Consumer complaint received 2018-06-13
Company: MIDFIRST BANK
State: VA
Product: Mortgage
Sub-product: FHA mortgage
Issue: Struggling to pay mortgage

Complaint:
We are facing a foreclosure sale date on XX/XX/XXXX due to the fact that our mortgage lender XXXX XXXX  has denied us access to government homeowner assistance programs that they are supposed to be considering us for. We have an FHA loan and there are programs for distressed homeowners that could resolve this matter. Our issue is that XXXX has ignored our requests for assistance -- we talk to a different person every time, and then they tell us to send paperwork in but it gets lost or misplace and we spend months on the paper chase. When they finally have all of the documents we are told that we are not eligible to be considered for modification programs because we had received help in the past. They don't review us for a repayment plan or some type of compromise so that we can fix the problem, instead they just set the sale date. We never received proper notification of the sale date and we never received XXXX XXXX paperwork which is required to be sent out in order for XXXX to set a sale date. We were only a few months behind and this was a problem that could have been fixed and a foreclosure that could be avoided. However, XXXX decided to ignore the rules and guidelines and do things their way and now we are in this terrible situation. 

We bought our home in XX/XX/XXXX with an FHA loan through XXXX XXXX, which was transferred to XXXX after about a year. I work as an elementary school teacher ( going on 40 years here ) and my wife had worked as an office clerk but went on medical XXXX several years ago. We had no problem with our monthly mortgage payment of {$1100.00}. A couple of years ago we had some financial problems and applied for and were approved for a modification that lowered our payment about {$80.00} a month. About 18 months later my wife and I began having some marital problems and this led to stress, legal costs, time missed from work etc. We sporadically missed some mortgage payments but kept trying to get caught up. XXXX was gladly accepting our payments for several months then suddenly in early XX/XX/XXXX we were told that they would no longer accept our payments and that we were going into foreclosure. We wanted to resolve the matter and were told that we needed to pay back the three months of delinquent payments along with thousands of dollars in late fees, legal fees and junk fees. We were unable to do this and prepared a package of our financial information to submit. We were given the runaround and the paper chase by their agents -- we were never assigned a designated point of contact and an actual review never took place -- instead we were told that we were not allowed to be considered because we had been modified less than two years ago. This was never explained to us at the beginning since we had no point of contact. Additionally, we could have been considered for a repayment plan or even for a simple partial claim since we were only a few months behind but their agents refused to lift a finger. Instead of working with us they filed paperwork to auction off our home. 

We are facing foreclosure on XX/XX/XXXX, and feel the sale date should be postponed so that we can be considered for government homeowner assistance programs that XXXX is required to offer. The two year moratorium on modifications has passed, and there are also OTHER options that XXXX blocked us from including repayment plan and partial claim.

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