Consumer complaint received 2021-03-19
Company: GOLDEN 1 CREDIT UNION, THE
State: CA
Product: Mortgage
Sub-product: Conventional home mortgage
Issue: Trouble during payment process

Complaint:
In XXXX I filed for bankruptcy. I had just modified my mortgage loan and I was working as a XXXX. After the market crash in XXXX my business income completely dropped and I was facing some serious financial hardships. I was falling behind on my new loan modification payments, however, I sent in XX/XX/XXXX payments for XX/XX/XXXX, which is the first payment due under the modification agreement, another payment for XX/XX/XXXX and XX/XX/XXXX. I was in contact with the collection department and they new I was going to send all three payments. I was told by them to go to any branch and make the payments. When I went to the branch the teller couldn't process the payment because her system wouldn't allow her to make three payments at once. I asked het to make one payment instead so I wont be three months late, and she couldn't process that either. I asked her to call collections, and she did get on the phone with them and just said to mail the check. I was having a problem doing that because I was going to be late for XXXX if they received the check after the XXXX. And that's what happened. 30 days later I got the check back in the mail and Golden 1 and XXXX started immediately the foreclosure process and had a sale date at the court house in two weeks. The were not willing to work with me after several calls, I had to stopped the foreclosure through the bankruptcy. 
Once in the bankruptcy I made my monthly payments to the trustee, than the trustee will pay the mortgage and arrears on the account. During the bankruptcy I had no access to the account nor was I receiving mortgage statements. Once the discharge happened I learned that there was {$7900.00} in suspense and another amount of a payment from the trustee for {$3200.00} The trustee 's last payment to XXXX was on XX/XX/XXXX. My first payment directly from me to XXXX was on XX/XX/XXXX and each other month there after. That's when I learned there was a great amount of excess payments from the trustee to the lender. I questioned over and over again and I have just been given the round around for over three years by the lender. I submitted a complaint with the Department of Oversight, but they couldn't help me. Recently I submitted a complaint with the XXXX XXXX XXXX. When I submitted the complaint with the Department of Oversight XXXX responded saying they had issued a cashier 's check refund to the trustee for {$7900.00} I personally when to the trustee 's office and showed them the letter. They denied receiving such fund from XXXX. When I complained through the XXXX XXXX XXXX I asked Golden 1 to show me a copy of the check. They did show a copy of the check for {$7900.00} keep in mind these are payments I made to the trustee and the trustee disbursed this payments to the mortgage lender. In other words this is my money. The check is made to XXXX XXXX XXXX which is a Bank in XXXX Texas, and it's endorsed by Texas XXXX XXXX. I sent a copy of the check to my bankruptcy attorney and she received a response from the trustee 's attorney saying they had no record of ever receiving this payment and that it was certainly not deposited to the case. It's been deposited and endorsed by somebody else. The XXXX XXXX XXXX gives 7 days to respond or they close the case. They closed the case after I received the copy of the check I responded to the lender asking who and why they sent my payments to a Bank in Texas. I'm assuming they didn't respond in 7 days and the case got close. This is why I'm starting my complaint here and get to the bottom of this mess my lender has created for me first by rushing a foreclosure, then by entering the wrong amount in the arrears to the court and refusing to give me back the money. They basically claimed twice the amount on the arrears, causing me so many problems, because the trustee had to increase the payment for arrears to be covered during the period of the bankruptcy, which it was not necessary if the lender would have enter the correct amount. This could've had detrimental consequences for me if I couldn't made that payment increase, they would have rush to issue a relief for stay to continue the foreclosure knowing the had a lot of my payments in suspense. Which they actually did when the trustee mistakenly made some errors with the payments and the lender rush to request relief of stay. 
There's another amount of {$3200.00} they also didn't applied to my loan principal. They said they were payments from the trustee they had put in suspense and then re applied them to the loan, but that is not true because I was making the payments for the months they claimed they reapplied to. Also, during the period in the bankruptcy they were not applying the entire amount received from the trustee. I discovered this from the payment history and to this day I do not know were or how they applied the rest of the payments. It's been more then three years and this lender is not willing to do the right thing. I need help. Unfortunately I can not afford more attorney costs. I went through four attorneys in this bankruptcy costing over {$9.00} when a BK shouldn't exceed {$5000.00}. I experience attorney negligence, attorney death, trustee errors handling my payments, a true nightmare that needs to be over soon I hope.

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