Consumer complaint received 2024-07-09
Product: Mortgage — VA mortgage
Issue: Struggling to pay mortgage — An existing modification, forbearance plan, short sale, or other loss mitigation relief
Company: AmeriHome Mortgage Company, LLC (MD)

In late XXXX, we experienced a significant, temporary loss of income and several concurrent major household expenses ( replacement of the whole house generator, paving a section of our driveway, furnace replacement, and replacement of our oven/microwave ). Recognizing the seriousness of the situation and with a deep desire to maintain our home, we contacted our servicer, AmeriHome Mortgage, to apply for temporary mitigation of our VA insured loan. 

The management of this process has been unduly delayed, haphazard, predatory, and damaging to our financial and professional wellbeing. 

In XXXX, I concluded that we were facing difficult circumstances and that my employment situation would take some months to reset. I sought assistance from AmeriHome Mortgage. Confident that we would recover, I based my estimate of assistance needed on the XXXX XXXX XXXX XXXX Executives study that showed the average time to a new position for someone in my position is 18 months. 

In mid-XXXX  XXXX, I requested to apply for mitigation. A packet was sent via USPS, dated XXXX XXXX and a duplicate emailed on XXXX XXXX. I then submitted a Mortgage Assistance Application. 

On XXXX XXXX, a request for supporting documents was sent to us. These documents were provided and on XXXX XXXX, the application was resubmitted and receipt acknowledged. At this time, we estimated the financial difficulties would resolve within six months. 

During this time, delinquency letters were sent, dated XXXX XXXX, XXXX XXXX, and XXXX XXXX. While cause for concern, I was confident that this would not be an issue because I was proactively in contact with our loan servicer and taking steps to resolve our circumstances in a positive manner. 

We subsequently received a letter stating : Your application is complete as of XX/XX/XXXX and no further information is needed at this time. While a weighty concern, I was confident in a successful resolution. We subsequently received, on XXXX XXXX, both the HUD notice of potential foreclosure and a notice of default that offered options for mitigation options I had already pursued. This was followed by another notice of pending foreclosure on XXXX XXXX and a XXXX XX/XX/XXXX correspondence offering options to cure the delinquency. 

Curious as to the status of our application, I called customer service on XXXX XX/XX/XXXX and was advised to call back the following week. During my XXXX XX/XX/XXXX call, I was informed that it would take a week to ten days for a decision for be forthcoming. This exchange would be repeated multiple times over the coming months, with my being advised each time that a decision would be forthcoming within days. 

In late XX/XX/XXXX, we were again requested to file a Uniform Borrower Assistance Form and to resubmit supporting documents that had expired while in the servicers queue. These were provided on XXXX XXXX. On XXXX XXXX, receipt of the second application was provided, replacing the same information that was termed as expired by the servicer. At this time, we indicated the expected length of the financial difficulty would be 6 to 12 months. 

Later that month, we were again requested to submit another Uniform Borrows Assistance Form, providing for the fourth time essentially the same information. On XXXX XXXX, we were again advised that our application was complete. 

On XXXX XXXX, we were happy to receive notice of granting of a three-month forbearance, but alarmed that the grace period was only for XXXX to the end of XXXX. This ignored the period XX/XX/XXXX through XX/XX/XXXX, which is within the period of mitigation application. This also resulted in our loan being reported as greater than 90 days delinquent, despite our haven taken steps to facilitate a positive outcome. 

On XXXX XX/XX/XXXX, I sent, via email to XXXX, an inquiry about the period between when I applied for mitigation and when a decision was reached. I did not receive either acknowledgement of receipt or a response until automated telephone calls began at the end of XXXX. 

I contacted the servicer and was told that, even though we ha requested mitigation, ( 1 ) the credit report record of delinquency would stand because payments were not rendered and ( 2 ) the delay in adjudication was due to incomplete or expired information. When I pointed out that the supporting documents were submitted, I was told they were not. 

I further inquired regarding the three month forbearance versus the 6 to 12 month period of difficulty and was told I would have to file another application for mitigation to take effect after the three month forbearance ended on XXXX XX/XX/XXXX. On XXXX XX/XX/XXXX, we submitted a fifth Uniform Borrower Assistance Form with attachments. During the first week in XXXX, we received yet another request for submission of a Uniform Borrower Assistance Form and supporting documents. These were provided -- for the sixth time. 

Also note that in XXXX, AmeriHome reported the mortgage 150 days late, despite this being within the approved forbearance period. Documents demonstrating these activities are enclosed with this filing. 

One might assume that the purpose of loan mitigation is to allow continuation of home ownership. It is counterproductive, then, to delay decision on a request initiated in XXXX until XXXX, then deny any forbearance for that period. Nor is the utility evident of granting a three month forbearance for a problem projected to last for six to twelve months ; and reporting an increase in delinquency during the forbearance. 

We ask for positive consideration for several cogent reasons. The primary reason is that we hold significant equity in our home. Our current balance is approximately {$800000.00}. Our home was recently appraised by the county at approximately {$1.00} XXXX, more than enough to support a home equity line of credit to make the mortgage current with a single payment. Of note, a similar home, but with fewer amenities, immediately next door sold on XXXX XX/XX/XXXX for {>= $1,000,000}. 

The problem is no lender will offer a note to someone with a 150 day mortgage delinquency. 

I have been actively and aggressively seeking gainful employment in an amazingly competitive market. I have been able to secure increased income, but it will take 30 to 60 days to become effective. 

We occupy our home, our primary and only residence. We greatly wish to retain ownership and to return to currency on our mortgage. When I spoke with AmeriHome customer service on XXXX  XXXX, I was informed that the decision on mitigation was delayed because the application was incomplete. This is neither accurate nor seemingly fair. The acknowledgements of receipt repeatedly stated that the application was complete, as noted above. The submissions and supporting documents were essentially identical each time. While we were unable to fulfil our financial obligations at the time, we also reached out in a timely manner to secure alternative arrangements as specified on the servicers web site. The lack of progress on adjudication in the face of our temporary inability to meet our obligations has rendered us unable to recover for the foreseeable future. It has also had a cascading negative effect on our credit and finances. Several lines of credit have been closed, which, in turn, reduces our credit scores. Moreover, my wife is in the final six months of her graduate program that will improve our financial status. Her federally guaranteed student loan was denied due to the 90 day delinquency ( letter enclosed ). Left unresolved, she will not be able to complete her studies. 

Loss of our home would not adversely impact our servicer, as that obligation would easily be met should we be forced to leave this property. It would, however, have a decidedly adverse impact on us as a family. While I recognize that the mortgage company is not a charity, one would hope the lender could offer flexibility to allow continued home ownership, acknowledging that the lender suffers no damage as we remain liable for accumulated interest during the forbearance. 

Put colloquially, we did our part to navigate an unfortunate situation. We would hope the lender could do the same. We ask that the forbearance period begin when it was requested and the adverse credit report be withdrawn. This will allow us to secure a HELOC and make this account current. 

Respectfully,