Consumer complaint received 2016-07-25
Company: Alabama Housing Finance Authority
State: AL
Product: Mortgage
Sub-product: FHA mortgage
Issue: Loan modification,collection,foreclosure

Complaint:
I Have resided at XXXX XXXX XXXX since XXXX. In XXXX after a divorce, I tried to apply for a mortgage with XXXX Bank but the mortgage was denied due to credit problems arising from a divorce. In XXXX I was able to refinance my house with XXXX Mortgage to lower the interest rate and make improvements on the property. I had been paying an interest rate of around 8 % with XXXX XXXX Mortgage and was able to refinance, get some of the equity out and lower the interest rate to 6 %. At that time, 6 % was relatively competitive given my credit score. Through the next several years, as my income increased, I was able to repair my credit, and increase my income to debt ratio. During that time my mortgage company was bought out by a new lender, and then changed hands again to XXXX XXXX Loans. In XXXX, I applied for another mortgage with a different mortgage company to lower my interest rate but the mortgage was denied even though my credit was good. From what I can recall, the credit score at that time was around XXXX or higher. I applied for XXXX more loans between XXXX and XXXX and a streamline mortgage refinance with XXXX XXXX but all were denied. My interest rate remains at 6 % even today. 
XXXX of the lenders that denied me, Mortgage XXXX XXXX, approved XXXX of my employee 's loans, but denied mine. From what I knew of her family and financial situation, my credit score should have been higher. 
After XXXX in XXXX, I have had a difficult time maintaining employment. Foreseeing possible financial problems and the potential need to relocate, I listed my house for sale in late XXXX. I have not worked since XXXX XXXX and I have filed for XXXX but the claim was denied. After becoming unemployed in XXXX I have taken a number of steps to try to stay in my home : I have applied for mortgage assistance with my current lender, XXXX, through their Modification Program to lower the interest rate but the application has been denied, I applied for a refinance loan with XXXX XXXX Bank, and the loan was approved ; however, I was not able to pay the down payment on the conventional loan and ultimately I have applied for mortgage assistance through a Program called " Hardest Hit Alabama ''. I have had to go through the application process twice. I have found their office hard to work with with redundant requests for documents, and additional information even though I have already submitted the information. I few weeks ago, I had to take out a title loan on my vehicle just to catch up my mortgage that was about to go into foreclosure all while in the midst of a pending application with XXXX Alabama. Late last week, I finally heard back from the rep at XXXX XXXX Alabama, XXXX XXXX. My application is now with the Underwriter. I have no idea how long that application will remain in the underwriters office before a determination is made. I have been a licensed XXXX XXXX XXXX in Alabama since XXXX. My most recent job was in XXXX, AL. I was employed at XXXX from XXXX XXXX to XXXX XXXX. During that time my income went from XXXX to XXXX. Unfortunately, due to federal cutbacks and increased XXXX taxes the health care industry in Alabama has suffered. My income has remained at around XXXX per year and has not increased since XXXX so I have gone through my retirement and most of my savings. 
I have several potential job opportunities that look promising and hope to be back at work soon. I am a single mother with XXXX adult son and a soon to be XXXX XXXX XXXX that live with me. 
XXXX of the positions I have applied for is out of town. For financial reasons, I will be forced to take the position, if offered. The cost of maintaining XXXX homes will be a financial burden for me ; especially at the XXXX percent interest rate.

Company response to consumer: Closed with explanation