Consumer complaint received 2022-05-16
Product: Mortgage — FHA mortgage
Issue: Struggling to pay mortgage — 
Company: MIDFIRST BANK (GA)

Our mother passed away in XXXX XXXX XXXX, we notified the mortgage company at the time and continued to pay the mortgage, however our mother was the primary earner and with her death came a 90 % decrease in household income. In XXXX XXXX XXXX the Mortgage company sold the mortgage to another mortgage company. We notified that mortgage company of her passing. Our mother died in XXXX and we filed for administration to begin the process of locating insurance policies and beneficiary information from her retirement fund. However due to COVID-19 the courts were closed and there was a XXXX month delay in getting letters of administration. When the letters were received, there was additional delays getting a response from insurance companies and the XXXX  XXXX XXXX ( XXXX ). These delays significantly impacted our ability to make mortgage payments and we requested a forbearance with the intention to request a modification. We started the Modification assistance process on XX/XX/XXXX, we submitted an application along with the supporting documents listed and began the process. Since that time, we have experienced what we have come to find out is a docsing, we were continually asked to provide additional information and when the information was provided, we would receive a correspondence saying the information was not provided. This has continued for months. My god-brother who occupies the property is XXXX and receives XXXX income which would not cover a mortgage. We advised the servicer of our plan to vacate a condo so taht it could be rented and the income applied to pay the mortgage as part of the modification. They requested proof of ownership, and a executed lease which we provided. They continued to request documents taht had been previously provided including the letters of administration they claimed they did not have even thought the correspondences received are addressed to the Estate of. 

This process has been exhausting and freighting because we truly up to this point felt that the objective of the servicer was to help us, instead we have come to realize that it is not. Despite continually providing and updating information requests, we were notified in a correspondence dated XX/XX/XXXX, that we received on XX/XX/XXXX that we were not approved because we did not provide proof of hardship ( death certificate ), utility bills, recorded transfer of ownership, all of which had been provided to them. They immediately placed the account in foreclosure. 

We were advised that our only option was to re-apply which we did, submitted all the documentation required and previously submitted. Even though the application was in process we received a foreclosure sale date. In speaking with the attorney handling the foreclosure he stated he was unaware of the modification in process. I am told that this is called dual tracking and is not permitted under the FHA guidelines. With the new modification application comes the same games, despite calling and getting confirmation that all the required documentation has been received, we continue to get told that something submitted has not been received. In two separate correspondences dated XX/XX/XXXX and XXXX XXXX, it confirms that the application status is complete. However on the website it says that items are missing. 

This servicer is engaging in a practice that is unscrupulous and underhanded taht does not conform to the guidelines established by the FHA with regards to the COVID modification process.