Consumer complaint received 2021-03-25
Company: U.S. BANCORP
State: FL
Product: Mortgage
Sub-product: FHA mortgage
Issue: Closing on a mortgage

Complaint:
In XXXX of XXXX, My husband and I decided to sell our home. We contacted US Bank, our mortgage company for a payoff on the home. Earlier in the year, I called US Bank to let them know we were in a financial hardship and they offered us a loan deferment program through HUD. We agreed to the terms and we were approved. We were uneducated on the program and all that it entailed and we were not given proper information on the program. As much as we tried to read and understand the lengthily document, we were just not familiar with the terminology. To our understanding, we were getting help from the government that would not have to all be paid back at once. When I tried to reach out to relationship manager for information and questioning, I never received a response. Back to XXXX of XXXX when we received the payoff. The original payoff was given in error because it was actually the total price of the home at the time I purchased it back in XXXX. The revised payoff amount was then sent to me in the amount of XXXX. I was never given an explanation on this payoff and I did not understand the terminology on the payoff. The only thing I fully understood was that we owed US Bank XXXX, XXXX. With this total payoff and the sale of our home, we officially deemed it safe to sell our home and our proceeds would be XXXX after closing fees. Four days before the closing on our home, I receive a letter from the closing attorney of the buyer that we had a second payoff on our home in the amount of XXXX. I immediately panicked and called US Bank because this was the first time I was hearing of this second payoff. On XX/XX/XXXX and XX/XX/XXXX, US Bank representatives assured me I had nothing to worry about. They sent me proof that the XXXX, XXXX was already paid by US Bank to XXXX ( HUD ) on XX/XX/XXXX and they sent me documentation to prove it. Due to this assurance we did not pull out of the sale of our home. We trusted that the US Bank professionals were guiding us in the right direction. On XX/XX/XXXX, we closed on our home and our proceeds were, XXXX. The closing attorney told me that they can not release that XXXX to me because it was never paid by US Bank. I confirmed this information with US Bank when again, a different representative told me that US Bank made a mistake in telling me that it was paid. In was in fact not paid. The " paid '' amount was from XXXX to US Bank to be applied to our mortgage for the loan deferment. We did receive an apology letter or sorts from US Bank. There are no words to tell you what we have went through because of this mistake. We are in a financial hardship. We have children and we work hard! We trusted our mortgage company and because of this " misinformation '' we are struggling financially. We are pursuing legal help in this matter to try and get ourselves back on track. In the meantime, I took time to make this complaint in hopes that this doesn't happen to other people in the future! If we were told by US Bank that we had a second payoff and they didn't tell me it was already paid, we would still have a house and would not have made the decision to sell. Praying this letter falls into the right hands.

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