Consumer complaint received 2016-02-29
Product: Mortgage — Other mortgage
Issue: Loan servicing, payments, escrow account — 
Company: CAPITAL ONE FINANCIAL CORPORATION (MD)

I am writing to you with a very difficult situation that has befallen my wife and I during a period of living XXXX working in XXXX in a XXXX. The loan we have had from Capitol One apparently had a 5-year balloon payment and matured XXXX XXXX, although we thought it was a 30 year loan that simply went to a variable interest rate at 5 years. As far as we remember the loan originated with ING bank and since we are XXXX we did not have access to the loan documents that are in storage. My son was diagnosed with XXXX some months back and we have not tracked our finances as closely as we usually do, but this loan was being paid through an auto-transfer from a checking account at XXXX XXXX XXXX and we did not ever think it would run into problems. However, when the loan matured, our auto-transfer was apparently rejected. We did n't know there was a problem until two weeks ago when my wife was contacted by her credit-monitoring agency with the information that her credit scored had fallen from XXXX to XXXX. We then discovered that there was a 30-day late on our credit report and that it came from Capitol One. This led us to discover that instead of going to a variable rate, our loan had actually come due/matured. Apparently Capitol One does not send email notifications of loans that are maturing, even though we receive other business emails routinely from Capitol One. We simply never received any phone or email communication that would have reached us overseas and we do n't know why your letters were n't forwarded to my XXXX who has handled our mail from Michigan while we were XXXX. In this era, it is difficult to understand how a bank in good faith could issue something like a balloon loan and not even send an email to notify a customer of the impending maturity of the loan ( along with there many other marketing and business related emails from Capitol One ). It was n't even apparent what had happened when we logged onto the Capitol One website ( we have screenshots ) and looked at our account. Capitol One has refused any possibility of rapid assistance other than a loan modification for people who can not afford their mortgages, although they initially told us they would get a rapid exception to do a retroactive rate extension. 
I initially spoke with the loan-servicing department a number of times and was treated not as the good customer that I am, but rather as someone who had had in bad faith intentionally missed a payment. I said that my primary objective was to get this loan back in good standing. However, I was transferred from person to person, some of whom said they could help refinance the loan, others who said it would not be possible. Ultimately, despite our good faith, I have spent the last 9 days on the phone, emailed and texted with many people in Capitol One including XXXX ( who made led me far astray over the last week by representing that Capitol One would take care of this and make the refinance happen and even originate a loan if we purchased a new property ), XXXX, XXXX, XXXX, XXXX ( who tried to be helpful ) and numerous others and have come up empty handed. I was told that my credit will continue to be further injured as soon as 3 days from now on XX/XX/XXXX and that there no way that Capitol One will refinance the loan because of the 30 day late that Capitol One itself reported. All of this is in the face of a house worth around {$830000.00} and the remaining mortgage that was for {$510000.00}. In other words we have substantial equity, our credit score remains high ( at least for the next several days until Capitol One reports against it again ), we make a salary that is more than enough for the loan, and Capitol One refuses to make any exception and help us with this loan. People make small mistakes, but the consequences in this case have been disproportional and frankly devastating for my family