Consumer complaint received 2017-06-08
Company: CIT BANK, NATIONAL ASSOCIATION
State: CA
Product: Mortgage
Sub-product: Reverse mortgage
Issue: Struggling to pay mortgage

Complaint:
I am requesting assistance for a distraught family that would like to prevent a foreclosure on the Deceased owner 's property that was left to her son.     The property has a Reverse Mortgage wit h Financial Freedom LLC, a CIT  company.  <P/> We are in the " grace period '', and have an offer from the Grandson of the deceased to be able to keep the home in the family. I have requested a postponement, however, now I am being  told that we need Proof of Funds to po stpone or a loan approval.  <P/> The buyer/Grandson is in the midst of obtaining the loan. Initially the representatives advised that as long as we had an offer and working towards the purchase that we would be able to obtain a postponement. We understood that it would not be for months, but enough to allow us to complete the purchase and avoid a foreclosure.  <P/> Our concern is that since there is equity in the property, the lender  may not care  to allow the postponement. The representatives initially advised that we could submit the offer showing that there was a bona fide offer so that the lender would allow the postponement. I sent the offer several times and tried to no avail reach someone at  Freedom/CIT Company  only to be told last week that we needed to have proof of funds or a loan approval. I advised that we were in the process of the loan and that is why we need the postponement, so that the loan approval would be finalized.  <P/> I was finally able to get a hold of a representative at the bank and I was informed that they had received the offer on XX/XX/XXXX  and proceeded to review the offer as a short sale. I advised that it was not a short sale, that it was a standard offer as there is equity. Apparently the " short sale '' was denied, so now that does not help us since there is a denial in their system. Neither the Successor Trustee/Son of the deceased received nor myself, received notification of any sort advising of what had transpired on their end.  <P/> That is another issue that we have been facing, it is very difficult to get through and have to wait for the representatives to call when they are available. I also called the  Attorneys handling t he foreclosure process and they too advised they have had issues getting through to them.  <P/> The family would like assistance from FHA/HUD as well since it is an FHA loan to be able to receive a postponement as the lender representatives mentioned that they are following FHA guidelines which would seem contrary to FHA/HUD wanting to foreclose when we just need at most a  30 to 45 day po stponement. I understand that FHA/HUD from many of the advocacy groups I belong to, that they are here to prevent a foreclosure.  <P/> The reason for the delay in closing was that the buyer had a lien that show up that should not have and it had to be resolved. This issue has now been resolved.  <P/> I appreciate your assistance in this matter in preventing a foreclosure and assisting the family keep the long time home remain in the family patrimony.

Company response to consumer: Closed with explanation