Consumer complaint received 2017-10-16
Product: Mortgage — FHA mortgage
Issue: Struggling to pay mortgage — 
Company: Seterus, Inc. (PA)

First I would like to say that I am thankful that we have agencies in our country to help us with these matters. It is comforting to know that we can be heard and someone is looking out for the average consumer, so Thank you. 

I have a mortgage with Seterus Bank on my primary residence. Back in XXXX of XXXX I came to a breaking point financially and my husband and I split for this reason. I requested and was approved for a mortgage loan modification. The process took about a year from start to finish. In XXXX I was approved for the loan modification and my payment was made more suitable to what I could afford. Shortly after I got a letter from Seterus stating that my payment was going to jump from {$1200.00} a month to {$1400.00} a month. I asked how this could happen since I had just been approved for a loan modification and now my payment jumped to even high than I was paying before the modification. The customer service rep. said it was due to an escrow shortage. I told them I could not afford the new payment and what could be done again, reiterating that I had just been approved for a modification due to my financial situation. The customer service rep. informed me that I could request in writing to have them spread the escrow shortage over 60 months but that I should not stop making my payment of at least the modified amount every month. So that is what I did. I paid the {$1200.00} a month for that month and applied to have the escrow shortage spread out over 60 mo. I was approved for the escrow shortage to be spread out however, since I had not made a full payment they took my monthly payment and put it aside and never applied it to my monthly mortgage payment therefore showing that I missed a payment for that month. I fought to have them reduce that months payment since I had been approved for a modification as well as spreading out the escrow shortage and this was due to my financial hardship thus proving I was not able to afford the monthly payment of {$1400.00}. They refused. At this point they took my money and applied it towards the principal of the loan. I made another payment to try to bring my account current of {$1300.00} and they took that money and applied it towards late fees and other fees that were assessed and STILL did not apply it towards the supposed " missed '' payment. I was told my only option was to write a letter to the corporate offices to try to have this taken out of the principal and applied to my payment so I would not be considered past due. I wrote the letter and they sent me a response saying that my request was denied. Most recently, I applied for a loan to purchase a new home and was denied because they marked my credit as having paid late for XXXX, XXXX & XXXX of XXXX. I asked them for a print out of my payment history and they sent it to me. I had made a payment every month for the last 2 years every single month. This payment history came from them! It showed my 2 payment that I made back in XXXX of XXXX ( when all this took place ) and still they said I was past due because they took one of my payment and applied it to principal and refused to remove it. They also took another payment of mine and misapplied it to all sorts of " other '' fees and still did n't complete my " missed '' payment. I ended up having to make two payments this year in XXXX to bring my account current. This month XXXX XXXX XXXX ) I received a letter from them saying they were returning to me {$320.00} for incorrect late fees collected and that this was ALSO applied to my principal of my loan ( Copy of the letter is attached ). I was irate that they keep taking my money and doing what they want with it, applying it where they best see fit and never even ask me if I would like the money back. I believe this is illegal. How can they just take my money and apply it to principal or anywhere for that matter without first consenting with me? Do n't I have a say? They have had a payment from me every month as agreed and as their customer service reps. have advised me to do and still I suffered getting a loan because they have erroneously informed the credit bureau 's.