Consumer complaint received 2021-10-04
Company: MIDFIRST BANK
State: MO
Product: Mortgage
Sub-product: FHA mortgage
Issue: Trouble during payment process

Complaint:
I have a mortgage with Midland Mortgage, a division of Midfirst Bank based in Oklahoma. Last year during Covid, I stopped being able to work my second job and got on their covid forbearance plan. I was on forbearance for payments for one year. When the forbearance was ending I applied for a mortgage assistance program and was approved through HUD. I signed my documents by the deadline and returned them to the bank. They received them XX/XX/2021. They said it would 1-2 weeks to update my account to the new terms. My new payments based on a new amount resumed XX/XX/2021. So far I have made 3 payments for XXXX, XXXX and XXXX for the new plan. 

However, three months later they still have not updated my account to reflect the new terms. I get weekly threatening phone calls and voicemails and today I received another threatening letter that if I do not pay the full balance ( previously owed before the new mortgage agreement ) that I will get foreclosed. 

Ive called the company multiple times to address this and they keep saying they have all my paperwork and are receiving my payments ( the money is leaving my bank account to them ). When I check my account online, the new payments I was making were being applied to the old missed payments. And it was starting to show that I owed less on the old balance. Today I checked my account and they added more missed payments than I had before and show my account in delinquent status. 

I have called atleast five times and each time the employees reassure me that everything is fine with my account and that theyre just really backed up and not able to update it at this time. However, I do not want to go through the entire process of foreclosure before they finally get around to updating my account. I have a copy of my new mortgage agreement and proof that Ive made every payment toward it since it began. Im concerned they will continue to ignore the delinquent status and auction my house and never fix or update their system to the new terms. I have a family and we all live here and are getting increasingly concerned. 

The new terms started three months ago. In XXXX they told me they would update it in 1-2 weeks. In XXXX they told me the papers barely went to their recording department on the XXXX of that month. In XXXX they said keep making on time payments and theyre sure my status will be updated by XXXX. Now its XXXX and the only action being taken is that Im being threatened of foreclosure in phone calls, letters, and emails regardless of the fact Im up to date on my new terms. 

No one at the bank is taking any action to fix things. When I called to make my XXXX payment they said they would submit a ticket to have this fixed immediately. Days later I check back and it says now that I owe more than I did before I even applied for the assistance. Their numbers are changing as far as how many payments I was behind during the covid forbearance plan. And when I started making my new payments, they were applying some of them to the old debt from the forbearance, and others they put into a separate account. The number of payments I was behind started to get smaller and I called to ask why my payments were not being applied to the new terms they said not to worry that it will all work itself out and when they apply the HUD money from the partial claim that what didnt get applied retroactively will count for payments that it should have counted toward the new terms. XXXX not okay with this type of record-keeping. Its unethical, inaccurate and seems like an unprofessional and mismanaged way to deal with money. It doesnt give me confidence in the payments that Im making currently and it gives me concerns about the accuracy and integrity of their record keeping. Also, their foreclosure threats just keep piling up and they tell me to ignore them but I cant. I want to reach out to whomever can help me seek action on this matter. I dont want to lose my house due to this kind of negligence and I have not been on a covid assistance plan since XXXX. Ive paid every month since XXXX when my new terms began. I imagine maybe theyre collecting covid funds on behalf of my account if they still report it delinquent or something along those lines because the way my account is dragging on in delinquency status when its not delinquent seems fraudulent to me. I dont understand the motivation to keep my account reflecting this status and its causing more harm than good to my family. We are very concerned. I appreciate any assistance in this matter.

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