Consumer complaint received 2023-08-23
Company: MIDFIRST BANK
State: NJ
Product: Mortgage
Sub-product: FHA mortgage
Issue: Trouble during payment process

Complaint:
I applied for the New Jersey HAF program in XXXX of XXXX  and was accepted into the program in XXXX of this year. I had already taken out a loan to continue making payments to my mortgage company, Midland Mortgage ( a Division of Midfirst Bank ) in XXXX while waiting for the HAF process to be completed, which I was assured I'd receive an answer soon. When my wife and I were approved in early XXXX, I had already scheduled the payment for XX/XX/2023. Since it was close to the middle of the month ( XX/XX/XXXX, I believe ) when we were approved, I was told to get to the title company and get everything done as soon as possible by NJ HAF so assistance payments could be sent to Midland. 

My wife and I took our daughters with us to a title company the very next day, a Saturday, XX/XX/XXXX, and signed all the documents for the loan, the total of which came to {$21000.00}, or roughly 5 months worth of mortgage payments. 

We were told HAF or NJ XXXX as its called in New Jersey would wire the funds as early as Monday, XX/XX/XXXX since we'd completed the paperwork right away. 

So we wait ... and wait ... and wait ... and Midland doesn't show any funds received. Now we have a late payment on our account, are getting phone calls about it, emails, and a statement that doesn't reflect receiving the funds. I was told by the HUD counselor to be patient, and it'd all be retroactively fixed, it just takes a minute for the mortgage company to set it up. 

So we did that and by XX/XX/XXXX or so, maybe the XXXX, I called Midland and they said they had no record of receiving a payment. I called HUD and the NJ XXXX office and they said it was wired right after we signed the documents, so XX/XX/XXXX. I call back Midland and they said, " Oh, we see you do have an agreement with them, as we do, usually in the next few months they send it the first few months. '' It does show up on XX/XX/XXXX and everything goes through and they retroactively remove the late fee. 

I was told that HAF would send the remaining four payments on the XXXX of each month. So my wife and I wait again ... and wait ... and wait ... they said it can take up to 30 days to apply the funds. I called them yesterday only to find out from Midland that they have no evidence of receiving the funds. I'd emailed the XXXX program and HUD and received no reply, but I did sign into the XXXX page and, to my surprise, they have a page reflecting each payment, when it's scheduled to be wired directly to Midland and, sure enough, it says that the XXXX payment was wired on XX/XX/XXXX. 

I called Midland back and was told to send a screen grab of the screen reflecting the payment had been sent to XXXX. I did that and received no answer. Seeing as its close to the month and this is urgent and, because I do not know who is telling the truth, I will not pay off the loan I took out in the meantime and am wondering if I should just make the XXXX payment. But then I was told by Midland that the funds from HAF might get reversed if I make a payment on my own while in the program. Yet they are now saying they have no evidence on their end that I'm in continuation of the program... who is telling the truth? Where did the money sent to them on XX/XX/XXXX go? 

Why is the communication so poor with this program? In going on XXXX and other discussion sites, it seems like potential foreclosure, stress, and lack of accountability means most people should probably go straight to a lawyer. My wife and I now have a lien caused by the HAF loan that either isn't paying out or Midland is lying about receiving the funds and playing some kind of game of chicken with HUD and homeowners. 

Either way, I am sick and tired of the run-around and just want some answers as I'm sure so many others do.

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