Consumer complaint received 2022-02-11
Product: Mortgage — Conventional home mortgage
Issue: Struggling to pay mortgage — 
Company: FIFTH THIRD FINANCIAL CORPORATION (MI)

We deferred payments in XXXX, at the start of the COVID-19 pandemic. We then started making regular mortgage payments when the deferral was over, selecting the option to place the deferred payments on the back end of our mortgage. In XXXX of XXXX, our income was suffering as our jobs were heavily affected by the pandemic and shutdowns. We called Fifth Third Bank to discuss options and we were then placed back on a 2nd deferred payment plan. 

In XXXX of XXXX, while still on deferment, we listed our home for sale. During this process we accepted an offer that was set to close on XX/XX/XXXX. That deal ended up falling through. As part of this process a mortgage loan payoff statement was provided by Fifth Third on XX/XX/XXXX and was valid through XX/XX/XXXX ( document attached ). This document does not show a past due amount. Following the deal falling through, we began making payments again, to ensure we stayed in good standing. Payments were made in both XXXX and XXXX of XXXX. During this time, the home was still listed for sale. 

We once again accepted an offer with a scheduled closing date of XX/XX/XXXX. On XX/XX/XXXX our title company contacted Fifth Third Bank for a new Mortgage Loan Payoff Statement and was told our account was in delinquent status and a payoff could not be provided. At this time we had received no mail, phone, or email communication regarding missing or late payments. We immediately called Fifth Third Bank directly to discuss our account. They were able to verify that our mortgage payments had been incorrectly applied to our previously deferred payments and not to the XXXX and XXXX payments. They reapplied the money to our mortgage and assured us our account was in good standing and there would be no penalties. Fifth Third Bank also said this would not affect our credit and would be adjusted with the credit bureaus as needed. Fifth Third Bank then issued a Mortgage Loan Payoff Statement to our title company. ( document attached ) On XX/XX/XXXX, Fifth Third Bank also mailed us a letter Re : Your Missing or Misapplied Mortgage Payment Has Been Posted. ( document attached ). 

We closed on the home XX/XX/XXXX, and the account was paid in full. ( Loan payoff issued XX/XX/XXXX document attached ) On XX/XX/XXXX, we both checked XXXX XXXX as we were applying for a mortgage to purchase a condo. At this time we discovered our credit scores had dropped close to 200 points. The mortgage account with Fifth Third Bank was not only still open/active but was now showing we were 120 + days past due. There was no additional information listed as to what payment was late and there were no derogatory marks listed on the credit report. We decided to call Fifth Third Bank directly, assuming this may have something to do with why they originally claimed our account was diligent to our title company back in XXXX. The communication with Fifth Third Bank was as follows : XX/XX/XXXX at XXXX ( 40 minutes ) - Most of the time was spent on hold. The customer service representative let us explain our questions and put us on a silent hold to review the notes on the account. After about 5 minutes on a silent hold the rep just hung up the phone. 
XX/XX/XXXX at XXXX ( 38 minutes ) - Again most of this was hold time. Spoke to an agent named XXXX who verified Fifth Third Bank closed our mortgage account on XX/XX/XXXX and a letter was in the mail stating such. He also said Fifth Third Bank would report the mortgage as paid off and closed in the beginning of XXXX. He also stated that it should eliminate the late payment ( which he could not account for ) therefore returning our credit scores to the previous status. We asked if we could verify this with a manager or speak to someone to make sure this was getting cleared up since we already had them on the phone. He said he couldnt transfer us to anyone else, and we wouldnt get a different answer. 

The new lender we were working with was also using all the information we had provided to work with a rescore agency but Fifth Third Bank would not work with them as a third-party to verify our account was closed and in good standing. The lender recommended we reach out to each credit bureau to open a dispute in hopes it would move the process along faster. 

Within a couple weeks XXXX, XXXX, and XXXX all reported back that Fifth Third Bank verified the mortgage account was closed but would not verify the removal of a late payment at this time. 

We attempted to get a mortgage statement with a detailed breakdown of when payments were made. We called and visited a local branch. We were informed that we are unable to obtain these due to the account being closed. We were able to verify both the XXXX and XXXX payment of {$2600.00} with transaction IDs ( available upon request ). 

