Consumer complaint received 2017-03-20
Company: NAVY FEDERAL CREDIT UNION
State: MD
Product: Mortgage
Sub-product: Conventional fixed mortgage
Issue: Loan modification,collection,foreclosure

Complaint:
I had a short sale in XX/XX/2016 and had issues with XXXX XXXX and the Navy Federal Credit Union. 
XXXX XXXX ( 1st Lien ) would not modify my loan because they wanted me to physically live in it, even with my family there. I was XXXX hours away from my home at the time and I could n't afford paying for XXXX residencies. Initially they approved a repayment plan which added {$800.00} to the mortgage amount I already could n't afford and refused to extend payment period. They would not review my application when I had a medical condition/ impending job loss. Eventually they agreed to a short sale, but had me sign paperwork they get all sales proceeds even if it exceeded what they were owed. There was over $ 25K extra left at closing, they would not cover my out of pocket sales expenses and would not payoff a subordinate lender NFCU. I was later informed they could have allowed a traditional sale. 
Service members are not always treated fairly by lender. They hide under the law that says you have to physically live in your home to get most assistance. We are often stationed away from our homes and ca n't be there and our duty stations at the same time. Also, the SCRA only provides for those who had loans/debts prior to XXXX. Most service members join from high school/colleges and often do n't own cars let alone homes -- 6 % is no longer a good rate either. 
Navy Federal Credit Union ( NFCU ), the nightmare continues. XXXX XXXX denied them payment because they did not place a lien on the property. Almost one year after closing, they still report this to the credit bureau as delinquent mortgage ( without lien ) and they show it as both foreclosure and delinquent for over 280 days, all at the same time. NFCU gave me the hardest time approving my short sale request, from having to notarize 3rd party agreement which NFCU would not even notarize in the state of Maryland, to their short sale Rep calling me a liar and would not accept the amount on my expense sheet until it met their accepted limit. The Rep questioned me on everything, like " why do I have medical bills outside of the military ; how I could justify dropping my child off at nearby day cares without receipts ; and alluding I was lying about how many doctors ' visits I had at XXXX XXXX. On a phone conversation, she said her husband was in the military and she knew when service members where not being forthright. I 've attached some emails to show my level of frustration. 
They also collected payments from any of my account that had cash without my consent and caused me more hardship as taking these unauthorized payments left me with no funds to pay other bills. When I called them out, they said I signed a paperwork allowing them to go into any of my accounts for payments, I DID NOT. I asked them for a copy of the paperwork, they could not provide it. They later said it was a notice they sent out. They have a big access-restricting notice on my account stating that my loan is delinquent and every time I go to the bank, the cashiers have to get managers to override this embarrassing notice before I can get service. 
NFCU wants me to take on the no-lien mortgage as a personal loan to which I refused because : they did not do their due diligence ; I 'm XXXX and do n't have the resource to carry a long term loan, which is why I 'm liquidating my assets ; this is double jeopardy considering I took a hit on my credit for the short sale and still have to bear delinquency on the same property that was sold since XX/XX/2016. 
NFCU does this to service members. I know a XXXX who still carries about $ 40K debt they forced him to take as personal loan on a property he sold about 10 years ago. They threaten us and tell us they have family in service. This is not fair to us. With the name Navy Federal, you think they have your back, my experience shows they don '

Company public response: Company believes it acted appropriately as authorized by contract or law
Company response to consumer: Closed with explanation