Consumer complaint received 2020-11-20
Company: U.S. BANCORP
State: AZ
Product: Mortgage
Sub-product: FHA mortgage
Issue: Struggling to pay mortgage

Complaint:
XX/XX/XXXX I was laid off from my {$92000.00} a year job, I asked for a forbearance immediately and by XX/XX/XXXX was approved. My mortgage payments was {$1400.00} monthly at this time and I was current on my mortgage. This includes escrow ; taxes, home insurance and mortgage insurance. 5 months later around XX/XX/XXXX I find another job, now making only half what I was making before my forbearance, around {$51000.00} a year and noticed my mortgage is now at {$1700.00} monthly. A U.S. Bank employee suggested that I ask for an extended forbearance, to get an idea of what my first couple paychecks would look like, and ask for help on figuring out why my new monthly mortgage is now this high of a payment. 
After 3 full paychecks, getting paid every other Friday, I fill out the loss mitigation application and get a response back with programs I did not qualify for. The unemployment program, because I was not unemployed and the HAMP program, because of my credit score and a payment amount exceeding a target amount? Something ln that area I didnt understand. 
I did qualify for the Stand Alone Partial Claim. No information at all about this program was given except a letter stating that I must sign a trial period payment plan of {$1700.00} due by XX/XX/XXXX,, in order to accept this plan and permanently modify my mortgage payments for the HAMP program. I was not qualified for the HAMP program, what amount of money goes into the Stand Alone Partial Claim, how do I appeal a decision the correct way? and what is it? Why is this different and higher than the new monthly payment amount on my statements? Why if I did not have enough income to pay this high amount for my mortgage, did I feel forced to have no other option but to file bankruptcy to pay this high amount to keep my home. Why was no other options available or explained to me correctly if at all? 
Not enough time to get correct true answers between one employee to the next, including not being honest about the Credit Check for qualifying for any of these programs after my wife XXXX XXXX and I asked 3 different employees 3 separate times. I was left with no choice but to file chapter XXXX bankruptcy. I filed on XX/XX/XXXX. 
For me to even consider trying to make this monthly payment I had to eliminate a car payment and lose the car and eliminate all other debt that was not on hold for COVID-19, such as credit cards attacking me while I lost my job and lost half my income. I know no other way to keep my home but to do this. Now Im confused more than ever.. do I still qualify for the Stand Alone Partial Claim? Am I marked as current as of todays date, even after filing my bankruptcy a week ago? 
I cant trust what US Bank is telling me anymore nor can I trust where they apply my extra payments I pay In my mortgage payments after specific instructions where I need them applied, like late fees or escrow every time. What do I do to get answers and not lose my home? Why cant I get an amount of what is going into the Stand Alone Partial Claim? Why would US Bank, FHA or anyone else NOT warn consumers that if they need to ask for a forbearance, if they have low credit, bad, or average credit, to consider other options? They will check credit scores in order to qualify and modify your mortgage to make your home affordable, if you were affected by the COVID-19 pandemic. 
If the company I worked for, XXXX XXXX XXXX, having a XXXX  XXXX position, did not have to shut down for a long period of time, because of a mandatory order given, making all work come to a halt in the company. I would still have my job and making this high of a payment would not be that big of a problem, nor would I have filed bankruptcy. 
My wife, filed XXXX XX/XX/XXXX just had a hearing and is still waiting for a final decision, she has felt helpless the whole time. Now so do I. I owed almost {$210000.00} on my home as of XX/XX/XXXX. My home is worth around {$330000.00} now. I work for the XXXX XXXX XXXX  now with, XXXX XXXX XXXX and have a family of XXXX as of todays date. With bad credit, now bankruptcy, I wont be able to sell and buy another home, I probably wont be able to rent another home either due to credit. I want to keep my home, please help! Please at least let other consumers know they will check credit scores. 
In my opinion, there should be more options for people like me that was affected by the COVID-19. I have equity in my home, U.S. Bank only extends their refinance loans out to 15 or 20 years, not 30 years. By doing this, creates hardship for many to modify their loans due to the length of the loan extended out to 15 or 20 years instead of 30 years. If I had the option to pay for an update appraisal of my home, not get disqualified based on my credit score ( due to reasons to have to modify, caused by the pandemic only ) and extend my mortgage back to 30 years, I would be able to save at the very least immediately {$150.00} a month, due to PMI. My LTV would be satisfied and I would not need to pay that portion in the mortgage payment. 
When U.S. Bank, repeats themselves in every monthly statement and in their web site, If you are facing challenges making your mortgage payment, we are here to help, I feel it is false advertisement, false hope for me as a consumer and a false promise as advertised. In no way, shape or form is U.S. Bank helping in any way to help me when I face my challenges making my mortgage payment. U.S. Bank only partially offered what was offered through the CARES act and programs that are backed by FHA, in my case. It left my options in a no win, guarantee fail position. I paid mortgage insurance, U.S. Bank is insured if I fail, is able to sell my home extremely fast and it is absolutely not underwater, how can they go wrong and why would U.S. Bank want to work with me now, me making less money and bad credit? I dont understand, What are my options? please somebody give me real, honest answers.

