Consumer complaint received 2025-08-19 00:00:00
Product: Mortgage — Home equity loan or line of credit (HELOC)
Issue: Struggling to pay mortgage — Trying to communicate with the company to fix an issue related to modification, forbearance, short sale, deed-in-lieu, bankruptcy, or foreclosure
Company: NAVY FEDERAL CREDIT UNION
State: TN

Complaint narrative:
I am filing a complaint regarding my home equity line of credit that is a second lien behind my first mortgage. I want to keep my home and am asking the company to evaluate real retention options rather than forcing a short sale.

Timeline and facts XX/XX/XXXX : I left my job to care for my daughter after a medical emergency. In XXXX I also had XXXX twice, which reduced my ability to work and caused financial hardship. 
XXXX to present : My first mortgage with another lender has been paid on time and remains current as of today. 
XXXX : Due to the hardship and a failed real estate deal, I fell behind on the HELOC with the company named in this complaint. As of XX/XX/XXXX I am approximately five monthly payments delinquent. Missed payments began around XX/XX/XXXX. 
About XX/XX/XXXX : I submitted a complete hardship or loss mitigation package through the companys process. The package included a hardship letter, bank statements, tax returns, proof my first mortgage is current, and a proposed budget.

About XX/XX/XXXX : The company told me my only option was a short sale. I declined because I want to keep my home. I was not provided a written explanation of any retention options, investor guidelines used, or the screening results. 
XX/XX/XXXX : I requested reconsideration in writing and asked for a 30 day collection hold while the file is reviewed. I also requested, in writing, the list of all retention options considered for my HELOC, the eligibility criteria, the policy or investor guideline relied on to deny retention, the data used to evaluate my file, and a single point of contact. I am waiting for a complete response.

Amounts Approximate HELOC principal balance : {$76000.00} Regular monthly payment on HELOC : {$730.00} Delinquency : about 5 payments x {$3900.00}, plus late fees of about {$950.00}.

First mortgage monthly payment : {$1400.00}, current and paid through XX/XX/XXXX. 

Actions I have taken Submitted a complete hardship package and asked for retention options such as short term forbearance, a structured repayment plan, a modification that converts the HELOC to a fixed affordable payment with arrears capitalized, or a payment deferral of arrears to the end of the loan.

Declined a short sale because I am seeking a keep my home..

Requested written information about the companys evaluation, policies, and decision.

Contacted HUD-approved housing counselors to assist with the appeal and communications.

Continued to keep my first mortgage current.

What I am asking for Require the company to conduct and document a real review of retention options for my HELOC and provide a written response explaining the options considered, eligibility criteria, and reasons for any denial.

Assign a single point of contact and place collection activity on hold for at least 30 days while the reconsideration is completed.

Provide an accurate, itemized accounting of the HELOC, including arrears and fees.

Correct or update any credit reporting if the company has reported inaccurate information related to this account. 

I am willing to provide any additional documents the CFPB or the company needs. I am simply asking for a fair evaluation of retention options so I can keep my home while I stabilize income.

Company public response: Company believes it acted appropriately as authorized by contract or law
Company response to consumer: Closed with explanation