Consumer complaint received 2021-11-10
Company: MONEY SOURCE, INC., THE
State: CA
Product: Mortgage
Sub-product: Other type of mortgage
Issue: Applying for a mortgage or refinancing an existing mortgage

Complaint:
Early XXXX, when Covid first hit, my husband and I had a brand new mortgage on our home and as a result of Covid, I was laid off of my job, mid-XXXX ; my husband remained working. Our first mortgage payment was due XX/XX/XXXX. In researching payment options as a result of me losing my job, I discovered that our current lender, The Money Source ( TMS ) offered a forbearance option. We ended up taking a forbearance of seven months worth of payments. In XXXX, XXXX I started a new job and began the process of coming off the forbearance. 

I submitted all of the required paperwork, documentation, etc. for the forbearance to TMS and received approval in XX/XX/XXXX ; we resumed our regular payments in XX/XX/XXXX. We had what our current lender calls a " partial claim '' submitted and filed with HUD in the amount of {$24000.00}. 

This past XXXX, XXXX we began the refinance process with a mortgage lender. We attempted to obtain the payoff letter through the administrator of the claim at the time, XXXX XXXX ( XXXX ), but were never able to do so as the administrator indicated they didn't have any record of the claim filed. I went back and forth with our current lender, who indicated that in fact, they had filed the paperwork as of XX/XX/XXXX. We got all the way to the end of the refinance process, only to discover that a payoff letter was the only thing holding up the refinance. Unfortunately, we were never able to obtain the payoff letter for the partial claim and our refi fell through. I was even specifically told by our lender, TMS, that if we ever did a refi, that these amounts would need to be paid, so clearly everyone had the same information. 

This past XXXX, we started working with a different mortgage lender, to once again, try to get a refi on our property. I was upfront about all of the challenges we faced with the previous lender regarding the required payoff letter. As with the previous lender, everything was going along just fine until we started the process of requesting the payoff. Here we are yet again, trying to get that same payoff letter. Through a series of conference calls with the title company and our current lender, we are going back and forth as to who has this partial claim. Long story short, its our current lender who either dropped the ball with filing the paperwork or just simply isn't interested in providing us with the payoff letter. 

The administrator of the partial claim is a different entity than that company who was handling these claims in the first part of the year and they're saying the same thing, that they don't have the payoff because our current lender, The Money Source ( TMS ) hasn't filed the claim. The previous HUD partial claim servicer is XXXX XXXX ( XXXX ) and their telephone number is XXXX. The new HUD partial claim servicer is XXXX and their telephone number is XXXX. Our current mortgage company is The Money Source ( TMS ) and their telephone number is XXXX. 

So, where we're at currently, is the title company is awaiting a call back from our lender as they have " escalated '' this issue up to more senior management to research ; we've already gone this route earlier in the month and I know what they are going to come back and say, that its the administrator who needs to provide this payoff and its not, which they have as of the time I am submitting this complaint to you. I was also informed that the title company has been in contact with XXXX and has submitted a complete copy of the loss mitigation package/forbearance/partial claim to them as requested and this was completed yesterday, XX/XX/XXXX. 

The last conversation I had with the title company and our current lender, is that if we didn't receive this payoff ASAP, than I would be consulting legal counsel. During that last conference call, I told our current lender that we were being held XXXX on this partial claim and that we are paying interest on an amount, for which no one can provide a payoff. We're facing the same situation as before, with the refinance potentially falling through as a result of not being able to obtain this payoff. Please help us remedy this situation ASAP so we can finalize our refinance. Thank you!

Company response to consumer: Closed with explanation