Consumer complaint received 2019-12-31
Product: Mortgage — Conventional home mortgage
Issue: Struggling to pay mortgage — 
Company: Caliber Home Loans, Inc. (GA)

The homeowner believes her consumer rights have been violated by the lender, XXXX XXXX. In XX/XX/XXXXthe homeowners loan was serviced by another lender. Under the 1st servicer the homeowner was considering to look into refinancing her home because her husband became ill and he was the household wage earner. However, due her spouses suddenness of his illness and later his death, she decided not to pursue the offer by 1st lender because the modification was at a higher interest rate than the current 7.875 %. However, the lender restructured mortgage by adding a deferred balance to the 1st mortgage. It appeared the lender added an erroneous deferred balance as a second mortgage lien. The homeowner continued to pay her mortgage. The homeowner never agreed to a modification or any consolidation that would cause a deferred balance to be added to the primary loan. Within the last 12 months, the homeowner had missed 5 months on her mortgage, but she requested a loan modification. Now the lender wants to combine the deferred payment with the mortgage balance. The homeowner was very reluctant to sign the loan modification, but was told by the Caliber Home Loan Servicer rep, that if she did not sign, foreclosure proceeding will begin in XX/XX/XXXX.

PLEASE NOTE THE FOLLOWING FACTS : After transfers of the loan mortgage to two different servicers, Caliber Home Loans became the servicer of the mortgage. The homeowner made inquiries about the deferred balance to the new servicer. The servicer stated that it appeared to be attorney fees related to foreclosure proceedings. The homeowner stated that she had missed payments in the past when her husband became ill and died, but she caught the payments up. The representative stated that the reason for the lien of deferred payments attached to the mortgage to be attorney fees from the last servicer that held the loan. The homeowner stated that she nor her deceased husband signed any documents to receive a deferred balance.

In XX/XX/XXXX, the homeowner fell behind on the mortgage 3 payments, the homeowner submitted a Request for Modification application and supporting documentation. In the process of waiting for the underwriters decision, the homeowner called the customer service line to receive a status on her application, the Caliber Home Loans representative told the homeowner to send in {$2500.00} to receive a more favorable result in obtaining a loan modification. 
XX/XX/XXXX : On XX/XX/XXXX the homeowner obtained a cashier check and sent it to the servicer. The servicer sent the payment back to the homeowner. The homeowner then deposited the check back into her account. She called the servicer ; the representative stated that she needed to send the {$2500.00} to receive the approval from underwriting for the loan modification. Unknown to the homeowner, Caliber Home Loan sent in the mail correspondence dated XX/XX/XXXX that she was approved for a Trial Period Plan. The homeowner did not realize she had been approved, until she took all her paperwork to a HUD Approved Housing Counseling Agency. 
XX/XX/XXXX : The Certified HUD Counselor helped the homeowner comb through all the paperwork, then realized that a trial period plan had been approved. On XX/XX/XXXX, the counselor contacted the lender because the agreement had a 1st payment  of {$830.00} for the trial period plan dated for XX/XX/XXXX. The counselor requested on the behalf of the homeowner to have the {$2500.00} returned so that the homeowner could make the first trial period plan. The representative stated the payment had been set back on XX/XX/XXXX, and the homeowner should have it within in a day from the date of the call. The counselor stated it was important that the money is returned in order to make the trial period payments. 
XX/XX/XXXX : On XX/XX/XXXX, the counselor contacted Caliber Home Loans to follow-up regarding the returning of the {$2500.00}. The representative at Caliber Home Loans stated that the funds were sent back to the homeowner. The representative emphasized that the first payment of {$830.00} must be received by XX/XX/XXXX or the trial offer will be revoked. The counselor informed the homeowner of the need to send the 1st trial payment ASAP. The homeowner borrowed the money from a friend in order to send {$830.00} to the lender to ensure that she did not lose her home. 
XX/XX/XXXX : On XX/XX/XXXX the counselor spoke to Caliber Home Loans representative, XXXX ( employee # XXXX ). During the phone call the representative confirmed that the lender had received the payment of {$2500.00} and it was applied to all three of the trial period payments. Therefore, the lender had not sent the payment back to the homeowner as per their system and documented conversations with the client and counselor. The representative expressed that a permanent modification was approved on the spot. The counselor requested that the {$830.00} be returned to the homeowner so that she could use it as her 1st payment for the modification on XX/XX/XXXX. The rep stated that the payment would be sent back and the first payment would be due XX/XX/XXXX. 
XX/XX/XXXX : The homeowner went to the bank to determine if the cashier check for {$830.00} had been cashed. The bank validated that the lender did cash the check. 
XX/XX/XXXX : The homeowner received a letter dated XX/XX/XXXX outlining the terms of the modified loan. The letter states the homeowner must send in with the signed agreement {$740.00}. There was no documentation of receipt the cashiers checks for {$2500.00} and {$830.00}. The summary of the terms stated the following : o Unpaid balance : {$100000.00} ( 1st lien mortgage and the deferred balance of {$25000.00} ) o Interest Rate : 3.5 % o Monthly payment : {$390.00} o Escrow payment : {$340.00} o First Modified Payment Date : XX/XX/XXXX o Maturity Date : XX/XX/XXXX The homeowner feels XXXX to the unexplained deferred balance that has no explanation by the lender. Caliber Home Loans refused to remove the deferred balance from the modified loan. The homeowner wanted to refuse the offer because 1 ) she believes the servicer applied the erroneous amounts to strip her from the equity in her home and diminishing any opportunity to refinance with another lender without incorporating the erroneous fee into the new mortgage. 2 ) the homeowner signed the loan modification, because she did not want to lose her home to foreclosure. 

The homeowner is requesting the CFPB to investigate the reason for the lenders applying the erroneous deferred balance to her loan. She believes she has a predatory loan, and the deferred balance was added to the loans in order for the lenders to strip the homeowner of the equity out of her home. She wants the deferred balance removed from the loan so that she can have an affordable modified loan at a lower interest rate.