Consumer complaint received 2026-06-18 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: MD

Complaint narrative:
This is the second time I am submitting a CFPB complaint against US bank on this particular property. I am submitting this complaint regarding the handling of an FHA short sale by US Bank and what appears to be a recurring and unreasonable delay in initiating short sale files within XXXX, their required short sale management platform. For FHA short sales serviced by US Bank, negotiators are not permitted to initiate the file in XXXX themselves. Instead, US Bank requires that the fully executed contract and supporting documents first be emailed directly to them. US Bank must then create the file in XXXX and assign it to the negotiator before any meaningful work can begin. In this case, the ratified contract and short sale package were submitted on XX/XX/2026. Since XX/XX/2026, we have conducted daily follow-up calls with US Bank . During nearly every call, we have been advised that the XXXX file would be initiated that day. As of today, the file still has not been opened. We have escalated the matter multiple times, including to supervisors. On XX/XX/2026, we were advised that the file had been assigned to a Single Point of Contact who is responsible for initiating the XXXX request. Despite that assignment, the file remains unopened and inaccessible. Unfortunately, this is not an isolated incident. Delays of this nature appear to be systemic within US Bank 's short sale department. We previously had another FHA short sale that required approximately five months before US Bank initiated the XXXX file. These excessive delays create significant harm to homeowners, buyers, and investors. The current buyer has already been waiting more than a month simply for XXXX Bank to complete an internal administrative step. During this period, no meaningful review can occur. Buyers lose confidence in the transaction, contracts are placed at risk, and homeowners facing foreclosure are left in limbo. In many cases, these delays effectively force homeowners into foreclosure despite having a willing buyer and a complete short sale package. Further, the FHA appraisal currently on file is set to expire in XX/XX/2026. If US Bank continues delaying the initiation of the XXXX file, the appraisal may expire before the short sale review is completed. This would require additional valuation expenses, additional delays, and unnecessary costs for all parties involved, including the investor. We are requesting that US Bank immediately initiate the XXXX file and assign access to the negotiator account associated with XXXX so the short sale review can proceed. We also request that the CFPB review US Bank 's short sale initiation process and determine whether these repeated and excessive delays constitute an unfair servicing practice that unnecessarily impedes loss mitigation efforts and increases the likelihood of foreclosure. A homeowner with an executed purchase contract should not have to wait months for a lender to perform a basic administrative task before the short sale process can even begin. Thank you for your attention to this matter.

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 non-monetary relief