Consumer complaint received 2019-07-08
Company: BANCO POPULAR DE PUERTO RICO
State: PR
Product: Mortgage
Sub-product: Conventional home mortgage
Issue: Struggling to pay mortgage

Complaint:
I was behind two payments of my conventional loan since XX/XX/XXXX and my financial situation got harder after Hurricane Maria hit XXXX XXXX on XX/XX/XXXX. On XX/XX/XXXX I called Banco Popular of Puerto Rico and asked a bank representative what alternatives they could give me for the due payments I couldnt make to my loan. In that occasion the bank representative offered me two alternatives : to make a payment plan for the payments due or to pay the amount due at the end of the loan. I requested the bank to apply the second alternative and the bank representative told me I had to wait to sign an agreement. After two months I called the bank to know the status of my request and they informed I didnt qualified to the alternative they offered because I had previous due payments before XX/XX/XXXX. I requested to Banco Popular de Puerto Rico a Loss Mitigation Form. The Loss Mitigation Form was sent to me by XXXX XXXX XXXX through email on XX/XX/XXXX. XXXXee Attachment 1. I submitted the loss mitigation application and in XX/XX/XXXX the bank required me to sign a document authorizing to change the property insurance with XXXX XXXX without knowing the costs and the information regarding the insurance policy in order for the bank to consider the loss mitigation application. The document is titled Authorization for the Referral of Insurance to XXXX XXXX ( Attachment 2 and 2a ) and I informed the bank representative, XXXX XXXX XXXX in an email dated XX/XX/XXXX I refused to sign the authorization with out the insurance policy information ( Attachment 3 ). On XXXX XXXX I emailed XXXX XXXX XXXX to know if they needed any other documents or if they considered the application was complete without the authorization for the referral of the property insurance to XXXX XXXX ( Attachment 4 ). I never received an answer from the bank regarding this matter. I personally submitted the Loss Mitigation Application at XXXX XXXX Branch of Banco Popular de Puerto Rico on XX/XX/XXXX as requested by XXXX XXXX XXXX through a phone call. I received a email from XXXX XXXX XXXX of the Loss Mitigation Department on XX/XX/XXXX asking for three consecutive bank statements because the ones I provided werent consecutive, and I emailed three consecutives bank statements on XX/XX/XXXX ( See Attachment 5 ). As informed by the bank verbally, they submitted for evaluation the complete loss mitigation application on XX/XX/XXXX. 

On XX/XX/XXXX I called the loss mitigation department and I was told the property had a IRS levy and they needed the property without those liens in order to get the loan modification approved. I have never received a letter or written notification from the Loss Mitigation Department of Banco Popular de Puerto Rico regarding this matter. All the communications about the IRS levy were made verbally and the bank refused to sent a email or a letter although it was requested by me several times. In XX/XX/XXXX I started the process with the IRS to make a payment plan. 

On XX/XX/XXXX, seven months after I submitted the loss mitigation application, I received a letter from Banco Popular de Puerto Rico stating that they evaluated the information provided by me and that I got approved a three months trial period starting on XX/XX/XXXX. ( See Attachment 6 ) The letter explained the trial period was the first step to qualify for a loan modification and that I had until XX/XX/XXXX to accept the offer. That letter didnt notify the property had several liens due to the IRS levy nor stated I had to make a payment plan with the IRS in order to get the approval for the loan modification. In XX/XX/XXXX I signed the trial period agreement with the bank. ( See Attachment 7 ) I  was verbally informed by a bank representative that the preapproved amount to be modified was {$100000.00}. That I would have 480 monthly payments of {$610.00} with a 5.950 % interest. I complied with the trial period plan and made the payments for XXXX, XXXX and XX/XX/XXXX in a timely manner. After I completed successfully the trial period plan I called the bank to know what was the next step to complete the loan modification process and I was told I had to wait to be called by a bank representative to be informed of the next step. Meanwhile I completed the process with the IRS and got a payment plan. I went personally to the Loss Mitigation Department on XX/XX/XXXX and informed the bank I had completed the payment plan with the IRS and demanded to know why the process had took so long. In that occasion I was told that I had to submit to the loss mitigation department a letter from the IRS stating I had made a payment plan with them and that nothing else was required for the legal approval. This requirement wasnt notified by certified mail, email or any other written notification. I requested to see my case file and I was told by the bank representative that I couldnt have access to the my case file. The only document provided was the title study ( See Attachment 8 ) and she provided verbally the amounts pre approved in the modification recast because she told that she wasnt allowed to provide a copy of the recast. I also asked to talked personally to the person in charge of my case but my petition was denied. In XX/XX/XXXX I received a call from XXXX XXXX, the bank representative in charge of my case at the Loss Mitigation Department, and she notified me verbally that the bank was going to close my case because it had taken more time that the period allowed by the investor to approve the loan modification. ( See Attachment 9 ) That same date I received the letter from the IRS regarding the payment plan required by the bank and emailed it to XXXX XXXX in XX/XX/XXXX. ( See Attachment 10, 11 and 11 a ) Banco Popular de Puerto Rico failed to process the loss mitigation application in a timely way in violation of Regulation X and due to it own excessive delay they notify me verbally they are going to close my application. It took seven months for Banco Popular de Puerto Rico to mail a written notification of the trial period plan approved. The bank also failed to notify me ( the borrower ) through certified mail at the property address about the liens found and what the loss mitigation department required to get the legal approval in order to get the loan modification considering the IRS levy my property has, in violation of the 4.14 clause of the Mortage Deed Number XXXX signed in XXXX XXXX, which states that, Except for any notice required under applicable law to be given in another manner, ( a ) any notice to Borrower provided for in this Mortgage shall be given by mailing such notice by certified mail addressed to Borrower at the Property Address or at such other address as Borrower may designate by notice to Lender as provided herein, and ( b ) any notice to Lender shall be given by certified mail, return receipt requested, to Lenders address stated herein or to such other address as Lender may designate by notice to Borrower as provided herein. Any notice provided for in this Mortgage shall be deemed to have been given to Borrower or Lender when given in the manner designated herein. I was told by XXXX XXXX, the bank representative, I had to submit a new loss mitigation application because they were going to close the application submitted due to their own excessive delay in spite of the legal costs and the appraisal costs the loss mitigation process requires.

Company response to consumer: Closed with explanation