Consumer complaint received 2018-06-13
Product: Mortgage — FHA mortgage
Issue: Struggling to pay mortgage — 
Company: M&T BANK CORPORATION (GA)

I've had this mortgage current since XX/XX/XXXX. In XX/XX/XXXX I was laid off and continued to make my payments. My XXXX year old daughter required XXXX XXXX XXXX in XX/XX/XXXX which caused additional strain. In XX/XX/XXXX I called mortgage company to request PMI be removed to help reduce monthly payments since loan to value well below 80 %. I was advised by M & T that the current value being taxed will not be considered and that the principle loan had to be 80 % of original value at time of purchase. 

The only option I was given was to pause payments and apply for a loan modification. All documents including proof of unemployment as well as daughters medical expenses were submitted. In XX/XX/XXXX the only option provided by M & T was an unemployment forbearance where I would be required to pay a reduced amount which would expire in XX/XX/XXXX. I was told as soon as I became re employed after receiving 3 pay stubs to reapply. All payments were made in compliance with the forbearance agreement. When an additional payment was sent M & T called and advised me that I was not allowed to make additional payment otherwise I would lose the forbearance. 

I resubmitted the application for modification XX/XX/XXXX after receiving my 3rd pay stub from being newly employed as of XX/XX/XXXX. All the while complying with the forbearance making every payment and answering every call from M & T verifying my intent to occupy the property. 

Also, I have been discharged CH XXXX bankruptcy since XX/XX/XXXX and have voluntarily continued to make payments as agreed and complied with all requests. 

In XX/XX/XXXX there was a big leak that required an insurance check disbursement. The insurance company advised I am able to self repair and sent check with mortgage company name due to the amount and advised that they would endorse and return funds. 

The insurance check was sent to M & T who advised that after receipts submitted for repairs and inspection completed over 90 % the difference would be dispersed. I was told over the phone on the following dates that once the inspection was complete the funds would be released to me:XX/XX/XXXX, XX/XX/XXXX, XX/XX/XXXX, XX/XX/XXXX, XX/XX/XXXX, XX/XX/XXXX. 

The check sent to them was {$6700.00} they have dispersed {$1900.00}. The inspection has been completed and is at 95 % as of XX/XX/XXXX. The difference of {$4200.00} has been denied and M & T states that they intend to keep the insurance money to put towards mortgage payment. I am currently in the 3 month trial period for modification and have been in compliance all along. I am requesting the insurance money be released. 

I am requesting the disbursement of the insurance money. Since I have owned this home I have been responsible for the repairs even during the forbearance and the mortgage company has never been interested in the cost of maintenance and repairs. The current value of my home vs the mortgage is well under 80 % LTV. The money that comes from a claim on insurance premium that I pay is for the home not for the mortgage payments. The mortgage company has PMI in the event I foreclose that is the only insurance they receive but I have been in compliance from day 1. There is no reason I should be penalized for having a temporary hardship and in good faith contacting the mortgage company who provided me what I thought was a helpful solution to now be abused in this way.