Consumer complaint received 2018-11-28
Product: Mortgage — VA mortgage
Issue: Struggling to pay mortgage — 
Company: MONEY SOURCE, INC., THE (CO)

Dear Sir, or Madam : I am writing this to briefly summarize my experience with The Money Source ( TMS ), the loan servicer handling my mortgage and foreclosed on XX/XX/XXXX of this year. 
My loan originated in XX/XX/XXXX. It was a VA loan. I had made all of the payments on time up until XX/XX/XXXX of the following year, when an unexpected legal matter ( divorce petition ) threatened my ability to maintain making payments in a timely manner. This led to me preemptively reaching out to seek help. I was advised that I would not be able to qualify for any sort of Borrowers Assistance because I was not current and not at risk of default and that certain considerations would not be available until I was at least 120 days past due. 

Long story short, I stopped paying my mortgage. I could not afford to with the temporary hardship. This continued to be the case until I eventually did become past due more than 120 days. I was sent a formal notice of default and contacted The Money Source to reach out again regarding assistance in XX/XX/XXXX. I submitted a Borrowers Assistance package but was initially denied any considerations due to not having made enough qualifying payments on the loan. It was suggested I consider options for selling the home to avoid foreclosure, and so I did just that. I was still in the midst of financial hardship and did not see any other alternatives. Although marketing the home did yield a few offers, none were able to close. At this point, I was resigned to the fact that I would lose the home and it was just a matter of time. 
All of the aforementioned information is an abbreviated preamble to the meat of the issue, and leads up to the reason for my formal complaint. My hope is that it provides some context for what followed. 

In XX/XX/XXXX, I filed a Chapter XXXX bankruptcy as a last-ditch effort to save my home. It was basically two days before the scheduled sale date. Unfortunately, the bankruptcy was ultimately not successful and was dismissed in XX/XX/XXXX after missed payments due to another brief hardship ( father passed, funeral expenses, no life insurance ). Anyway, because I remained employed, had regained financial stability and wanted to stay in my home and make the obligatory payments, I wanted to see if the VA could help. It was, after all a VA loan. In researching what else I could do, I found that the VA offers certain loss mitigation guidelines and foreclosure protections to loan servicers ( i.e. Streamline Modifications, Compromise Sales, DIL of Foreclosure, Loan Refunding, etc. ). I only found this out by reaching out directly to my local VA technician. He said that he would reach out to my servicer on my behalf. 

I also attempted again to engage my lender about Loss Mitigation options, especially since the bankruptcy, they claimed, initially prevented them from reaching out to me about said options, but no longer applied. They sent out a Borrowers Assistance package in XX/XX/XXXX, detailing the option of an FHA HAMP Trial Period Plan. Obviously seeking ANY option granted to me, I submitted the information they requested, and they acknowledged my submission of documents. Please see attached for the terms of the TPP. My first payment would be due by the end of XX/XX/XXXX. I proceeded to make that payment. I followed up with TMS twice in XX/XX/XXXX ( on XX/XX/XXXX and on XX/XX/XXXX ) advising them that I made payments to the account and confirming there were no issues with said payments. I was assured that the payments posted and that the TPP would remain valid and in effect. 

On XX/XX/XXXX, I received an outbound call from TMS. It was a different representative than the one I originally had been assigned, going by the name of XXXX XXXX XXXX, it had been XXXX XXXX who was my point of contact. XXXX called me to ensure that I would still be making the second TPP payment by the end of the XX/XX/XXXX as it stipulated. I advised her that I would. She also mentioned that I would need to make an additional payment of XXXX cents as the previously scheduled payment was underpaid by that amount. I told her I was not aware of the deficiency but would take care of it. She said it was not an issue, but that I would need to be especially careful to make sure I made the XX/XX/XXXX payment on time and for the full amount or they would not be able to close on the loan modification. I assured her that it wouldnt be a problem. She also mentioned something about a first lien on the property that I need to pay as well. Im not sure what shes talking about, but the way she explains it, my HOA has a lien for an outstanding balance of XXXX or so dollars that I need to pay ASAP so that they can close my refinance. I tell her that Im not immediately in position to make that payment and ask what that means for my Trial Payment Plan. She says that the lien being satisfied takes priority over making the next and last payment for XX/XX/XXXX, and to take care of that first. She can just extend or redo another TPP to start it over, but that I MUST make the XXXX payment to my HOA first. I tell her that I can do this, but probably not till the next time I get paid in the middle of XX/XX/XXXX. 
So anyway, I make the payment on XX/XX/XXXX for XXXX. This covered the XXXX cents deficiency from the previous month plus an additional XXXX dollars. 

