Consumer complaint received 2023-03-08
Product: Mortgage — FHA mortgage
Issue: Struggling to pay mortgage — 
Company: Royal Pacific Funding Corporation (CA)

Loan # XXXX During the early part of the XXXX XXXX, I was among a group of XXXX employees laid off by my employer as a result of the Pandemic. I reached out to XXXX XXXX XXXX ( My lender at the time ) and requested a forbearance. XXXX approved the forbearance. In XXXX of XXXX when the forbearance ended, XXXX instructed me to submit the paperwork required to put the outstanding balance behind the loan. XXXX informed me that since I requested the balance be placed at the back of the loan, that there will be a balloon payment at the end of my loan and I accepted. I submitted the paperwork and requested that the outstanding balance be placed at the back of the loan and I resume my regular payments. XXXX assured me that the process will take only 30 days. However, when I reached out to XXXX  between XXXX, and XXXX, I was told that they have everything they needed from me but that they received a lot of applications and is taking them a while to complete processing. 
In XXXX when I called to follow up, I was informed that my loan had been sold to Royal Pacific Funding. Royal Pacific Funding Loss Mitigation informed me that they were working on my file and will let me know when they complete their review. I called Loss Mitigation in XXXX and asked why I had not received a determination they said they were still processing. I kept calling every 2 weeks all of XXXX, and XXXX. In XXXX, Loss Mitigation Supervisor told me that when they got my file from XXXX, they failed to assign a code that would let them know that I was approved for the deferral. The Supervisor told me that I should expect a XXXX package with documents for me to sign. Up till today - I never received any package. When I followed up in XXXX of XXXX regarding the package- I was first told that it was sent by XXXX XXXX when I requested the tracking number- I was then informed that a package was never sent to me. I followed up again in XXXX of XXXX with Loss Mitigation and was informed that my application was still being processed. I have not received any written communications from Loss Mitigation on the status of my request. In XXXX, XXXX Royal Pacific Funding sent me a letter requesting that I pay the Escrow overaged due to property tax increase I made the payment. When I asked them about the status of my deferral application, again, I was told to wait, that they were still reviewing. 
Two years, after waiting for a determination from Royal Pacific Funding, on XX/XX/XXXX, I received a certified letter asking me to make full payment of all back payments that were supposed to be put to the back of the loan as part of my modification request that was approved by XXXX. When I inquired on the determination of my application, Royal Pacific Funding told me that in XXXX XXXX they made ONE phone call to request insurance cover page for the property and when they didnt reach me on the phone they closed my file. I asked why they didnt obtain the document from their insurance dept. who had a copy of the declaration page. Royal Pacific Funding told me that the information had to come from me. I called Royal Pacific Funding insurance dept. and confirmed that in XXXX, of XXXX my house had insurance ; and the declaration page had been provided by my insurance company. On that same call, I asked the representative to confirm if they had sent me any written communication requesting insurance cover page the representative checked their systems and confirmed that they DID NOT send me any written communication requesting insurance information. I asked the representative to confirm if they had sent me a written communicating stating that my file was going to be closed or closed she checked their system and confirmed that NO WRITTEN communication was sent to me. I then informed the representative that I wanted a determination on the initial application I submitted. I was told by Royal Pacific Funding that my application expired and that I needed to start the process all over again. I never received any written communication on the determination of the modification application that was approved by XXXX my initial lender ; I never received any written communication requesting any outstanding documentation. In XXXX Royal Pacific Funding informed me that I had submitted all required documentation needed to complete the process. I never received any written notification that there was a time limit or that my application was going to expire. 
Royal Pacific Funding violated regulation by not honoring the agreement my previous lender made with me when they approved my deferral. Royal Pacific Funding violated regulation by taking 3 years to process my paper and not providing any determination after 3 years of them holding up my application only to simply inform me on the phone that my application expired 3 years later. Royal Pacific Funding violated regulation by not sending me written communication to inform me of any outstanding documentation to complete my file review. Royal Pacific Funding violated regulation by not sending me any written communication to notify me of my application expiration date. Royal Pacific Funding is being predatory in their practices after keeping my application for 3 years with no determination, they sent me a collection letter in XXXX demanding that I pay up, then in less than 30 days, they sent my property to a law firm to initiate foreclosure proceedings. 

RESOLUTION : I am requesting that Royal Pacific Funding honor the deferral agreement made by my previous lender. Put the outstanding balance at the back of the loan, bring the account current, and I be allowed to resume making my regular monthly payment starting XXXX XXXX XXXX