Consumer complaint received 2022-01-20
Product: Mortgage — Home equity loan or line of credit (HELOC)
Issue: Trouble during payment process — 
Company: DISCOVER BANK (TX)

To whom it maXXXX concern, XX/XX/XXXX My name is ****. My loan number is ***. In XX/XX/XXXX, I requested for forbearance for COVID-19 hardship. The forbearance period was from XX/XX/XXXX until XX/XX/XXXX. In XXXX, I requested for an extension. This extension was approved until XX/XX/XXXX. During the forbearance period I continued to receive late statements and delinquency notices from Discover Home Loans. Therefore, I constantly called every month to verify that I was still in forbearance. At the end of XXXX, I received a letter from Discover Home loans discussing next steps when exiting the forbearance period. This document arrived with a lengthy application. On XX/XX/XXXX, I called Discover asking if I needed to complete this document. The customer service representative transferred me to loss mitigation. Loss mitigation stated that they sent the application by accident. However, I had XXXX options to handle the payments that were not made during the forbearance period. The options were, 1 ) I could pay the balance in full 2 ) Arrange a payment plan and 3 ) defer the payments to the end of the loan. At that time, I requested for my complete balance to be deferred. After this, I continued receiving mortgage statements that had a balance that should have been deferred. In XXXX, my balance changed from {$2800.00} to {$1100.00}. My XXXX statement also represented that I had a deferred balance of {$2300.00}. I kept calling regarding the balance being incorrect on my statement and that the complete forbearance was not deferred correctly. At this time, I was reassured that they would process the forbearance extension. On XX/XX/XXXX, I called to check if I needed to make a payment in XXXX, or if the payments resumed in XXXX. Customer service stated I needed to make a payment. Therefore, I made the payment as requested and continued making my payments. I consistently called requesting for the balance to be fixed. I was told by customer representatives that it was escalated and to give it 30 days every call on multiple calls. In the mean time, I was preparing to sale my home to purchase a new home. I seen the regulations for FHA were that you had to make XXXX on time payments after the forbearance period in order to qualify for a home loan. On XX/XX/XXXX I called to request another escalation on the deferral. I was reassured by XXXX that the deferral would be processed in XXXX business days. However, that never occurred. At this time, I had applied for my home loan, was pre-approved, had two contracts on my home to sale, and found a new home to purchase. I began to call on a regular basis. Each time, I was told it was being escalated, or sent to a supervisor for the deferral to be processed and the documents to be corrected. By the end of XXXX, nothing had been resolved and I still had a balance on my mortgage statements. Therefore, I was requested to pay my balance in full to have my current loan in good standing. I made my XXXX payment on XX/XX/XXXX, the remaining {$1100.00} balance ( that was originally supposed to be deferred ) on XX/XX/XXXX, and XXXX payment. On XXXX XXXX, I was informed by loss mitigation that they processed the deferral, but I had already paid the balance so there was nothing to defer and that my loan would be reinstated. I have requested for all notes, call logs, and documentation regarding my account from the research department. The majority of these documents I had never seen and some of the items I have requested have not been provided. A forbearance opt-out document ( XXXX ) was in the documents that were provided. This document is dated XX/XX/XXXX and stated that I was out of the forbearance plan and to continue making my monthly payments. The one issue with this document is my forbearance ended in XX/XX/XXXX, not XX/XX/XXXX. Due to the failure of correctly processing the forbearance deferment when originally requested ( or the multiple times after ), contradicting documents, and mortgage statements stating DELINQUENCY or LATE PAYMENTS, I am in a very difficult situation. I am unable to obtain a new home loan unless the documents are corrected, or a letter is drafted on the behalf of XXXX and/or Discover Home Loans to address the issues as followed : There were no late payments as the account was in forbearance The forbearance period ended in XX/XX/XXXX The deferral was not processed correctly, or the months that did not process were not done in a timely manner therefore the loan was reinstated once paid in full The payments that did not process for deferral did not have a due date and therefore are not late An overall explanation of the situation from XXXX and/or Discover Home Loans regarding the situation The frustration is, I completed everything as needed, and continued my payments when the Forbearance ended. However, the corporations who I relied on to properly handle the Forbearance and Deferment, did not process their responsibilities correctly. Therefore, this is preventing me from obtaining a home loan. Fortunately, I had the sale of my home fall through, or otherwise I would be homeless. However, I currently have three offers on my home that are waiting to be accepted. Also, I am under contract on a home that was supposed to close on XX/XX/XXXX. I have placed earnest money, option fees, appraisal fees, and inspection fees on this home that I will lose if this is not corrected. Not to mention, my XXXX XXXX XXXX will have to be withdrawn from the school district where our new house is supposed to be located ( he main reason for moving in the first place ). I have been sent in so many circles by customer service and supervisors. Therefore, I am coming straight for answers. I ask for this to be corrected, or for the documentation to be provided. Please contact me if you have any questions, XXXX XXXX XXXX XXXX ) XXXX XXXX XXXX XXXX