Consumer complaint received 2024-08-05 00:00:00
Product: Mortgage — FHA mortgage
Issue: Struggling to pay mortgage — An existing modification, forbearance plan, short sale, or other loss mitigation relief
Company: U.S. BANCORP
State: OR

Complaint narrative:
In XX/XX/XXXX my home was flooded due to burst pipes impacted by the winter storm in Oregon. The insurance company sent a check in XXXX for the repairs to almost 5 rooms impacted by flooding. I sent the check to US bank after speaking with their lost drafts department. They failed to give me the reference ID # needed for the check ( I would never have known about this process, because I dont work there ). They also didnt inform me about their policy of starting the inspection process over from the beginning for checks over {$40000.00}. I asked my insurance company to cancel and reissue the check, but they refused. By not telling me the check disbursement policy or my reference ID, the initial disbursement of {$10000.00} was delayed. I was instructed by US bank to send an expedited shipping label at my expense. I sent 3. US bank continued to delay the process, causing the shipping labels to lapse and become invalid. They also repeatedly called a number I did not provide ( I am not sure whos number this is ) to disclose details and updates, which I feel could be a potential policy information as my information was potentially shared with a party unknown to me. This information couldve also included crucial steps needed to ensure I comply with their instructions, causing a delay. The contractors experienced a delay in payment because of this and had already done labor. We complied with all Field Service inspections that US bank ordered and received checks weeks inbetween. The insurance company expected 6 months of work to be done in 5 weeks and my temporary housing was threatened due to US banks actions. 
Finally, I have been complying with inspections since XXXX and XXXX bank will not release the remaining {$10000.00} until 90 % of the work is done at this time. I asked for any alternatives and they said to provide a hardship letter via XXXX using a special US bank code they provided and specifically said this was the preferred was and advised I follow up within 2 business days late in the afternoon. I asked how they would like the hardship letter submitted specifying their preference for fax, email, USPS post, shipping, etc for an expedited result, they insisted upon uploading. My contractor created an invoice for {$10000.00} and I uploaded the letter over late XXXX. I checked 5 days later and they claimed nothing had been uploaded. I submitted my hardship letter the same way and it was received within 1-2 business days. This entire time the lead time for uploading would vary based on the claims specialist. They said it would take longer than I was told and to check back. I checked back last Friday and no documents had been uploaded even though I submitted them quite some time ago. We need that {$10000.00} to install the flooring and to pay for new appliances so I can be reimbursed and pay my mortgage, which I am now behind on. You can have install the flooring before cabinets. The total given to us is only enough for 1 room and we are on an extreme budget to stretch this out to 5 rooms. I was given an email to submit them to, which is apparently going to take a long time to upload. Its illegal to put a minor ( my child ) back into a home with no running water, but that is what we are facing. US bank wont hold up their end of the bargain and I am now on anxiety medication and have experienced major issues. This needs to end. When I try and speak to a manager, I am hung up on after being out on hold. I would also like to add that US bank lied to me about catching up on my mortgage in summer-fall XXXX and caused me to go into default. I sent a check to cover the outstanding monies and it was sent back and a mortgage customer service agent lied to me.

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