Consumer complaint received 2022-12-14
Company: U.S. BANCORP
State: TX
Product: Mortgage
Sub-product: FHA mortgage
Issue: Struggling to pay mortgage

Complaint:
We submitted a Mortgage Assistance Application to the US Bank Home Mortgage on XX/XX/XXXX due to the financial hardship we had been experiencing and we were still being affected by the XXXX XXXX. My spouse 's work hours had not increased which continued to cause reduction in his pay. The US Bank approved the application and presented us with a Trial Period Plan ( TPP ) that included a loan modification and partial claim agreement dated XX/XX/XXXX. After reading the TPP, on XX/XX/XXXX we appealed the TPP because there were so many discrepancies. Here are the questions that we needed answers : XXXX ) Why is the delinquent interest listed so much {$4500.00}? Isn't the interest included in the delinquent mortgage payments? XXXX ) Why are all the available partial claim funds, {$29000.00} listed as the partial claim amount when the delinquent payment amount was only {$6500.00}, XX/XX/XXXX thru XX/XX/XXXX? XXXX ) Why are the additional 6 months XX/XX/XXXX thru XX/XX/XXXX included in the partial claim if we are required to continue to make modified payments after the 3 month trial period ends? XXXX ) If we are required to continue to make modified mortgage payments after the 3 month trial period ends, why is the first payment start date listed as XX/XX/XXXX? 
XXXX ) The TPP breakdown shows delinquent payments added into the unpaid principal balance which brought the account current, why are the additional 5 months XX/XX/XXXX thru XX/XX/XXXX totaling 9 months including the 4 month delinquent XX/XX/XXXX thru XX/XX/XXXX added into the partial claim amount and processing time? In addition to our questions the appeal letter stated that the modified payment was lower than our current payment and it is not. New modified payment amount was {$1700.00} ; our current payment amount was {$1600.00} ; modified interest rate was 6.000 % ; current interest rate is 3.125 %. The US Bank denied our appeal request and sent letters to answer all the questions and concerns we had about the TPP. In the letters were a calculated breakdown of the new modified loan and partial claim amounts. In our opinion, the letters were lot of bank jargon which didn't make any sense. ( see US Bank letter dated XX/XX/XXXX and XX/XX/XXXX ). After our appeal was denied in good faith we made 2 TPP payments. We opt out of the program on XX/XX/XXXX when the third payment was due because of the many discrepancies and we had not received any written new loan modification and partial claim agreement documents from the US Bank. On XX/XX/XXXX we received a letter from the US Bank that our customer assistance option had been revoked due to noncompliance with the terms required ; XX/XX/XXXX we contacted our Relationship Manager XXXX XXXX mail inquiring of the foreclosure prevention option and requested a principal deferment or to use our available partial claim funds to bring the account current since the previous option had been revoked ; XX/XX/XXXX we received a US Bank letter that they were initiating foreclosure actions and the account had been referred to their attorney ; XX/XX/XXXX we sent the US Bank a copy of the HUD approved counseling agency review which they had recommended that we do. The review included FHA foreclosure prevention options. XXXX of those option was a partial claim. We requested our available partial claim funds, {$29000.00} to be used to bring the account current. The delinquent amount is {$11000.00} ; XX/XX/XXXX we received a letter from the US Bank that they had received our Customer Assistance Application and determined the application was incomplete and requested additional information due no later than XX/XX/XXXX ; XX/XX/XXXX we received 3 letters from XXXX XXXX, XXXX informing us that " the property is in foreclosure as a result of the owner 's default. Within 60 to 90 days, the title to the property is expected to be transferred to the US Bank National Association ; XX/XX/XXXX we emailed the additional information to XXXX. as requested. The US Bank requested this information prior to initiating the foreclosure activities. What was a simple solution turned into chaos because the US Bank was abusing and misusing our available partial claim funds. The thought of losing our home is very, very overwhelming. The attached file will show letters and documents sent to us from the US Bank to solidify our complaint. Our home market value is currently {$340000.00} ; the unpaid principal balance is {$190000.00} ; there are no other liens on the property other than HUD. Yes, I would want the title to the property too.

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