Complaint Review: Bank of America - Indianapolis Indiana

 In 2006 my wife and I sold our first home in order to purchase a small farm. Our first home was paid for but we had a line of credit to pay off. Most of the proceeds from the sale of our first home were used to
pay off the equity line. When we purchased the farm in 2006, we had to borrow 100%, so we had a first and second mortgage from the start. When we first applied for the Bank of America mortgage loan, we supplied the loan officer with my pay stubs as proof of income and showed him that I was paid bi-weekly and the checks were for two weeks work. I was able to make every payment on time but had little
money to live on. I got out my loan application and looked it over. I noticed that he had doubled my income on the application by stating that each check was for one week. I brought it to the attention of Bank of America and their response was that they did not verify my income, I signed the contract and
that was that. They stated that $1,730.00 per week looked like an average weeks pay to them. So we let that slide and continued to make our payments.
 
On Sept. 14, 2008, our home was totally destroyed by a fire during the storm of Hurricane Ike. For three months I tried to communicate with BofA but was never able to speak to the same person twice. I threw up my hands and hired an attorney. On Dec. 31, 2008, my attorney wrote a letter to Bank of America asking them to take all of the insurance proceeds as full settlement. On Oct. 3, 2009, BofA informed my attorney to send the insurance checks totaling $222,300.00 and they would submit the file for a possible charge off with release of liens. In Oct. 2009 Mrs. Sparks sent the insurance checks to BofA in understanding that BofA would file a request for short sale and notify us.

On Dec. 2, 2009, BofA replied that the mortgage insurance company had declined the short sale. We asked for a payoff statement. When we got the payoff statement, there was an escrow balance due of $5,477.00. We had never had an escrow because we paid our own insurance and taxes. When Mrs. Sparks inquired about the escrow, they stated that it was for a vacant insurance policy that they had purchased
because the property was vacant. BofA billed us for 24 property inspections and knew full well that we lived on the property. Mrs. Sparks spent hours upon hours trying to get the charges dropped. We had a liability only policy on the farm since there was no home to insure. The property was never vacant, my wife
and I were living in our camper on the property as we still are to this day. When our attorney fee reached nearly $10,000.00, Mrs. Sparks informed us that she was having no luck communicating with BofA and was going to forgive the balance that we owed her. We had already paid her over $3800.00. I contacted
the Attorney Generals office and with their help was finally able to get the bogus insurance charges removed. On Sept. 7, 2010, BofA finally applied the insurance funds to the mortgage. On October 10, 2010, Bank of America released the mortgages, but neglected to inform the Attorney General, my attorney, or myself, that they had done so.

In Jan. 2011, I requested a payoff statement which stated that my loan was in foreclosure and I owed them $15,054.00. In fear of losing my farm, I closed out my 401K and paid them the $15,054.00 as well as a $5000 payment on the second mortgage, and I continued to pay the monthly statements they were sending. When I went to the court house to file for our homeowner tax exemption, I was made aware by the clerk that both loans had been released back in Oct. 2010, and I no longer had a mortgage to file any exemptions on. When I called Bank of America to see where my payments were going, they said that although the mortgages were released in Oct. 2010, one of their departments had the loans marked as paid, but another department did not. Thats why they had continued to send me monthly billing statements. I have paid Bank of America and my attorney a total of $26,718.66 since the mortgages were released back in Oct. 2010.

Does anyone think that I have grounds to file a fraud case against Bank of America? eight one two seven five two seven six two nine