Consumer complaint received 2023-02-22
Company: U.S. BANCORP
State: AZ
Product: Mortgage
Sub-product: FHA mortgage
Issue: Struggling to pay mortgage

Complaint:
I had a covid-19 mortgage forbearance and was told there would be options when the forbearance ended. At this time the average interest rate was about 3.5 % The only option US Bank gave me was to do a short sale. They said I did not qualify for any other options, or pay the full amount due to avoid foreclosure processes. When I called to discuss the matter, the rep told me that I could not appeal the decision as they provided the reasons, and she was documenting that I was declining the short sale option they gave me. I was denied an additional forbearance for unemployment after the covid forbearance because they said my account was due more than 11 payments. Options listed ; HAMP loan modification denied : the modified payment would exceed the target payment, which does not meet program guidelines. What does that mean? Stand Alone partial claim : based on current market rate, the interest rate on this account is higher than market rate, which does not meet program guidelines, & Your current payment is greater than target payment which does not meet program guidelines. HAMP Combo Modification payment after modification created a housing to income ratio greater than 40 % does not meet program guidelines. Repayment plan not approved unable to create an affordable monthly payment to meet program guidelines. Dead in lieu not reviewed. They said well I'm not working and my credit score isn't good anymore. I seen on your site and had previously heard HUD/FHA does not require lump sum repayment at the end of the forbearance, but this is what they were demanding to stay in our home. 
I do not see that I was ever evaluated for any COVID-19 Recovery Home Retention Options per the documents received, such as COVID-19 Advance Loan Modification ( ALM ), COVID-19 Recovery Standalone Partial Claim, COVID-19 Recovery Loan Modification etc. I thought these options were to help me and my kids keep our home not lose it and become homeless. The only option that I was given was to pay the full balance within 30 days and that partial payment may not be accepted, or to sell. This process caused sever suicidal ideation, and I wanted to admit myself into a hospital but would have lost my home before being released. 
In XX/XX/2022, I was able to get assistance from the Arizona Housing Assistance Fund ( HAF ), but it was not enough to cover everything owed, and because Arizona set a max of {$25000.00} and had also helped with utilities. Per the rep helping me with HAF I had to call the bank to ensure they would take the partial payment and asked again about how I heard the balance could be moved to the end, and was there any way part of the payment could be used for future payments if we can do this and they said no. After US Bank accepted the HAF funding I got a call about the balance. During that call the lady said I now qualified for a loan modification. I asked how I didn't qualify a few weeks ago but now that they took all the funding I magically qualify. She said because my hardship had been resolved. I told her it had not but ok. She said I had to agree to the modification over the phone and there was nothing I could review before agreeing even though I told her I was dealing with mental health issues and wanted to make sure I understood everything. However She said if I wanted to lock the rate of 5 % in I had to agree now. Seeing how fast rates were going up I felt I had no choice but to agree. 
When The documents came the rate was 5.5 % and the balance was larger than on my statement. I did not understand the calculation. The man tried to explain over the phone but it still did not make sense. He put a supervisor on the call who went over it again. I told him I still did not understand where these numbers were coming from. He said the rate is 5.5 % now even though I had to agree on the last call. This took the payment from aprox. {$1000.00} to XXXX I asked him out of the {$1300.00} how much was going towards the principal as the payment details were not broke down on the documents like on my statements. He kept insisting that over {$500.00} was going toward the principal. I told him over and over again that didn't make sense as my interest rate was 6 % and only like {$230.00} goes toward the principal and if the principal was going up my house would be paid off twice as fast not over the same time period. He continued to insist he was right and his calls were recorded he is a supervisor, so I told him I would call back for an adjustment when I got my statement. Of course my statements show that {$200.00} is principal. This made me feel even more unsecure about the mortgage contract and said I would go into the bank for hopes of better understanding. I went to 3 branches and none had anyone to speak to about mortgages. I was given a card for the district manager to call for help. She said she retired 3 months ago and moved to XXXX. This was a Friday and the documents had a deadline of Sunday. I called the bank to see about getting an extension on submitting the documents and was told this was not an option. I underdress I went back to the bank first thing Saturday morning to get the documents notarized and they said they were booked up and could not help until Monday. I explained the documents had be sent XXXX by Sunday and they just apologized. It ended up costing {$200.00} for notary services. I did not have {$200.00} I had {$20.00} and fell into a full blown XXXX XXXX in fear of losing the house. A stranger in the store offered me a loan. 

Fast forward my XXXX appeal is still under medical review. I again submitted for assistance as I have had COVID twice and the flu once since doing the modification. US Bank again has only offered me a short sale. I am not employed as I became XXXX and awaiting social security appeal review. I was denied a unemployment forbearance because they said I am not unemployed. And again none of the options listed on the loss Mitigation summary are any of the COVID options. 

I feel that US Bank has not been helpful at all in trying to help me keep me and my family in our home due to circumstances of the pandemic, health issues and has cause me additional health issues. My children are also displaying XXXX and XXXX symptoms as we don't know how long we will even have a home and are with out a vehicle to go anywhere right now. I am sure that US bank took covid relief but now are not wanting to comply for homeowners. Im sure they would love to foreclose on my house with the current equity. Unfortunately because of my credit I cant access my equity to help me catch up on bills. I already tired to apply with US bank for an equity loan. Please help us!

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