We did find a timeline of transactions with the XXXX dispute report ( XXXX dispute report attached ). This report clearly shows an amount past due column. You will find that this column is blank up until XXXX of XXXX when it then increases to {$19000.00}. We believe when the Mortgage payoff was requested it incorrectly moved our deferred payments to delinquent status. 

Returning to the call we made to Fifth Third Bank on XX/XX/XXXX regarding our account being delinquent, it becomes even more clear that the XX/XX/XXXX and XX/XX/XXXX mortgage payments had been applied to the deferred payments. Once Fifth Third Bank moved those payments back to the mortgage, where they should have originally been applied, it somehow moved the deferred payments into past due. We were not made aware of this information during the XX/XX/XXXX phone call and this doesnt appear on the Mortgage Loan Payoff provided by Fifth Third Bank . This was new information that came to us after closing the mortgage. 

We tried speaking with Fifth Third Bank again to explain the issue. None of the customer service agents were able to help. We requested a call back from a manager in mid XXXX. The requested call back never took place. 

We contacted our original mortgage officer, XXXX XXXX, as we had nowhere else to turn. She took our information and documentation, and forwarded it to her supervisor, XXXX XXXX. XXXX stated he needed to push this information further up the chain. He informed us we would receive a call from the appropriate department that was able to help with these types of issues. As a result of this XXXX received a call from Fifth Third on XX/XX/XXXX. 

On Wednesday, XX/XX/XXXX a customer service representative ( not a manager ) from Fifth Third Bank called us. We explained the issue at hand. We were initially told that we did not have a second forbearance. After explaining the situation and going over the documentation listed above, the representative placed us on hold to check with the forbearance department. When the agent came back on the phone, she explained that we were mailed a letter in midXXXX, providing us three options to handle the deferred payments.The agent went on to explain that because we did not select one of the three options, by the time the mortgage was paid off, they show our account as delinquent. It is important to note that to this day, XX/XX/XXXX neither of us have received the letter they claim they sent. Fifth Third is unable to provide tracking information or delivery confirmation.

During this call we were informed that due to the mortgage being closed, there is no way to correct this issue. She continued to insist that they contact us by phone numerous times. She also confirmed we could have verbally selected one of the three options. We asked what numbers they called, two of the numbers she repeated back do not belong to either of us ( work or personal ). One of our phone numbers was not even listed as a possibility to call even though both names are on the mortgage. 

The representative could not provide any specific dates and times the calls were made. She only had a note regarding the mailed letter but did not send it certified mail so has no receipt of it going out or being delivered. Again, she went on to say that the account was closed on XX/XX/XXXX and the deferred payments were closed in delinquent status. She repeated there is no way to correct this once an account is closed. 

Fifth Third hides behind the claim they reached out to us numerous times. However, they acknowledged that we were able to verbally confirm how we wanted our deferral status handled. Yet, not one time did they mention this to us on the numerous documented and recorded phone calls where we contacted the bank directly. This includes two days prior to us closing on the mortgage, questioning the delinquent status of the account. 

The XXXX report also shows the account was closed at 120 past due and as I write this letter to you now, it has not been 120 day since XX/XX/XXXX. There is also a note on the account regarding our account being over 180 days past due which is even less realistic. 

Neither of us were made aware of any late payments, deferment options being needed, or any issues on our account until the day before our closing. Even at this time, the information came second hand from the title company and not Fifth Third Bank. Once the call was made, the representative gave us the impression it was Fifth Third Banks mistake, it was corrected, and we went on to close on the property. If we were 120 or 180 days delinquent this would not have been possible. We had no chance to correct this before closing and are now stuck in a terrible position. 

We are currently unable to obtain a mortgage because of how negatively this mistake by Fifth Third Bank has affected our credit. We have both spent countless hours away from our jobs and children working on this issue with a big bank that has yet to provide any help or consistent information. We are more often met with judgment, rude customer service representatives, and repeatedly hung up on by people who dont feel like dealing with this issue. Our lives are at a complete stand-still and we are left fighting this battle that feels impossible to win.