Consumer complaint received 2020-11-13
Product: Mortgage — VA mortgage
Issue: Trouble during payment process — 
Company: GSF MORTGAGE CORP (OH)

On XXXX XX/XX/XXXX, I initially purchased the property located at XXXX XXXX XXXX XXXX, XXXX XXXX, Ohio XXXX. The home was financed through XXXX XXXX for {$150000.00}, under a VA Loan. On XXXX XX/XX/XXXX, I refinanced the home through GSF Mortgage Corp, also a VA Loan. The refinance was for {$180000.00} with a cash out option. I used the additional funds for home improvements and other property related expenses. In XX/XX/XXXX I was offered a much lower interest rate so I attempted a refinance. I was informed by the lender ( XXXX Mortgage ) that the refinance could not be completed. They stated that VA did not have the loan as a VA loan. I contacted VA in regards to the matter and was informed that GSF Mortage did not complete the post-closing portion ( procedure to obtain the VA guarantee after closing ). Because they failed to do this the loan could not be considered a VA loan. I contacted GSF and informed them of the discrepancy to which they replied the loan had been completed. I tried to explain Post-closing to them and they didnt know what I was talking about. With no further course of action, it was left unresolved. On XXXX XX/XX/XXXX I attempted to pay my mortgage payment online which GSF refused. Upon review of the web site, I saw that the loan was listed as paid in full. I then called GSF to inform them that the payoff was a mistake. I told them I did not pay it off and I wanted this rectified so I could make my payment. The representatives I spoke with numerous times told me it wasnt a mistake and that it was paid off? After a great deal of questioning, I was given a contact who dealt with the payoff. I left a lengthy message and waited for a reply which never came. I continued to check the GSF website each day to ensure the status didnt change. The only changes were additional documents ( payoff statement, escrow refund document etc. ). Approximately a week later I received the payoff letter in the mail. I as received the escrow refund check shortly after that. I also checked my credit report with also reflects that the loan was paid off. On XXXX XX/XX/XXXX I finally received a call from GSF informing me that the payoff was in fact a mistake on their part. He then told me that the mortgage was being sold to a company called XXXX XXXX, XXXX XXXX XXXX, XXXX XXXX XXXX. I proceeded to ask the GSF representative how it was possible to sell the mortgage when I couldnt refinance it because of their mistake. He acknowledged the mistake but said that the loan is being considered a conventional loan. He went on to say it was no big deal and there is really no difference between them. I explained that there is a difference and if I wanted a conventional loan. I would have requested one. He then said that if I wanted a VA loan. I could refinance with another company. I argued that because of their mistake I have to pay a {$5000.00} closing cost to get a loan that I was already supposed to have. He said that he could recommend that GSF pay the closing but couldnt guarantee it. He then added that I needed to pay the delinquent XXXX and XXXX payments by XXXX or the new mortgage company would send it to collections. After I hung up with them, I called XXXX XXXX XXXX and explained the situation. After the representative took my information, he ran my credit. He got back the line and said that he was sorry but he couldnt help me. He said that my credit is good, but they couldnt refinance me because I had no loan to refinance. He then said that he really couldnt give advice but it sounded like someone was trying to fix their mistake at my expense. He said that I should probably seek advice. 

On XXXX XX/XX/XXXX I spoke with a real estate lawyer and informed him of the matter. He was astonished because he had never heard of a situation like mine. I asked if it was a reasonable complaint and he responded it was but he wasnt sure of the fix. He then advised that I file a complaint with the Consumer Financial Protection Bureau. As a veteran I am really disappointed that a lending company treats veterans with such disregard. Any assistance with this matter would be greatly appreciated.