Consumer complaint received 2017-10-05
Product: Mortgage — VA mortgage
Issue: Trouble during payment process — 
Company: Pacific Union Financial, LLC (AZ)

XX/XX/XXXX we purchased a home through the VA program when real estate values were low, and our loan was financed through Pacific Union Financial, but the following year the business Id been XXXX in for nearly 50 years began to see a significant decline in income. 

We continued to make all of our house payments on time, but by XX/XX/XXXX my wife and I were compelled to file chapter XXXX bankruptcy. Our attorney didnt advise us how to exempt our home from the bankruptcy proceedings so when Pacific Union was notified of the filing they cut off all communication with us completely. They stopped the automatic payments which were being debited from our checking account, they suspended our online access, and they stopped sending us monthly statements even though we continued to make our payments on time using old payment coupons we had copied. 

We were notified sometime around the filing of the bankruptcy that we had an overage in our escrow account and that our monthly payment would be lowered by approximately {$80.00}. What we were not told was that this new payment was only effective for a few months. Since Pacific Union refused to send us statements, we were sending in the lower payment amount, but our actual payment had returned to the previous, higher amount without our knowledge. Consequently, every month we began incurring late fees and getting further and further behind. After several months had passed we discovered what was occurring, and we called Pacific Union immediately to address the issue. We told them we had no way of knowing that the payment had increased and that the decrease was only temporary, and we asked how we could avoid these types of issues in the future. We were told that we should call Pacific Union every couple of months to be certain our payment amount had not changed. Consequently we began sending more than our mortgage payment to ensure that we were paying enough money toward our loan. 

Unbeknownst to us, sometime after Pacific Union approved our loan they sent it to XXXX for servicing. Approximately XX/XX/XXXX we received a check in the mail for {$400.00} from XXXX with no explanation-just a check. We had no idea why a check would come from this company as we had never done any business with them in the past. We assumed that it could possibly have been sent as an overage in our escrow account, and we deposited the check in our savings not spending it in the event it was sent to us in error. XX/XX/XXXX we received another {$400.00} check from XXXX, but this time there was a letter stating that they were no longer servicing our mortgage and that we needed to make our payments to Pacific Union from then on. We were absolutely stunned. Apparently, XXXX was cashing our mortgage checks then returning the money through one of their own checks. When our checks cleared our checking account we assumed that our mortgage was being paid on time. 

In a panic we called Pacific Union, explained that we had no idea theyd given our mortgage to XXXX to service and that XXXX had been cashing our mortgage checks but failed to advise us that our payments were no longer being applied to our loan. Now we were two mortgage payments behind because XXXX and Pacific Union had both refused to participate in communicating these issues to us. 

Pacific Union had told us that the only way to restore communications and automatic payments was to refinance our loan, but we had to wait for two years after our bankruptcy was discharged,  so on XX/XX/XXXX we applied to do just that. We were told that the process would take four to six weeks. We chose to refinance through Pacific Union because we thought the process would be easier and quicker since they already had our loan. Shortly after we signed initial disclosure documents our credit card was charged {$520.00} for an appraisal ( we later saw that the actual cost was {$450.00}, but Pacific Union charged us {$75.00} on top of the actual cost ). 

Seven weeks later on XX/XX/XXXX I contacted the loan officer, XXXX XXXX, to inquire as to whether there was a problem since we had passed the timeframe on when the new loan should have been completed. Someone clearly dropped the ball on our loan because less than two hours later we received an email from the senior loan processor, XXXX XXXX, apologizing and stating that she would look at our paperwork and get back to us later that day. On XX/XX/XXXX we also received a copy of our appraisal dated XX/XX/XXXX as well as another request for a second list of required documents. Over the course of the next several days we received requests for additional documents as well as an urgent appeal to have an insurance document updated and submitted on XX/XX/XXXX as, apparently that was the last day for the complete disclosure to be sent out. Unfortunately we had difficulty obtaining what XXXX XXXX had requested and a volley or urgent emails ensued with repeated attempts on both ends to obtain the required document. 

