Consumer complaint received 2024-03-11
Product: Mortgage — Other type of mortgage
Issue: Struggling to pay mortgage — Applying for or obtaining a modification, forbearance plan, short sale, or deed-in-lieu
Company: FIRST UNITED BANK AND TRUST COMPANY (AL)

I took out a construction loan with the bank to build a house in XX/XX/XXXX. The bank would approve the progress of the build on the house and give the contractor money directly during the construction process. I would agree to the release when the contractor submitted receipts or information regarding the build. However, the bank agreed to finalize all release of funds to ensure that the build was progressing forward and would give me updates on the progress of the build. During every phase of the request for funds the bank would tell me the amount of progress that was done on the house along with photos from their " independent '' investigator. Again, the bank told me that they required this before releasing money to the contractor. However, I notified the bank on several occasions that the contractor was not completing the work that they said was being done. I even asked them via email what it would require on my part to get a new contractor approved by them. They informed that such a process would be very timely and advised me to " work it out '' with my contractor. After several months of seeing little to no progress being done on the house, I contacted that bank and asked them not to release anymore money to the contractor until the work that was already paid for was completed. They sent an email to the contractor and asked when the work would be done ( work again that they had said previously was complete ). At that time the bank informed me that 75 percent of the house was complete. However, I eventually discovered when I consulted with two different independent contractors that barely 50 percent of the house was done. I have numerous emails between the bank, the contractor and myself over the span of a year speaking to this issue. I soon discovered around XXXX of XXXX that not only did the contractor misappropriate funds, but in XX/XX/XXXX I received word that the contractor XXXX XXXX XXXX XXXX. After informing the bank of his XXXX, the bank denied any further loan extensions and called the complete loan due in XX/XX/XXXX. The bank told me and my attorney that since the contractor was not their client that I am solely responsible for the debt owed on the construction property, even though they was incorrect about the work they informed me had been completed on the property. Since XX/XX/XXXX I have sent countless additional emails, documents ( sometimes the same documents several times ), and phone calls trying to resolve this issue. Both me and my real estate agent have talked to different bank representatives and we both received different and sometimes conflicting information. Between XX/XX/XXXX and XXXX XXXX the bank would send me a monthly bill asking for a monthly payment. However, when I logged into the system they wouldn't allow me to pay the bill amount online nor allow me to pay it on the phone when I would call. During this entire time I ( along with my real estate agent ) have been trying to get approved for a short sale, with no progress. This past Friday XX/XX/XXXX a representative from the bank called me and suggested that my real estate agent or myself reach out to a " third party vendor '' because he was concerned that my application for a short sale might not get approved by the underwriter because of the " uniqueness '' of my issue. When my real estate agent and myself called the number given to us it didn't work! Now the bank has placed the house in foreclosure. I have had my attorney talk with the bank along with my real estate agent for going on a year about this issue and we have not been given any clear way to resolve it.