Consumer complaint received 2022-02-04
Company: MIDFIRST BANK
State: VA
Product: Mortgage
Sub-product: FHA mortgage
Issue: Closing on a mortgage

Complaint:
XX/XX/XXXX. 

Attention : XXXX XXXX XXXX XXXX  I am filing a formal complaint against both XXXX XXXX XXXX XXXX and Midland Mortgage. The reasons for this complaint be it may be stemmed from the builder XXXX XXXX. In XXXX XXXX XXXX Builder was actively erecting a gated community which they called the Parc at XXXX did knowingly form an alliance with XXXX XXXX XXXX in funding the property in question on behalf of myself and XXXX others who were on the mortgage. Cornerstone Home Lending and XXXX XXXX Builders failed to report the complete value of the property post construction to the XXXX XXXX XXXX Department to secure a lower cost to themselves upon closing. A mortgage was formulated based only upon the appraisers report on the said property instead of the property plus land. As a result of that, we were given a mortgage based solely on house tax but not house plus land tax. 
The mortgage drafted to us upon closing in XX/XX/XXXX was {$1700.00} this was our mothers retirement home after working for almost 30 years she sold her house in New York and decided to move to a warmer state where she can live a house to her liking post-retirement. My mom spent at most XXXX weeks in that house after she signed for the closing and then went back to work at the XXXX. That was the only time she saw it and spent time there. She paid her mortgage to Cornerstone Home Lending on time was never late and since then until in XXXX XXXX, she was being told by XXXX XXXX XXXX that she does not have any money in escrow, and she needs to also get home insurance which she does not have anymore. I was away at school at the time and communicated with my mom every day while trying to find our insurance for the house. I asked XXXX XXXX XXXX why this was the case several times but was never given an answer about it they just kept saying there is no money in escrow and that we need to now get insurance for the house. Cornerstone XXXX XXXX then XXXX up a new mortgage payment for us and told us that we have back payments, and we will now need to pay more on the mortgage. My mom was meeting the criteria for the increased mortgage, but she was not able to make the back payments she was being told that she owed which she could not understand why. Both of us were never given an answer as to why this was the case. 
The mortgage for the property was then sold in XX/XX/XXXX to Midland Mortgage we were notified by letter to XXXX XXXX XXXX about this after they sold it to them. Midland mortgage immediately stated that we owed {$22000.00} in lawyers fee and back payments. They insisted that the back payments must be paid in XXXX lump sum while paying the mortgage the new mortgage that they gave to us. I would like to add that at the time I informed both Cornerstone Home Lending and Midland Mortgage that my brother was away in XXXX and that his paperwork or input pertaining to the property could not be handled. Midland Mortgage was fully aware of this, so they told us to have my brother file along with us a XXXX document to get refinancing for the house when XXXX gets back. Both my mom and I filed our XXXX form together instead of separate, my brother wasnt present yet so his would have to be filed separately from ours those were the instructions given to us by Midland Mortgage XXXX My brother arrived in XX/XX/XXXX from XXXX and immediately filed his XXXX to Midland Mortgage . Midland Mortgage from XX/XX/XXXX through XX/XX/XXXX kept stating that they can not see our documents and when they found them, they were outdated so we needed to file again and again both my mother and me. They also told me in XX/XX/XXXX that they never received my brothers XXXX form when I eventually called them asking if everything was good after waiting for XXXX weeks for them to upload everything again in their system. The wait time was always XXXX weeks for any fax to be uploaded and after every XXXX weeks, they told us that the documents were incomplete and also at times missing as if we never filed anything or that the documents were expired. In XXXX during that phone call, Midland Mortgage also told me that it was too late to apply for the XXXX application because the house was going into foreclosure. This was a very hurtful thing for all of us!!!!!! My mom broke down so badly this was her retirement home, and she could not understand why this was happening to her. For months later following we faxed letters into Midland Mortgage begging them to allow us to keep the house and letting them know that we found out the original mortgage was based only on land tax but not house plus land which someone told us later. Midland Mortgage never responded, and no more letters came in the mail from the following XX/XX/XXXX. I called them several times asking if they received our appeals they said yes and that was it nothing more. 
This complaint is being filed because there were several fraudulent acts committed by both XXXX XXXX XXXX and Midland Mortgage. Our neighbors at the time also experienced the same problem with their mortgage which they revealed to us upon the loss of our house. I am submitting several supporting documents : - XXXX. A copy of a mortgage statement from XXXX XXXX XXXX that showed the increased mortgage payment and back payments that they said are owed. 
XXXX Letters that were dated and faxed to Midland Mortgage appealing to allow us to keep our house. 
XXXX. Faxed text messages of us being contacted by someone who wanted to purchase the property because we did not want it to have any negative report affecting our credit which we were willing to allow for this reason XXXX. XXXX of the property by XXXX XXXX XXXX back in XXXX. 
XXXX. A Special Warranty Deed on behalf of Midland Mortgage purchasing the property stating that my mom and myself, were aware of them selling the property which is not true because we were never notified at all. 
XXXX. Special Warranty Deed XXXX of who purchased the property which is the current owner. 
XXXX. XXXX of XXXX XXXX for both my mom and me. 
XXXX. A letter that I faxed to Midland Mortgage XXXX Department requesting for them to send me a letter that I could submit to XXXX so that I could be cleared for my financial aid for school. 
XXXX. A statement of Fair Market Value about the property from Midland Mortgage was sent to us in the mail XXXX for tax purposes. 
XXXX. A letter that Midland Mortgage emailed to me on XX/XX/XXXX, as I needed a letter to clear me for financial aid from XXXX because I am accepted to go to medical school this letter was not satisfactory for XXXX. 
XXXX. A letter from XXXX stating why they did not approve me for the loan. 

