Consumer complaint received 2022-04-18
Product: Mortgage — FHA mortgage
Issue: Struggling to pay mortgage — 
Company: Union Home Mortgage Corp (OH)

Due to Covid-related hardship, I have been in forbearance on my mortgage since last XXXX ( XXXX ). The forbearance lasted 12 months ; it expired XX/XX/XXXX. 

I've kept in touch with my lender regularly over that time period and have discussed my options each time and I've also asked for any updates or information on possible assistance. When I contacted the lender last month to make arrangements for returning to my payments, post-forbearance, the representative I spoke with suggested I get in touch with XXXX XXXX XXXX XXXX, an organization that administers funds from the US Treasury Dept. specifically to help people like me who are behind on their mortgages due to a Covid hardship. I'd never heard of this before and immediately went online and filled out the application. 

However, last week I learned my application was denied because the total amount of assistance they can provide is {$25000.00} and my total owed was approximately {$260000.00}. A representative with the organization said I should ask my lender to allow me to make a payment that would bring down the total owed to {$25000.00} then forward them a statement reflecting this so they could approve my application and send the funds to them. 

I've contacted my lender twice now, explaining my situation and requesting that they allow me to do this which is in effect making a partial payment. I have offered to make two months ' worth of payments. But they've refused my request, stating they do not accept partial payments. 

My only options, according to the lender, are : 1 : pay the outstanding sum in full ( this is doable if they'd let me make a partial payment ; otherwise it is impossible ) ; 2 : agree to a loan modification ( however, my monthly payment will increase, since my interest rate will be higher than the one I currently have, making this an impossible scenario as well ) ; 3 : make an FHA partial claim, which as I understand it, would take the amount I owe and load it onto the end of the mortgage ( I don't care for this scenario, knowing there are funds available that would allow me to avoid doing this ). 

And of course there is foreclosure or possibly selling my home, two other unpleasant but possible outcomes as well. 

I have done my research and I understand that typically most lenders won't accept partial payments toward overdue mortgages ; I do get it. But my case is fairly unusual in the same way the Covid-19 pandemic and resulting forbearance was unusual. 

I'm requesting the lender allow me to make a one-time partial payment for a very specific reason : doing so will allow me to bring the loan current. The funds are there, the only reason my application was denied was because of the overage, and I feel as though I've found myself in a XXXX situation. I can make my mortgage payments now and also have the opportunity to bring the mortgage to " current '' status yet I'm being denied the chance to do this because of a policy that appears to be unfairly and almost punitively inflexible given the unique circumstances. 

I would have applied for the Covid funds if I had known about them sooner. Also I had no idea there was a cap to the funds until I received my denial letter. It's ironic to me that I learned about the program through a customer service rep for my lender ; it's been in place for some time but no one had ever mentioned it before ; I'm not sure why this particular rep brought it up after all this time. 

I have XXXX children at home, XXXX XXXX XXXX XXXX  XXXX. Covid has been a real challenge for my family as it has been for so many people ; obviously, that's why these funds were made available, for people like me. So it is supremely gut-wrenching that I may not be able to take advantage of them. Surely an exception can be made that would allow this to happen rather than the alternative of me and my children being forced from our home.