Consumer complaint received 2025-06-03 00:00:00
Product: Mortgage — Home equity loan or line of credit (HELOC)
Issue: Struggling to pay mortgage — Foreclosure
Company: NAVY FEDERAL CREDIT UNION
State: MD

Complaint narrative:
In XX/XX/XXXX, I applied to refinance my mortgage through Navy Federal Credit Union to restructure my debt after losing my job with the federal government. The refinance was prepared to close by XX/XX/XXXX, but it was derailed because Navy Federal failed to ensure that my prior mortgage documents were recorded with the county. Although I resolved this promptly, the loan expired before it could close. During this process, the team I was working with could have re-keyed my application and reused my good credit score to move the loan forward, especially since I had already completed home inspections and required repairs. Instead, I was instructed to apply again, but the subsequent hard credit inquiries by Navy Federal derailed my chances to use my good, and still valid, credit score. As a result, I was denied the opportunity to refinance, despite having had a pre-approval and a pending closing date not too long beforehand. I lost the chance to consolidate my debt, my credit score declined, and I was forced to continue carrying multiple high-interest debts. 

Since then, I have been working closely with Navy Federals mortgage assistance team. In XX/XX/XXXX, I submitted a hardship appeal explaining my situation in detail. My home is fully paid off, valued between {$500000.00} and {$550000.00}, with a HELOC balance of {$80000.00}. I have a stable, non-taxable income of approximately {$7000.00} per month from XXXX  XXXX compensation and SSDI, and I am a XXXXXXXX XXXX XXXXXXXX veteran. My total monthly debt that I intended to consolidate consists of around {$4100.00}, with {$1500.00} of that being interest alone. The structure of these payments is not sustainable long-term, and I have been requesting a restructuring solution that reflects my homes equity and my ability to repay under more reasonable terms. 

Currently, I am continuing to work with the Navy Federal Mortgage Loss Mitigation Team to resolve this issue. However, due to ongoing processing delays and repeated requests for additional documents, the process has been further delayed, and as of XX/XX/XXXX, my home has been placed in foreclosure status. Navy Federal has stated that the foreclosure is set to be filed with the attorney on XX/XX/XXXX. 

This situation is particularly troubling because I have made every effort to be proactive and avoid this ordeal. Before this, I had applied for a XXXX  loan to consolidate my debts and bring my obligations into a more manageable structure. Despite having sufficient income and significant equity in my home, I am now in the process of being foreclosed on because of administrative failures and delays at Navy Federal. 

This experience has caused me great emotional and mental duress. As a XXXX XXXX recipient and XXXX veteran who has worked hard to maintain my home and remain financially stable, I feel I have been treated unfairly, and the stress of this situation has been overwhelming

Company public response: Company believes it acted appropriately as authorized by contract or law
Company response to consumer: Closed with non-monetary relief