Consumer complaint received 2021-11-30
Company: MONEY SOURCE, INC., THE
State: TX
Product: Mortgage
Sub-product: Other type of mortgage
Issue: Struggling to pay mortgage

Complaint:
I want to bring this complaint against our mortgage loan servicer, The MONEY SOURCE ( will refer to them as TMS in this correspondence ) for deliberately pushing our loan to default following our forbearance period. 

I obtained a USDA loan in XX/XX/XXXX for our new home at the time. Due to the XXXX, XXXX pandemic, we applied for and entered into forbearance in XX/XX/XXXX. Before we did that, we asked what options would be available to us at the end of forbearance as we would not be able to afford to make a bulk payment for the total amount of time we would be in forbearance. The TMS associate assured us that we would have different options at the time of repayment and would not have to pay the total amount at once if we couldn't make that payment. After a review of our account, they told us we had options we would qualify for such as Term Extension and Loan Modification. We were approved for an initial 3 months. Getting close to the 3-month period, we called to extend the forbearance. Again, we asked about our options at the end of our forbearance and were again reassured that we would qualify for their programs. Ultimately, we extended our forbearance, with the most recent extension to expire in XX/XX/XXXX. On XX/XX/XXXX, TMS sent a reminder letter alerting us to the end of the forbearance, with instructions on what steps to take such as calling them to discuss what our options ( Attachment XXXX ). As we worked to get our finances together to the point where we were able to resume our regular monthly payment, we called TMS on XX/XX/XXXX to inform them we were ready to resume payments and to give us options available to us in order to smoothly transition to resuming our payments. To buy us more time, I asked for a one month extension of forbearance to give them time to process any paperwork needed for us to get on a payment program since the rep informed me we had up to two months of forbearance left if we needed to use it. Having heard more about the Term Extension, we asked for that option. The TMS representative instead asked me to hold while she reviewed my account. After reviewing my account, she offered us the Loan Modification option stating that was the best option for us and we qualified for that option. After asking about what it entailed, she said we will receive the terms and all we had to do is sign it and return it if we were okay with the terms. She said it would take about two weeks to get the paperwork in the mail, and shortly afterwards it would be finalized. She told me this process would offer the protection, as with the forbearance, from negative credit reporting, defaulting, etc. I insisted on getting that extra month of forbearance just to give us some cushion, but obviously we came to find out that she did not extend our forbearance. On the same day XX/XX/XXXX, after the call, we received an email indicating that a Loss Mitigation Application had been received ( I assumed this is the loan modification as she stated ), and that Within 30 days or less from XX/XX/XXXX, you will be notified in writing of your loss mitigation review and the outcome, the letter stated ( Please see Attachment XXXX ). This letter or notification never came. 

After waiting for several weeks and not hearing back from TMS, nor receiving any paperwork in the mail, I called TMS in XXXX to inquire about the status of the application. I was told that it was still under review and that I was still protected and should not worry about anything. The representative, a male, indicated that it does take weeks to months to get the process through and to expect it could take till XXXX to finalize things. As we grew weary of waiting, on XX/XX/XXXX, we called TMS again to find out the status of the application. Again, we were reassured that everything was fine, and the application was still under review, and we would be notified. It is worth noting again that contrary to TMS letter dated XX/XX/XXXX ( attachment XXXX ), TMS NEVER sent any written notice regarding this application or anything else. 

Sometime during the first week in XX/XX/XXXX, we received a letter from TMS stating that we have been reassigned a customer ally, XXXX XXXX, who would serve as a single point of contact for the account ( Attachment XXXX ). On or around XX/XX/XXXX, on a call with XXXX XXXX ( the first since her assignment as customer ally ), XXXX XXXXsked about our account, and I did inform her that we were still waiting to here from them on the progress of the Loan Modification application. On review of the account, XXXX ( XXXX XXXX XXXX noted that she did see that an application had been started, however nothing had been done about it by the representative who put the application together. She then asked about the TMS letter dates XX/XX/XXXX ( in reference to Attachment XXXX ), if we had been requested to send in any documents, and if we had sent it any documents as the letter purports. I stated that we had not received any request for documents and never sent any documents to TMS as nothing had been requested. The Loan Modification application was a no document application they said. She stated she didnt see anything pointing to why that letter was sent. She informed me that she was going to go ahead and submit or escalate the Loan Modification application as nothing had been done past when the application was filled out on XX/XX/XXXX, and she would get back to me once it had gone through. 

On XX/XX/XXXX, I received a credit score alert from XXXX stating that my credit score had decreased. On logging in, to my surprise and pain, I realized that TMS had erroneously reporting me as being 120+ days late on my payments, dropping my credit score by XXXX points instantly ( Note, I had been in forbearance and had called for both a one month extension while they process the loan modification application ). I called TMS to speak with my customer ally and was told she was not available, but someone else could help. I declined as I wanted to keep this issue narrowed down to XXXX person as they had asserted in their customer ally reassignment letter. I got a call back on Monday, XX/XX/XXXX from a TMS representative, XXXX. I informed her about what has been transpiring since XXXX and that we were yet to hear back from them ( TMS ), while being reassured each time we called that the application was still under review, still protected from negative credit reporting, and that we should wait to hear from TMS. I pointed out their error in reporting the incorrect information to the credit bureaus. Also, she was informed of my conversation with XXXX XXXX. XXXX become combative and defensive, claiming that while they may have handled my case poorly, they were not going to remove the negative credit reporting regardless of the damage they had done. She then went on to tell me she was sorry if I was misinformed ( about what? I don't know ) and that the best she can do for 'me ' is to offer coaching to their employees. I was left aghast. Best she could do for me is coach their staff? That didn't make sense. She said the information reported to the credit bureaus would stay on even though she acknowledged that TMS was not offering me information or communicating regarding the application. I asked to speak to XXXX XXXX again and was told by XXXX she was not available, and even if she was, she would stick to the TMS version of events as told by XXXX. When I asked to know exactly what their policies are as they were not reflective of the federal law protective of USDA loans, XXXX said they go by their investors guidelines and what was in their best interest. The call ended with no resolution. 

