Consumer complaint received 2026-03-06 00:00:00
Product: Mortgage — FHA mortgage
Issue: Struggling to pay mortgage — Applying for or obtaining a modification, forbearance plan, short sale, or deed-in-lieu
Company: MIDFIRST BANK
State: WI

Complaint narrative:
XX/XX/XXXX called XXXX Mortgage to find out what documents lender needs to complete a short sale. Call center representative told me I needed to complete a 3rd party authorization for that information. XX/XX/XXXX called XXXX Mortgage was told my 3rd party authorization was rejected because it is not a XXXX Mortgage form and electronic signatures are not allowed. XX/XX/XXXX called XXXX Mortgage to check status of 3rd party authorization. It was received, but not reviewed. XX/XX/XXXX called XXXX Mortgage and was told I should be calling XXXX and not XXXX was told it's 30 days to review for short sale and a short sale application must be completed. This is the first time in 30 days and 4 communications that we are being told this is the most important step in the short sale process. XX/XX/XXXX called XXXX Mortgage and they still don't have authorization to speak to me. They can't tell my why my 3rd party authorization has not be approved. Was told that a verbal authorization from the property owner over this phone call would be good for 30 days ( that was a lie ). It will be 30 days to review 3rd party authorization and short sale application. XX/XX/XXXX home owner received letter via US mail that short sale application was approved. XX/XX/XXXX followed the instructions on the short sale approval letter to email the offer to purchase and received email confirmation XX/XX/XXXX completed another 3rd party authorization form online through the mortgagees app. XX/XX/XXXX was told my 3rd party authorization is declined because I am a XXXX and they do not authorize XXXX to be 3rd XXXXarties. Application for short sale was closed out because the offer to purchase was not received by XX/XX/XXXX. ( Read that again, the application for short sale was closed before the deadline to receive documents requested that they received on XX/XX/XXXX. ) Went through short sale application again over the phone with XXXX Mortgage 's call center representative which will take another 30 days to review. XX/XX/XXXX Reached out to HUD approved counselor per the letters mailed to the home owner. The counselor states there's nothing she can do if the home owner is attempting a short sale. ( This step was probably a time waster in order for the foreclosure to be successful. ) XX/XX/XXXX call to XXXX Mortgage home owner is accepted into the short sale program. XXXX should be contacting me and it will be XXXX hours for my 3rd party authorization to be approved. The housing counselor 's 3rd party authorization is approved. XX/XX/XXXX spoke to XXXX Mortgage 's short sale department for confirmation that a satisfaction for a lien on title was received. Appraisal was not in yet. I should be receiving communication from XXXX Mortgage XX/XX/XXXX received voicemail from XXXX Mortgage XX/XX/XXXX returned call to XXXX Mortgage and they stated they can not tell me why they called me because I am not an authorized 3rd party. THEY CALLED ME!!! Short sale has been closed out due to no response. When asked what response they were looking for the offer to purchase needed to be amended and changes to the preliminary HUD made. They communicated this to the home owner via email and required a 5 day return response. This is the first time XXXX has decided to communicate via email to the home owner requiring a 5 day response. Had the home owner complete another 3rd party authorization and short sale application. XX/XX/XXXX Call to XXXX Mortgage. Still not authorized as a 3rd party. Was finally told do not disclose that I am a XXXX on the 3rd party document - 4 months after my first call to begin the short sale process. The 3rd party authorization and the short sale application will take 30 days to review. I am aware from the court documents provided by the home owner that the home owner 's redemption period expires XX/XX/XXXX. XXXX Mortgage does not have a hold on the foreclosure and is proceeding with the action. Call center representative confirmed this with her supervisor after I was told there was no supervisor for the home owner and myself to speak to. Was told they received the offer to purchase on XX/XX/XXXX. I confirmed with her that is false information as the offer was emailed in XXXX and the XX/XX/XXXX document was the updated preliminary HUD that I, the XXXX, sent. Call center representative agreed with this. The home owner and I have been in a never ending charade of do this and do that with little to no progress. When we call to speak to a supervisor or the short sale/foreclosure department we can not get through to obtain solid answers. As this is an FHA loan I feel XXXX is not interested in doing a short sale as they will be made whole by HUD once foreclosed on. As we are running out of time I have also asked for XXXX 's deed in lieu procedure and they stated they can not provide that while a short sale is being attempted. Seems like further evidence that foreclosure is the preferred end to a seller being delinquent. Furthermore if the seller wants to change their mind and pursue a deed in lieu that discussion should be available to the property owner at any point in time prior to the actual foreclosure. By the time XXXX allows the home owner to discuss completing a deed in lieu it is entirely possible that the home owner will have already been foreclosed on.

Company public response: Company has responded to the consumer and the CFPB and chooses not to provide a public response
Company response to consumer: Closed with explanation