Consumer complaint received 2020-05-04
Company: FIRST CHOICE LOAN SERVICES INC.
State: CA
Product: Mortgage
Sub-product: Conventional home mortgage
Issue: Struggling to pay mortgage

Complaint:
I called First Choice Loan Services and asked for a forbearance at the onset of the shutdown and corvid-19 episode. I stated that we thought we were fine financially, but as we didn't know what was going to happen, we wanted to do the forbearance as a precaution as we were looking at the long term implications of the crisis. That was late XXXX or early XXXX. I was told at that time that they would give us a forbearance for 3 months and that we didn't need to fill out an application. After not hearing from the company into mid XXXX, I called again. I was asked for our application number and I said I was told we didn't need to do an application, but I was happy to do one now. I was told I didn't need an application and I would be contacted as our forbearance was going through and we would receive a letter with details. 

At the beginning of XXXX we received the Approved Forbearance Agreement. That agreement stated what First Choice Forbearance was based on these facts under the heading of " Factual Information and Recitals ''. 

1. Lender has made a loan to Mortgagor ( s ) that is in imminent danger of becoming delinquent on XX/XX/2020. 

That is untrue. We never made any indication that being delinquent on our loan was a problem. 

2. This was the amount of the loan that I won't list here. 

3. Mortgagor ( s ) are in imminent danger of not making the monthly payment due XX/XX/2020 and all subsequent amounts due thereafter. 

That is untrue. We never made any statements to the effect that we could not make the payments and that we wouldn't be able to make the payments in the future. 

4. The parties hereto desire to enter into an agreement, which after the plan expires, the Mortgagor ( s ) will need to either : 1 ) bring the loan current, 2 ) work with the lender to obtain another workout plan, or 3 ) Pay the loan in full. 

Options 1 states you have to then pay 3 months of payments at once. That is a financial trap. Where I can not state First Choices intent, it can easily be construed as an attempt purposefully to put us in a position of financial hardship at the end of the 3 months. 

Option 3 Pay off the loan in full. This is not a real option and First Mortgage knows that. We will dismiss it. 

Option 2 Work with the lender to obtain another workout plan. 
This is so vague as to be useless. It puts the Mortgagor in the position to have to work out a deal that has no safeguards or leverage for the mortgagor if that mortgagor can't meet options 1 & 3. This is financial entrapment. First Choice can now force the Mortgagor to agree to any conditions they choose. 

A verbal agreement was made to do a good faith forbearance on our mortgage for 3 months, in order to help the mortgagors, in case the financial crisis being created by the government in response to covid-19 became a future problem for us. We stated we did not currently have a problem and were just trying to be proactive and we were told they " understood and it wasn't a problem ''. 

On the cover letter that accompanied the Approved Forbearance Agreement, is written : This forbearance plan offer was based on an evaluation of an incomplete loss mitigation application. Other loss mitigation options may be available and, regardless of whether you accept the enclosed forbearance offer, you have the option to submit a complete loss mitigation application and receive an evaluation for all loss mitigation options that may be available to you. 

I called First Choice today, XX/XX/XXXX, to fill out an application and was told I could not. I asked how to resolve this as we can not sign an agreement that has fraudulent information in it and is against our best financial interests. I was told that I could speak to another person. I missed the name of that person. I was transferred to that person and then put on hold and they never picked up. 

I was denied the ability to file an application 3 times. 
The Factual information on the document sent to us was false. 
The verbal agreement was broken. 
The agreement purposed was, in my opinion, a blatant attempt at financial entrapment in order to put us at financial risk when the opposite was promised. 

I will attach documents. 

We are current on our mortgage including the XXXX payment.

Company response to consumer: Closed with explanation