Consumer complaint received 2024-10-31
Product: Mortgage — Home equity loan or line of credit (HELOC)
Issue: Trouble during payment process — Trying to communicate with the company to fix an issue while managing or servicing your loan
Company: KEYCORP (NY)

My mother died in XXXX, leaving her home to me and my brother in her will. Due to covid, exiting probate took longer than normal but the home was transferred to me and my brother late XXXX early XX/XX/XXXX. I obtained a loan through Key Bank to buy my brothers share of the home in XXXX ( started the process in XXXX of XXXX and received the funds by XX/XX/XXXX ). In XXXX of XXXX my brother and i transferred ownership of the home onto me via a Warranty Deed, which was accepted and recorded by the XXXX County Clerks office ( the county where the home resides ) on XX/XX/XXXX. In late XXXX early XX/XX/XXXX i contacted Key Bank 's Loss mitigation department to prevent a foreclosure on my home. 

They explained how once the application has been received by them a 30 day hold would be placed on any pending foreclosure. I was sent documents and loss mit. called to confirm i received them. They informed me that both my brother and I had to fill these out and submit additional documents ( pay stubs etc. ) and that the reason my brother was involved was that he was considered a " Mortgagor ''. I tell them that was incorrect and they say they will look into it. I receive a call a few days later saying they confirmed that my brother was a mortgagor for the property and there was nothing they could do. I spent the next week and a half arguing with them ( over multiple phone calls ). It felt like they were attempting to " run out the clock '' so to speak. A week and a half after receiving the documents I summitted them to the fax number the provided along with the supplemental documents they requested. I went home and called Loss Mit. to let them know i had submitted the documents and that my brother would NOT be signing anything nor submitting anything for this as they ( Loss Mit. ) could not legally consider him to be a mortgagor. I was put on hold and the representative comes back to tell me the documents have been received and that the process has begun. 

Roughly a week and a half later, Loss Mit. calls me to tell me i have been approved for the Loan XXXX request. I am sent additional documents ( the same exact ones i filled out to start the process ) and when the called to confirm i had recieved them i asked if i had the correct documents which Loss Mit confirmed i had. I once again submit the documents to the fax number and call to confirm their receipt. I am then told how the process works. I have THREE scheduled payments of {$230.00}, scheduled for XXXX XXXX, XX/XX/XXXX, and XXXX XXXX. Once all THREE of those payments are received i will be sent additional documents to sign and have notarized to send back. Once that was complete my time with Loss Mit was at an end the loan modification was finalized and all further payments could be made through my bank or online. They told me the payments had to be directly to Loss Mit ( had to call and make payment ) and that i could pay up to 6 days early. I make ALL THREE of the payments required ( XX/XX/XXXX, XX/XX/XXXX, and XX/XX/XXXX ). Upon making the third and final payment ( XX/XX/XXXX ) i am told that new documents would be sent to me to sign and have notarized and send back. At this time i confirm this was the last time i had to call Loss Mit to make a payment, and that all further payments could be made online or at my bank. 

XX/XX/XXXX documents are drawn up by Loss mit and sent to me, with a return due date of XX/XX/XXXX, once again requiring my brothers signature. When they called to confirm my receipt of the documents I asked two questions. 1 : Why is the unpaid balance {$68000.00}, seeing as the original loan was for {$60000.00}. I was told that it was lawyers fees ( even though the documents made no mention of that ). 2 : Why is my brother being asked to sign any documents in regards to this? I was told that he is considered an " non-obligor '' for the property. I asked to speak with a supervisor at that point. The supervisor informs me what a non-obligor is ( felt like he XXXX  it since what he said to me matched what i found out when i XXXX  it later word for word ) and i asked that they reconsider that decision. I was told they would call me by that Thursday ( they called me the following Monday ). And Informed me that my brother was considered an Non-obligor because they ( loss mit ) had in their possession a deed dated in XXXX of XXXX ( does not exist ) showing my brother to still being on the title of the property. I informed them that i had a deed dated in XXXX of XXXX showing him to no longer being on the title, they requested i fax the documents to them so that this could be cleared up. That same day i drove down to my bank and faxed the documents to them ( the documents being the Warranty Deed my brother and i signed XX/XX/XXXX and the receipt from the County Clerk 's office on XX/XX/XXXX showing it had been recorded by them. ) Loss mit calls me a few days later and tells me " we forwarded your documents to our underwriters and they have informed us that the documents were insufficient to relieve my brother of his non-obligor status. '' They also said that my brother would have to obtain a Quit Claim Deed for the property ( inspite of loss mit having in their possession a warranty deed and the receipt from the clerks office showing it to have been recorded ). This touched off another week and a half ( over multiple phone calls ) of arguing with them all the while XX/XX/XXXX drawing closer. around the XXXX or XXXX of XXXX, I call Loss mit to inquire on the status of the new documents since they ( loss mit ) can not legally consider my brother to be an non-obligor. I am put on hold then patched through to a supervisor ( the guy who googled non-obligor ) who tells me that their underwriters are redrawing the documents as we speak. I tell them to make sure the new documents have an updated due date on them. 

Around the first week of XXXX i receive the new documents ( still no mention of lawyers fees ) no longer requiring my brothers signature. With the new due date of XX/XX/XXXX. However, they did not include an envelope to send the documents back in, when they called to confirm my receipt they tell me i can use the envelope that the first set of documents ( from XXXX ) to send them in. I go to my local Key Bank branch to have them notarized, and send them into Loss mit, arriving before the due date. Shortly Before the new year Loss mit calls to tell me that ONE of the documents had been improperly notarized and that they had to send me NEW documents to sign. They could not tell me what was wrong with the ones i already submitted. I am sent new documents ( same due date as before XX/XX/XXXX ). i sign and them have notarized at my branch again ( the branch manager helped me both times ) and send them out. 

The first payment of the NEW loan was due XX/XX/XXXX. On that date i could not make a payment online or at my bank. I figured due to the document issues Loss Mit had that processing was behind ( the amount owed had not been updated on my account yet ). Halfway through XXXX the amount owed is updated online, but i still can not make payments. I am Later contacted by Loss mit saying i had to pay them directly ( despite the agreement was for THREE direct payments to loss mit, and all others were to be as normal ) " because they still had things to do on their end ''. 

Loss Mit has since stated that the reason the payment could not have been done in XXXX was they needed time to send the three copies out to their final locations ( One for the county, one for themselves, and one to me that i have yet to receive ).