Consumer complaint received 2017-08-23
Product: Mortgage — Home equity loan or line of credit (HELOC)
Issue: Trouble during payment process — 
Company: CITIZENS FINANCIAL GROUP, INC. (MA)

My name is XXXX, and my address is XXXX XXXX XXXX XXXX, XXXX, Massachusetts XXXX. I believe that my father XXXX XXXX XXXX was born in XX/XX/XXXX and after suffering from XXXX, among other things, XXXX XXXX in XX/XX/XXXXwas the victim of predatory and deceptive mortgage origination and servicing tactics related to a home equity line of credit that was established in XX/XX/XXXX. To my knowledge, the Bank that is the current holder of the loan at issue, its predecessor bank, and the bank in which the loan originated, are Citizens Bank, N.A., f/k/a RBS Citizens, N.A., s/b/m XXXX XXXX XXXX XXXX, respectively ( the Bank ). To my knowledge, the relevant loan number is  XXXX, and file number is XXXX. 

My father entered into a loan agreement that used his residence as collateral : XXXX XXXX XXXX XXXX, XXXX, Massachusetts XXXX. He used the proceeds from this loan for improvements on this property. However, my father was never an owner of this property. Instead, XXXX XXXX XXXX XXXX was owned by my fathers second wife until her death in XX/XX/XXXX. I understand that the Bank should never have offered my father a loan using property he did not own as collateral. This was the Banks error. Yet, instead of acknowledging this Bank failure, the Bank has attempted to seek to enforce the terms of this illegitimate loan by attaching my home, XXXX XXXX XXXX XXXX, through means including threats of foreclosure in XX/XX/XXXX and most recently on XX/XX/XXXX, as well as a deceptive letter related to my tax responsibilities sent on XX/XX/XXXX. Accordingly, based on the below, I respectfully request your assistance to resolve this matter. 

OVERVIEW In XX/XX/XXXX, my father owned XXXX XXXX XXXX XXXX, and I lived there. In the application for the loan, my residence, XXXX XXXX XXXX XXXX, was listed as collateral. However, XXXX XXXX XXXX XXXX, my fathers residence is the only collateral listed in the final loan agreement. In XX/XX/XXXX, I was added to the deed of XXXX XXXX XXXX XXXX as a joint tenant along with my father. My father XXXX  in XX/XX/XXXX. His wife XXXX in XX/XX/XXXX. My fathers wifes estate, administered by her children from a previous marriage, sold XXXX XXXX XXXX XXXX in XX/XX/XXXX to an unrelated third party. Based on questions to Bank representatives and a review of publicly available information, the Bank neither at the initiation of the loan in XX/XX/XXXX, nor in the time since has made any attempt to confirm the actual ownership of XXXX XXXX XXXX XXXX, which was the only property used as collateral on the disputed loan document. 

I, along with my sister who is the Executor of my fathers estate, have extended much effort to resolve the attempts to foreclose on XXXX XXXX XXXX over the last eight-plus years. The Bank has consistently failed to provide the necessary information to properly validate the loanas we have requested on numerous occasions. The Bank has failed to respond to two offers-in-compromise. We provided these offers, including hardship and settlement letters, as a sign of good faith and in an effort to end the Banks harassment. Further, the Bank has disregarded our written and oral attempts to dispute the debt, validate the debt, or ensure that our father actually entered into the loan with knowledge of what he was agreeing to. Instead, the Banks service representatives and foreclosure attorneys have misrepresented information, their respective planned actions, and flatly persisted in bullying our family. 

Although I have contacted and attempted to respond to the Bank throughout this last decade, I have not been able to stop this harassment or the threats to my home. As I am once again facing an attempt by the Bank to foreclose on my homewhich as I noted above was not used as collateral for the loanI would like to file an official complaint and request an investigation carried out by your Agency. I have limited means, and I need the help of my government to end this harassment. I have attempted to put together a timeline of relevant events, which is included below. This timeline is based on my best recollection of facts, and I have also provided some supporting documentation. 

RELEVANT EVENTS RELATED TO CONCERN WITH LOAN ORIGINATION 1. My father until his death banked at one bank : a Citizens Bank branch office located in XXXX, Massachusetts, which was close to his home. Upon retirement, his only source of income was from his Commonwealth of Massachusetts pension fund. He received approximately {$1600.00} per month, which was deposited directly into his account at Citizens Bank. His banking activities were relatively consistent over time ; {$1600.00} came in, and he wrote checks from this account for generally the same fixed living expenses e.g., utility bills etc. He did not use online banking or ATMs. Instead, he relied on the personal bankers within the Bank. As his health declined, he continued to go into the branch for his banking activities. At a certain point, however, my step-mother or I would drive and accompany him at the Bank. In my impression, he was always friendly with the bank staff. He knew them, and they knew him. 

