Consumer complaint received 2024-01-17
Product: Mortgage — Conventional home mortgage
Issue: Struggling to pay mortgage — Foreclosure
Company: FIFTH THIRD FINANCIAL CORPORATION (GA)

My complaint relates to mortgage modification/forbearance assistance due to XXXX that forced me to shut down my business and many other hardships including poor customer service by Fifth Third that caused me to miss opportunities to refinance my mortgage at lower interest rates. 

This complaint includes additional facts and information that was not included in prior CPB complaints so I do not want Fifth Third to reply that this is a duplicate. 

Here is what happened : My home is scheduled for foreclosure on XX/XX/XXXX. In XXXX XXXX XXXX I purchased a XXXX XXXX company with XXXX employees, but as a result of XXXX, the business lost many customers, and some of my XXXX employees tested positive for XXXX, which forced us to close the business while we were waiting for the XXXX XXXX XXXX from the federal government. I applied for the XXXX XXXX XXXX in XXXX XXXX, and I did not receive the money until XX/XX/XXXX, almost a year later. But I was still forced to close my business in XX/XX/XXXX because I received the XXXX XXXX XXXX XXXX XXXX year after shutting down. The loan was not enough money to restart the manufacturing business, and instead, I used it to purchase screen printing equipment for a new business. I placed the order for the equipment during the first week of XXXX XXXX, but there were several events that caused delays in getting the equipment XXXX months later ( XX/XX/XXXX ) : XXXX. Unfortunately, the manufacturer, XXXX, was also impacted by XXXX, which caused a delay in the shipment. 

XXXX after placing the order, about XXXX weeks later I found out the equipment was manufactured in XXXX XXXX bordering XXXX XXXX and would be delayed further because of the XXXX XXXX, and XXXX. There were multiple technical issues with the equipment that finally got sorted out in XX/XX/XXXX. As a result, I am just now able to open the doors for business starting in XXXX XXXX 

I made it very clear to Fifth Third that I lost my ability to earn an income to make a living due to COVID ( and the other reasons above ), and I need time to get back on track. ADDITIONAL HARDSHIP WAS CAUSED WHEN MY WIFE ( BEFORE THE DIVORCE ) ALSO LOST HER JOB TO XXXX, WHICH PUT MORE FINANCIAL STAIN ON OUR RELATIONSHIP LEADING UP TO THE DIVORCE. 

As a result of my sportswear manufacturing business being shut down due to XXXX, I put my manufacturing equipment in storage, and the warehouse bill was {$1000.00} per month. The plan was to get back into manufacturing when I received the XXXX loan, but the XXXX loan was received after I put the equipment in storage. Meanwhile, while waiting for the XXXX loan, my warehouse storage bill was {$1000.00} per month. So far, I have spent over {$20000.00} from my savings on warehousing costs. This also caused me to get behind on my mortgage ( including the second mortgage discussed below ). 

In addition to the above, I signed a lease on office space for the new equipment in XXXX of XXXX, but due to technical issues with the equipment discussed in item XXXX above, I had no revenue while paying a monthly rent of {$1300.00} and approx. {$3200.00} on the remaining equipment loan balance. So for 9 months ( XX/XX/XXXX through XX/XX/XXXX ), I have spent {$12000.00} on business rent and approx. {$28000.00} on loan payments ( the amount actually spent is less because the manufacturer, XXXX, allowed me to make partial payments for about 6 months ). This drain on my savings impacted my ability to pay my mortgage. 

I offered Fifth Third to make payments on the second mortgage, but they won't discuss the loan with me or let me make payments on it since it is only in my ex-wife 's name. I am trying to reach out to her to sign a third-party authorization form that should help in the reinstatement, modification, or forbearance of the loan. 

XXXX MORTGAGE I made Fifth Third aware that my ex-wife refuses to sign this hardship application because my name is not on the flex loan and we did not have a good divorce ( XXXX XXXX XXXX divorce decree ). In XXXX of XXXX, I filed a hardship application with Fifth Third Bank to modify the loan for a lower payment and remove my ex-wife 's name from both loans. Fifth Third replied to my hardship application XXXX months later, in XXXX XXXX XXXX with a higher second mortgage payment and said to remove her name from both loans, I would have to refinance. The problem is that the opportunity to refinance was missed when rates were lower during the XXXX time period. It took Fifth Third to process the hardship application. In addition, during this time period, I followed up with Fifth Third numerous times to check up on the status and was told everything was fine, but now I am facing foreclosure directly related to XXXX, which caused me to go out of business and exhaust my savings in COVID-related warehouse costs, leading me to fall behind on making payments on my second mortgage that I have offered to make payments on, but Fifth Third won't accept payments or talk to me about it unless I can get my ex-wife to sign a third-party authorization form, which I am still working to communicate with her. 

