Consumer complaint received 2024-04-17
Product: Mortgage — VA 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: M&T BANK CORPORATION (CA)

In XXXX of XXXX, my mortgage recently jumped higher due to a rise in property taxes on a brand new house in a brand new development located in XXXX, California. As a Veteran newly retired, and impacted by COVID 19, I was approved for all property tax waivers under the state of California 's veteran low income program at the same time, my mortgage was sold from XXXX XXXX XXXX  to a company called M & T bank. When they assumed the loan they saw a XXXX escrow shortage and added it to the mortgage payment. 

The original mortgage company XXXX XXXX XXXX XXXX had already did a 60 month spread for that escrow shortage. Being a XXXX XXXX XXXX vet and not employed put me at a disadvantage to pay at nearly XXXX in a monthly mortgageas the new mortgage company ( M & T Bank ) did and would not honor the spread of the shortage. I placed over XXXX calls to the company to try and get it adjusted but was met with resistance. I turned to Veterans Affairs Housing Assistance ( VA ) and assumed a XXXX whom has been assisting me in getting my mortgage on track. Only until a representative from XXXX XXXX XXXX  managerial team contacted with me on a conference all telling M & T that my loan was previously approved the 60 month escrow shortage. 

Three to four weeks later I received a letter from M & T stating that they will honor the 60 month escrow shortage on my account. Leaving my account in the negative and arrears in theXXXX range. I filled out numerous applications for M & T to honor the " Partial Claim Program, '' with Financial declarations showing that the mortgage was too high due to that 60 month escrow shortage, I was met with denial and contempt. 

M & T only offered a forbearance program after ( 5 months has passed ) the VA rep, contacted them via phone. M & T then offered the forbearance program. After taking on months of forbearance as that was the only program offered by the M & T bank they denied the federal program given to Veterans for a " partial claim '' that would allow the Veterans Affairs to pay what is owed to the mortgage lender with no impact to my APR nor mortgage rate. 

The VA referred me to HousingUrban Development ( HUD ) and HUD referred me to the XXXX XXXX for assistance back in XXXX but was denied for any assistance based on a '' confirming loan '' restriction. I am having such a hard time in locating assistance for my VA backed mortgage to get us on the right track. Prior to this incident I had immaculate credit and since this has ruined my credit, and put me into a position that has spiraled out of control. I am asking for assistance in this matter I feel that I have exalted all of my means. At the time the mortgage company had only offered a 6 to 12 month repayment plan that will have me paying nearly XXXX in a mortgage payment for 12 months. I will add since XXXX I have applied for numerous jobs for the state of California and for the federal government, all which have not yet come to fruit. A 6 month time has lapsed M & T has only offered now an unemployment forbearance which will end in this XXXX. I feel that I have been wronged in this matter from the time of the property increase to the new mortgage lenders really taking advantage and strong arming me from the beginning of this transition. Leaving me and my family with our hands tied pushing us to be homeless. This incident has impacted my perfect credit score to under a XXXX and has since spiraled. As of last month I contacted the HUD office I have been working with an XXXX who was also denied mortgage information by M & T. In XXXX we submitted a third party agreement to M & T but was denied the third party release had to be notarized in which that information was not released until today XX/XX/XXXX and submitted In XXXX of XXXX. I have been told by M & T bank they will not honor my California fee property waiver of {$250.00}, XXXX as a XXXX XXXX  XXXX vet until I pay the what is owed and that is nearly {$42000.00} to the day and will be facing a foreclosure in XXXX if not paid in full. In order to do so M & T would have to reduce my property taxes to reflect but that will take an escrow Analysis reflecting the tax waiver but has also been currently denied today by M & T. Please help! Sincerely, XXXX Veteran ( XXXX + years of XXXX service )