Consumer complaint received 2016-03-25
Company: U.S. BANCORP
State: MN
Product: Mortgage
Sub-product: Conventional fixed mortgage
Issue: Loan modification,collection,foreclosure

Complaint:
This is over a year 's worth of material ... We fell behind on our mortgage in XXXX 2015. We were working with U.S. Bank Home Mortgage daily to get caught up. We were told to make a 2 and a half months mortgage payment by XXXX XXXX, 2015 and U.S. Bank would work with us. On XXXX XXXX, U.S. Bank representative stated that our loan had been sent to foreclosure. We immediately, inquired what to do to keep our home. They advised a loan modification. We applied for a loan modification and submitted all required paperwork, file was complete by the end of XXXX 2015. Despite our daily phone calls to our assigned relationship manager at U.S. Bank who assured us our file was complete but that the reviewal process can take up to 45 days, we waited until the end of XXXX 2015 to receive a decision. During this time, U.S. Bank would not allow us to make any type of payments toward toward our loan because they stated our home was in foreclosure. So because they wasted 6 months reviewing documents, we incurred tons of late fees and additional arrearages. Frustrated from being told we just had to wait, I called and asked to speak with a supervisor in XXXX 2015 ; XXXX XXXX, Supervisor of XXXX XXXX XXXX at U.S. Bank informed us that our file was being held up because they were waiting on an updated paystub for my husband. We were so upset. We had called nearly every day for six months and were told our file was complete! Nevertheless, U.S. Bank just apologized and we faxed over the document. We were approved the end of XXXX 2015 for a three month trial payment. The new payment was set for {$400.00} more than our regular payment which was {$1500.00} and now would be {$1800.00}, which was really a stretch, but we want to keep our home so we made the XXXX and XXXX payments {$1900.00} each. Then in XXXX, our septic froze so we had to have it completely repaired to avoid sewage damage to the lower level. The cost in the dead of winter here in MN was {$7500.00}, thus we were 18 days late on our 3rd and final trial payment to U.S. Bank. U.S. Bank then denied our loan modification because of that late payment. There is no negotiating, no consideration of unforeseen circumstances and submitted receipts, nothing. U.S. Bank put our loan immediately back into active foreclosure and advised us to reapply through their incredibly lengthy reviewal process that took almost a year the first time around. So, here we are, we have reapplied for a loan modification, our file is complete per our U.S. Bank Home Mortgage Relationship Manager, and now we have to wait, again, until U.S. Bank decides to make a decision. It will not matter if I call every day over the next several months. U.S. Bank will let the file sit. If the past year is an indicator of how things will go, we will have to wait 6 months before hearing anything, and incur an additional {$20000.00} in late fees and arrearages because U.S. Bank will not accept payments while the loan is in foreclosure. Basically, we will have waited two years, {$40000.00} in arrearages and late fees, all to get a three month trial payment again. This is ridiculous. Can you help us at all make this large bank work more expeditiously? We were already approved. They should not need another 6 months to determine eligibility.

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