I also want to point out that during this XXXX period of the hardship application, Fifth Third did not return any of my emails or phone calls for XXXX weeks. 

I don't understand how Fifth Third can be so insensitive considering how covid forced me to close my business, using my savings to pay for covid warehouse costs While waiting for the XXXX working capital, there was an almost XXXX delay in getting my XXXX working capital, COVID-related delays that caused the shipment of the equipment to be delayed by almost XXXX months, then technical issues with the new equipment and having to pay business expenses ( rent, equipment loan payments, and utilities ). Then, on top of all of these issues, my divorce was finalized in XX/XX/XXXX, which is also COVID-related since she lost her job during XXXX, putting more strain on our relationship. 

What makes matters even worse is that my payments on the XXXX working capital loan begin in XX/XX/XXXX. 

OTHER ISSUES WITH FIFTH THIRD During the XXXX hardship application delay, interest rates increased significantly, but Fifth Third still wanted me to refinance at higher rates to remove my ex-wife 's name from the primary mortgage ; meanwhile, my insurance and property tax escrow increased ; so had Fifth Third gotten back to me within XXXX, XXXX, or 60 days, I could have refinanced at lower interest rates, which would have helped to cover some of the increase in my escrow payments. Fifth Third refuses to remove my wife 's name from the primary mortgage despite these screw-ups. I can not afford the higher loan payments if I am forced to refinance. 

XXXX ) NEFARIOUS ACTIONS BY FIFTH THIRD REGARDING THE XXXX MORTGAGE In an XXXX XXXX XXXX, letter, Fifth Third states, " This loan modification agreement is made on XXXX XXXX XXXX between XXXX XXXX XXXX XXXX XXXX XXXX  ( " borrower ( XXXX ) '' ), and 53 Bank, Nat'l Assoc. ( " lender '' ). The parties recite and declare that : a. Lender is the holder of a note made by Borrower ( XXXX ), dated XXXX with a principal sum of XXXX XXXX ( XXXX ) {$85000.00} together with interest thereon at a fixed rate more fully set forth therein ( the " Note '' ) ; more than 9 months later, Fifth Third tried to underhandedly tie me to the XXXX mortgage. 

Also, I did not receive any foreclosure correspondence from Fifth Third ; on multiple phone calls, I was told I would be mailed or emailed foreclosure notices far in advance so that I could explore modification options. I found out about the foreclosure from a phone call from a real estate agent on XXXX And then, when I called Fifth Third, they assured me my home was not in foreclosure and they had no record of it! valuable time was lost to stop the foreclosure. 

As noted above, there are XXXX major issues with Fifth Third 's nefarious actions : a ) they STILL refuse to talk to me about the second mortgage unless my ex-wife gives me authorization, and b ) I offered to make payments on the flex line of credit, but Fifth Third refuses to talk to me about it or let me make payments. The money to make the payment on the second mortgage will come from a roommate tenant that should start this month, XXXX XXXX 

In addition, I am a senior citizen ( XXXX XXXX XXXX ) having to start my life all over again, and I am doing my best to try and work with Fifth Third, including offering to make the payments on the second mortgage. Thanks to the rental income and my business being on track, I am finally in a position to put my life back on track and make payments on my mortgage. I just need Fifth Third to work with me. Up to this point, Fifth Third has not acknowledged any responsibility for the nine-month delay in processing my hardship application and/or using underhanded tactics to try to get me to sign the second mortgage note years after the closing. 

I am also caring for my mentally ill daughter, and I have been appointed her legal guardian and conservator. How much worse do things have to get before Fifth Third shows some sensitivity, especially for the XXXX delay in processing my hardship application? 

Despite all of this bad, unfortunate news that Fifth Third is aware of, my business is finally ready to operate. 

Based on all of the above, it appears that Fifth Third is not complying with COVID-19 Regulation X ( Real Estate Settlement Procedures Act ) ( RESPA ). The Bureau of Consumer Financial Protection ( Bureau ) is issuing this final rule to amend Regulation X to assist mortgage borrowers affected by the COVID-19 emergency. The final rule establishes temporarily procedural safeguards to help ensure that borrowers have a meaningful opportunity to be reviewed for loss mitigation before the servicer can make the first notice or filing required for foreclosure. In addition, the final rule would temporarily permit mortgage servicers to offer certain loan modifications made available to borrowers experiencing a COVID-19-related hardship based on the evaluation of an incomplete application.

The bottom line is that because of COVID-19, I need help with a loan modification or forbearance. Up to this point, Fifth Third has ignored this regulation while making my situation worse by causing me to miss out on lower interest rates for refinancing. 

I have demonstrated to Fifth Third that I have tried to improve my situation, and I am now in a position to get back on track.