Consumer complaint received 2022-10-14
Company: U.S. BANCORP
State: MD
Product: Mortgage
Sub-product: Conventional home mortgage
Issue: Struggling to pay mortgage

Complaint:
I have been having issues with bringing my account current and resuming my mortgage payments with US Bank over the last 7 months : Around XX/XX/XXXX, I was experiencing a job loss and loss of income due to COVID, so I elected to go on a COVID forbearance plan with US Bank that started in XX/XX/XXXX. On Monday, XX/XX/XXXX, I called US Bank to end my forbearance plan and resume my monthly mortgage payments. The US Bank representative informed me of my options and I chose the flex-modification. After choosing that option, the US Bank representative informed me that I was conditionally approved for the 3 month trial and that payments will start on XX/XX/XXXX and that I will be receiving paperwork in the mail with more information. 

Since then, I have NOT received ANY paperwork about the Flex-modification plan I choose. Instead, I have received several default notices and Intent to Foreclose notifications, which I followed up with several phone calls to US Bank customer relations and loss mitigation representatives and received different information from each representative. Some said I was not in a program, others said I got approved for the program and just wait for the paperwork, others said I was denied for the program and others said I was in 2 different systems, one system says Im approved and the other says denied. Ive tried everything to communicate with US Bank representatives to resolve this matter and start paying my mortgage to no resolve. So, I submitted my first complaint to US Bank on XX/XX/XXXX via email to XXXX When an US Bank representative finally reached back out to me and acknowledged the mistakes made by previous US Bank representatives by giving me misinformation they informed me that they would clear out the system and re-run me for programs. Despite all my efforts to resume my payments I was told I was in active foreclosure and I was sent several foreclosures notices and a letter from the US Bank foreclosure attorney. In fear of foreclosure, I contacted the MD HAF program to help me prevent foreclosure and bring my account current.The MD HAF program escalated my application because I was active foreclosure. 

When US Bank cleared me out of the system and re-ran me for programs I elected the deferment option. Before I applied for the US Bank deferment program, I informed US Bank representatives that I was actively applying for the MD HAF assistance program to help bring my account current and I asked them if either program will impact each other and I was advised that it would not. I was informed by the US Bank representatives that the only way to stop the foreclosure process was to move forward with the deferment program. The MD HAF program was communicating with US Bank to get information about my foreclosure and the amount needed to bring my account current. The MD HAF program informed me that they sent US Bank a notice to cease all action because I was actively applying for the program. 

I got approved for MD HAF Funds on XX/XX/XXXX. The HAF funds were dispersed to US bank via electronic payment on XX/XX/XXXX and US Bank received the HAF electronic payment on XX/XX/XXXX. On Friday, XX/XX/XXXX I called US Bank to check the status of my account and I was informed by the US Bank representative that the funds were received and that I would be removed from the deferment program so that the MD HAF Funds can be applied and for me to check back in 3 business days to get a status update. They also informed me not to pay my mortgage until everything in my account was updated. When I called back to check the status, I was told it was still being processed and to call back in a few days. When I called back to check I was told that the MD HAF funds were being sent back to MD HAF program because I no longer qualify for the MD HAF funds because the deferment brought my account current and to email my concerns to the US Bank complaints email. 

When I checked my account online it shows that the funds from the MD HAF program have been applied but I also see something about a 2nd mortgage. I received a new statement on XX/XX/XXXX where it shows that the MD HAF funds have been applied to cover other fee pd/RCAand my mortgage is due XX/XX/XXXX. Then, I just received a letter in the mail stating that my mortgage is late. When I called to inquire about the notice and the fees, I was told that the MD HAF funds were being held and waiting to be processed or sent back to the state. I have made every effort to work with US Bank to bring my account current and they have given me misinformation and making it a challenge to utilize funds granted to me to assist me.

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 non-monetary relief