I told my bankruptcy attorney, in order for us to pay a mortgage at this high of a monthly payment, I have to stop any garnishment from creditors, lose my car payments and car, this will bring my auto insurance down, Ill find cheaper home insurance and I was approved for the Stand Alone Partial Claim. Explaining this brings all the forbearance payments into a separate loan. I just did not know the amount that was going into this Partial Claim nor did I know why my mortgage payments was so much higher now then they were before? I believe he understands this. I told him I want to keep my home and currently on forbearance. 
XX/XX/XXXX, when I asked a U.S. Bank employee, if bankruptcy would still allow me to qualify for any of the loss mitigation options regarding my forbearance? She stated yes and I will still also be approved for the Stand Alone Partial Claim if qualified for the rule of current on mortgage 30 days or less, whether I filed bankruptcy or not. After filing the bankruptcy and noticing my new payment amount of over {$14000.00} due by XXXX XXXX, XXXX and stating Im so many days delinquent, I called U.S. Bank, XX/XX/XXXX, a U.S. Bank employee stated to me, my bankruptcy attorney will now figure out a monthly payment, I will make on my mortgage and any payments made to U.S. Bank meanwhile will be all voluntary until then. I dont know what that means? Do I still pay XX/XX/XXXX or do I get denied for the Stand Alone Partial Claim due to payment being voluntary? 
Confused, I have been hearing about and reading updated blogs, news and looking up information about issues I do not understand what my bankruptcy trustee is doing, as well as U.S. Bank conflicting monthly statements and letters since this forbearance began, I now dont know what is going to happen? I get the idea that chapter XXXX bankruptcy, is more option to lose your home if I do not get the Stand Alone Partial Claim after my forbearance and US Bank does not accept my XXXX XXXX XXXX, payment as an acceptance of that approved program. Will U.S. Bank place me as delinquent and require the entire amount due because of filing a Chapter XXXX bankruptcy? Is this a well known set up plan? Honestly how much worse can it get and what other options does someone like me have? Forbearance was not a help, if I would known, I would have to make this high or payments monthly and to modify was based on my credit score, at least I would been prepared mentally that I had to pack up and move from my home. These programs in the end, were all set up in a way for someone in my position to fail. 

Im having a difficult time uploading all my documents, this is my 5th attempt and my wife XXXX XXXX called the CFPB twice today to let them know, about our complaint and our uploading problems. I'm running out of time and need answers. If anyone needs to see any additional documents, I have them all and can send them another way. I wanted to send over copies of pay stubs, proof of new income, all billing statements, projected escrow analysis statements and home insurance statements but unsuccessful. I do have them available. There is the copy of the loss mitigation application i filled out, I hope this helps somewhat. 
Thank you.

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