Consumer complaint received 2018-09-09
Company: U.S. BANCORP
State: DC
Product: Mortgage
Sub-product: FHA mortgage
Issue: Struggling to pay mortgage

Complaint:
U.S. Bank has not acted in good faith with regards to my repeated attempts to re-modify my mortgage. Additionally, U.S. Bank has continually engaged in what can only amount to harassment by repeatedly calling and sending notices claiming that my mortgage was in " serious account default '' despite U.S. Bank 's full knowledge of my participation in their unemployment forbearance program. Participation in said program should have temporarily ceased all collection activity on the account ; however, this was not the case. U.S. Bank first sent notice of the alleged breach demanding payment of {$5900.00} and {$280.00} for late charges. U.S. Bank next sent notice of " Serious Account Default, '' which then alleged that my account was delinquent with a total amount due of {$6200.00}. U.S. Bank then sent a mortgage statement and delinquency notice demanding an astonishing {$32000.00}, despite full knowledge that I had submitted timely payment in the amount required by my participation in the unemployment forbearance plan.

I have attempted no fewer than three times to apply for loss mitigation ; however, U.S. Bank has acted in bad faith and intentionally frustrated each application. The first loan modification application was completed and submitted in XX/XX/2018 via  XXXX U.S. Bank responded via email on XX/XX/2018, a full two months after the application was submitted, requesting documentation. I responded to the emailed request for documentation by providing the requested documents. U.S. Bank acknowledged receiving the documents requested in the XX/XX/2018. I never received a response from U.S. Bank regarding the XX/XX/2018, application for loan re-modification and instead received a summons for a " Complaint for Judicial Foreclosure, '' which pled two causes of action : ( 1 ) Judicial Foreclosure ; and ( 2 ) request for Judicial Sale. A timely answer to the complaint was filed with the Superior Court of the District of Columbia.

U.S. Banks plea for judicial foreclosure purported to rely on D.C. Code 42-816 as statutory authority for U.S. Bank 's judicial foreclosure actions ; however, U.S. Bank 's reliance on this code section appears to be a strategic attempt to avoid triggering foreclosure mediation, the requirements of which are set forth at D.C. Code 42-815 ( DISB Mediation ), which is required prior to a judicial foreclosure and a judicial sale. U.S. Bank is aware that the District of Columbia has three methods by which U.S. Bank may seek foreclosure, which are ( a ) power of sale, subject to the requirements of DISB mediation, ( b ) true judicial foreclosure ( which is disfavored because it leads to inequitable results ), and ( c ) judicial sale, which is not a claim in and of itself, but instead is a remedy the court can use to avoid ordering an inequitable, true judicial foreclosure.

On XX/XX/2018, upon receiving the summons and the complaint, I telephoned U.S. Bank and was told that my XX/XX/2018 application for loan modification was denied due to my failure to produce requested documentation, despite the fact that I received emailed confirmation from U.S. Bank confirming receipt of said documents.

I promptly attempted to submit a new loan modification application on XX/XX/2018 on XXXX XXXX, but was unable to because U.S. Bank, despite having sent a complaint for judicial foreclosure, had not moved on the XX/XX/2018 application for loan modification. As U.S. Bank had neither approved nor denied my loan modification application ; I was unable to submit another application. I then called U.S. Bank and was instructed to cancel the XX/XX/2018application and begin a new one, which I promptly submitted. A third loan modification application submitted in XX/XX/2018was denied ; however, I filed a timely appeal.

All exhibits and supporting documents were attached to the timely answer to the complaint that was filed with the Superior Court of the District of Columbia.

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