Consumer complaint received 2016-06-20
Company: SUNTRUST BANKS, INC.
State: GA
Product: Mortgage
Sub-product: Other mortgage
Issue: Loan modification,collection,foreclosure

Complaint:
SunTrust Loan Number : XXXX SunTrust Customer Number : XXXX On XXXX XXXX, XXXX, we closed on a loan with SunTrust Mortgage to build a primary residence at XXXX XXXX XXXX XXXX, XXXX, GA, XXXX. This contract was SunTrust 's construction-to-permanent loan product, a one-closing loan, to be converted into a permanent, 30-year adjustable-rate loan after the construction process, and certificate of occupancy was obtained. Please see the attachment showing various SunTrust Mortgage products, XXXX of which is the one-time closing, construction-to-permanent product, that we were given in XXXX from the financial representative for the builder. We moved into our home in XXXX of XXXX. We continued to receive statements for interest payments on our construction loan from SunTrust. We continued to pay all interest payments, as required by SunTrust, monthly, until we received a notice in XXXX, XXXX, stating our construction loan was due in full. Before XXXX, XXXX, no effort was made by SunTrust Mortgage to convert our loan to a 30-year, adjustable-rate mortgage. 
SunTrust Mtg. began foreclosure procedures in XXXX, XXXX. At this time, SunTrust informed us we had to re-qualify for the loan. This was absolutely in violation of the original loan paperwork. The loan was a construction to perm, with a 1-time closing for all. SunTrust knew we would not be able to re-qualify, as in the time period of beginning to build our home and XXXX, our family business was hit hard by the financial climate. ( Yes we were still making the interest payments on the contruction phase of the loan in good faith of an eventual conversion to permanent ). We asked for an opportunity to modify our loan with SunTrust Mtg. SunTrust contacted us and requested information to modify our loan, however, after submitting items as requested by SunTrust, all communications from SunTrust ceased. SunTrust did not communicate with us as to whether or not we were approved for a modification. We heard nothing from SunTrust, until they contracted us to resume foreclosure procedures in XXXX, XXXX. We then attempted to gain some assistance via the Independant Foreclosure Review process. After being denied assistance through the Independant Foreclosure Review process, we contacted XXXX XXXX ( the company heading up the Independant Foreclosure Review ), to ask why we were denied. XXXX XXXX informed us that SunTrust refused and said our loan was for a home that was not our primary residence. The aforementioned loan was, in fact, for our primary residence. 

We believe we fell through the cracks for any type of assistance, due to the fact that SunTrust never " permed '' up our loan ; thus, our loan was never serviced as a conventional, adjustable-rate, 30-year loan. As we were not " permed '' up, our loan was always in a contruction loan category. 

We attempted to contact SunTrust to request our loan be modified, however, SunTrust never communicated with us regarding loan modification. SunTrust foreclosed on our loan in XXXX, XXXX, selling it on the courthouse steps for almost XXXX of our original purchase price. The amount SunTrust sold our home for would have been a managable loan for us, had they worked with us to modify our loan. 
We believe SunTrust is in breach of contract, by failing to convert our construction-to-permanent loan into the 30-year, adjustable rate mortgage, as agreed upon in the loan.

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