Consumer complaint received 2016-08-25
Company: WEBSTER BANK, NATIONAL ASSOCIATION
State: CT
Product: Mortgage
Sub-product: Home equity loan or line of credit
Issue: Loan modification,collection,foreclosure

Complaint:
This is regarding a Short Sale negotiation, the XXXX mortgage is not willing to accept the only thing a XXXX loan can offer XXXX XXXX XXXX. They would rather foreclose and net Webster Bank nothing. The XXXX lean, buyers, sellers, attorneys, the court and judge all agreed to the Short Sale and the XXXX mortgage bank is preventing the short sale. I have spoke to a number of attorneys who feel this behavior is irresponsible. 
A request has been submitted to Webster Bank, as the holder of a XXXX mortgage several time between last XXXX and now. This last time we waited XXXX days and over a phone call XXXX told me the Short Sale was rejected : The bank would prefer to foreclose and get NOTHING as opposed to getting what is allowed by XXXX ( XXXX ) for a XXXX lean, as every other bank accepts in this unfortunate situation. Sounds like a bad financial decision, considering the bank charges higher interest for the XXXX and it was insured. This decision now rendered nearly a year after deliberations on Webster 's part, wasting not only attorney 's, realtors, and buyers time but also the court 's, the judge 's and the tax payer 's time and money. And, not to even speak of the waste of your employees time and the additional bank money wasted - by dragging the process out. OR, Webster would agree to the short sale if they can lean a house, in a homestead state, worth far less than the loan balance. Lived in by a person with only social security as an income. Knowing perfectly well ( after seeing her balance sheets, multiple times ) that this individual could never pay any loan back ( no less keep up with her monthly expenses ). The sellers have suffered extreme hardship. They tried to sell the house at a price to cover the mortgages for over 2 years. Then they started the short sale process, lost several offers in the process - because the buyers would no longer wait for the bank to decide and for this last offer the buyer has waited for the banks for XXXX XXXX years and Webster comes back with this response. As you can see, Webster rejects the XXXX offered by XXXX. They would rather foreclose. If that was the case why did n't they say so from the beginning? Then Webster suggested that they lean a small house that is worth far less than the loan. That 's not securing a loan it 's having no regard for a Senior with health issues and on a fixed income. The sellers are both seniors on fixed incomes of only social security for XXXX XXXX and full XXXX for XXXX XXXX. This couple is separated. The XXXX mortgage approved the short sale in XXXX but but Webster has been holding out. We have been to court a number of times to update the first mortgage holder and to get the dates extended so we can finish the short sale. The sellers are asking that Webster approve the short sale, one that they have been working on since 2014. In my experience I have never seen a bank behave with such cruel and calculated actions. Webster has their financials, it is obvious the situation is irreversible and they are living month to month. Short Sales are solutions. They have filled out documents multiple times only to have the bank say they have never seen them. Here is the Webster bank contact that called me with the rejection and then refused to respond to my emails : XXXX XXXX, Recovery Supervisor/Officer, Restructure and Recovery WebsterBank XXXX XXXX XXXX XXXX XXXX XXXX CT XXXX XXXX : XXXX fax : XXXX email : XXXXXXXXXXXX Thank you for your time. XXXX XXXX XXXX XXXX XXXX XXXX

Company response to consumer: Closed with explanation