2. On or around XX/XX/XXXX, my father signed a home equity loan application at the same XXXX Citizens Bank branch. In the application, his residence was listed as XXXX XXXX XXXX XXXX, XXXX MA XXXX, and XXXX XXXX XXXX XXXX, XXXX MA XXXX was listed as collateral. The loan application does not have a check mark under use of property where the options are owner-occupied primary residence, vacation, or investment. Under type of property, there is a check mark selecting single-family. Although my fathers sole income was his pension of {$1600.00}, the handwritten application reads that his gross income was {$2400.00}. Based on the handwriting, my father did not complete the application form for himself. However, the document does bear his signature. 

3. On or around XX/XX/XXXX, an Open-end Mortgage Home Equity Credit Line for a maximum of {$25000.00}, between Citizens Bank and XXXX XXXX XXXX was received and recorded by the XXXX XXXX XXXX of Deeds. This loan document registers XXXX XXXX XXXX XXXX, XXXX, MA XXXX as collateral for the loan. To be clear, the loan application listed the property at XXXX XXXX XXXX as collateral, yet the actual recorded loan document only identifies the collateral as XXXX XXXX XXXX, which my father never owned. 

4. Based on a review of my fathers records, his bank account that was linked to this line of credit was at the same bank. Any payment was automatically deducted from this account. 

5. To my knowledge, at the time of his death in XX/XX/XXXX, the loan was not in default. Instead, the Bank took an automatic withdrawal each month from his bank account. To my knowledge, this payment was for interest only, and not the principal associated with the loan. 

6. Based on a review of my fathers records, he only used this home equity line of credit to make improvements on XXXX XXXX XXXX XXXX wifes home in which he lived. 

7. Based on my understanding of the mortgage origination process that I have gained through this process, I am not aware of a financial basis that would have qualified my father for a {$25000.00} line of credit. A Banker at Citizens Bank completing an application for him would have known that his assets would not make him eligible for this line of credit. Further, a quick review of his account would make it clear to any Banker that his gross income was overstated, and his monthly expenses accounted for nearly the entirety of his actual monthly income from his pension. It stands to reason that a Banker would have also known that the only way he would have been able to pay this principal would be if he sold the home listed as collateral. 

8. Finally, as the Bank staff knew my father, I fear that due to his age, mental state, and perhaps his trust of the local bankers, that he indeed did not question the product, and he was taken advantage of as he entered into this agreement. 

RELEVANT EVENTS RELATED TO ADMINISTRATION OF ESTATE AND BANK ATTEMPTED FORECLOSURE XXXX. My father did not pass away with a large estate. His estate was not able to fully cover even his funeral costs. 

10. At the time that my sister was originally administering the Estate in XX/XX/XXXX, despite our belief that the debt was not legitimate, she offered the Bank the entirety of our fathers checking account and the proceeds from the sale of his car in a good faith effort to satisfy this debt. The Bank continued to accept payments from his checking account, but did not seek the proceeds of the sale of the carat which time we reasonably believed that the remainder of the debt was discharged. However, the Bank has persisted in its harassment to collect the remainder of the outstanding balance over time. 

11. In XX/XX/XXXX, my sister as Executor of the estate received a letter from foreclosure lawyers, XXXX XXXX  XXXX of XXXX, Massachusetts, representing the Bank in an attempt to foreclose on the property. To our recollection, both XXXX and XXXX XXXX XXXX were referenced within the Banks notice. We responded in writing requesting information about the loan. We do not have a record of that. But, we do have a cover letter dated XX/XX/XXXX in response from the Banks lawyers, which references receipt of our prior letter. 

12. Based on a search of public records, I know that a Complaint was filed by XXXX XXXX XXXX in the Commonwealth of Massachusetts Land Court, dated XX/XX/XXXX, which moved to foreclose on XXXX XXXX XXXX XXXX. As noted throughout my letter to your Agency, XXXX XXXX XXXX XXXX, was not the property listed as collateral on the loan document. 

13. XX/XX/XXXX, as we did not believe that the Banks lawyers were reasonably responding to our requests to perform a loan validation related to this loan and foreclosure, we filed a complaint with the Massachusetts Attorney Generals office. We do not have record of this complaint. We have checked with the Massachusetts Attorney Generals office, and the office does not have records of this inquiry either. However, after we made this complaint, and the Massachusetts Attorney Generals office got involved, we did not hear anything more from the Banks foreclosure lawyers, XXXX XXXX  XXXX. Based on a review of publicly available records from the Commonwealth of Massachusetts Land Court, the lawyers indeed did not file anything further. Instead, to my understanding, the case was closed for statistical reasons in XX/XX/XXXX, which I have learned is the term used when a case has been indefinitely inactive and the filing party has not responded to inquiries from the court, which include an Order of Notice for Service. 

