Consumer complaint received 2021-12-09
Company: U.S. BANCORP
State: CT
Product: Mortgage
Sub-product: FHA mortgage
Issue: Struggling to pay mortgage

Complaint:
In XXXX, I fell behind on my mortgage payments just as many people did during the aftermath of the real estate bubble crash in XXXX. In XXXX, US Bank who has now had my loan for 16 years introduced me to their loan modification program which I completed with flying colors ( never missed a payment and paid on time every time ). I was told by their agent that my current loan would be extended 10 years to cover the lost payments which I was fine with because I planned on paying it off early with extra principal payments. 

Time went on and I never missed a payment again. In XXXX of XXXX, I applied for a refi to get some equity out of the home and make some renovations. I was extremely surprised when XXXX XXXX informed me that there was a lien on my property in the amount of {$26000.00}. I've never taken out a second mortgage and never had a contractor do work and not get paid. After talking with US Bank they informed me that HUD  gave them the money on behalf to cover my missed payments and apparently take care of closing cost for this new extended loan. None of this was explained to me in XXXX when they received the money after I had completed their loan modification program. HUD never contacted me to let me know they were giving US Bank money on behalf. If I knew of any of this information, I would have declined. I only missed 7 or 8 payments which wouldn't even add up to {$16000.00}. 

Here 's the worst part. They finally provided a document on a subordinate note with my signature and two notaries. I NEVER had any documents from US Bank notarized. I tried communicating with HUD  which is almost impossible. I'm very disturbed that a financial government institution would hand over a large sum of money on a customers behalf but never reach out to the customer. I never even heard of HUD  giving money to help customers stay in their homes nor did I sign a document authorizing them to pay US Bank money on my behalf. I inquired about the notarized document and a US Bank representative admitted it was their notary that notarized the document. Yes, I signed the loan modification document but I never signed the subordinate piece with HUD information on it. I told them that their relationship with HUD is a predatory one. When someone goes into default the banks get their money from the government and the government ( HUD ) becomes first in line by placing liens properties and the so called property owner isn't involved in the process. This is bank fraud at it's worst. I also have communication from them displaying that my account was an account that was marked to be handled manually and they made an error when sending my payoff statement which didn't have HUD   information. 

Now that all of this has surfaced take a wild guess at who sent me letters about my mortgage. Yes, HUD!!!!! I never dealt with them before but now they think the loan is being sold so they got their hand out. Attached you will find a letter that was sent to myself and my attorney and I highlighted them admitting to their errors. They wrote that I signed the subordinate note and it was witnessed by a notary. I never signed anything in front of a notary and isn't that the purpose of having something notarized.

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