Consumer complaint received 2025-08-07 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: M&T BANK CORPORATION
State: IL

Complaint narrative:
My mortgage with M & T Bank ( originally serviced by XXXX XXXX XXXX ) was wrongfully placed in foreclosure in violation of a final court order, despite full cooperation and eligibility for loss mitigation. The foreclosure was triggered based on a court case ( XXXX XXXX XXXX XXXX XXXX XXXXXXXX ) that M & T was not part of and that was permanently dismissed with prejudice on XX/XX/XXXX. The court 's decision was final and prohibited further legal action. 

In XX/XX/XXXX, M & T requested documentation proving dismissal. On XX/XX/XXXX, I sent the certified court order via certified mail and email to multiple addresses. I confirmed delivery and requested the foreclosure stop. 

Instead, on XX/XX/XXXX, I was told my forbearance was terminated on XX/XX/XXXX for alleged failure to submit that same document. On XX/XX/XXXX, the XXXX XXXX XXXX confirmed no further filings or instrument numbers were required. They issued XXXX additional confirmations, which I forwarded to M & T on XX/XX/XXXX. 

On XX/XX/XXXX at XXXX XXXX, I sent an email with full documentation to M & T and XXXX regulators ( XXXX, CFPB, XXXX, XXXX  XXXX ). On XX/XX/XXXX, M & T called me, acknowledged my email, and said foreclosure was halted, but never followed up in writing or copied regulators. Instead, on XX/XX/XXXX, I received a mailed letter dated XX/XX/XXXX stating foreclosure had been referred anyway. Then, a formal foreclosure notice dated XX/XX/XXXX arrived, demanding response by XX/XX/XXXX to avoid default creating a procedural trap. 

M & T Bank sent me an encrypted message on XX/XX/XXXX stating that XXXX XXXX was reviewing the case but did not include any regulators or timeline. The timing suggests they used verbal promises to delay action while advancing the foreclosure behind the scenes. 

I had notified M & T as early as XX/XX/XXXX that I had full-time employment and wanted to resume payments. Instead of working with me, they demanded multiple months be paid at once and then used technicalities to justify foreclosure despite my legal compliance and hardship. 

During this time, I faced multiple personal and financial setbacks : sXXXX XXXX XXXX XXXX XXXX, car accidents, and the XXXX XXXX XXXX XXXX on XX/XX/XXXX ( XXXX XXXX XXXX XXXX  ). Despite this, I tried to protect my home and remained cooperative. 

An M & T representative told me : This is nothing personal. Its just business. You can just return the house and move on. This was deeply hurtful. My home is the only one Ive ever owned and where my children grew up. 

M & Ts behavior refusing to stop foreclosure even after valid court proof, hiding responses from regulators, making false verbal claims, and failing to offer written solutions violated my rights and caused profound emotional harm. 

They also failed to provide reasonable accommodation under the XXXX XXXX XXXX XXXX XXXX XXXX XXXX  during a time of documented hardship and trauma. 

This loan is a federally insured FHA mortgage. As such, M & T Bank was obligated to follow all FHA loss mitigation protocols before proceeding with foreclosure including evaluating me for COVID Recovery Modification, FHA Partial Claim, or any other hardship option. I previously used COVID-era forbearance ( which was placed at the end of my loan ), but this does not mean the FHA loss mitigation process was exhausted. 

FHA guidelines require that servicers reassess borrowers whenever financial conditions improve. I informed M & T as early as XX/XX/XXXX that I had full-time employment and was willing to resume payments. M & T never offered a full FHA-compliant review, and instead used technicalities to justify foreclosure while ignoring my reinstatement attempts. This is a direct violation of XXXX  guidelines for FHA loan servicing and puts my home at risk unlawfully. 

Between XX/XX/XXXX and XX/XX/XXXX, I sent XXXX documented email messages with full evidence to M & T Bank and XXXX regulatory agencies XXXX, CFPB, XXXX, and the XXXX  Attorney General. I included the court order, Clerk confirmations, my father 's death certificate, hospital records, and hardship explanation. None of these submissions received a formal written response from M & T. 

Despite being under active regulatory review, M & T continued with the foreclosure process and issued a formal notice demanding response by XX/XX/XXXX. This shows deliberate action taken in bad faith while knowingly being investigated. 

I also contacted XXXX  directly by email as the insurer of my FHA mortgage to report M & Ts failure to provide a proper FHA loss mitigation review. According to XXXX  guidelines, my employment status and willingness to reinstate the loan should have triggered a full reassessment. This never occurred.

M & Ts behavior shows a disturbing pattern of concealment, retaliation, and procedural abuse while ignoring evidence, legal protections, and agency oversight. 

Finally, this is not an isolated issue. M & T and XXXX have been penalized multiple times, including $ XXXX in recent enforcement actions, showing a pattern of non-compliance that continues despite oversight.

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