Consumer complaint received 2015-07-20
Product: Mortgage — FHA mortgage
Issue: Loan modification,collection,foreclosure — 
Company: U.S. BANCORP (IL)

I am seeking help regarding my options on how to proceed with a mortgage modification from US Bank. I have contacted XXXX real-estate attorneys, and XXXX indicated the course of action that US Bank has taken is likely fraudulent. Neither had experience with this matter and recommended I contact HUD for advice on how to move forward. They also informed me that if I retained a private attorney, it would likely cost thousands of dollars to fight the team of US Bank attorneys. I teach full-time, and I am a single mother of XXXX kids. I do not have any plans to move for at least 5 years, but I also do n't have the resources for a lengthy legal battle. I feel as though I have done everything US Bank has asked me to do, and that they have acted in an unlawful manner. 

After a loss of income at in XX/XX/XXXX, I qualified for a HAMP loan modification. I successfully completed the three month trial period, and then signed, notarized, and returned the final Loss Mitigation paperwork to US Bank by the required date of XXXX XXXX, XXXX. I began paying the new monthly mortgage amount on XXXX XXXX, XXXX, and I received a phone call from my Relationship Manager at US Bank that the paperwork was received. I asked an attorney to look into this matter, and he told me that the original set of documents from XXXX XXXX was the only one that was recorded. 

In XXXX XXXX, I was preparing to travel to present at a conference when I received another packet from US Bank. When I glanced at it, it looked exactly like the paperwork I signed in XXXX. It even had the XXXX XXXX date at the top. I assumed it was a copy of the paperwork I had already signed, so I did n't think much of it, and I went to my conference. 

I continued paying my monthly mortgage, and in XXXX XXXX, I started receiving phone calls that I was behind on my mortgage and at risk of going into foreclosure. Needless to say, I was shocked! The US Bank representative informed me that the last XXXX cashier 's checks had been returned because they were not the in the correct amount due! I was able to find XXXX of the returned cashier 's checks, but actually had to report the other XXXX as lost. Thankfully, I kept the cashier 's check receipts and was able to retrieve those funds from my bank several months later. 

The US Bank Relationship Manager informed me that I would have to reapply for HAMP, which I did. The application process took several months. I qualified again, and successfully completed my XXXX three month trial period in XXXX XXXX. I received a new packet of loan modification documents and noticed that the Subordinate Note was significantly higher than the loan documents I had signed in XX/XX/XXXX ( from {$12000.00} to {$52000.00}! ). 

A friend of mine who practices law told me that the banks have been taking advantage of consumers by getting them in situations where they have no options but to sign documents that tag on large subordinate notes to HAMP loan modifications. He said that the banks are violating many consumer protection laws, paperwork often disappears, many records are " lost, '' and they convince borrower 's to sign mortgage modifications that are not in the consumer 's best interest while claiming to be helping consumers. He told me that these practices are illegal, but that the banks are getting away with them by creating situations where borrowers have no other choices and/or do not have the means to seek legal counsel. 

I sent an email to the US Bank Relationship Manager on XXXX XXXX, XXXX. I also called her and expressed my concerns. At one point, I said, " This does not seem like a very smart financial move. Would you sign these papers? Would you recommend a loved one sign them? '' And she said, " No. I would not. '' I have since received a fourth set of loan modification documents. The latest amount of the subordinate loan puts me " under water '' by $ XXXX-XXXX. 

Thank you very much for your help.