Consumer complaint received 2020-03-10
Product: Mortgage — VA mortgage
Issue: Trouble during payment process — 
Company: UNITED SERVICES AUTOMOBILE ASSOCIATION (VA)

I want to thank you for the opportunity to submit this information as I continue my next steps in regards to my home.. I want to ensure this was reported in case others are going through this. I was not aware of this bureau until two weeks ago. I am a service connected Veteran who purchased a VA home loan through USAA a few years ago.I love USAA. I never had any issues with USAA if I did, they were always helpful in resolving them. Ive been a member since XXXX if I can recall. 

XXXX I received a notice from USAA that XXXX XXXX  XXXX a subservicer of USAA was transferring the servicing of my mortgage loan to a new subservicer XXXX  effective. I never knew XXXX was a subservicer of my loan, I've never received any documentation on XXXX or statements. Once the loan was serviced by XXXX I noticed a lot of changes to include escrow statements and I was not happy with their practices even when I questioned my escrow account statements. 

XXXX I had setbacks and I was recovering from a lot of major changes and unexpected circumstances from the prior year and I was working to get things back on track. In the midst of all of this I applied to several jobs and started working, however the income was nothing compared to what I used to make. 

XXXX Refusal to accept Mortgage Payments I was behind on my mortgage 60 days as my income was adjusting. I was sent a notice of being behind from XXXX Subservicer of USAA in addition to a statement of late fees recurring. I was advised I had until XX/XX/XXXX to bring my mortgage current. At that time my mortgage was {$1000.00} per month and I was behind two months. I also received additional letters from XXXX  Servicer of USAA advising me that my home will be set for foreclosure by XXXX XXXX in XXXX, if I did not bring my account current. 

I went online to USAA.com to pay my past due mortgage as I've always done. I was able to login to all of my USAA accounts except my Mortgage account. I called tech support as I thought there was something wrong with my overall login. Tech Support informed me there are no blocks on logging into USAA and I should check with the mortgage company the next day. since were closed since I called in the evening I called XXXX and I was informed that I was not allowed to make any payments online and I was blocked from making payments and my account is set for foreclosure. This is what led me to where I am today unfortunately. I asked the representative how I could bring my account current if I am unable to make a payment online or even over the phone. I was denied. I did not receive any notice stating I would be blocked from making online or over the phone payments. I have made online payments or over the phone payments for years at this time. I even informed them that the notification stated I had until XX/XX/XXXX. I was not allowed to make any payments online, and was completely blocked from my account. I could only view. 

I called XXXX XXXX constantly and they also called asking for payments. I always stated how am I supposed to pay? In addition if I have the money to pay, I do not know how to pay if I am being blocked. This back and forth went on for quite some time. I was appalled and very frustrated. 

Refusal of requests for Loan Modification A month or so went by and my past due increased in addition to lawyer fees piled up. I still could not make a payment online or wasn't advised where my payments could be sent to. By this time I was at {$6000.00} to include lawyer fees for 3 months. I received a statement packet in the mail. In the statement packet I was sent an Uniformed Borrower Assistance Package. I applied and requested for forbearance or loan modification. The first application I was denied. I contacted my local HUD office since I was unfamiliar with the overall process. I was advised to speak to loss mitigation. HUD spoke on my behalf and I was able to apply to get a loan modification as at that time I had a roommate and I am foreign to these documents or process and I did not know I could include them in the initial application. The Veterans Administration was also involved throughout. 

I applied numerous times for a loan modification and was constantly denied. The denial reason was always the same. I appealed every time except the last application.Each time even in less than 30 days my credit was pulled. After the denial I had no other choice but to file bankruptcy to save my home. 

Forbearance Plan, Affordable Modification, & Standard Modification all denied each time due to their response below. 

Due to excessive obligations, we are unable to offer you a modification plan because we are unable to create an affordable payment without changing the terms of your loan beyond the requirements of the program I could not understand why I constantly kept getting denied. I know I was able to afford a loan modification. In addition I informed XXXX that I was going to be receiving extra income soon with one of the jobs I applied for in XXXX. I was still denied all except the options to sell my home which I do not want to do or go into foreclosure. 

The Veteran Administration intervened and assisted tremendously. I can not thank them enough. I was in a situation I never wanted to be in, but life happened for me. I have plenty of emails and conversations with the Veteran Administration, myself and XXXX aka XXXX XXXX. I did not know XXXX was XXXX XXXX until the emails back and forth from the member specialist and the Veteran Administration listed as XXXX XXXX. 