I paid XXXX XXXX on XX/XX/XXXX, to try and clear my credit so that I could get a loan for school from XXXX. I never knew that this was on my credit report until I applied for this loan. I also found out that the house was sold on XX/XX/XXXX, this was what Midland Mortgage told me over the phone on XX/XX/XXXX, for the first time! It was very painful all over again just knowing this. I will note that the Special Warranty Deed on behalf of Midland Mortgage did not even include my brothers name on it only myself and my moms, we were also not given any notices about the sale of the property at all in the mail, email, or over the phone or else we would not have been writing to their tax department appealing for us to keep our house after we found out about the mortgage based only on land tax. 
On all our credit reports Midland Mortgage listed the price for the property as {$270000.00} as the initial balance. They purchased the property back to themselves for {$220000.00} which they sent to us as a tax document after they did so. My mom paid her mortgage since XX/XX/XXXX every month until XXXX XXXX XXXX sold it to Midland Mortgage which we believe stole our house away from us. Our mother died on XX/XX/XXXX, I am requesting an investigation into this fraud between Cornerstone Home Lending, XXXX XXXX Builders, and Midland Mortgage ; I am requesting to have all reports by Midland Mortgage and Cornerstone Home Lending be completely removed from all of my moms, myself and my brothers XXXX credit bureaus it has caused us more than enough grief! Midland Mortgage said that they will be giving me a supporting letter for XXXX after failing to do so the first time in XXXX, but I have to wait for XXXX month to get it. I also dont know how well they will comply with this request because they so far have not fulfilled any of our requests since XX/XX/XXXX. Midland Mortgage sold the house to themselves at a depreciated value to avoid a suit from lawyers or to avoid paying us any profit they made on the sale of the property. Also, the Special Warranty Deed XXXX for the new owner does not show any the value of the purchase which is to me a non-disclosed agreement because of not wanting the sale price to be public knowledge in my opinion! 
My mom never stopped saying that they stole her house from her, her heart went into that house every material selected was from her heart and to her liking which was taken away from her very easily!!!! This property also belonged to my brother as it is stated on his credit report as well! He was in XXXX for over a year, and he came back and found out that he was losing his house. Both banks were told of his absence and of his military status, which never made a difference! Midland mortgage purposely left out my brothers name on their Special Warranty Deed and they knew it was wrong and what they were doing, they did not care to do the right thing nor for anyone to know!!

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