Consumer complaint received 2023-06-26
Company: MIDFIRST BANK
State: FL
Product: Mortgage
Sub-product: FHA mortgage
Issue: Trouble during payment process

Complaint:
This complaint is against Midland Mortgage. The loan number in reference is # XXXX. My name is XXXX XXXX XXXX and I am the XXXX & XXXX of XXXX XXXX and XXXX XXXX. My mother, XXXX XXXX passed away in XXXX of XXXX. The property has a mortgage of {$28000.00} remaining My brother and nephew wish to retain the property and reside there as their primary residence. The payment was being taken from my brother 's bank account via automatic debit. 

The property insurance increased in XX/XX/XXXX causing an increased mortgage payment. Midland attempted to withdraw funds from the account but payment was returned due to insufficient funds with the increased payment. Midland drafted a payment on XX/XX/XXXX for the XX/XX/XXXX payment. A letter was sent to the property address stating that the XX/XX/XXXX payment was due and there was an escrow shortage of {$830.00}. We went online and attempted to make a payment but were not able to because the returned payment or the account was in default. Nonetheless, a payment in the amount of {$830.00} was sent to bring the account current and the remainder to escrow to lessen the shortage. Midland took it upon themselves to place the entire amount in escrow. The standard procedure is any payment slated to go to the principal or escrow should have a written request accompanying the payment. 

I called customer service to address what had happened. I explained to the representative that my mother was deceased and I needed to talk with someone regarding the mortgage. On XX/XX/XXXX, I sent a copy of my mother 's death certificate, my birth certificate, and the Will identifying me as Executor of the Estate. The rep transferred me and I was asked to provide the mortgagor 's information. After doing so I was told that I misrepresented myself as the deceased mortgagor. I explained that the call was transferred from XXXX and I was calling on my deceased mother 's behalf and had submitted the requested information to discuss her account. I asked to speak with a Supervisor in hopes of having the payment reversed to bring the account current. We were prepared to pay the escrow shortage over the phone but I was met with unprofessionalism to more or less get me off the phone. The XXXX, XXXX XXXX # XXXX was no help and even admitted that Midland made a mistake in posting the payment to escrow. I asked her how did I know this would not happen again if I sent another payment and she could not guarantee that if would not. 

As XXXX of a XXXX XXXX XXXX, I have never been met with such reluctance to do the right thing. Midland appears to want this account to go into default and subsequently foreclosure. I mailed in the entire mortgage amount due for XXXX and XXXX. Their servicing practices are creating hardships rather than preventing them. If a mistake was made by the mortgage company , the mortgagee should not need a request from a deceased mortgagor to correct their mistake. I have been in the housing counseling industry for two decades and I have never encountered such unprofessionalism and reluctance to solve a mortgage delinquency. Mortgage Companies conducting substandard services to its mortgagors should not be allowed to service FHA loans.

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