Bankruptcy & Deductions of Reinstatement Amount I filed Bankruptcy I never wanted to file bankruptcy but XXXX did not give me any choice.. In less than 30 days of filing bankruptcy, I paid a total of {$3000.00} to include the first mortgage payment after filing bankruptcy, filing fee and bankruptcy payment. The total lawyer fee was {$5000.00} which was paid in 90 days. My bankruptcy payments were high, almost {$2000.00} each month in addition to my regular bills. I could not understand how I was able to file bankruptcy and not receive an affordable loan modification from XXXX  subservicer of USAA.. During this time I received a statement that my mortgage payment increased from {$960.00} to {$960.00}. 


ESCROW TAXES & INSURANCE ACCOUNT In filing bankruptcy the lawyer questioned the total amount that was past due at filing per XXXX  The amount past due per XXXX  was {$3300.00} less than my last statement from XXXX prior to filing bankruptcy. The lawyer asked me where the payment come from and did I pay that? I advised I did not know. 

Did XXXX used my escrow to pay off part of my reinstatement balance prior to filing bankruptcy?. XXXX also Falsified documents and stated prior to filing the total amount was {$19000.00} which is incorrect. This is also listed on the notice of default to courts which is incorrect. 

My recent Escrow & Interests Statement received XX/XX/XXXX indicates my current mortgage is {$1000.00} which is incorrect. I did not receive any statement that my payment changed from {$960.00} to {$1000.00} My home insurance is not paid through my mortgage payment. I pay this monthly on my own. Where is this insurance money going to? 

XXXX Improper allocation of mortgage payments during bankruptcy to purposely attempt to foreclose and put me in default. 

I received my first informational statement after making my first mortgage payment during bankruptcy as the next month was due in a few weeks. I called XXXX  subservicer of USAA and quickly questioned why my current mortgage payments were listed as unapplied and partial payments. XXXX Subservicer of USAA advised me that all of my current payments that will be made will be going to my past due payments, not current mortgage. I argued that this was incorrect as I pay the trustee my past due payments during my bankruptcy. Any payments that I make directly should be going to my current mortgage so I will not be in default. I requested a corrected statement that states applied.. I never received a corrected statement. 

I contacted my attorney to advise and sent them the information of my first payment. I informed I will not pay twice to past due, as this would cause me to be in default and in more debt. I will not pay until it is corrected and statement indicating my payments made directly will go to current not past due which is in bankruptcy. XXXX  subservicer of USAA filed a notice of default and wanted to foreclose on my home as I suspected they would. My lawyers intervened and both parties agreed that I would pay on top of my current mortgage during bankruptcy an additional amount each month following the next month for the past due. This still was not resolved. This was becoming expensive at the fault of XXXX and I was consistently getting in more debt. I paid my first payment again and the statement was still not corrected. It still listed unapplied and partial. I made my second payment which was split as the additional funds for me came later in the month to pay the additional agreed amount. I paid for two months after the agreement with one late fee.

I met with an attorney to go over my income so far during bankruptcy. .My income increased for about 4 weeks from one of my income sources and I also lost income as my car needed repairs.

I informed my lawyer and expected this information to be relayed to the trustee ; it was not, the lawyer only reported increases from one source of income, which was not permanent, not overall income changes.. Due to  XXXX falsely filing a default letter I did not get an opportunity to go over my changed income in court.

Bankruptcy was becoming expensive. I spoke with one of the attorneys who advised me to let my case be dismissed and start over with this new information. I argued that it would be another {$5000.00} for me to pay when they could resolve this now and report the correct information to the Trustee and judge and lower my bankruptcy payments. 

In order to assist me further, they wanted more money. I refused. My Bankruptcy case was dismissed. They asked me to retain them again, I refused. 

In less than a year Ive paid a total of {$11000.00} to bankruptcy and lawyer fees alone not including my other bills to live. All of this could have gone to my mortgage, but XXXX constantly denied my loan modification and refused to approve my loan modification and correct the total amount due and refused to apply my payments made to my mortgage. This is causing hardship and prejudice to constantly continue to go through this no matter what I do just to manufacture reasons to foreclose on my home. These are deliberately unfair practices. This is also preventing me from getting other opportunities in reference to mortgage assistance which is harmful to my stability. 

XXXX Misleading, Falsifying information, payments court documents, and deceptive practices to attempt to foreclose on my home. 

During bankruptcy XXXX Subservicer filed a notice of default indicating I did not make my first payment after the agreement between XXXX and my attorney. I sent my attorney at the time my bank statements of my payments to prove that I paid as XXXX reported that I did not pay which I did. 

XXXX argued that they will not accept partial payments. Two months later I received a letter from XXXX indicating that funds I paid to my mortgage account prior are in an unapplied account and that I need to pay a total past due of {$24000.00} to reinstate my loan by the 35th day from the notice or my house will go to foreclosure There is a next payment due date of XXXX on this noticed which is completely incorrect. This also includes almost {$7000.00} in fees. This is deceptive practices by choosing to once again not accept my payments even in bankruptcy and allocate my funds to another account to list me in default.