Consumer complaint received 2021-01-16
Product: Mortgage — FHA mortgage
Issue: Trouble during payment process — 
Company: Home Point Financial Corporation (KS)

My wife, XXXX XXXX XXXX and I, XXXX XXXX XXXX filed for Ch. XXXX Bankruptcy protection in the US District Court of XXXX  XXXX, KS on XX/XX/XXXX ( case # XXXX ). We retained the law offices of XXXX XXXX XXXX. Our appointed Trustee was XXXX XXXX XXXX. We did not include our home, property address XXXX XXXX XXXX, XXXX, KS XXXX, financed with Home Point Financial ( loan # XXXX ). However, Home Point put our loan in a " bankruptcy status ''. 

Due to the " bankruptcy status '', Home Point prevented us from accessing our loan information online, making online payments and we were required to always speak with their bankruptcy department each time we called them. During the approximately five years that we were actively in bankruptcy we never missed a single payment to Home Point Financial. 

As we neared the end of our bankruptcy, my wife and I, planned to refinance our home mortgage with a HELOC because we were fortunate enough that our property value had increased to the point where we had at least {$100000.00} in equity in our home. However, we knew that we could not refinance until our bankruptcy was discharged. 

Our attorney filed the Certificate of Compliance and Motion for Entry of Discharge Ch XXXX - XXXX - XXXX XXXX XXXX and XXXX XXXX XXXX was filed with the court on XX/XX/XXXX. On XX/XX/XXXX the court officially discharged our bankruptcy case. We officially notified Home Point Financial and provided them with the paperwork from the court and trustee so we could begin the process of having Home Point remove our loan from bankruptcy status and allow us to start the process of shopping for a HELOC. 

Home Point Financial advised us that they could not remove our loan from it's current bankruptcy status citing that they needed to wait to be officially notified by the court itself. We followed up with Home Point Financial on XX/XX/XXXX to check the status of our loan and were again advised that it was still in bankruptcy status. After hearing this, I had our attorney send Home Point an email stating that our bankruptcy was discharged on XX/XX/XXXX, in hopes that Home Point would update the status of our loan so we could move forward with our plans for refinancing our loan. 

From XX/XX/XXXX to XX/XX/XXXX, we continued to contact Home Point Financial about the status of our loan. And we were continuously told that they had not been officially notified that our case had been discharged. By Home Point Financial taking over six months to update the status of our loan properly, it prevented us from refinancing our loan. Due to Covid-19, I personally saw a dramatic drop in revenue from my business. We were forced to request a forbearance from Home Point Financial to provide us with temporary relief financially. 

The fact is that had Home Point Financial not been negligent by failing to properly update the status of our home loan, we would have been able to refinance our home loan which would have allowed up to cut our interest rate by over half ( currently 4.75 % ), we would have been able to stop paying Mortgage Insurance Premiums that totaled over {$300.00} a month and we would have been able to apply/receive a HELOC. With a successful refinance of our home loan, we would not have been forced to seek a forbearance from Home Point and we would have easily cut our monthly mortgage payment from what we are currently paying, {$1500.00}, to {$800.00} per month based on a 30 year fix-rate mortgage rate of 3.93 %. That is a savings of {$650.00} per month. We would also have been able to take out a HELOC for {$50000.00} for only {$150.00} per month based on a 30 year fixed-rate of 5.99 %. 

As I write this while staring at these numbers and how different my family 's future would be like makes me ill. We would have been able to save {$500.00} a month while having access to {$50000.00} from the equity in our home. Instead, we are unable to qualify for a HELOC any longer due to the recklessness and negligence of Home Point Financial. Instead, we are currently working with Home Point on a loan modification. 

I strongly believe that Home Point Financial needs to held accountable and bear the responsibility for it's mistakes.