Consumer complaint received 2026-03-02 00:00:00
Product: Mortgage — Conventional home mortgage
Issue: Struggling to pay mortgage — An existing modification, forbearance plan, short sale, or other loss mitigation relief
Company: REGIONS FINANCIAL CORPORATION
State: AL

Complaint narrative:
Company : Regions Bank Product : Mortgage Issue : Loan modification failures, loss mitigation errors, foreclosure process concerns, and denial of successor-in-interest rights Complaint Narrative I am filing this formal complaint regarding Regions Banks handling of my mortgage loan following the death of my father on XX/XX/XXXX. The mortgage loan was solely in his name at the time of his passing. I believe Regions Bank engaged in improper mortgage servicing practices, wrongfully denied my successor-in-interest rights, failed to properly administer loss mitigation, and implemented abusive and unsustainable loan modification terms that have placed my family at extreme risk of XXXX. Assumption of Mortgage Payments After My Fathers Death Upon my fathers death on XX/XX/XXXX, I immediately assumed responsibility for the mortgage payment in the amount of {$840.00} per month. I consistently made these payments from XX/XX/XXXX, through XX/XX/XXXX. In XX/XX/XXXX, I was unable to make the monthly payment. As a XXXX XXXX of XXXX XXXX childrenall of whom have XXXX in XXXX was forced to prioritize essential family obligations during a period of financial strain. Shortly thereafter, my health declined significantly, resulting in reduced work hours and ultimately my inability to continue working. As a result, my financial circumstances deteriorated rapidly, and my household bills accumulated substantially. Throughout this period, I maintained communication with Regions Bank and repeatedly expressed my financial hardship. Financial Hardship and Successor-in-Interest Denial My financial hardship was compounded by several factors : The emotional and financial burden following my fathers death My assumption of his outstanding bills and debts The fact that I relinquished my own residence prior to his death in order to care for him in his home, in accordance with his wishes From XX/XX/XXXX, through XX/XX/XXXX, XXXXa period of approximately eighteen monthsRegions Bank refused to recognize me as successor-in-interest. During this time, I made repeated attempts to provide documentation establishing my legal right to assume responsibility for the loan. Regions Bank insisted that I obtain and submit formal legal documentation prepared by an attorney, including but not limited to an affidavit of heirship, letters of administration, letters testamentary, or probate court documentation. I did not have the financial means to retain an attorney to initiate probate proceedings or prepare such documents. Nevertheless, I consulted with an attorney, who personally contacted Regions Bank on XX/XX/XXXX. Regions refused to discuss any account-related matters with her. On XX/XX/XXXX, I provided Regions with the following documentation : My fathers original will, which clearly names me as his sole heir and beneficiary A certified copy of his death certificate A copy of my drivers license Completed successor-in-interest documentation as requested Despite receiving these materials, Regions continued to deny my successor-in-interest status and refused to communicate with me regarding the loan. On XX/XX/XXXX, during a phone call with a customer service representative identified as XXXX, I was informedfor the first timethat my birth certificate could be used to verify my identity and confirm my relationship to my father. This information had never previously been disclosed to me. Once I provided my birth certificate, Regions immediately approved my successor-in-interest status and began communicating with me regarding the loan. This sequence of events demonstrates that Regions had the ability to verify my status well before XX/XX/XXXX but failed to do so, resulting in unnecessary delinquency and foreclosure escalation. Prevention of Payments and Foreclosure Escalation Throughout the period in which Regions refused to recognize me as successor-in-interest, the bank would not : Provide the exact amount owed Accept payments from me unless I already knew the precise total due Discuss loss mitigation options As a result, I was effectively prevented from making paymentsnot due to unwillingness, but because Regions refused to provide the information necessary to do so. During this time, the loan accrued delinquency and was ultimately referred to foreclosure. In XX/XX/XXXX, my boyfriend moved into the home and began contributing 100 % of his earnings toward household expenses. I continued my efforts to resolve the mortgage and assume legal responsibility as the sole heir. Despite my consistent attempts over more than a year, Regions refused to cooperate