Consumer complaint received 2016-10-19
Product: Mortgage — FHA mortgage
Issue: Loan servicing, payments, escrow account — 
Company: U.S. BANCORP (TN)

XXXX XXXX, appalled after seeing documentation, insisted this complaint be filed against U.S. Bank for numerous activities. The most recent, puts us at risk of losing our home. U.S.Bank is currently withholding a {$8100.00} insurance escrow, due to us, returned three full payments, holding XXXX more payments in temp.escrow, not applying them to our mortgage, while charging us large late fees, and proceeding with foreclosure. They have denied requests to lower the 6.8 % rate on our FHA loan numerous times.Their policies allowed an unlicensed contractor to scam us as they continued to pay him for substandard work/materials, ones we provided receipts for obtaining ourselves, insisting he was entitled to the contract amount without proof of services. They did not report him for sending them falsified and illegal documents, but instead refused to allow us to fire him, unless him and us sign their completion statement. This caused us to have to use our personal property insurance funds to complete the work on our home while they paid him. The man caused major electrical/wiring issues, risk for further damage or loss due to fire, ran up a large insurance payout, and caused our homeowners ins. policy to be cancelled. The bank obtained a ridiculously costly fourth place ins. policy and continued to bill us for it months after replaced and cancelled. When our mortgage statement finally lowered, XX/XX/XXXX, reflecting the policy cancelled XX/XX/XXXX, we paid the amount on statement, they mailed our payment back and began foreclosure proceedings. We had missed XXXX payments months earlier, in order make urgent repairs to make our home inhabitable and safe, while trying to obtain the escrow meant for these repairs. I am an XXXX, was head of household, but now XXXX, my XXXX, our only income, was not enough for the repairs and mortgage ( over 50 % of income ). We still have XXXX children at home. We have been denied mortgage assistance numerous times since XX/XX/XXXX. My name was left off our deed and mortgage despite we were married almost XXXX years prior. There was no positive reporting to the credit bureaus the first several years of the mortgage, we learned when my husband tried to finance a XXXX I urgently needed.They are now obtaining a credit check on my husband ( the only one on mortgage ), AND MYSELF, sometimes twice in one day, and continue to deny any assistance. One department has no idea what another department is doing, and when we call we are treated rudely, implying we are being dishonest, or referred back and forth between departments.Right now, they are telling us that no attempt to make a payment has been made in seven months, despite us offering to fax them their own documentation to prove otherwise. Our relationship manager, finally listened, and after months of calls, was told that the returned payments were a mistake, and a refund order would be opened.That counselor is no longer employed there, the new one informs me no such order exists or ever existed. We are now in foreclosure process after missing only XXXX payments, which would not have happened if we had he escrow, meant for such repairs, held since XX/XX/XXXX. They have returned three full payments, and are holding XXXX payments in escrow, demanding we pay a higher amount including the cancelled insurance policy we replaced. We continue to accrue late fees, now exceeding {$700.00}. We have provided them with receipts showing we are owed much more than the remaining escrow, which we will now need to be used to correct damages to our home, instead of reimbursment to replace our personal property. TN Dept. of Commerce and Ins. website clearly states the unlicensed " contractor '' broke the law in any ways and was paid money he was not entitled to. We intend to prosecute if offered the chance. U.S. Bank could not only have prevented this, but continues to refuse assist us to correct it