Consumer complaint received 2015-08-27
Product: Mortgage — FHA mortgage
Issue: Loan modification,collection,foreclosure — 
Company: M&T BANK CORPORATION (UT)

I am a XXXX. I have been attempting to complete a Short Sale for a client that has an FHA insured loan for almost 5 ( five ) years. They were wrongfully harassed and denied assistance from M & T Bank and HUD. I am reaching out to you for your help to resolve this nightmare. 
I will outline the timeline and actions that have led to this complaint. 
I listed this house XX/XX/XXXX. More owed than what the FMV of the house was. She had lost her job ( no fault of her own ) and could no longer afford the payments. 
The loan was owned by XXXX XXXX XXXX. We submitted the required packet several times in it 's entirety. Fully executed. 
We submitted an offer that was reasonable at the time the Purchase Contract was written. We stayed current submitting paystubs, bank statements, XXXX ... .everything that XXXX and FHA required for consideration of an Approval to Participate. We made no progress at all with XXXX. In XX/XX/XXXX, we received a letter stating the loan had been sold to M & T Bank. So we started all over. 
Same thing. Sent fully executed, complete, up to date packet to M & T. Stayed current ( all with M & T account numbers and Authorization Packet ). We have submitted MANY complete packets. We still had nothing from M & T except, " It 's still under review ''. 
In the interim of trying to get this ATP, the sellers experienced marital problems and filed for divorce. 
During this same time period, the soon to be ex-husband was commuting more than XXXX miles ( one way ) to work. There are no back roads to get there as we have our XXXX XXXX XXXX that funnels all traffic onto ONE highway. 
I did finally get a Sales Contract Review from M & T. However, I did so by contacting FHA HUD. I had a ( new ) cash offer that could close in TEN days. We submitted the POF, est HUD and all other needed documentation. M & T denied the sale and have since asked for yet ANOTHER packet. When I was there yesterday to check on the property, there was a " Notice of Trustee 's Sale '' scheduled for XX/XX/XXXX. 
These are the relevant questions to ask both M & T and HUD ; 1. The sellers have met at least XXXX ( XXXX ) criteria for an Approval To Participate. 
a Loss of incomeb Excessive commute ( over XXXX miles one way ) c Legal Separation/ DivorceWe have NEVER received an ATP from M & T . We did receive ( after HUD called M & T many times ) the PFS from the bank stating that the offer did not fall within the " normal 88 % '' required net of the PFS 'Three Tier ' system ( even though the house had been on the market for nearly XXXX years ). M & T refused to even consult for a variance with HUD of any kind. 
So the divorce is final, the house is now EMPTY ( well, except for the heavy stuff that they left for me to clean up ). The water has been shut off, the electric and gas will be shut off on XX/XX/XXXX. The yard will not be maintained, the HOA fees will not be paid ... and let me mention the fact that XXXX of the down-stair ( below grade ) bedrooms have issues with water infiltration and XXXX has a 'sump pump ' in the window well, which is obviously not working good as the carpet is wet and the baseboard is swelled and stained. So while I was DOWN in the WINDOW well trying to coax the sump pump on, I realized how totally WRONG this is. 
I have invested almost five years in submitting everything for loss mitigation and I am STILL getting nowhere. My clients have complied completely and finally just gave up. 
HUD states it ca n't force the bank to co-operate. Is n't that like buying insurance without getting the coverage? My clients paid PMI every month and even though they QUALIFY for FHA HUD assistance they get NOTHING from HUD. 
I am discouraged but I am even more MAD. No WAY M & T can auction this to secure their " XXXX % ''. Attorneys are expensive. So are repairs on a flooded home. 
My tax dollars at work? Yes, for the banks. But XXXX with the tax payers that keep this very broken system going. 
Sad : (