Product: Mortgage

I went through a divorce and lost half of my income to alimony for 3 years ( XX/XX/XXXX through XX/XX/XXXX ). Money was very tight, and I survived by cutting back expenses to the bare minimum and maxing out my credit cards. Toward the end of the 3-year period, I was skipping payments on one credit card so I could make the minimum payment on another card that I had skipped the month before.
ByXX/XX/XXXX, I was 90 days past due but my alimony was over -- I was due to receive my first full paycheck onXX/XX/XXXX and make a payment on my past due mortgage account to prevent if from default. However, a few days before I received my first full paycheck my mortgage company ( Ditech ) placed my account in default : this meant I could n't even pay one month 's past due amount to bring it back under 90 days past due. I had to come up with the entire past due amount to reinstate the loan ( a total of {$3800.00} ) -- which I obviously did not have.
I was advised my best course of action would be to request a modification -- a new payment agreement could be made if approved. I 'd have a new trial payment. I submitted a complete modification request package on XX/XX/XXXX and it was ackowledged and received by Ditech.
The lender had said I would have a decision within 30 days, but I heard nothing after 30 days so I began calling the lender once or twice a week for updates only to be told it was still in underwriting. In late XXXX I received a letter stating that my loan modification request was still in review. I continued to call for updates, was assured everything was OK and the file was still in review. 30 days became 60 days. After 60 days I 'd call, and everytime I 'd call, the representative answering the phone would be perplexed that there was still no decision. They would promise to add notes the file, email the underwriter and/or the underwriter 's supervisor, make a request that the modification be expedited, and/or promise to call me back with updated information, etc. None of that resulted in any visible action -- I never received any follow-up, and each time I called I 'd have to explain the same story, receive the same apologies, promises of more action, etc.
During this time, I was not allowed to make payments on the account even though I was fully capable of making a payment arrangement that would have brought my account current during the time my modification request was out for review.
Finally on XX/XX/XXXX, on yet another phone call to the mortgage company and more than 90 days after they acknowledged receiving my complete modification request, I was told by a representative that " it looked like '' my modification request had been denied but they did n't know the exact reason. They said I should call back the next day and they might have more information.
On XX/XX/XXXX I called back and the representative told me I was indeed denied a modification because " the modification would increase the payment and interest payment '', even though I could easily afford an increased payment and interest payment with my full salary. She stated I should receive a letter in the mail formally notifying me of the denial and the reason, and that once I received it I could choose to appeal the decision ( based on my ability to pay an increased payment ).
It is XX/XX/XXXX and I still have not received that letter. I called multiple times after XX/XX/XXXXasking them where the letter was and about any other options for reinstating my mortgage. I was told to reinstate the mortgage now would require me to pay the entire amount past due plus attorneys fees ( {$8600.00} past due plus {$1900.00} in attorneys fees ).
I believe I am being unfairly penalized for the bank 's failure to process my modification request timely and for their failure to give me written notice of the denial ( and the denial reason ). During the time I was awaiting my decision, the amount needed to reinstate went from {$3800.00} to {$10000.00} ). Furthermore, since I never received a written notice of my denial and the reason, it makes it pretty much impossible to file an appeal that will address the concerns or issues for the denial in the first place.
During one of my last calls with the servicer, they recommended I just email the customer service email a notice of my appeal, include as much information as possible ( about how I can afford the increased payment, I can afford to make a payment arrangement, andthing possible to keep the home ). A few days later I received an email response that said they could not verify the information in my email request so I would have to submit a written appeal. But how can I file a written appeal when I do n't even have a written denial?
In the last 30 days, I 've saved up as much money as possible to try to reinstate the loan. I have {$6500.00}, and should be receiving {$4000.00} from a hardship withdrawal from my 401k in the next week or two. However, I received notice today that my servicer 's law firm has file a foreclosure lawsuit on XX/XX/XXXX in my county court -- which now likely means that the legal fees to reinstate have gone up even more just as I was about to be able to reinstate the loan. Again, the delay and miscommunication from my servicer has resulted in real harm to me and my ability to reinstate the loan.