Consumer complaint received 2022-09-23
Company: U.S. BANCORP
State: CO
Product: Mortgage
Sub-product: FHA mortgage
Issue: Closing on a mortgage

Complaint:
We had a mortgage serviced by US Bank. We decided to sell the home that was associated with said mortgage, found a buyer and had a closing date of XX/XX/XXXX. Our title company called us on XX/XX/XXXX and said when they were pulling liens on the property, they noticed there was one extra lien than what we had listed in our disclosure documents. Also, when the title company requested a payoff from XXXX ( who manages partial claims for HUD ), the dollar value in the payoff did not match the dollar value that we had listed in our disclosure documents. 

On XX/XX/XXXX, we called the lost mitigation department at US Bank and were transferred to a supervisor who discovered the issue. She said US Bank had made a mistake when we did a loan modification in XXXX of XXXX. Here was the issue : In XX/XX/XXXX we needed to do a loan modification due to covid. We were able to do a partial claim modification, where around $ XXXX was sent to HUD as a partial claim second loan and US Bank put a Partial Claim Deed of Trust on the property form the same amount. 

In XX/XX/XXXX US Bank contacted us and said they had made an error to the percentage rate listed in the XXXX modification, that our partial claim amount will be reduced to around $ XXXX, and they needed to REVISE the modification. They sent us a new packet which we signed and notarized and returned to US Bank. 

This is where the error occurred. When US Bank finalized the REVISED modification, they added a new Partial Claim Deed of Trust on the property for $ XXXX BUT never removed the Partial Claim Deed of Trust for the original modification amount of $ XXXX. US Bank also did NOT send the revised Partial Claim amount to HUD ( that is why XXXX was showing $ XXXX instead of $ XXXX in their payoff letter ). 

On that XX/XX/XXXX phone conversation with US Bank, the representative said that US Bank does Wishes to Do No Harm, would Rush the resolution so that we could still close on the house on XX/XX/XXXX. The representative said she would call us on Friday XXXX for an update, which she did ( US Bank still working the issue ). She said she would call us again on Tuesday XXXX, which she did ( US Bank Still working the issue ). She said she would call us every day to give us an update. She called on Wednesday XXXX ( US Bank Still working the issue ), did NOT call on XXXX XXXX nor did she call us on XXXX which was our closing date. I got on the phone early Friday XX/XX/XXXX to find out the progress. Our representative was not available but the customer service team would leave her a message to call us back. Our closing was at XXXX and US Bank never called with an update before closing. 

Luckily our title company was able to find a way to close so the new owners could take possession and we would not loose the sale of the house. The stipulation was that the title company would have to hold ALL of our proceeds in an escrow account until US Bank resolved the issue. I called US Bank again on XXXX after we closed and got ahold of a really rude supervisor who PROMISED either he or the representative that we had been working with would call us back that day. No one ever called. 

Between XX/XX/XXXX to XX/XX/XXXX I either called or our US Bank representative called us to get an update ( which was Still working the issue ). 

On Friday XX/XX/XXXX, our US Bank representative called and said they had finally resolved the issue! US Bank had received communication from HUD confirming the $ XXXX was an incorrect Partial claim amount and got permission from HUD to remove the partial claim deed of trust from the property. US Bank said to make things easier, we are going to absorb the $ XXXX into the original loan and provide a new payoff amount to the title company which they did. The due date for the payoff remained the same as the original payoff due date, which was the following Monday XX/XX/XXXX. We got in touch with our title company on Friday XX/XX/XXXX to share the good news. They pulled a new payoff from XXXX and looked at public records. Both the {$76.00} deed of trust was still on public record AND the XXXX payoff still showed $ XXXX. 

On Monday XX/XX/XXXX I called US Bank and our representative was out of the office. The other supervisors can not help with the case because only the supervisor assigned to the case can see all the notes and what departments and staff are working the issue. My husband called HUD directly to see where they were in removing the $ XXXX from their record. In order to reach XXXX, you have to call the FHA Resource Center who will then get a message to XXXX. The FHA Resource Center person said XXXX will respond within 5 business days. She also gave us an email address to HUDs partial claim department. 

On Tuesday XX/XX/XXXX I called US Bank. Our representative happened to pick up the phone. She said US Bank is in the process of drafting the letter to release the $ XXXX XXXX from public record. She did not have any information on the timeline for US Bank to complete said letter nor did she have a timeline for XXXX to remove the $ XXXX from their records. She also committed to calling us every day for an update. 

On Wednesday XX/XX/XXXX our representative called at the end of the day and had no new information. I sent an email to the HUD partial claim department, detailing the issue and asking they expedite our case. WE ARE CURRENTLY LIVING IN A CAMPER AT A CAMPGROUND until both US Bank and XXXX resolve their issues. Our title company will not release any funds to us until these resolutions are complete, so we have no money to put a down payment on a new property. 

On XXXX XX/XX/XXXX our US Bank representative did not call. 

Today, XXXX  XX/XX/XXXX I called US Bank. They were not able to transfer us to our representative but they sent her an email asking her to call us with an update. 

It has been 23 calendar days, 17 working days since US Bank first admitted their mistake. It has been 5 working days since HUD provided permission to remove the $ XXXX lien from public record. If our case has been stamped with RUSH, WHY is it taking US Bank over 5 working days to fill out a template form to release the lien from public record! We, nor our title company, has received a copy of said letter, which our US Bank representative said they would email as soon as it was complete! 

US Bank admitted their error on Thursday XX/XX/XXXX. We closed on our property on Friday XX/XX/XXXX. It is now Friday XX/XX/XXXX OVER 3 weeks to resolve this issue. Why is it not resolved? 

We did our part and paid off our US Bank payoff by the due date of Monday XX/XX/XXXX. US Bank IS DOING US HARM by not resolving their mistake. US Bank should be able to provide a timeline/due date on when they would get their part resolved. They should also provide a timeline/due date on when HUD would remove the incorrect $ XXXX from public record. This whole process has been totally unacceptable. US Bank will NOT give us the contact information for the department actually making the correction. HUD will NOT give us the contact information at XXXX who would be removing the incorrect $ XXXX partial claim from record. 

We need to know when these issues will be resolved so we can make future plans. We are in limbo until these issues are resolved. Thus far our credit scores have gone down XXXX points. Creditors are calling every day and we are building up additional interest and late fees on said creditors ( which we were going to pay off with our house proceeds ). 

Any help to get this issue resolved BY THE END OF THE MONTH ( XX/XX/XXXX ) would be greatly appreciated!

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 non-monetary relief