Consumer complaint received 2021-08-30
Product: Mortgage — FHA mortgage
Issue: Trouble during payment process — 
Company: MIDFIRST BANK (KY)

We applied for a COVID-19 modification through our Mortgage Company Midland Mortgage. We actually started the process at the end of XXXX, we had applied for a a delay in our payments due to COVID. As my husband ultimately lost his job in XXXX, we had to work to make up the missing income, so applying for this modification would allow us to keep out home while he looked for other employee opportunities. Although it didn't take him long to find a job, he was by far not making the income that he had before. It was reduced by half so we were on a limited income at that point. We had to dip into our savings in order to help bring the account current. 

In XXXX, I contacted the bank to ask about the progress of the modification because I had not received any communication from them except for thanking us for the interest in the modification itself, that they were working on it. I was told by the representative on the phone the modification had been approved and we would soon received the paperwork to sign. I was told by the same rep, the mod would make us due effective XX/XX/XXXX. It was at that time I asked if I could go ahead and start sending in regular payments asking them to be applied to XXXX payment. The rep told me I could start sending these in, they gave me what my new payment would be after the modification of {$940.00}. Thus, I sent a check in for {$1800.00} representing two payments. No mention that if I send them in before the modification was complete these payment would be applied to back payments due. At this time I sent a check in for two total payments. 

I waited a few months but I still had not received the paperwork to sign for. I called back in XXXX. I was advised they were still working on the modification documents and now my modification would become due effective XX/XX/XXXX. Never thinking about the two payments that I had sent in for the XXXX modification. I made an assumption they were holding these payments until the due date was rolled to XXXX as indicated. MY MISTAKE. I was advised by the rep at that time that our payment and interest rate were going to decrease as a result of waiting until XXXX 's effective date. I thought to myself well great that is XXXX less thing I have to worry about. The payment went from XXXX to XXXX. I asked at that time if I could go ahead and send in my next payment. As I stated due to being now on a limited income, I wanted to prepay my loan while I had the money to feel secure the mortgage was paid ahead. I sent in a check for {$850.00}. Thinking all along this would be applied to XXXX 's payment since I had already sent in XXXX and XXXX ( Thinking previously it was for XXXX and XXXX ). 

Two weeks later, again no mortgage documents, but again I wanted to get ahead so I sent in another payment of {$850.00}, thinking this would be for XXXX 's payment. 

I kept waiting and waiting in XXXX no documents. I was in XXXX that I finally received a call that stated they had everything finalized. They walked me through what to do when the paperwork arrived and to be prompt on returning it back. I mailed the signed paperwork back on XX/XX/XXXX. It was through reading the documents, that I realized they had taken the {$1800.00} that I paid and applied this to back payments that were supposed to be on a delay. 

I then called in XXXX upon realizing this and was told they can not hold payments and they would be applied as a next contractual payment. And this is where my nightmare has begun. All the while I was sending in payment I thought were being applied to post-mod payments were actually being applied to pre-mod payments due. MY HUSBAND AND I ARE NOT MADE OUT OF MONEY. I have sent over {$9000.00} to this company this year alone, and guess what? I am still not current on my payments because of the way they have posted them. 

On with the story. When we signed the documents, well we also sent in a payment of {$850.00}. It was at this point, I realized that we would no longer be way ahead based on my calculations. I was thinking okay, the original XXXX and XXXX payments are gone. I have sent in three payments since XXXX, XXXX, and not XXXX, so once those are posted I should be due for XXXX. 

Then I get my statement, which showed me due for XXXX and that is when I called asap. The rep that I spoke to assured me they would get the unapplied funds along with the Additional principal that was applied reversed and applied to XXXX and XXXX 's payment, along with sending me a payment history so I could go over all of the reversals that I was seeing on my statements. During this call I was explained that it seemed my interest rate was not updated and the post-mod payments were not applied correctly. AWESOME!!! 

So based on the conversation that I had ( which I was visibly upset ), I was going to send in an additional XXXX to cover the remaining pieces of XXXX. This was mailed and has not been received by the company. WHAT IN THE WORLD ARE THESE PEOPLE DOING WITH OUR MONEY???? 

I have sent over {$90000.00} now in XXXX to cover my mortgage. If you take my original payment before the mod I would have only needed XXXX to cover this year. You do the math. Something just doesn't add up. Yes we were behind but only up to XX/XX/XXXX. 

Now to top off all of that lovely commentary, when they applied XXXX 's payment, we were also charged a late fee of {$34.00}. HOW? To my calculation I sent XXXX 's payment in XXXX. Even if they applied the payment I sent in XXXX as XXXX 's payment, it would not have been late. Because of this negligence in updating my account and posting my payments properly, there has been a late fee charged to XXXX.