Consumer complaint received 2019-06-28
Product: Mortgage — Conventional home mortgage
Issue: Struggling to pay mortgage — 
Company: MORGAN STANLEY & CO. LLC (AZ)

My mortgage loan is with Morgan Stanley, and this company, in conjunction with XXXX XXXX  have made misrepresentations and obstructed my efforts to resolve my mortgage payments that recently increased over 200 %. I am a business owner and I make a solid income and have the means to afford a reasonable monthly payment and have tried repeatedly to work this out. However, these obstructionist tactics have led to me facing a foreclosure sale date on XX/XX/XXXX. 

I purchased my home 11 years ago and refinanced in 2014 into an interest only loan through XXXX. The monthly payment was {$2200.00}. I am a XXXX   XXXX XXXX and have historically done well financially. A couple of years ago I began having some financial issues as I went through a divorce that hit me hard. In that same time frame the interest only period was ending, and the payment was going to double and increase to about {$5400.00} a month. I began trying to refinance my loan, but the internal appraisal team at XXXX claimed that the property was only worth XXXX XXXX. I personally paid for my own appraisal and B.P.O. and they came back with a value of XXXX XXXX. Even though the data and facts showed the true value, XXXX would not accept this valuation and I was not able to refinance the loan. Due to the divorce the new payment of {$5400.00} was difficult to afford and I began trying to apply for a loan modification. However, the agents at XXXX told me they would not offer any assistance since I was current. I consulted an Attorney as well, and he said that XXXX had a policy where they would not consider restructuring or modifying a mortgage when the payment doubled if the homeowner was current on their loan. I felt backed into a corner but knew I could not continue to afford this payment due to the divorce and defaulted on the loan. 

Once I defaulted, I began dealing with the XXXX loss mitigation department. They would request a list of documents. I would send all the paperwork in, and they would verify they had everything. Then two weeks later they would tell me, sorry, everything is outdated, and we need a new full package. This happened on at least 5 occasions. During this process XXXX raised my interest rate AGAIN and the payment went up to {$6000.00}. I tried in vain to get a review processed so I could be considered for a loan modification but went through a vicious cycle of XXXX intentionally obstructing the process and misleading me as to my status. They then set a foreclosure sale date and transferred the loan and said Morgan Stanley was handling it now. I have tried to engage with Morgan Stanley on multiple occasions and the same exact thing has happened. Apparently, Morgan Stanley and XXXX have some type of agreement linking them together on mortgage loans, and this must be true because both companies have purposely obstructed the modification process and manipulated information in order to seize my assets. As mentioned, I have a foreclosure sale date set for XX/XX/XXXX. I am a XXXX US Veteran who served in a XXXX XXXX unit for the XXXX XXXX. I am a business owner who is slowly rebuilding and increasing my monthly take home now that my divorce is settled. I have the means to afford a fair and reasonable payment. The issue is Morgan Stanley. They are not a trusted advisor ; they are an accomplice to obstruction and misrepresentation. Please investigate the mortgage servicing practices and foreclosure protocol of Morgan Stanley.