that are not permitted under the terms of the mortgage, that caused partly the denial of Mortgage XXXX XXXX to make payments on behalf of homeowner. Both Mortgagers violated federal and state laws that govern their interactions with homeowners. Both mortgage servicer were and are engage in dual tracking, which were pursuing a foreclosure while they are also were engaged in negotiating. 
18- After pushing XXXX XXXX first time for bankruptcy, on XX/XX/XXXX, the foreclosure was stopped. I contacted bank of America Immediately after filing for bankruptcy. I asked the agent why Bank of America did not cancel the foreclosure, despite having all the documents available for post-covid modification XXXX day before foreclosure? The agent told me it was too late for stopping the foreclosure. I was extremely mad and disappointed. I told the representative that bank of America used dual tracking they kept my hope high just to let the foreclosure go through and keep me busy with paperwork and this was not in good faith. The agent went through the paperwork and said I am sorry, yes I see you provided all the paperwork, but Bank of America policy didnt allow to cancel the bankruptcy proceeding, last minute even if all the documents foe modification were ready. I told him that I already filed for emergency bankruptcy to save my home and give him the case file number. 
XXXX I was told they will consider my file for modification again. I contacted BOA in XXXX I was told they have all the paperwork for modification their underwriting is verifying my source of income if they need additional documents they will let me know. I was not contacted or sent any documents after this incidents afterwards. 
20- It was in XXXX I found out from an agent that Bank of America put back my property for foreclosure for XXXX, XXXX XXXX. 
I contacted BOA and as well XXXX XXXX about this. Bank of America told me they will mail me a modification package, if I sent the documents back they will cancel the foreclosure. I told them my bad experience from last time and asked the representative to cancel or postpone the sale date, if the bank is honest about the modification. The representative said she will not do it. If I dont sent the documents on-time the bank will go ahead with foreclosure. I was told that even though if I sent all the documents still like last time there is not guarantee that the bank will stop the foreclosure. I said this is again a dual tracking, I am sure bank is planning to foreclose on the property. 
21- I contacted XXXX and XXXX XXXX XXXX I told them that their negligence that led to the denial of my XXXX XXXX XXXX disbursement put me in bigger problem with my HELOC. I was told they were aware of the foreclosure, but this was not in their interest to stop the foreclosure. XXXX would be receiving their money anyway, and XXXX interest would not be affected anyway. 
I asked them who is responsible with lost {$50000.00} HAF money. I was not giving any satisfactory response. I told them it is not fair foe me to pay $ XXXX out of pocket, if XXXX created roadblock for the fund to be disbursed. XXXX said all we can do is to recommend XXXX to modify your loan. 
XXXX Bank of America listed the property for sale on XX/XX/XXXX, I want them to stop the procedure before, they exhaust the modification process. This is also true with XXXX too

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