Consumer complaint received 2024-08-12
Product: Mortgage — Conventional home mortgage
Issue: Struggling to pay mortgage — Trying to communicate with the company to fix an issue related to modification, forbearance, short sale, deed-in-lieu, bankruptcy, or foreclosure
Company: BSI Financial Holdings, Inc. (SC)

BSI Financial has denied us access to government Covid relief programs and misled us to release our home from bankruptcy and now we face a foreclosure sale date on XXXX XXXX When we fell behind on our mortgage due to Covid related income loss we came to BSI for help but were never offered any type of forbearance program. Instead we were told we needed to go through the regular process of requesting help. Eventually we were offered a trial modification, but we were both still out of work due to Covid and could not make these payments. I called multiple times to request help but was told this was the only offer available. I asked why we were not considered for the CARES forbearance but was not given an answer and told that we needed to accept the trial plan that had been offered, even though we were still struggling financially due to Covid. Eventually we were forced to file bankruptcy to stop BSI from foreclosing on my home and to give us a chance to get back on track. After a few months in the bankruptcy we were told that BSI Financial would consider a modification to help us, but they wanted us to agree to remove the home from bankruptcy protection. This was a coercive attempt to steal our home and under pressure and bad advice from our bankruptcy attorney we gave up our rights so that we could get reviewed because we trusted BSI. Sure enough, the review was finally conducted and we were told that we could not be approved for help and that there was a new foreclosure sale date on XX/XX/XXXX. 

.We started struggling during Covid when my hours were cut and XXXX lost his job. I reached out to BSI right at the beginning of the pandemic in XX/XX/year> and asked for help. BSI was obligated and required to offer a Covid related forbearance at that time, but they did not do that. Instead we were offered a trial modification a few months later even though our financial circumstances were the same because of Covid. I was told that this was wrong and that BSI was required to offer a forbearance and this never happened. This is wrong and a guideline violation!

Since we were still impacted by Covid we could not make the trial payments and began to fall farther behind. I tried on many occasions to contact BSI and ask for help or a different program. Each time I was told that this past trial modification was the only option, so we decided to file bankruptcy to try and work out a plan to begin paying BSI back for the past payments and also to resume making monthly payments on the mortgage. We eventually were able to get into an approved bankruptcy and began making trustee payments but then the amount kept increasing and it was difficult to afford.

We asked BSI if we could be considered for a loan modification now that we were in bankruptcy and were told that we could be considered ONLY if we released the home from the bankruptcy protection. This seems wrong, unethical and illegal. Our Attorney gave us the bad advice that BSI Financial could be trusted. Instead, we went through a sham modification review and were quickly denied for all options. In the denial letter BSI claimed the reason was the loan to value was 259 %??? That is not possible. We only owe about $ XXXX on the house, and with missed payments it is maybe $ XXXX. The current tax assessed value of the property is about $ XXXX. That would be more like XXXX XXXX, not XXXX XXXX. This is evidence of a sham review. They also list the reason that we had a previous modification and did not perform. That is correct, we were out of work due to Covid when they gave us the modification instead of offering the forbearance!! After the sham review was completed a foreclosure sale date was quickly set for XX/XX/XXXX.