Consumer complaint received 2017-07-10
Company: Synovus Bank
State: GA
Product: Mortgage
Sub-product: Home equity loan or line of credit (HELOC)
Issue: Closing on a mortgage

Complaint:
I was approved for a XXXX HAFA short sale on XX/XX/XXXX by XXXX XXXX the first mortgage holder. I also has a 2nd lien from XXXX XXXX XXXX XXXX/Synovus. I was notified on XX/XX/XXXX from XXXX XXXX and XXXX XXXX that they would consider a {$7500.00} payment from the first lien holder. Six months later I had negotiated a contract and the condition for the first was that the XXXX could get {$6000.00} which was negotiated in the contract. When I told XXXX XXXX XXXX XXXX I had a contract and was ready to close they said they would NOT forgive the debt ( {$55000.00} ) but would release the lien to allow it to close. The payment was only {$55.00} a month at the time and I did n't know what else to do. Although, a condition from XXXX was never met.. '' prior to releasing any funds to a subordinate mortgage/lien holder, the servicer through its agent must obtain written commitment from the subordinate lien holder that it will release the borrower from all claims and liability relating to the subordinate lien in exchange for receiving the agreed upon payoff amount. '' The clear intent of this government program was to help customers who were underwater on the values of their home to avoid foreclosure. XXXX XXXX XXXX XXXX  refused to accept ANY funds, even if it reduced my liability. They clearly skirted the real intent of this program by not accepting any funds thinking they could still go after the borrower for the full amount of the lien. How can they arbitrarily pick and choose which customers they decide to accept the short sale on and which ones they do not? I met all the terms for the HAFA program. I closed on the short sale XX/XX/XXXX and never signed a new note or understood the terms at closing. On XX/XX/XXXX I received a " Demand for Immediate Payment '' letter for the {$55000.00} which was the first notification I received although I had been paying the {$55.00} on time. Apparently it was a 10 year note and it was due. They gave me 10 days to pay off the note. I hired an attorney and have been trying to settle. I offered them {$10000.00} ( which I do n't think I even owe that ) and they would NOT accept any payment but wanted the entire amount. The question is.. was in XX/XX/XXXX a 2nd lien holder under a HAFA loan allowed to not accept any monies and in turn go after the full amount from the borrower? In the servicing Guide of XXXX, Part VII, Section 604 : Preforeclosure Sales it reads XXXX XXXX IS REQUIRING ANY PAYMENTS TO SUBORDINATE LIENHOLDERS TO BE PAID FROM THE SALES PROCEEDS AT CLOSING FOR EITHER A SHORT SALE OF DEED-IN-LIEU OF FORECLOSURE, IN EXCHANGE FOR A LIEN RELEASE AND FULL RELEASE OF LIABILITY FOR THE BORROWER. ALLOWABLE PAYMENTS FROM THE SALES PROCEEDS TO ALL SUBORDINATE LIENHOLDERS TO FACILITATE LIEN RELEASES MUST NOT EXCEED {$6000.00} IN AGGREGATE. XXXX XXXX XXXX XXXX/Synovus is requiring {$55000.00} to release the lien. Again, this was clearly not the intent of this program. My attorney felt like I was " strong armed '' in to closing this deal.

Company response to consumer: Closed with explanation