Consumer complaint received 2018-04-17
Company: MIDFIRST BANK
State: PA
Product: Mortgage
Sub-product: VA mortgage
Issue: Struggling to pay mortgage

Complaint:
I bought my home with a VA loan that is currently held by XXXX XXXX. This companys agents have made misrepresentations and claimed that since I have a VA loan and I am delinquent that there are no options to restructure or modify the loan except for full reinstatement of the late payments. After a temporary hardship I contacted XXXX to ask for assistance and was told initially that they could help me and that I qualified for help. A few months later after a review they told me that I was denied due to lack of income. This puzzled me and they did not give a lot of details, and I believed that they had made some type of mistake. I resubmitted and updated package with the same income and a few months later was denied again.this time for too much income. I was confused and did not see how this made sense and began asking lots of questions. That is when I was told that since I had a VA loan and I was delinquent that there were no options. I checked on this and found this information to be false. There are modification programs, forbearance programs, repayment programs and they also can restructure the loan and incorporate the arrearages into the balance. I dont understand how or why XXXX XXXX thinks they can get away with this. Instead of working with me they scheduled a foreclosure sale date! They are denying me access to government programs that I qualify for. 

I bought my home with an adjustable rate VA purchase loan back in XX/XX/XXXX through XXXX XXXX. I have paid my mortgage as agreed with no issues until early XX/XX/XXXX when I suffered a fall ( I am XXXX years old ) and was injured and unable to run my XXXX and XXXX   business for several months. This eventually led to a default on our loan ( after 12 years of on time payments ). As soon as I was back on my feet I began trying to apply for modification assistance. As I explained, their agents were very helpful at first and led me to believe that I qualified for help. After submitting all of my financial information a review was conducted, and ultimately I was told that I did not qualify due to a lack of income. I was certain that this was some type of mistake, so I resubmitted a new package documenting the same income that had been submitted in the original package. After a period of time I was told that I had been denied againthis time for too MUCH income. I was flabbergasted and started asking questions, and thats when their agents stopped giving answers. I continued to try and get XXXX to review me for government programs that are available for struggling VA homeowners but instead got the runaround. I was then told by one of your agents that there are no programs for delinquent homeowners with VA loans which I found to be false. 

I am a XXXX XXXX veteran and senior citizen and I do not deserve this treatment by XXXX XXXX. My hardship was temporary and I am back on my feet and able to afford a reasonable mortgage payment. I need the opportunity to be reviewed for all programs so that this situation can be resolved.

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