Consumer complaint received 2022-06-01
Company: GATEWAY FIRST BANK
State: LA
Product: Mortgage
Sub-product: FHA mortgage
Issue: Trouble during payment process

Complaint:
My name is XXXX XXXX. I have a mortgage with Gateway Mortgage Company. In XXXX of XXXX my home, situated at XXXX XXXX XXXX XXXX XXXXXXXX XXXX, experienced substantial water damage from a pipe failure on the second floor. Because of the severe damage, my insurance company disbursed enough funds to pay off the unpaid balance on the mortgage. A total ofXXXX  was received by Gateway from my insurance proceeds. Gateway failed to apply the funds to my account after receiving the check. I did not endorse the back of the check. In XXXX, Gateway proceeded to go to foreclosure while not applying the insurance proceeds to the balance of the account. Because Gateway would not address this error, I filed bankruptcy to avoid further foreclosure proceedings and maintain shelter for my children. Gateway then told my attorney they were not aware of any money from the insurance proceeds. Through my attorneys quiry, my phone records were pulled to confirm how frequent I contacted the servicer regarding the insurance funds prior to the foreclosure. 
The foreclosure proceedings were suspended. After the suspension of the foreclosure, Gateway found the funds and applied to my past due balance. Additional fees accrued on my account, of which, the servicer was not able to explain the purpose of the funds. In XXXX, an additional {$39000.00} was added to my account resulting in a balance of {$39000.00}. The servicer did not explain the reason for such fees. 
After the onset of the pandemic, I was forced to file bankruptcy again. While in bankruptcy, Gateway failed to disclose any additional owed fees and/ or balance. During the bankruptcy proceedings, the servicer did not present any funds to the court. However, HUD presented a second mortgage to the court, which was a partial claim. After reviewing my file, the attorney advised me that the servicer was committing creditors lending fraud. 
Since that time, Gateway has not been transparent with my account. I have been told by customer service representatives that I owe between {$39000.00} to {$120000.00}. When asked to explain why I owe {$120000.00} versus the lesser amount I am not provided a clear answer. Because of all the events over the last six years, I feel filing a complaint may help to highlight the poor and substandard servicing Gateway practices. Further, I hope this complaint brings resolution and clarity to my mortgage issue. 
My name is XXXX XXXX. I have a mortgage with Gateway Mortgage Company. In XXXX of XXXX my home, situated at XXXX XXXX XXXX XXXX XXXX, XXXX, experienced substantial water damage from a pipe failure on the second floor. Because of the severe damage, my insurance company disbursed enough funds to pay off the unpaid balance on the mortgage. A total ofXXXX  was received by Gateway from my insurance proceeds. Gateway failed to apply the funds to my account after receiving the check. I did not endorse the back of the check. In XXXX, Gateway proceeded to go to foreclosure while not applying the insurance proceeds to the balance of the account. Because Gateway would not address this error, I filed bankruptcy to avoid further foreclosure proceedings and maintain shelter for my children. Gateway then told my attorney they were not aware of any money from the insurance proceeds. Through my attorneys quiry, my phone records were pulled to confirm how frequent I contacted the servicer regarding the insurance funds prior to the foreclosure. 
The foreclosure proceedings were suspended. After the suspension of the foreclosure, Gateway found the funds and applied to my past due balance. Additional fees accrued on my account, of which, the servicer was not able to explain the purpose of the funds. In XXXX, an additional {$39000.00} was added to my account resulting in a balance of {$39000.00}. The servicer did not explain the reason for such fees.

After the onset of the pandemic, I was forced to file bankruptcy again. While in bankruptcy, Gateway failed to disclose any additional owed fees and/ or balance. During the bankruptcy proceedings, the servicer did not present any funds to the court. However, HUD presented a second mortgage to the court, which was a partial claim. After reviewing my file, the attorney advised me that the servicer was committing creditors lending fraud.

Since that time, Gateway has not been transparent with my account. I have been told by customer service representatives that I owe between {$39000.00} to {$120000.00}. When asked to explain why I owe {$120000.00} versus the lesser amount I am not provided a clear answer. Because of all the events over the last six years, I feel filing a complaint may help to highlight the poor and substandard servicing Gateway practices. Further, I hope this complaint brings resolution and clarity to my mortgage issue.

Lastly, I am owed {$15000.00} from the Gateway, as advised by a customer servicer agent. The failure to acknowledge the insurance proceeds ; erroneously placing me foreclosure ; and inability to provide me with the exact unpaid balance highlights the subpar servicing practices of Gateway Mortgage Servicing. The vast deficiencies are unacceptable for a mortgage servicer.

Company response to consumer: Closed with explanation