Consumer complaint received 2022-09-16
Company: FIRST UNITED BANK AND TRUST COMPANY
State: TX
Product: Mortgage
Sub-product: Conventional home mortgage
Issue: Trouble during payment process

Complaint:
When the covid shutdown occurred in XXXX, I asked for a forbearance from First United Bank every week for at least 2-3 months and was told every time " NO, our investors are not allowing that. '' After a few months of not being able to work, we bounced a check bc we had XXXX  income coming in. At that time, I called and they notified me " yes, we HAVE been allowing forbearance .... '' At this time, I was able to open my businesses again so I began to play catch up on my mortgage to get me " current '' I kept my account on the forbearance plan because I was told that I had to pay the entire 3 months that I was late on IN FULL if I ever got off of the forbearance plan. Each month, I paid an additional {$400.00} to close the gap. Eventually, after about a year, I was told that I could get off of the " loss mitigation plan '' move the 3 months that I was behind on to the end of my loan and that would make my account " current. '' First United Bank sent me a contract laying out the plan to move the 3 months owed to the end of my loan period in XXXX. It was signed on XX/XX/XXXX. 

Meanwhile, every mortgage payment that I made during this " loss mitigation/forbearance period '' was NOT applied to my balance. Instead, they kept it in a non-interest earning account they labeled as " Suspense Balance. '' Nothing was ever applied to my principal, yet I was still being charged interest. When they received the signed documents on XX/XX/XXXX, instead of moving the 3 months balance that I owed to the end of my loan, they took the " suspense balance '' being held, and applied it to those months, and then called me to let me know that I was late on my mortgage payments and owed $ XXXX + and that if I did not pay immediately, that I would be sent to collections or be foreclosed upon. I had JUST made a payment on XX/XX/XXXX so I called and asked what happened to all of the mortgage payments I had been making. 

The bank misappropriated ALL of my mortgage payments to go towards the 3 months that I missed in XXXX during the " forebearance '' period, even though they had a contract stating otherwise. When I called customer service, they told me " it was a simple misunderstanding, someone messed up. It will be corrected in 2-3 months. '' It has been almost 3 months, and every time that I call, they tell me that a manager is unable to speak with me and that I should keep trying back or that they'll call me " in a few days. '' Currently, they are withholding {$18000.00} in a non-interest earning " suspense balance '' account that has not gone towards ANYTHING. I am being charged interest on my loan. I currently have two outstanding " late fees '' even though I was never late. And have gotten no answer or responses to my concerns. 

In addition, if that {$18000.00} WERE to be applied to my mortgage, that would take me out of the 78 % threshold that would take me out of PMI, but since it has not been applied, I am STILL being charged PMI on my loan as well. 

Please help me get some answers

Company response to consumer: Closed with explanation