Consumer complaint received 2023-06-26
Company: U.S. BANCORP
State: KY
Product: Mortgage
Sub-product: FHA mortgage
Issue: Struggling to pay mortgage

Complaint:
I was effected by Covid. I went on forbearance and then had a partial claim put on my mortgage of {$25000.00}. I was still having a hard time financially so I applied to the Kentucky HAF program and got approved for the full amount of {$35000.00}. I was a few months behind on my mortgage when I got approved. They brought my account current and said they would pay an additional 6 months worth of house payments. I read the guidelines and spoke to HUD and they said I could use the rest of the {$35000.00} to pay off my partial claim with HUD. Kentucky said that they did not allow that under their guideline even though I read the guidelines and it said the money could be used to pay off a past due balance. They said that since it is not showing as late at that point, that they do not consider that to be a past due balance. So if I would have applied 3 months sooner than I would have been able to not have the {$25000.00} partial claim previous balance that I still owe? That did not sound right and was just told that was XXXX rules. No one from US Bank told me about HAF when going over options even though I was obviously qualified for that program. 

Toward the end of the 6 months I get XXXX letters. XXXX from US Bank and the other from KY HAF program telling me that I was coming to the end of the help and I needed to resume payments on XX/XX/2023. 

They were always late making the payment on the last few days of the month so I was used to checking around the XXXX. In XXXX no payment was made at all. I called and was told they were short handed and XXXX sent all payments at once and to check back in a few weeks. So toward the end of XXXX I called and I was told that the payments were made. So a few days later I paid for XXXX payment on XXXX I believe. A few weeks later I log on and notice US bank has me still owing for XXXX. So I called and I was told that they were still processing payments and to call back in XXXX weeks. They said I would not be charged a late fee. Every time I called KY XXXX they told me they contacted their contact with US bank and they were working on it and to call the bank back in a few weeks or XXXX business days. Every time I called US bank they told me they still did not have it posted and to call back in XXXX weeks. 

Well I was told I should not make a payment until that one posted. I assumed they were saying me making the XXXX payment at the end of XXXX is what caused the probem. I called and emailed both places when they told me so with no developments. I even asked HAF for their US bank contact and was told they could not give that to me but they sent them the wire information. Well a few months went by to I was 90 days late on my mortgage. I was told by US bank that it would be corrected when they got the payment from HAF. Once I started getting calls from the the loss mitigation department the tone changed. I was told that I needed to catch up all the payments including the one that HAF was supposed to pay or go into default.

So when I got my tax check I just made all of the payments thinking that I would just get a credit when it went through. After I made the payments I got an email from the lady at HAF and she said good news! I see the payment went through. You can go ahead and make the rest of the payments now. I emailed he back and told her the I was the one who they received a payment from, not them. She said she would call her contact and get back with me. 

Then 2 days later I get a call from a XXXX, her supervisor telling me that they paid all they could pay. That the letters I got saying my first payment would be due XXXX XXXX was an error. I did not know when the 6 months was up because I thought they started payments around XXXX for the previous balance and then 6 months from there. That also did not seem right since I got XXXX letters, XXXX from each company telling me when to resume payments. Plus I had been in contact with her office for months of them telling me they made the payment and to just be patient. 
I also told XXXX that US Bank said I was late since they never receive payment from them so that I had a XXXX and 90 day late on my credit report. She said she would contact US Bank to see about getting that removed and I never heard from them again and nothing got removed. 

I did have someone hit my car in my driveway and totaled it. I then had to finance a new car with a credit score of XXXX, instead of the XXXX I had prior to the mortgage lates. Obviously that has me paying a lot more in interest for the car.

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