Consumer complaint received 2024-06-14
Product: Mortgage — Conventional home mortgage
Issue: Trouble during payment process — Payment process
Company: MIDFIRST BANK (LA)

About XX/XX/XXXX i was approved for COVID Mortgage Assistance funds from FHA in the amount of {$25000.00}. I stayed in constant communication with FHA as well as Midland Mortgage which can be verified and proven through all recorded and/or monitored calls. XXXX Mortgage took a very long time completing process requirements required by FHA. So long in fact that the cap on the funds offered by FHA raised from {$25000.00} to {$50000.00} which I automatically qualified for since I was already approved for the XXXX. XX/XX/XXXX FHA informed me that they were just about done in the process. XXXX XXXX the funds ( {$50000.00} ) were sent to Midland Mortgage. XX/XX/XXXX I contacted Midland Mortgage for an update on the status of my account and how the funds had been allocated. I was informed that I was still waiting on plan documents from the plan that I had to have in place which was also an FHA requirement. I received those plan documents XXXX and had them notarized and sent them back by XXXX. XXXX XXXX I received a call inquiring about my payment from that month. I again asked about the funds from the state that had been received by Midland Mortgage 5 months prior. This particular teller had no knowledge about the funds but figured it out and after funds were allocated I was told I was responsible for the remainder due after allocation which was {$200.00}. I paid it immediately. I was also informed I would be contacted in XXXX and advised on what remainder due I would be responsible for after allocation for that month. I got a call XXXX letting me know that I was delinquent for XXXX and asking for payment. I explained the situation to the teller. I let him know that I was just waiting on a call letting me know what I'm responsible for paying for that month and i was ready to pay. He looked at my account and told me that I was right and that I could just wait for another call because he just makes the outbound calls that come up in his que when customers are delinquent. He also told me if another teller calls then to just tell them what I'd told him and they can look at the notes on my account and verify and I'd be good to go. XXXX XXXX I received another teller automated call. Just so happens that it was the same teller from earlier in the month. I reminded him of who I was. He remembered and checked my account for any changes. He then told me that I should still be waiting on that call to tell me what I'm responsible for paying and to have a nice day. XXXX XXXX I called Midland Mortgage to try to get some clarification of the allocations made and the status of my account. The teller couldn't give me much information as she wasn't very knowledgeable about HAF allocations and how they're made. I suffered a sudden and tragic loss late XXXX and I contacted Midland Mortgage in late XXXX after dealing with it. I was told by that teller that about {$35000.00} had been sent back to FHA after partial allocations were made and that I needed to contact FHA to see how to get those funds back. I contacted FHA and was told that the program is now closed and to contact my mortgage company. XXXX XXXX I contacted Midland Mortgage to again get some clarification as to the accurate status of my account. I was told that I was delinquent for the months of XXXX, XXXX, and XXXX but that there were XXXX in unapplied funds on my account and that those funds would most likely cover the delinquency but she didn't understand why they were not automatically being applied. She encouraged me to log into mymidlandmortgage.com and look at may account and the allocations made. She also made me aware that I had the right to send Midland Mortgage a " Notice of Error '' informing them of the error that has been committed on my account and to include any documentation necessary for proof. XXXX i sent Midland Mortgage a Notice of Error and Included my account statement on which I made notes and pointed out errors as well as the presence of those unapplied funds. I was called late XXXX for payment for the now delinquent months and informed the teller of the notice of error and unapplied funds. I was told that I would be contacted after a decision is made and to have a nice day. XXXX I got a call again for payment but this teller informed me that i was now back in foreclosure status and that a {$17000.00} allocation was made but not to my past due balance but to past legal fees that I had no knowledge of. Nor were those legal fees on my account statement from Midland Mortgage that I included in my Notice of Error. She also told me that I was still waiting on the decision from the Notice of Error and that I should receive a letter letting me know when I could expect a date of that decision and to apply for another plan in the meantime to " buy time '' since the previous plan had now expired and again I am in foreclosure. I applied and was approved. I received a letter early XXXX informing that I'd receive a decision of the Notice of Error on or before XX/XX/XXXX. On or about XX/XX/XXXX I received a letter letting me know the decision on XX/XX/XXXX. On or about XX/XX/XXXX i received a letter letting me know I'd receive a decision letter on XX/XX/XXXX. On XX/XX/XXXX I received a letter of Midland Mortgage 's decision and a breakdown of allocations that directly contradict my account statement. It also shows all allocations being made on my account by XX/XX/XXXX. That is completely not accurate. The latest plan I've been approved for has my mortgage payment at {$2000.00}. When I started this process my mortgage was {$1400.00} ( roughly ) and I was seeking assistance after resuming work after COVID. I called Midland Mortgage on XX/XX/XXXX after receiving the decision and informed them of the discrepancies and asked to speak to someone in the department where the letter and decision originated from and was told they don't have an extension. I asked to speak to anyone who could help me and was literally told that there was no one. After I asked for a final time I was told that I'd be contacted by a supervisor within 24 hours. About 2 hours later I was called by a supervisor by the name of XXXX ( Teller # XXXX ) who basically told me that even though someone made a detrimental mistake that has me in a very stressful situation I have 1 choice which is pay the significant increase and if not I face being foreclosed on. XXXX said that she was going to review the recorded calls and if Midland Mortgage is found to be in error they will address the error with their employees but that nothing will be done for me. The advice that I was given was to notarize and return the plan documents for the {$2000.00} mortgage before XX/XX/XXXX or that plan will also expire. And if this plan expires and I have to apply for another, my mortgage will go up even more exponentially due to the fact that I exhausted most of my HUD approved claim funds in the claim that was connected to the HAF funds. And the fact that Midland Mortgage made error in the allocations of those funds does not matter. XXXX let me know that not only do I owe for XX/XX/XXXX through XX/XX/XXXX but now I owe for XX/XX/XXXX as well and that the {$200.00} payment I made in XXXX is now showing on my account as unapplied. I'm currently seeking legal counsel.