Consumer complaint received 2018-05-23
Company: Signature Bank (NY)
State: NY
Product: Mortgage
Sub-product: Conventional home mortgage
Issue: Trouble during payment process

Complaint:
1. This complaint is an additional effort to resolve numerous previous complaints I have filed with CFPB as well as numerous communications with the mortgagee, Signature Bank, relating to cooperative apartments XXXX and XXXX located at XXXX XXXX XXXX, XXXX, N.Y. The banks mortgage Loan numbers are XXXX and XXXX. 
2. In XX/XX/XXXX, a regularly monthly payment that we sent to the bank was returned to us and we were advised at that time that the bank had instituted foreclosure procedures against us as a result of being two months behind in our monthly payments as well as owing the bank funds relating to a payment it made to the cooperative corporation for an unpaid quarterly maintenance payment. 
3. In response to the banks assertions, we prepared a full delineation of all the payments we made to the bank including copies of checks. In this delineation we included proof that the funds associated with the payment made by the bank to the cooperative corporation was fully reimbursed.

4. Though we sent this information to the bank, for an extended period the bank ignored the information we provided and continued to advise us that we were in default. Nevertheless, we continued to attempt to make monthly payments which the bank returned to us insisting that no payment would be accepted unless the full amount of their claim was satisfied since were in the foreclosure process.

5. We were further advised in XXXX that the bank had scheduled a foreclosure sale on our property for XX/XX/XXXX and advised the cooperative board about its intentions.

6. After considerable attempts to gain the banks serious attention the bank finally acknowledged to us in a letter that they had made an error in their determination our of status and accepted that at the time they filed an action against us that we were not in default. 
7. We then learned that the bank decided to defer the date of the foreclosure sale. 
8. In the middle of XXXX, we received statements from the bank which showed that the balance owed was {$19000.00} for relating to XXXX and {$5100.00} relating to loan XXXX. This amount showed that the charges relating to the foreclosure had been credited to the account. Thus, in combination the amount the bank stated was due was {$24000.00}. This statement also stated that if we paid after XXXX XXXX we would incur a later charge. This was unreasonable since we received the statements as the same time the late charge was to be levied. 
9. The mere fact that the bank sent this statement displaying the balance due is recognition of the appropriate balance that should be paid, regardless of any other arguments that may be made by the bank since it represents the banks statement relating to the balance of the loan and the funds required to maintain the loan.

10. In order to make sure that our payment of the amounts on the statement would be accepted by the bank in the amount noted on the statement, we called the banks attorney for confirmation. The banks attorney told us that regardless of the statement we were sent, the bank would not accept any money from us unless the reinstatement amount was first confirmed by them.

11. A letter was then sent to us by Signature Bank on XX/XX/XXXX in which Signature Bank again seemed to ignore all the information we sent where they acknowledged their error and stated that the foreclosure process will continue unless all foreclosure fees and costs are paid. 
12. We sent a letter to the attorneys for the bank on XX/XX/XXXX where we sought confirmation for the amount due. In this letter we stated the following : This letter further stated that the Bank will not accept any monies from us unless the full amount including legal and foreclosure fees is fully paid. 
As you are aware, we have called you and advised of our concerns. We also told you that we are prepared make an immediate payment of the full amount that is owed including the charges for XXXX ( for which we have never received a statement ). 
For apartment XXXX ( account # XXXX ) the balance including the XXXX installment is {$21000.00} For apartment XXXX ( account # XXXX the balance due including the XXXX installment is {$5700.00} The total amount currently due {$27000.00} ( The balance is higher than the amount noted on the banks statement since we included the debt payments relating to the month of XXXX which the bank had not yet charged the account. ) 13. On XX/XX/XXXX We received via email a Reinstatement Quote for each loan. Rather than acknowledging that we should not make payments on any foreclosure costs since it was not properly instituted, the bank insisted that such amounts must be paid as well as any additional legal charges that may accrue.

14. The letter also stated that the Bank must receive by Wire the full amount due by XXXX on the same day that we received the email or else there will be additional charges associated with publication of the Notice of Sale.

15. Im sure you can appreciate that this entire matter has been a nightmare to us as well as a considerable embarrassment given that the bank had notified the cooperative corporation of their intentions. These actions are completely inconsistent with the banks obligation to act in good faith and consistent with the banking laws in the State of New York and creditor rights. 
In order to protect our property, I am being forced to pay {$45000.00} on a loan where the proper amount due is {$27000.00}. This an additional cost of {$17000.00}. 
It is appropriate that we make a payment as required under the loan documents in the amount of {$27000.00} ( which is applicable through XX/XX/XXXX ) and that all legal and related costs associated with the foreclosure be credited to our account since 1 ) We were not in default as defined in the loan documents at the time the foreclosure action was undertaken, 2 ) We attempted to make regular monthly payments which the bank refused to accept. 
3 ) The bank acknowledged to us in writing that they had made an error.

4 ) The bank has ignored our repeated presentation of evidence and has sought to act with impunity. 
Sincerely, XXXX XXXX

Company response to consumer: Closed with explanation