14. Based on my handwritten notes, in XX/XX/XXXX, either I or the Estate continued to receive communication regarding this loan. I spoke with several Bank divisions and representatives in the following Bank departments : mitigation department, loan department, the foreclosure department, the Banks foreclosure representative, and customer service at CCO Mortgage. 

15. Although the Bank has notice of the official address of the Executor, which is a XXXX, XXXX address, the Bank has persisted in sending announcements to the Estate to either XXXX XXXX XXXX XXXX or XXXX XXXX XXXX XXXX. In XX/XX/XXXX, the Estate received, despite it being sent to XXXX XXXX XXXX XXXX, a notice to cure the outstanding debt that had a total balance listed of {$24000.00}. The notice stated that if the default was not cured by XX/XX/XXXX, the Bank may take steps to terminate your ownership in the property by a foreclosure proceeding or other action to seize your home. Although XXXX XXXX XXXX was listed as the addressee of this Notice, through my widowed step-mother, I received the notice. As my home had previously been the target of the Banks foreclosure attempts, I immediately called the Bank to once again try to resolve this issue. 

16. I spoke with numerous Bank representatives in customer service, the loss mitigation department and the foreclosure department to make it clear that there was no association between my fathers loan and my property. At the conclusion of these conversations, it was my understanding that the Bank would stop contacting me and the Estate regarding this account. I believed that the loan had been discharged. 

17. Subsequent to the conversations with the Bank, I followed up again as I had not received anything in writing from the Bank indicating that the matter was resolved. At that time in XX/XX/XXXX, based on my handwritten notes, I was given direction by the Bank to submit a settlement and hardship letter. 

18. In an attempt to finally resolve this matter, before XX/XX/XXXX, I wrote a settlement and hardship letter to the Bank, which referenced account number XXXX. In this letter, I noted, among other things, the following : a. As I discussed several times with representatives of the bank the lean with respect to my fathers loan is on a property other than mine. Through a great deal of research on my part I was able to find that there is a cloud on my deed by the equity loan that my father inquired from Citizens bank. I would like to resolve this matter as soon as possible ; in doing so, I would like to make an offer of {$10000.00} ( XXXX XXXX dollars and XXXX cents ) to close off this account. 

19. This settlement and hardship letter/offer-in-compromise went unanswered. 
20. On or around XX/XX/XXXX, I wrote an additional settlement and hardship letter, which read, in relevant part, as follows : a. This is in addition to the other hardship letter that you requested. I am presently un-employed and have been for the past 8 months my un-employment ran out about two months ago. The money that was offered to settle this matter on behalf of my deceased fathers equity loan I am borrowing to clear this matter up as discussed with several representatives of the bank 21. This additional settlement and hardship/offer-in-compromise letter also went unanswered. 

22. Based on my handwritten notes, I called to follow up on these letters and spoke to several Bank departments including the foreclosure department and loss mitigation department. None were able to offer a clear resolution. Instead, on or around XX/XX/XXXX, I was directed to open a new account number. At the time, I wrote, Dont know why. 

23. At some point during this time, based on my handwritten notes, I sent 60 days of bank statements as well as a copy of my fathers death certificate. 

24. Further, at some point during this time, based on my handwritten notes, I sent paperwork to verify my income. 

25. In XX/XX/XXXX, the Estate, addressed to the correct address of record in XXXX, XXXX, received a notice from CCO Mortgage that read in relevant part : Your account has been referred to me because we have received documentation from you indicating you would like a loan modification for the property at XXXX XXXX XXXX, XXXX MA XXXX. Neither my sister, on behalf of the Estate, nor I, at any time, requested to modify the loan. This is particularly true as neither the Estate nor I have any legal responsibility and/or claim to XXXX XXXX XXXX XXXX. 

26. Based on my handwritten notes, in XX/XX/XXXX or XX/XX/XXXX, I faxed paperwork to Citizens Bank with property tax information for both XXXX and XXXX XXXX XXXX XXXX. 

27. I do not have complete records of any correspondence with the Bank from XX/XX/XXXX/XX/XX/XXXX to the present. 

28. Recently, the Estate received a letter dated XX/XX/XXXX from the law firm of XXXX, XXXX, XXXX XXXX, representing Citizens One Home Loans, which related to this loan. 