Fast forward to XX/XX/XXXX. I come home and check my mail to find that I have a letter from TMS dated XX/XX/XXXX ( see attached ), that indicates that my Loss Mitigation Assistance request application was denied due to not making the scheduled payments associated with the trial payment or loss mitigation plan. Frantic, I call TMS. I ask to speak with XXXX. The representative tells me shes out of town or out of office. I explain my situation to her, that I was told about the XXXX cent deficiency, that it was an honest clerical mistake and that I took care of the difference on the second payment as I was advised to do. She said that there was nothing she could do as she didnt work in the Loss Mitigation dept, but that she would leave a message for her to contact me ASAP. Meanwhile, I appealed to the Loss Mitigation Dept via email on XX/XX/XXXX as the denial letter says I can do. 

I get a call from The Money Source on XX/XX/XXXX from TMS while Im at work. I cant answer but I find that a lady named XXXX leaves a voicemail saying its imperative I call her back immediately. Due to work, I can not call her back right away. I completely space calling her back until the next day but cant get a hold of this XXXX individual. The only thing the rep I talk to advises me is that a memo on the account from XXXX says worked the account. I ask what I can do as I am having difficulty getting a hold of anybody from that department. She says that shes not familiar with a lot of the inner workings but usually, when a customer has a Borrowers Assistance option that was not successful, they can resubmit it. I ask her to email me this information so that I can do this ASAP. 

I proceed to gather all the documentation for a new Borrowers Assistance Package and email that on XX/XX/XXXX. I get a formal notification on the XX/XX/XXXX that my Borrowers Assistance Application was received and reviewed within 5 days That was the last correspondence I received from The Money Source. On XX/XX/XXXX, a man came to my door, identifying himself as an XXXX County Assessor. He advised me, to my complete surprise, that my home was sold as a foreclosure on XX/XX/XXXX. I thought he was joking, he wasnt. I called TMS, and they advised that it had, in fact, been sold, and that there was nothing I could do. I asked them how this could occur when there were ongoing communications with the Loss Mitigation Dept. The lady asked to put me on hold to review, came back and said that because the sale date was the XX/XX/XXXX, any Loss Mitigation requests less than 37 days prior would not be considered. There was nothing she could do. 

So my complaints at this point are as follows : I feel that at the very least, there was intentional misinformation given to me by TMS in handling the foreclosure/loss mitigation of my loan. At most, there may have been violations relating to Federal and State guidelines related to lending practices. I do not feel that my loan was serviced like a typical VA loan, in that no VA loan loss mitigation options were granted to me as potential options to keeping my home. I am concerned that dual tracking occurred, and that the TPP was never going to be a legitimate option to retain my home because of the limited and often conflicting information given to me. If they were not able to close on the loan modification in XXXX even if I made all the payments because there was an HOA lien that was discovered after the fact, why pretend otherwise? If the TPP was supposed to halt all foreclosure activity so long as it was being adhered to, why was the foreclosure sale scheduled less than 37 days after my notice that the loss mitigation application was denied? And why did the servicer wait until XX/XX/XXXX to notify me of this denial when the payment in question had been made over a month prior? I was also under the impression that appeals for loss mitigation denials had to be responded to within 14 days. This never occurred. After XX/XX/XXXX, none of my previous points of contact could be gotten ahold of ( Not XXXX, not XXXX, not XXXX or anyone from the Loss Mitigation Dept, who I had been told was now outbound calls only ), and none of  them ever replied to my request for a call back, or my emails. There was no single point of contact during this period after a Loss Mitigation option had been extended. 

In a nutshell, my home was sold, and I will have to leave and find a new place for my family in however much time I am afforded, because my first Trial Payment Plan was allegedly underpaid by XXXX cents, and by the time I was notified of that deficiency and the means to address it or have any other recourse, it was too late. There may not be any feasible solutions regarding the FC sale at this point, but I would like this situation, and the lending practices of The Money Source to be investigated to the extent that you are able, while I also seek other consumer and legal advocacy avenues. I have formally requested information from them, which they have advised me will be provided within 30 days. I would hate for anyone to ever experience a nightmare like this from TMS or any other servicer. 

Thank you in advance for your assistance.