Consumer complaint received 2021-12-23
Company: RUOFF MORTGAGE
State: IN
Product: Mortgage
Sub-product: FHA mortgage
Issue: Trouble during payment process

Complaint:
We purchased our house in XX/XX/2018 through XXXX XXXX loan is through Ruoff Home Mortgage. The payments have been made monthly in a timely manner except one month this year due to mail delay. Late payment was made and account was settled up. 
To make it so we don't miss a payment ever my girlfriend pre-fill 's the checks and put them in stamped envelopes with the date to drop in post box on the back. The main reason is she is the one who sends them out but I pay so it makes it less delay having them ready to go. We do this with 3 vehicles and our home. The rest are paid online or automated. All of our mail goes to a po box which we check weekly depending on our schedule. 
In XXXX she sent out our payment for {$770.00} check was cashed on XXXX. The next months got mailed out a little sooner and was cashed on XXXX ( written for XXXX ) also for {$770.00}. We didn't realize that there was an issue since the checks had been cashed. We received a letter in the beginning of XXXX from Ruoff stating we owed them ~ {$2500.00} for our next payment because the previous 2 check had been put towards principle payment to our surprise. Turns out our house payments had been adjusted to {$830.00} starting for XXXX, we had failed to take notice, and admit our mistake. 
Once we realized the mistake we contacted them right away to ask what was going on. Ruoff says they put the payments to the principle because they CAN NOT accept partial payments to an account with our form of loan. We ask if we can pay the difference of about {$120.00} to post the 2 checks of {$770.00} as actual payments. We were informed that is not possible to do because we have a FHA loan and we had two options : either send us the money back in checks and have us resend the payments, or for us to pay the entire 2 payments again for the {$830.00} again a total of ~ {$1600.00}. We don't have the extra money to pay 2 more payments so we asked for them to mail us checks. They said we would receive the checks within a week or two once we do to call back let them know the new one is on the way and they would wave the late fees. Like it wasn't an unusual situation. So we waited ... after 2 weeks nothing came.

We called back waiting forever on hold to be told the checks were just sent out a couple days prior and we should receive them by the weeks end, so we waited... nothing. 
We called back waiting on hold again to be told that they were sent out but got sent back to them due to bad address. Verifying the address They resent them again, at this time it was the end of XXXX and we waited. While waiting we decided to pull out our contract and see what it says. 
Our contract states that payments to the principal CAN NOT be made if the account is not up to date on payments. Which if I read it correctly that means they shouldn't of been able to put my " partial payment '' towards principle. 
So the second week of XXXX after my girlfriend has signed for 3 certified letters, we received multiple letters about foreclosure possibilities, info for a place to help us make our payments in times of hardship, and notices about how we're late but not the checks needed to be able to pay them the full amount. I talked to our Post Office they only have a few Employees and our town isn't huge, the box is a requirement for our location. There is no way to get mail at our home. They have not sent back a certified letter just because the address, they have a list to be able to find the correct box. 
We called back... waited on hold ... .to be ask " Is there anyone else they can send them too, like a neighbor or your parents, looks like we've tried 3 times and they are being returned. '' At that time we informed them by reading our contract they are not following what it says and they should've rejected the checks in the first place instead of cashing them. Which caught them off guard, also complained about how difficult they are making this when all we want to do is pay the ~ {$120.00} difference and keep our house. They apologized, we were finally transferred to customer service. 
The representative for customer service looked over our account, listened to us, seemed to be as confused as we were to the series of events. After a long hold she said she could cancel the checks that were to be sent and place those funds back onto our account and take a payment over the phone with routing/account info over the phone. We we're extremely excited for this because it meant that we were finally done with it. Of course we asked about the late fees and the hits I'm getting against my credit score. She said she could forgive one late fee and wasn't sure about the credit but she would put in a call back for that. We gave my girlfriends bank account information since I didn't have my handy and thank the representative. Finally hanging up our last call after hours spent trying to pay them. Or so we thought...

Five minutes later my phone is ringing its the representative calling back informing us that because the original checks are personal not certified she can not take a partial payment. So we asked what we can do. She said we could go to the bank and ask them to cancel the checks so the money will be pulled back into my account and then we can send the new one. This was at XXXX bank closed at XXXX. 
We went straight to my bank XXXX in XXXX, XXXX and sat down with a manager. Close to closing and gave her a quick rundown of what has been going on, told her about canceling the checks. So she pulled up the account and the checks, then asked again what the representative said about canceling the checks. We repeated about if they were canceled then the money would be pulled back in. That led to the realization that cashed checks can't be canceled because Ruoff has already cashed them months prior. Meaning the ones being sent have been issued by Ruoff, of course. We were confused why the representative would've given us this solution, at the time we hadn't questioned the solution. Since it was late we made an appointment for the next day giving her time to talk to their Home loan manager about the situation. To see if there was a way to help us with resolving this issue. He said there was no reason for Ruoff to be handling this situation the way they are and that making a partial payment shouldnt be such a hassle. He left her the information for CFPB and told us to contact you if the problem persists. 
That day we went home waiting on hold again talk got sent to a collection agent who requested to get the payment for ~ {$2500.00} we told him we needed to talk to the customer service representative we talked to the day before. First he persisted he can help us so we repeated for about the 10th time what's happened. We told him someone needs to fix the because we had received the information about CFPB and our next step was calling them because its ridiculous how we're adding up late fees and credit hits because of ~ {$120.00} that we want to pay. We waited on hold for him to look over the account for a while with him coming back saying that the check are on there way and we should have them by the XXXX. He said that he would try to reach out to the customer service representative, with no luck so we waited for the XXXX and then the weekend just to give the benefit of the doubt... nothing Monday we called back, Once again sent to collections and asked to pay the ~ {$2500.00}. We asked to talk to someone higher up because that level was unable to help us, insisting on trying we gave the rundown of what was going on again. He said he would place us on hold and be back, after about 15 mins we decided to call them on another line to try another person to get to customer service. 
We told them we were on hold with another agent and needed to talk to the customer service agent we talked to the day before. He insisted he could help us so we repeated again what's going on. After having the first person on the line for almost an hour the last 40 mins of which were on hold we ended that call and focused on the new one.

He said that the check are to be sent out the 9th, which by this point we just don't believe and told him such. We have been told so many different things and are just over the whole situation. Our next step is contacted the CFPB and hoping they can help us resolve this situation. He went ahead and place and order in for the Resolution center, we made sure that he noted I work until XXXX every weekday so they would need to call after that time. He said it was noted and we would hear from them soon. 
The next day he recieved a call during work hours being in a factory his was unable to answer, and the same issue the following day. They left a voicemail with a phone number to return the call so we tried it. Sent us to collection where a guy said they call at least 3 times before giving up. We never received another call and still are wanting for our checks. Today XXXX she got letters about help to pay the mortgage, how we need to call and talk to them about help, and a new one that stated do to two missing they can start the institution of the foreclosure of our home, which was certified. So currently we are trying everything to get the money to pay the 2 payments that they WILL NOT return. 
Thanks for your time.

Company response to consumer: Closed with explanation