29. In response, on XX/XX/XXXX, my sister as Executor responded, in relevant part, with the following : a. I am the executor of the estate of XXXX XXXX XXXX. I received a letter dated XX/XX/XXXX from Citizens One Home Loans regarding loan number XXXX. XXXX XXXX XXXX in XXXX. I no longer have easy access to the materials related to my earlier extensive correspondence with Citizens Bank regarding this loan both due to the passage of time and because I believed that we had satisfactorily resolved this matter. Can you please forward to me a copy of the complete set of the materials you have relating to this loan so that I may see what the bank is pursuing? 

30. The Banks lawyers did not respond to this request to verify the debt. 

31. In a letter dated XX/XX/XXXX, which was sent to XXXX XXXX XXXX XXXX, XXXX XXXX XXXX XXXX, and the address on file for the Estate, XXXX, XXXX, XXXX XXXX sent a letter which read, in relevant part, the following : a. RE : XXXX XXXX XXXX XXXX, XXXX MA Loan No. : XXXX File No. : XXXX .. 
Please be advised that the Note is in default for breach of the conditions contained in the Loan Documents, including your failure to make monthly payments due under the Note. The Lender does hereby elect to accelerate said Note and declares the entire balance due and payable forthwith and without further notice. 
As of the date of this letter, the amount secured under the mortgage loan is {$33000.00}. Because of interest, late charges and other charges that may vary from day to day, the amount due on the day you pay may be greater. 
Unless you notify this office within 30 days after receiving this notice that you dispute the validity of the debt or any portion thereof, this office will assume the debt is valid. If you notify this office of your dispute in writing within 30 days after receiving this notice, we will obtain verification of the debt and will mail you a copy of such verification. Upon written request, within the 30-day period, we will provide you with the name and address of the original creditor, if different from the current creditor. 

32. Also, although neither I nor the Estate has been served, I have performed a public records request, and I am aware that the same law firm, in a document dated XX/XX/XXXX, filed a Complaint to Determine Military Status. I have learned that this is likely the first step to a foreclosure proceeding. Further, the Complaint identifies me as the Defendant and it states that it relates to a mortgage covering XXXX XXXX XXXX XXXX, XXXX, and more particular described in said mortgage. 

33. On XX/XX/XXXX, the Estate sent a letter to XXXX, XXXX, XXXX XXXX that, in relevant part, disputed the debt, requested validation of the debt, and was stated to serve as a RESPA Qualified Written Request, and TILA Request for Information and Complaint. Within the letter, my sister on behalf of the Estate, requested a confirmation of receipt of the letter within 5 days and an audit of the account within 30 days. As the Bank has referenced both XXXX and XXXX XXXX XXXX XXXX in its correspondence, the Estate requested such information related to both properties. To my understanding, accounting for relevant holidays, the 30 day time period for a response from the Banks attorneys fell on XX/XX/XXXX. 

34. The Bank has not provided any response to the XX/XX/XXXX request to, among other things, validate the debt. 

35. Also on XX/XX/XXXX, the Estate at the correct XXXX XXXX address received a letter from Citizens One Home Loans, which read in relevant part the following : Parcel No : XXXX. 
This situation is very serious and must be given your prompt attention. 
A recent review of tax records has identified delinquent real estate taxes and/or special assessments on your property. We, as the lender, have a security interest in the mortgage property and are entitled to be assured that the real estate taxes and/or assessments are paid on time. 

In the event that you are unable to provide us with acceptable proof of payment within 30 days of the date of this letter, we may without further notice elect to advance payments of the delinquent taxes, special assessments, charges, penalties, and interest as provided in your loan documents. Furthermore, an escrow account may be established for payment of future taxes. Your monthly payment will be adjusted accordingly. 

36. In relation to the above XX/XX/XXXX letter from Citizens One Home Loans, all payments for taxes on XXXX XXXX XXXX XXXX, XXXX number XXXX, are up-to-date. Further, on XX/XX/XXXX, XXXX sent a tax bill for XX/XX/XXXX. This bill showed no delinquency. Although it was quite alarming to learn of the Banks XX/XX/XXXX letter and its characterization of my tax responsibility, to my knowledge, there is no delinquency on the tax payments for my home. 

* * * I was born in XXXX, and I have spent my life in XXXX. I have raised my children in XXXX, and I am a member of this community. Our neighbors are our friends. This is my home. I am seeking your help as it has become an insurmountable task to continue to attempt to take on a Bank that likely enrolled my father in a product without qualification or his full understanding and thereafter despite the fact that my property XXXX XXXX XXXX XXXX is not listed on the loan document, has attempted to foreclose on my home. A fair resolution of this complaint is for the Bank to stop attempting to attach my home to this loan, and for any outstanding debt to be discharged.