Consumer complaint received 2025-08-27 00:00:00
Product: Mortgage — VA mortgage
Issue: Struggling to pay mortgage — An existing modification, forbearance plan, short sale, or other loss mitigation relief
Company: BSI Financial Holdings, Inc.
State: OK

Complaint narrative:
In XX/XX/XXXX we were in a loan modifciatiion process coming out of a covid forbearance plan with XXXXXXXX XXXXXXXX XXXX XXXX approved the loan modification the last week of XX/XX/XXXX we were excited... but in the same week XXXXXXXX XXXX  sold our loan which BSI Financial services and so they would take over our loan on XX/XX/XXXX. The packet for loan modification came in to sign but BSI refused to take the packet and told us they could not take another banks modification. We have never done a modification before so we did not know that was not true. So we did what they told us which started a year of a nightmare. 
We started the process over with BSI for a new modification. BSI then did a modification that took them almost 3 months to do ( which is way over the timeline they have to complete this process ) and the payment was {$900.00} higher than the previous modification. We would not afford that. After digging I found out by law they were required to take the previous mortgage companies modification and lied to us about that. 
We decided to list our home in XX/XX/XXXX so we could sell it and not risk foreclosure. 
BSI stated we were in a VA moratorium and the house could not be foreclosed on. However they were charging us {$1500.00} for someone to drive by and make sure the house was being our residence. We have cameras and never saw someone come to check if someone was living in the home.

We did not get it sold by XX/XX/XXXX so we had no other choice but to yet again submit for a modification and start paying on it until the home was sold.

We took our house off the market and submitted the loan modification and BSI took over a month and a half to do the modification and ultimately denied the modification saying we didn't qualify for a short sale. Our loan modification did not ask for a short sale it asked for a loan modification where we could resume payments which was clearly clarified to them. 
They did not send notice of the decline in the mail. We did not see the decline and they submitted it to foreclosure. We then got a letter from their attorney stating they were sending us to foreclosure and had filed it. We were shocked as they had told us over and over you loan is not going to foreclosure we are modifying it. Even after I received the letter from attorney they told us we were not in foreclosure. 
After discussing we did not apply for a short sale we applied for a loan modification we sumbitted new paperwork and finally in XXXX of XXXX we were approved for the VA Vasp program loan mod. BSI gave us a three month trial plan and told us we were approved and needed to make 3 months of payments then they would send docs to sign for modification. We made all three payments on time. 
XX/XX/XXXX ( which would be XXXX payment ) I call them to see what payment we need to make they told us our loan was in underwriting and we didn't need to make payment until it came out. 
Fast forward to today XX/XX/XXXX I call the VA technician to discuss our loan with them because BSI still has not provided any documentation on our new loan. The VA tells us we were denied for the VASP program on XX/XX/XXXX because BSI failed to submit the paperwork before it was due. They said they sent BSI the denial letter on XXXX XXXX. 
I call back BSI and they tell me our loan isn't in underwriting and they are sending it there today.... So what they told us on XX/XX/XXXX was a lie. 
We made final third Payment on XX/XX/XXXX and BSI failed to send to underwriting and failed to send the VA the documents.

BSI is telling me they do not have anything from VA saying we are denied for the VASP program as of today XXXX XXXX. 
BSI admitted fault that the loan should have been sent to underwriting after third and final payment was made and they failed to do so.

Now the VA is telling us our only option is to refi our current 2.3 percent interest rate to 7 % because BSI failed to submit paperwork in a timely manner.

Company response to consumer: Closed with explanation