On XX/XX/XXXX XXXX XXXX stated that a closing could be set up for Tuesday, XX/XX/XXXX or Wednesday, XX/XX/XXXX.

On Saturday, XX/XX/XXXX we received an email from XXXX XXXX stating that she was having to contact our bankruptcy attorney in order to get a mortgage rating, which was something else that was going to be required before we could close. 

On the morning of Wednesday, XX/XX/XXXX, week eight of the mortgage refinance process and the day we were supposed to close I sent an email to XXXX XXXX asking what the status of the closing was, and I received no reply. A half our later I sent XXXX XXXX an email asking for a status update, and again, no reply. Nearly an hour later I sent XXXX XXXX another email which also went without a reply. Shortly after that I called XXXX XXXX phone number and left a message. Afterward I called XXXX XXXX phone number and left a message. 

Finally at XXXX XXXX. ( Arizona time ) we received an email from XXXX XXXX stating that she would call us in approximately an hour. At XXXX XXXX we received an email from XXXX XXXX stating that our loan was being suspended and recommended for decline. We also learned on that day that XXXX XXXX was no longer employed with Pacific Union Financial. 

{$520.00} and eight weeks later, on the day we were to close the loan we were declined because XXXX decided to take an extended vacation this year and was traveling between XXXX and Washington state. 

XXXX called XXXX XXXX to see if he could determine how we could be denied after eight weeks and during the discussion XXXX understood that Pacific Union would agree to refinance the loan, but the loan and the deed to the home would be in his name only. After we discussed the option that was offered we were not comfortable in proceeding and we heard nothing back from Pacific Union. 

So, on XX/XX/XXXX we decided to contact another mortgage company to refinance our VA mortgage as we have experienced a complete and utter nightmare with Pacific Union not just over the refinance process, but in the past several years. Since the prospective new mortgage company wanted a current mortgage statement we called Pacific Union to ask if they would send us a copy of our last statement. On Wednesday, XX/XX/XXXX at approximately XXXX XXXX XXXX spoke to XXXX to see if we could receive the document. In no uncertain terms XXXX was told by the very hostile, argumentative, aggressive, rude XXXX XXXX that we are not permitted any communication, no correspondence, no online access, and no statements because of our bankruptcy and we were also denied statements because we didnt exempt our home from the bankruptcy proceedings ( again something our bankruptcy attorney failed to advise us on ). After repeated requests to speak to a supervisor XXXX finally got on the phone and reiterated the same restrictions as XXXX ; however a detailed payment history could be faxed to the prospective new mortgage company within 48 business hours ( but not later than Tuesday, XX/XX/XXXX-five days later ) which was agreed upon because we had no other options. 

Even though we have requested Pacific Union to cancel our loan application ten weeks later they have run our credit again reducing our credit scores and have made repeated attempts through emails and phone calls to convince us into proceeding with the loan in XXXX name only ; however they have said the deed/title would remain in both of our names. 

We feel that Pacific Union has done everything they could to keep us from not only making our payments, but making them on time which makes their actions seem very predatory. We have often wondered if they are attempting to achieve a foreclosure so they can take our home and sell it at a significant profit since our homes value has more than doubled. 

XXXX has purchased and sold numerous homes for over 40 years, and even though XXXX had only ever purchased one home previously, she did refinance it once, and neither of us has ever been treated as poorly by a mortgage company as weve been treated by Pacific Union. 

We dont understand why we can not receive statements detailing how our monthly mortgage payment is being applied, how much money we have in our escrow account, whether our annual taxes and homeowners insurance is being paid, or if our payment has changed. We are forced to blindly send money to Pacific Union and trust that they apply those funds to our mortgage debt timely and properly, and twice we have seen that they have failed to maintain their fiduciary obligation and have violated that trust. What they have done to us should be against the law, and if they have violated our trust and their fiduciary responsibility to us we wonder how often they have done this to other VA loan customers. 

We would like our appraisal fee returned to us, and we want to receive monthly statements as to how and when the money we send each month to Pacific Union is being applied to our loan, and whether its being applied at all. 

We have copies of all emails received and sent from/to Pacific Union Financial during the failed refinance process ( 110 in total ).