until after foreclosure proceedings had begun. Trial Loan Modification and Payment Increase Following referral to foreclosure, Regions offered a trial loan modification in XX/XX/XXXX requiring three monthly payments of {$920.00}. I made all three trial payments on time and in full. After the third and final trial payment in late XX/XX/XXXX, I was notifiedwith less than one weeks noticethat my new permanent monthly payment beginning in XXXX would increase to {$1200.00}. I immediately informed Regions that this payment amount was not affordable for my household. Due to the sudden and substantial increase, I was unable to make the XXXX payment. In XXXX, I was notified that my loan modification had been terminated and that I owed approximately {$12000.00} immediately. I was instructed to reapply for financial assistance but was told that my chances of approval were slim to none because I had failed a prior modificationdespite having successfully completed all three required trial payments. Additionally, the three trial payments totaling {$2700.00} were not clearly applied to reduce the loan balance, arrears, or any identifiable portion of the debt. No representative could explain how these funds were applied. To date, there has been no transparent accounting for these payments. Second Loan Modification Offer In XX/XX/XXXX, I reapplied for financial assistance and submitted all requested hardship documentation. In XX/XX/XXXX, Regions offered a new loan modification with a monthly payment of $ XXXXan amount even higher than the prior payment they acknowledged I could not afford. The proposed modification terms include : A 40-year loan 4.75 % interest rate Approximate principal balance of {$120000.00} Monthly payment of {$1200.00} Based on the loan balance and interest rate, this payment appears mathematically unreasonable and suggests the inclusion of excessive escrow requirements, capitalized arrears, and fees structured in a manner that maximizes recovery for Regions Bank rather than providing a sustainable and affordable solution. The home has a tax-assessed value of approximately {$500000.00}, resulting in nearly {$380000.00} in equity. Regions informed me that this equity can not be used unless I sell the home. However, I can not sell the home because the property remains titled in my deceased fathers name. Despite the substantial equity cushion and documented hardship, Regions refused to structure a realistic and affordable repayment plan. Conduct of Loss Mitigation Personnel During discussions with Loss Mitigation Manager XXXX XXXX, I was told directly that it was time to find somewhere else to live if I could not afford the offered payment, and that there was nothing more Regions would do to assist me. This statement was made despite my ongoing efforts, documented hardship, and repeated requests for meaningful assistance. Current Hardship Circumstances My household is currently experiencing the following hardships : I am unable to work and am awaiting a determination on XXXX XXXX XXXXXXXX XXXX My boyfriends work hours have been significantly reduced due to weather conditions and lack of available work I receive no child support for my XXXX XXXX children Monthly electric bills range from {$500.00} {$600.00} or more Burst pipes during freezing weather caused extreme water bills that we can not afford to repair We have no family support and no alternative housing options Despite these circumstances, Regions has repeatedly offered loan modifications with payments far beyond our means and has terminated assistance when we were unable to comply. Basis of Complaint Based on the foregoing, I believe Regions Bank has : Wrongfully denied and delayed recognition of my successor-in-interest rights Prevented me from making payments by refusing to provide necessary loan information Improperly escalated the loan to foreclosure Structured loan modifications in a manner that appears designed to fail Used coercive and dismissive language implying displacement rather than offering meaningful loss mitigation Requested Resolution I respectfully request : 1. Immediate executive-level review of my loan modification 2. A fully itemized breakdown detailing how the {$1200.00} payment was calculated 3. Reconsideration of my loan modification to reflect a truly affordable payment based on verified household income 4. A formal review of Regions Banks handling of my successor-in-interest status and foreclosure referral Without meaningful intervention, my family faces homelessness despite substantial equity in the home and multiple documented hardships spanning more than three years. I respectfully request the assistance of the Consumer Financial Protection Bureau in reviewing this matter. Thank you for your consideration. XXXX XXXX ( XXXX ) XXXX XXXX XXXX

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