The following day, Tuesday XX/XX/XXXX, I called TMS again and first spoke to a TMS representative, XXXX. After going through the cycle of events once again, XXXX informed me that after reviewing my account, there is no evidence any documents/package were requested from me or received from me contrary to the letter dated XX/XX/XXXX ( Attachment XXXX ). XXXX ( XXXX ) told me the credit issues will be fixed once the loan modification application had been resolved. While we were talking, the line went off. I called back immediately, and this time was connected to a different representative, XXXX. After another round of back and forth, I asked to know what exactly happened with the purported Loan Modification application and why I wasnt afforded the Term Extension I had requested in the first place ( an option I was told I qualified for as well during our many calls to TMS while in forbearance. XXXX, while not able to answer that question, informed me that the Loan Modification application was denied on XX/XX/XXXX ; [ please note as stated earlier, during our call to TMS on same date/day XX/XX/XXXX, the representative assured us that the application was still under review, and we were protected and would hear from them as soon as it was completed we never heard from TMS. On subsequent calls, we were still being reassured the application was still under review and we were fine. Also, please note as stated earlier, XXXX XXXX on XX/XX/XXXX, also after reviewing this account NEVER said anything about the application being denied. She instead stated that nothing had been done with the application since after it was filed XX/XX/XXXX. ] on asking XXXX what the basis of denial was from, she stated we missed a payment prior to the pandemic in XX/XX/XXXX. I promptly told her that was inaccurate as we have made payments on time each month. After reviewing our account further, she then noted her mistake as she found the payment we made for XX/XX/XXXX. She then said it was the XX/XX/XXXX payment that was late. Again, I refuted that, but she stuck to that, saying their system showed payment was made a day past the deadline which again is inaccurate. TMS for one had always reported our payments as on-time as they were on time. So, this was something they just now propped up. Please note Attachment XXXX TMS page on my XXXX credit bureau showing on-time payment reports for the months prior to starting forbearance. XXXX, after acknowledging they ( TMS ) made mistakes, said she would escalate my Loan Modification application to a Loss Mitigation supervisor, and well just have to wait and see what the outcome would be. I asked to make my monthly payment while they resolve this issue so that they dont find another reason to report falsely on my credit. XXXX then told me that they would not accept partial payments, and I would need to pay {$35000.00} ( XXXX XXXX XXXX, XXXX XXXX Dollars ) of they would keep reporting it as delinquent. This was shocking to me as this was the very same reason federal law protecting USDA loans stipulated that borrower can not be made to pay the entire amount owed during forbearance at once, hence options should be made available such as the Term Extension, Loan Modification, etc. For me, this was TMS plot to cause us to default even though I called to inform them of my intent to resume payment, and they deliberately caused us to lose our forbearance protection ( by their own admittance of mistakes, errors, and/or inactions ). During this call, again the line went off. I called back and this time spoke to XXXX, a TMS representative. Again, I asked to make my monthly payment while they work on resolving this issue and she stated I would have to make a payment of {$35000.00}. This call ended on that note. 

On XX/XX/XXXX, I called to check on the status of the Loan Modification escalation. I asked to speak with my customer ally. Again, I was told she would not be available for me to talk to. I was connected to XXXX with whom I had spoken the day before. She ( XXXX ) informed me that the escalation was still pending. I probed about the criteria for eligibility for Loan Modification. I asked what their guidelines were and if she could share those with me. XXXX informed me that they go by their investors guidelines and government guidelines. I asked to know what government guideline suggests using payment history to determine eligibility for this program and what it states. She or TMS were unable to offer any government guideline to this effect as it really doesnt exist. At the moment, we are awaiting what decision they intend to take on the pending application. 

It is our believe this is a deliberate scheme by TMS to cause people to default/report negatively on credit bureaus to make it impossible for customers to get approved elsewhere and walk away from TMS. Also, per the repeated claims by TMS representatives of working in the best interest of their investors, coupled with their brazen tactics, I believe TMS mission is to ultimately foreclose and obtain our property. This assertion follows research I have undertaken considering what has transpired, in addition to TMS actions following our communication of intent to resume payments, and TMS ' false assurance of our qualification for the Loan Modification program following a thorough review of my account. Please find similar tactics by TMS as reported by other customers, a few we have attached here for your reference ( Attachments XXXX, and XXXX ). Most are posted on the Better Business Bureau site ( which is where our attachments were culled from ). All we asked is for TMS to do the right thing and erase their erroneous report from my credit files, offer the cooperation required by the laws protecting USDA loans, and have us commence making our monthly payments related to whatever program we agree upon vis -- vis Loan Modification or Term Extension. Please help us resolve this as we have worked hard so hard to maintain our property as you can note on Attachment XXXX. 

Thank you sincerely for your prompt and judicious assistance in resolving this matter. 

Sincerely,

Company response to consumer: Closed with explanation