Consumer complaint received 2026-05-28 00:00:00
Product: Mortgage — VA mortgage
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: Rocket Mortgage, LLC
State: MD

Complaint narrative:
I am filing this complaint regarding serious lender and mortgage servicing errors, escrow mismanagement, and foreclosure misconduct involving my VA-backed mortgage loan. My husband and I are veterans, and our mortgage loan is backed by the Department of Veterans Affairs ( VA ). Since the beginning of this loan transaction, we have experienced repeated errors, negligence, misinformation, and mishandling by the lender/servicer that caused severe financial hardship to our family and ultimately resulted in the foreclosure sale of our home despite active requests to stop the foreclosure. The problems began during the original purchase and closing process for the home. Under the terms of the transaction, the previous owners were supposed to pay all closing costs. However, the lender provided incorrect figures to the realtor/title company, which created major issues during closing and caused unexpected financial problems for us. In addition, the lender failed to properly complete and process paperwork involving the land lease associated with the property. Due to the lenders errors and failure to properly handle the required documentation, we were informed shortly before closing that we would either have to purchase the land ourselves or risk losing the home purchase entirely. Because of these lender mistakes, we were forced to come up with more than {$7000.00} within approximately one week before closing in order to save the transaction and keep the home. This created immediate financial strain and depleted funds that had been intended for mortgage and home expenses. These issues were not caused by us as borrowers but instead resulted from lender errors and improper handling of the loan from the very beginning. I also have proof that during the closing process my realtor repeatedly attempted to contact the lender regarding these issues through phone calls, voicemails, and emails. However, the lender later falsely stated that they were waiting to hear from my realtor. I was personally on the phone with both my realtor and the lender representative at the same time when my realtor advised that he had in fact been repeatedly attempting to reach them without response. Over the years, additional servicing problems continued. One of the most serious issues involved our veteran-related property tax exemption. When we entered into a loan modification agreement, I immediately contacted the mortgage company after reviewing the modification documents because I noticed the property taxes were still being escrowed even though we qualified for a veteran-related property tax exemption. At that time, I was told the issue would be corrected and that I needed to request an escrow review. I then contacted the mortgage company every month requesting updates regarding the escrow correction and property tax exemption status. Eventually, I was instructed to contact the State directly. When I did, I was informed that the lender had never properly submitted the tax exemption paperwork when we originally purchased the home, despite previously telling me that it had already been handled. After learning this, I personally completed and submitted the tax exemption application myself. Around XX/XX/XXXX, I received approval from the State confirming the exemption had been approved. I also received confirmation that the State had emailed the lender/servicer regarding the exemption around XXXX or XX/XX/XXXX. Despite this, the servicer still failed to properly correct the escrow account. I continued calling and was repeatedly told they would review the escrow or look into it, but no meaningful action was taken for months. It was not until XX/XX/XXXX, after I spoke with a representative named XXXX, that the escrow issue was finally corrected near the end of XX/XX/XXXX. However, by that point, the improper escrow calculations had already caused our monthly mortgage payment to increase by approximately {$600.00} {$700.00} per month and caused significant financial hardship. When I asked XXXX about the late fees and charges that accumulated as a result of the lenders failure to timely correct the escrow account, she told me she would call me back within 23 days. I never received a return call. I later attempted multiple times to reach her again and was repeatedly told she was unavailable and that messages would be sent requesting she contact me, but I never received a response. In addition, I was contacted by a representative who stated he was supposed to perform an estimate or inspection related to the foreclosure process. I explained the entire situation to him, including the escrow problems and ongoing attempts to resolve the account issues. He advised me that the situation did not seem right and stated he would get back to me after looking into the matter further. I never received a follow-up call from him either. The improper escrow calculations and inflated monthly payments caused substantial financial hardship for my family and contributed to the default situation that eventually led to foreclosure proceedings. In addition, my husband experienced serious medical and mental health issues during this time related to his VA XXXX status, including hospitalization and ongoing treatment. We were actively attempting to resolve the loan issues and work with the lender and the VA to prevent foreclosure. Most concerning is that the Department of Veterans Affairs requested postponement of the foreclosure sale multiple times before the auction occurred. I have documentation showing the VA submitted foreclosure postponement requests on XX/XX/XXXX and again on XX/XX/XXXX regarding the foreclosure sale scheduled for XX/XX/XXXX. The communications specifically stated that a loss mitigation application was under review and requested a XXXX postponement of the foreclosure sale. Despite these requests from the VA, the servicer proceeded with the foreclosure auction on XX/XX/XXXX. I believe the servicer failed to properly review and respond to active loss mitigation efforts and failed to adequately coordinate with the VA regarding this XXXX loan. The foreclosure sale appears to have moved forward even though postponement requests had been submitted and acknowledged. The combination of the lenders original closing and land lease errors, the escrow mismanagement, inflated mortgage payments caused by improper tax escrowing, failure to timely correct the account despite repeated notice, lack of communication and follow-up, and the decision to proceed with foreclosure after VA postponement requests caused severe financial and emotional harm to my family. I am requesting a full investigation into the origination and servicing of this loan, the escrow mismanagement, the foreclosure process, and the servicers handling of the VA postponement requests. I am also requesting review of whether the foreclosure sale should be reversed due to these servicing and foreclosure issues. I am attaching supporting documentation, including proof of the VA postponement requests, escrow documentation, tax exemption records, communications related to these issues, and records supporting the lenders errors during the original closing process.

Company public response: Company believes the complaint provided an opportunity to answer consumer's questions
Company response to consumer: Closed with explanation