Consumer complaint received 2017-05-19
Product: Mortgage — Other type of mortgage
Issue: Struggling to pay mortgage — 
Company: U.S. BANCORP (OH)

As a small business owner which was the sole means of financial support and at the age of  XXXX , we ran into a bad economy and severe down turn. Furthermore, when the financial trouble started we depended on our savings and home equity vs unemployment. We felt has the means to cover our expenses did not make it necessary to file for assistance. Afte  r two years of using our own cash, we found out we were not eligible for unemployment because we had n't a history of income.
After 20 years of being banking with US Bank   and being self reliant we were in need of help from our bank On  XXXX  I call m  y US Bank Branch Manager to ask for information and assist because our small business was getting hit hard financially and I was going to have trouble making my mortgage payment and needed to request a loan modification from the bank. The branch manager reached out to Mortgage Assistance and had them send a modification request packet and our Branch Banker provided us a number to call the Mortgage Assistance business unit.
After a week of waiting we called Mortgage Assistance to determine if a packet had been sent and they said they would get out ASAP.     This is what transpired after the call : On Monday  XXXX   XXXX   XXXX  we received a letter from Mortgage Assistance that we were eligible for a loan modification but no packet.      XXXX   XXXX   XXXX  received a  US Bank Letter we were delinquent on our mortgage which we let them kn ow and needed to apply for a loan modification, but no packet.      XXXX   XXXX   XXXX  US Bank Mortgage letter received that they had not receive our Mortgage payment, no packet for loan modification again.      XXXX   XXXX   XXXX  US Bank Mortgage letter saying our loan is delinquent, no loan modification packet. Several calls and in the month of  XXXX  no loan modification application  XXXX   XXXX   XXXX  we received a letter from US Bank Mortgage Assistance stating we may qualify for a loan modification, no application packet again. place another call.      XXXX   XXXX   XXXX  US Bank Mortgage letter saying our loan is still delinquent but no application packet again, more calls made  XXXX   XXXX   XXXX  US Bank Mortgage letter saying our loan is still delinquent. no application packet again, more calls made.     Between  XXXX   XXXX  and  XXXX  conversations with variou s US Bank Mortgage Assistance Managers and finally received a packet to complete to apply for a   loan modification.      XXXX   XXXX   XXXX  - Long story - short - We filed the Loan Modification packet but the events to actually have the packet down loaded and reviewed was at best arduous ;  XXXX   XXXX  called  US  Bank Mortgage Assistance on the status of the completed packet but was not confirmed it was uploaded  XXXX   XXXX   XXXX  we asked our  US Bank Branch Manager to send via internal US Bank mail a requ est for a status on the loan modification request. She called and said, they had not received it. We had proof it was sent.      XXXX   XXXX  called US Bank Mortgage Assistance and sent documents sent again Called US Bank Mortgage Assistance on  XXXX   XXXX  to inquire as to status. Reply in process Called  US  Bank Mortgage Assistance on  XXXX   XXXX  inquire as to status. Reply in process and it would be about 30 days  XXXX   XXXX   XXXX  it was longer than 30 days we place a call to US Bank Mortgage Assistance and they had lost our Mortgage Assistance Packet so we emailed a copy to Mortgage Assistance  XXXX  and  XXXX  calls where made again on status of the modification request. No status on a decision.      XXXX   XXXX   XXXX  packet lost again by Mortgage Assistance and resent completed packet to US Bank Mortgage Assistance  XXXX   XXXX   XXXX  US Bank Mortgage Assistance confirming the copy of documents was received and up loaded. She confirmed they where received an emailed me stating that the information has been up loaded.     From  XXXX   XXXX   XXXX  until  XXXX   XXXX ,  XXXX  we made a good faith effort to complete the request for a  Loan Modification  and after 6 months of call and completing documents and increasing mortgage debt and penalties we get a foreclosure notice.      XXXX   XXXX   XXXX  Received a letter that   US Bank Mortgage had was starting foreclosing proceedings.
