Consumer complaint received 2015-12-29
Product: Mortgage — FHA mortgage
Issue: Settlement process and costs — 
Company: U.S. BANCORP (MI)

Hello, I am contacting you regarding a loan modification agreement that I received. Due to the mortgage crisis my home is severely under water. Further, due to the increased amount of crime in the area and the need for more space I opted to apply for a short sale versus walking away from my home. I initially had contact with Relationship Manager, XXXX XXXX, at U.S. Bank Home Mortgage regarding a short sale. She informed me that my paperwork was reviewed and I qualified for a loan modification instead of a short sale. I agreed to the loan modification because I wanted to take the best path to protect my credit as much as possible. Additionally, I would be in a better position to find a renter if the payments were lower without me having to make up the difference between the rent payments received and my mortgage payment. She also informed me that the terms of the agreement would remain the same ( 13 years remaining on my mortgage ) ; however, the monthly payments would be reduced. She further stated that I would have to undergo a 90 day trial period and after the trial my payments would remain the same, decrease or increase slightly ; however, the number of years remaining on the loan would remain the same. I agreed to the terms and entered the trial period. 

I received a telephone call indicating that I successfully completed the trial period and that I would be receiving the final modification package in the mail. I received the paperwork for my final modification and the information appeared to be different from what I agreed to. I contacted my current relationship manager, XXXX XXXX, and was informed that the terms of the loan would be 30 years. I informed him that that information was different from what I was given by XXXX. I requested to speak with his manager, and I was informed that she was on vacation. I was transferred to another supervisor who informed me that the notes clearly state that XXXX informed me that the terms of my loan would remain the same and I only had 13 years remaining on the loan and would have 13 years remaining after the modification. She stated that she does not know where XXXX got that information from and that she was sorry for her giving me that incorrect information because she should have known better. She informed me that she no longer works for the company. 

It should be noted that the terms of the mortgage agreement is not listed on the original paperwork that I received in XX/XX/XXXX. Therefore, I agreed to the program based on the expertise of your employee. 

Further, I do n't fell like I should be penalized based of the incorrect information provided by the bank 's employee. I tried to do the correct thing by contacting the bank in an attempt to mitigate the damages instead of walking away from the home like many others have done. Further, a review of my credit reveals that it has been reported to the credit reporting agency that I was late on my XX/XX/XXXX 's payment ; however, I made all of the payments as agreed. I was not informed that being on a trial payment plan would result in a negative credit report. Nor would I have signed up for the program if I had known that my mortgage would be extended 30 years and not remain at the current terms with lower payments. This entire ordeal has been extremely stressful based on the fact that I was informed that if I wanted to apply for a short sale now I have to decline the modification and start the entire process over again. I think that the original terms should be honored as the notes clearly state that that was the information that was provided to me. I would appreciate it if a manager would review the account to see if anything can be done regarding this matter. 

Thank you in advance for your attention to this matter. 
XXXX XXXX