Consumer complaint received 2024-09-10 00:00:00
Product: Mortgage — FHA mortgage
Issue: Struggling to pay mortgage — Trying to communicate with the company to fix an issue related to modification, forbearance, short sale, deed-in-lieu, bankruptcy, or foreclosure
Company: BANK OF AMERICA, NATIONAL ASSOCIATION
State: TX

Complaint narrative:
Consumer Financial Protection Bureau ( CFPB ) Complaint Regarding Transfer of Inactive Loan and Issuance of New Loan by Bank of America and XXXX XXXX I am filing this complaint to request clarification and resolution regarding the transfer and subsequent reactivation of a loan that Bank of America ( XXXX ) deemed inactive, and the subsequent actions of XXXX XXXX XXXX ( now operating as XXXX XXXX ). The following timeline and facts outline the basis of my complaint : XX/XX/XXXX : Bank of America responded to a prior CFPB complaint regarding a XX/XX/XXXX foreclosure sale, advising me that the foreclosure remained in place. XXXX stated that my account was inactive and that no charges had accrued after the foreclosure sale. 

XX/XX/XXXX : Despite the account being inactive, I received a Goodbye letter from Bank of America advising that my inactive loan ( Account No. XXXX ) was being transferred to XXXX XXXX XXXX for servicing. 

XX/XX/XXXX : XXXX XXXX XXXX sent me a Welcome letter, referencing Bank of Americas old loan number ( XXXX ) but issuing a new loan account number ( XXXX ). This new loan was accompanied by a coupon reflecting a balance of {$80000.00} due on the account. 

XX/XX/XXXX : XXXX XXXX XXXX issued a Notice of Default, stating that {$80000.00} was past due and threatening foreclosure on loan number XXXX. This action occurred while litigation over the XX/XX/XXXX foreclosure was ongoing and before the matter was fully adjudicated on XX/XX/XXXX. 

Bank of America, as the transferor of the loan, clearly indicated that my account was inactive as of XX/XX/XXXX. However, XXXXXXXX XXXX, as the transferee, treated the same loan as active and placed a significant past-due balance on it, assigning a new loan number. I am seeking clarification from Bank of America regarding the following : Why was an inactive loan, with no charges accruing, transferred to XXXXXXXX XXXX  for further servicing? 

How does Bank of America justify the reactivation and transfer of an inactive loan, particularly given that ongoing litigation related to the original foreclosure sale was unresolved at the time of the transfer? 

What authority did XXXXXXXX XXXX have to assign a new loan number and claim an {$80000.00} balance on a loan that Bank of America had previously deemed inactive? 

The inconsistency between Bank of Americas position ( that the loan was inactive ) and XXXX position ( that {$80000.00} was due ) needs to be addressed and rectified. This has caused significant confusion and harm, particularly as it has led to renewed foreclosure threats on a loan that should not have been active. 

I request that Bank of America provide a detailed explanation of these discrepancies and take immediate corrective action regarding the improper transfer and treatment of this account. 

Thank you for your attention to this matter. I look forward to your prompt response.

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