The above is just the first six months. The last three years has difficult and the US Bank has not bee  n efficient or effective at processing an making decisions. We were simply asking for some relief but relief never came.     During this filing debacle a second mortgage was discussed and the bank shared that they would role the first and second mortgage into the decision process. Another debacle but not my main complaint The bank filed and gained a Summary Judgement and we received a stay which is still in place. Due to time delays in the US Bank Mortgage Assistance process we refiled Loan Modifications Applications on  XXXX   XXXX ,  XXXX ,  XXXX   XXXX ,  XXXX  and again on  XXXX   XXXX . All the while accumulating outstanding mortgage payments and penalties. Also, we have had a rough and difficult   financial road, we do take responsibility for our actions as well.
First Complaint - bad, slow process that was supposed to assist not sink you as a US Bank Mortgage, which the bank holds all the cards and if they foreclose, their mortgage insurance pays for the loan and they get you house to sell for additional revenue ... do they really want to provide a loan modification? Maybe not.. so who holds them accountable?
Second Complaint - Comes in two parts : Part A : When we originally notified US   Bank Mortgage and Files for a Loan Modification I was  XXXX   XXXX   XXXX  and now in  XXXX  I will be  XXXX . The bank can calculate loan duration and age. I would be in my  XXXX  when this loan is paid off. Also, after age  XXXX  earnings capacity is reduced. I believe their is some age discrimination going on. Furthermore, I have 20 years of working with distressed companies, the bankruptcy court and banks. Banks can do what they wish depending on how they label the debt. So why not provide me and my family a loan modification Part B. Second Complaint I have tracked down the HAFA program and reviewed the requirements to qualify for the program. In addition, I found a link to A US Bank website offering the Home Affordable Foreclosure Alternative ( HAFA ). Obviously this is the program that you referred to when we engaged  XXXX  but the program end on  XXXX   XXXX  but was never offered as an option for our family. So why were we discriminated against? See the link : https : /  XXXX    HAFA REQUIREMENTS Basic eligibility and  U.S. Bank specific requirements : Loan is on borrowers principal residence ; ANS : Yes -  We comply First lien mortgage loan originated on or before  XXXX / XXXX / XXXX  ;  ANS : Yes   XXXX  - We comply The loan is  31 or more days delinquent or default is reasonably foreseeable ( loans currently in foreclosure or bankruptcy are eligible ) ; ANS : Yes - We comply The current unpaid principal balance is less than or equal to {$720000.00} for a 1 unit, {$930000.00} for a 2 unit, {>= $1,000,000} for a 3 unit, or {>= $1,000,000} for a 4 unit.    Property not vacant or condemne d ANS : Yes to Unpaid balance and Yes to Property Not Vacant or Condemned A borrower has documented a financial hardship, evidenced by a signed Hardship Affidavit or Request for Modification and Affidavit ( RMA ), wherein the borrower has represented that he or she does not have sufficient liquid assets to make the monthly mortgage payments ANS : Yes to all and well documented in the US Ba nk and in our files from numerous request for information that was resubmitted over 3 years up until the HAFA program expired on  XXXX   XXXX   XXXX  Loans greater than {$400000.00} will not be eligible for HAFA options if the borrowers liquid assets or reserves ( i.e., savings, stocks, bonds, retirement accounts ) are greater than 25 % of the projected total loss.     ANS : We exhausted all of our liquid assets Borrowers with a shelter payment to income ratio less than 31 % are not eligible for HAFA.
ANS : The US B  ank denied stated our Income to ration was less than 31 % - What was it between  XXXX  and  XXXX  during the life of the HAFA Program The shelter payment includes principal, interest, insurances, taxes, and homeowner association fees.    ANS : Yes US Bank Mortgage Assistance and Loss Mitigation was aware of the HAFA program and US was openly promoting the program as a loan modification program option but when we filed for Mortgage Loan Modific  ation  in  XXXX  until the HAFA program expired on  XXXX   XXXX ,  XXXX  the program was never offered.     Also, the bank is evaluating our modification based on our current loan interest of  6.28 percent VS the 4.5 percent interest they advertise for what is call Jumbo loans.      I am not a complainer by nature but I know when some things do not add up.     If you require more details, I can provide  three years of dates, names and documentation. Also, as an FYI, we  will recover financially in  XXXX  but unfortunately  US Bank   Mortgage will not give you credit for future success.