Consumer complaint received 2016-06-07
Company: SUNTRUST BANKS, INC.
State: NC
Product: Mortgage
Sub-product: Home equity loan or line of credit
Issue: Loan modification,collection,foreclosure

Complaint:
During a period of hardship where my husband was out of work for 11 months, we contacted our lender Suntrust to help with our current loan. At that time, their suggestion was since we were current on our loan, we would have to be behind 3 months before they could help us .... So we filled out the Loan Modification and per their suggestion, did not make payments for three months. The loan modification went through and then we promptly made 3 monthly payments at once to make up for the three unpaid months. ( see XXXX XXXX ). In this time period, our rate was only 1 %, so our minimum payment was only around XXXX per month. As you can see XX/XX/XXXX, we overpaid to try and get ahead, while our rate was reduced ( see XXXX XXXX ). Every month we paid on time and more than what was due, reducing our principle to only XXXX owed. At the end of the promotional period, we continued to make payments up until XX/XX/XXXX, when we applied for another rate reduction. At this time, we were told again, that we would need to NOT PAY for 3 months to be considered for the rate reduction. But the reduction went back to the normal rate of 3.5 % on XXXX/XXXX/XXXX and unbeknownst to us, the bank started accruing a deficiency for unpaid allowances, and never informed us of any delinquency or unpaid amount owed. We were not mailed any notices, no correspondence what so ever. So we continued to pay the amount shown on our online payment portal, {$320.00}, and paid each month until they served us with Pre-foreclosure notice in XX/XX/XXXX. ( see Jpg XXXX ) This notice, some 6 months after the first deficiency was our first notice of any past due amount. At this point, we were also contacted by letter, by the NC Foreclosure Prevention Fund. And in XX/XX/XXXX, we began working with them to prevent Foreclosure on our home. We have tried to refinance the Suntrust loan, but due to the fact that they told us NOT to pay for 3 months in XXXX, we do not have a 12 months on time payment history, so we can not refinance. We are stuck. Our Representative at the NC Housing Finance Agency has been working to assist us in resolving the deficiency, but on XXXX XXXX, we received a letter that our account has been turned over from Suntrust to Trustee, XXXX XXXX, for foreclosure. Our intent is to stay in our home and work toward an amicable solution. Our previous balance was XXXX, and now the balance owed is reported to be over XXXX ; the first time we were even aware that there was a deficiency on the account was when we were sent this Pre-foreclosure notice. It is ironic that Suntrust could not send us any correspondence regarding the deficiency, yet they were able to send us a notice of pre-foreclosure and now foreclosure. Had we been aware of the deficiency, through any correspondence, communication, or notification, we could have taken steps to remedy this before the amount owed had reached " foreclosure '' status. Our previous payment history of consistent monthly payments and additional pre-payments should have at least earned us the common courtesy of notification. We would like for someone to look into these spurious actions by Suntrust to " help '' consumers, but then sabotage customer accounts by not providing them any notice of delinquency, by heaping on unreported penalties and fees such that the amount owed is much greater than the original amount owed, ( and greater than the amount our first mortgage, which makes refinance harder ) and for the general practice of misfeasance. Misfeasance is the willful inappropriate action or intentional incorrect action or advice. By not informing us of the growing deficiency, we had no way to correct it. And when were finally made aware of the deficiency with the notice of pre-foreclosure, and we informed them of our intention to correct it, they continued to proceed with foreclosure, with no regard or remedy for our situation

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