Consumer complaint received 2016-06-14
Product: Mortgage — FHA mortgage
Issue: Loan servicing, payments, escrow account — 
Company: TOWNE MORTGAGE COMPANY (IL)

I am XXXX years old. I purchased my first property for myself and my family in XXXX at XXXX XXXX XXXX XXXX. I purchased a XXXX unit building being converted to a XXXX unit dwelling under the HUD XXXX loan program. XXXX XXXX bank told me I qualified for approx. {$450000.00} to cover the cost and rehab. After six months into the qualification process which should have not taken six months, but I did n't understand that at the time because they kept saying they lost different paperwork, they lowered the loan to {$370000.00} based on an appraisal I questioned at the time and was not given a chance to have my own appraisal done of the property. At this point the seller wanted to walk away from the deal. I was also told I would have six months worth of mortgage payments included in the loan which was the only reason I selected this loan in the first place. When we finally closed in the property, and the escrow was set up. I received a mortgage booklet to begin payments the following month. I told them this was not correct. I got every excuse in the world from the bank who not only shorted my loan by over {$75000.00} to complete my property but now did not include the mortgage payments with the escrow money to rehab the property. They also assigned me a HUD XXXX consultant who granted fraudulent payments to what turned out to be a completely fraudulent contractor. As my home could not pass one home inspection from the City of XXXX. I have no working, plumbing, electricity, or heating. nothing is connected or completed. When I confronted the bank. They wanted to blame me the homeowner. Saying I signed off on payments to the contractor. I told them they appointed a HUD Inspector and I was paying him {$360.00} per inspection to make sure that the contractor was using the proper material and installing the mechanics of the building up to HUD and City of XXXX Building Code. I also was upset with the bank and asked them once to remove that inspector because he was allowing the contractor to work in the building without a Building License for which money was given him before he even began on our property. Before we could recover our money back from the bank because we told them they were responsible for under funding our loan, appointing a theft to be our building inspector and leaving us vulnerable to hiring a crooked contractor because none of the other contractors would take our rehab because they said we needed more money to complete the rehab they closed the bank abruptly and unexpectedly in XXXX 2016. We desire XXXX to take over our loan so that we may try to complete our rehab. We have paid our mortgage for almost two years on a building we can not live in. We are paying rent on an apartment also. I fear I am going to go into foreclosure because I have used up all the money I had and took money from my retirement just to stay afloat. I new bank took over our loan about three weeks ago and they wo n't call or contact me. I told them our story. This has not been the American Dream for me or my family. This process had been the American Nightmare. I* have a XXXX credit score so why I could n't get all the money I needed in the first place is beyond me. Maybe because I am an older XXXX XXXX, and I recently saw a report that people with credit scores like mine were given the worst loans imaginable because they were XXXX while their white counterparts were given more money on the same type of loan with fare worst credit scores. I just want to get more money to fix my building and live out my days in the home I purchased. I need someone to make this wrong into a right. I feel abandoned and helpless. I have been mistreated and looked over. As soon as the bank was finally ready to help me by restoring money into my nearly depleted escrow the bank closed down. I am sure it is because they defrauded others as well.