Concord, NC asked in Consumer Law for North Carolina

Q: Do I have recourse against Bank of America for not modifying and then selling my second mortgage to a private investor?

After bankruptcy we applied to modify our 1st and 2nd mortgage with Bank of America (originally with Countrywide). We completed packages over and over again. Finally Fannie Mae took our first mortgage away from Bank of America, placed it with Seterus and modified. They also informed us that according to National Mortgage Settlement, Bank of America now had to modify our second mortgage as it qualified since our first did. Bank of America continued to play games then sold the mortgage in 2013, somehow ended up with it back and then sold it to a private investor in 2019 - who has now served us with foreclosure papers. We are trying to negotiate but feel very wronged and a private investor does not care. Is there anything that can be done?

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1 Lawyer Answer
Lynn Ellen Coleman
Lynn Ellen Coleman
  • Consumer Law Lawyer
  • Licensed in North Carolina

A: This is impossible to answer on an online forum because a review of documents is necessary. Go see an attorney ASAP. Your best bet is to consult a consumer bankruptcy attorney because an experienced one will know about second mortgages that have questionable enforceability. In addition, loans held by private investors do not have the requirements for modifications that Fannie, Freddie, etc, mortgages do. You may need to file for Chapter 13 bankruptcy to stop the foreclosure process. An experienced bankruptcy attorney can bring claims against these entities as part of the bankruptcy if you have valid claims. Filing Chapter 7 will only delay the process, but will not give you the ability to get the mortgae paid or modified. There are many good bankruptcy attorneys in the Concord area. Good luck.

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