Consumer complaint received 2016-12-17
Company: MIDFIRST BANK
State: MS
Product: Mortgage
Sub-product: FHA mortgage
Issue: Loan modification,collection,foreclosure

Complaint:
I purchased this home in XXXX with XXXX XXXX as the loan servicer. Some time later the loan was sold to XXXX Mortgage and later to Midland Mortgage. Every since Midland Mortgage got the loan I have been having issues with everything from just rude people to getting lender placed insurance. At first Midland place an insurance policy on the home for the then balance of around {$30000.00} dollars. In recent years I was told that they had to place lender place insurance that would insure the replacement cost of the property - roughly {$140000.00} even though the loan balance was around {$20000.00} at the time. The reason Midland placed the lender forced insurance is because the insurance company I had insurance with canceled my policy stating that I needed to put a new roof on the home. I purchased a new home in XXXX of XXXX and could not afford to do repairs on the midland financed home. Around XXXX of XXXX, the tenant that I had in the home relocated to another state and I could not get someone else to rent the home. I started getting behind on the property and have not been able to get caught back up. I have gone to Midland so many times since then trying to at first do a short sale and then a deed-in-lieu. At first Midland would not approve the short sale because they said that the house had been rented more than 5 years during the term of the mortgage. I contacted the XXXX about this and they told me to ask Midland to do variance. But when I went back to Midland and told them what the XXXX told me, they miraculously told me that the short sale was approved and that they would be letting me know what short sale price they would accept. About a couple of weeks went by and they then told me that the short sale could not be completed because there had been damage reported to the home and an insurance claim was open on the property. I was later told that I needed to complete or have a contractor complete the repairs with the insurance check that was sent by the insurance company to Midland. Also I needed to pay a {$1000.00} deductible. I asked Midland if they would just apply the insurance check to the balance on the loan and let me try to sell the home on the short sale basis. Midland told me that I would need to either fix the damage and apply the insurance check toward the repairs ( plus pay the {$1000.00} deductible ) or figure out a way to sale the property and pay the payoff balance minus the amount of the insurance check. I was excited about the second option until when I received the latest payoff which has new fees of {$5500.00} that I do n't know what for. 
Now I am stuck with trying to sell a house that appraised for {$6500.00} recently and payoff a Midland payoff amount that has mysteriously increased from {$9000.00} several months ago to {$16000.00} payoff now. Lastly Midland stated that the deed-in-lieu was not an option unless I choose to fix the property damage. They said that if I choose not to do either of the options above, they would proceed with foreclosure!

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