Consumer complaint received 2026-04-20 00:00:00
Product: Mortgage — Conventional home 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: IDAHO CENTRAL CREDIT UNION
State: ID

Complaint narrative:
I am submitting a complaint regarding mortgage servicing conduct related to a loan modification trial plan that I successfully completed but which was not finalized and was later treated as cancelled. In XX/XX/XXXX my mortgage loan entered forbearance due to an unforseen change in life circumstances. The forbearance period resulted in the loan being approximately {$52000.00} in arrears. In XX/XX/XXXX, the lender approved a three-month trial loan modification plan to cure the arrears and reduce the monthly payment. I made all required trial payments in XX/XX/XXXX, XX/XX/XXXX, and XX/XX/XXXX. Each payment was made at a branch location and confirmed at the time of payment. Documentation reflects that these payments were not consistently applied to the loan, but instead were placed into unapplied or suspense status. For example, the final trial payment made on XX/XX/XXXX was recorded as an Unapplied Receipt rather than being applied to the loan. Subsequent transaction activity reflects additional unapplied and reversal entries, indicating internal servicing or processing issues. On XX/XX/XXXX, the day after making the final trial payment, I received a message stating that the prior days payment had not been received. However, I had made the payment at a branch as required. The included documentation evidence 's timely payment, further demonstrating an internal servicing and modification processing failure. The loan modification materials indicated that permanent modification documents would be provided near completion of the trial period, if payments were successfully made. After completing the final payment, I did not receive any written communication from the lender regarding the status of the modification. I did not receive an approval, denial, request for additional documentation, or any notice in any form that further action was required. On XX/XX/XXXX, a XXXX XXXX bankruptcy petition was filed. Later that month, I began receiving mortgage statements that reflected the full arrearage amount and original payment terms, which was inconsistent with my understanding that the modification process had been completed. On XX/XX/XXXX, I contacted the lender and spoke with representatives from both the mortgage/homeownership servicing department and the legal/bankruptcy department. During that call, I was informed for the first time that the modification had not been finalized and was considered cancelled due to the bankruptcy filing. This had not been previously communicated to me, nor had I been advised, at any point in time, that additional steps were required to preserve or complete the modification. During that same call, I expressed serious concern about the implications of the modification being cancelled. I was told by the legal/bankruptcy representative that the terms of the modification would carry over through a bankruptcy reaffirmation. Based on this representation, I expressed relief and understood that a path forward remained available. I also explained that I was experiencing a significant breakdown in communication with my bankruptcy attorney. The representative asked if I would like to be contacted directly regarding mortgage matters related to the bankruptcy, and I clearly requested that I be contacted directly for any such matters. Despite this request, at no point did I receive any follow-up communication from the lenders legal or servicing departments. On XX/XX/XXXX, shortly before the anticipated bankruptcy discharge, I again contacted the lenders legal/bankruptcy department to inquire about the status of the reaffirmation and options to avoid foreclosure. During that call, I was informed that the representative had attempted to contact my bankruptcy attorney but had received no response. Not once during the more than two months after my request for direct communication, was I contacted about this issue, despite that same bank representative directly acknowledgedging the lack of communication I was experiencig with my attorney. At the time of this call, the bankruptcy discharge was less than three hours away, and no plan had been established regarding the mortgage. During this call, the mortgage lender asked that I have my attorney contact them directly to discuss the impending foreclosure. A motion to postpone the date of the bankruptcy discharge was granted, allowing for the mortgage status to be addressed. During the period in which the discharge was temporarily delayed, I continued to pursue options to avoid foreclosure. On XX/XX/XXXX, I again contacted the lenders legal/bankruptcy department to request that the completed loan modification be reviewed for reinstatement. I was told that reinstatement was not an option. I explained my circumstances, including a pending divorce and availability of funds to cover several months of mortgage payments, and asked what alternatives were available to avoid foreclosure or provide temporary relief. I was advised that no options were available beyond reaffirmation, and that foreclosure would proceed if the loan status did not change. Additionally, it was explained to me by both the lender 's legal/bankruptcy department and my bankruptcy attorney that reaffirmation was not a viable solution for my circumstances. Several weeks after the bankruptcy discharge, I received a written correspondence from the lender that included an arrearage amount that was not consistent with the known forbearance balance. This communication was confusing and ambiguous, and no explanation or clarification was provided. At no point did the lender initiate contact with me to provide guidance, options, or clarification regarding the loan modification or to offer meaningful loss mitigation alternatives. All substantive communication occurred only after I initiated contact, with the exception of routine monthly statements and the single ambiguous letter referenced above. No viable solution to avoid foreclosure was provided. I have also sought assistance through external resources, including contacting the XXXX XXXX XXXX XXXX XXXX ( XXXX ) and a HUD-approved housing counselor, but no assistance or intervention was available under the circumstances. Since that time, I have continued making mortgage payments in good faith. The property has substantial equity, and foreclosure would result in significant financial harm. I am seeking a fair and reasonable resolution that reflects my successful completion of the trial modification and avoids unnecessary foreclosure and loss of equity. I respectfully request that this matter be escalated for executive and compliance-level review due to the time-sensitive risk of foreclosure.

Company response to consumer: Closed with explanation