Consumer complaint received 2017-02-27
Company: UMPQUA HOLDINGS CORPORATION
State: CA
Product: Mortgage
Sub-product: Conventional fixed mortgage
Issue: Loan modification,collection,foreclosure

Complaint:
I bought what was supposed to be my retirement home in XXXX XXXX. It has a main house and a small guest cottage. About a month after XXXX we discovered the house had XXXX mold in the kitchen, master bath and several other areas. I had a home inspection and the home was cleared for section XXXX. I reported the issue to the XXXX XXXX XXXX and they ended up taking the company, XXXX XXXX owned by XXXX XXXX to the XXXX as they had defrauded and were on probation for with the XXXX XXXX XXXX for doing the same cover up to another homebuyer two years prior to doing this to me. The XXXX ordered them to pay me $ XXXX in restitution, revoked their license and put the owner on probation. I recently collected the restitution funds from their insurance company as XXXX had not kept in contact with the XXXX and was out of compliance with them I also filed against their bond for $ XXXX. The bond company is denying my request as they said the required restitution is $ XXXX even though there is documentation my loss is much more than $ XXXX. 
In XXXX XXXX I refinanced the home with Umpqua Bank to include a $ XXXX construction loan. The entire loan is a first loan. I used $ XXXX of the loan and due to the extensive mold and structural damage to the home it will cost another $ XXXX minimum to make the main house habitable. I stopped making payments on the house in XXXX XXXX. In XXXX XXXX I applied for a loan modification with Umpqua. I also applied to the XXXX and XXXX programs. XXXX denied my application saying I am not living in the house. My legal residence is the property. I ca n't live in the main house due to the mold so am living in the guest cottage. XXXX has not been able to offer any help. Umpqua Bank has denied my modification request. I sent them pictures of the house. There is no kitchen or master bath and about half the Sheetrock is out. It needs another $ XXXX in mold remediation before work can even begin on the rebuilding. Umpqua Bank said they do not do appraisals on a modification request so they would not lower the mortgage. They will not lower the interest rate or add the payments due to the end of the loan. Umpqua told me verbally I now have too much debt to qualify for a refinance. I have accumulated some debt due to the problems with the house. I can use some of the restitution funds to pay down the debt. My father has offered me $ XXXX to fix the house if I can get a loan modification. Umpqua sent me the denial letter XXXX/XXXX/XXXX. I emailed them a request to appeal the modification denial. I found out from XXXX today I need to mail the appeal letter and I will mail it today. Umpqua Bank has not returned numerous calls and emails from XXXX to discuss the situation. 

I was told XXXX can assist in lowering the mortgage balance and that I qualify for the program as I applied for the loan modification before the XXXX/XXXX/XXXX cut off date. 

The real estate brokers involved would not meet for mediation to discuss the XXXX mold problem. The listing broker, XXXX XXXX of XXXX XXXX XXXX sued me for fraud on the sales contract that was written up by their broker and my broker on CAR sales forms and reviewed and OK 'd by a real estate lawyer I hired to oversee the transaction. My broker, XXXX XXXX then of XXXX XXXX, refused to come to mediation and yelled at me on the phone saying I was causing her a problem! She had also advised me not to get a mold test when I noticed a musty odor under the stairs before XXXX. I trusted her and I have a witness that heard her say that to me. 

I need any help I can get. The house was recently listed for a short sale as I do n't want a foreclosure on my credit. I have already lost over $ 125K on this house and would like to keep it if possible as inflation has made the house worth what I have put into it, though at a break even if the house is fixed

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