Consumer complaint received 2025-07-19 00:00:00
Product: Mortgage — FHA 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: COLORADO HOUSING AND FINANCE AUTHORITY
State: CO

Complaint narrative:
In XX/XX/XXXX, my husband and I contacted Colorado Housing and Finance ( Chfa ) Dovenmuehle, servicer of our mortgage loan to request assistance options with paying our mortgage payments. We were offered a modified mortgage loan as we understood it, to extend our XXXX yr. loan to a XXXX yr. loan. This was to lower our monthly payment by a few XXXX dollars per month. This is what we agreed to. Never was it explained to us fully, until now, a year later in an email from their research department. The mitigation department for XXXX, advised the partial claim was determined by attempting to reduce the principal XXXX interest payment by 25 % with an unpaid principal balance of {$210000.00}. This would be achieved with a partial claim of {$110.00}, XXXX, however, the maximum claim that was approved by the Department XXXX Housing and Urban Development ( HUD ) was {$96000.00}. This would constitute an additional loan from HUD. This loan/ XXXX was not explained to us until now. ( Even though XXXX months after our call to Chfa in XX/XX/XXXX, we received the paper work dated XX/XX/XXXX & XXXX XXXX, to sign XXXX notarize them. Chfa sent us XXXX separate mailings with copies of the new modified mortgage loan papers on XXXX of the mailings XXXX on the third was the partial claim papers. I called the XXXX Department twice to asked if this was a separate loan XXXX was told it was not. It was all included in the original loan. ) This partial claim is required since there was a shortfall of principal XXXX interest resulting of the {$96000.00}. Had we been made aware of this lien at the time of our inquiry, we would have declined any assistance from Chfa and HUD. This partial claim does not appear anywhere on our credit report, and I was told on XXXX separate phone call to Chfa there were no other debt, only the original loan. XX/XX/XXXX, we attempted to refinance this Chfa loan with XXXX XXXX XXXX in XXXX and found out about the huge loan against our property, not allowing us to refinance our loan with them or any other mortgage company until this XXXX is paid in full. This is impossible for us to pay this all off in our lifetime. We have asked Chfa for a reasonable resolution as we feel we were misinformed, XXXX they referred us back to HUD. Telling me they had no control over this partial claim. In speaking to HUD on XX/XX/XXXX, they told me I needed to submit my inquiry by email to XXXX XXXX. We emailed them the same day and forwarded an email from the XXXX XXXX for XXXX XXXX their response telling us to contact them. XX/XX/XXXX, we received a response from HUD. They explained terms and conditions of a Partial Claim, this we have never been told or seen until now. Detailing HUD does not negotiate or forgive Partial Claim loans : no exceptions. Furthermore, explaining the only ways we can satisfy this loan. All of which are impossible for us. The other most frustration fact is that the XXXX Department XXXX XXXX, is so inconsistent with information when calling to inquire about all of this. Every person tells you something different. On my last phone call XX/XX/XXXX, their representative told me to just go refinance the loan and she had not heard of anyone denying a refinance because of having a partial claim like us. She also said, well, you signed the paperwork for this claim. I disagreed with all she said to me and told her I would be seeking out other assistance in this matter. These reps also will constantly refer you to their research proxy to email them and wait for a response. This could take 14 days or longer for a response from them. All of this would have been avoided had Chfa been honest and upfront with all the facts of entering into a home modification loan. This was supposed to reduce our monthly payments, and we are paying way more now than when this original loan was established on XX/XX/XXXX. Lastly, with our previous mortgage company, XXXX XXXX, we had a loan modification many years ago. Never did we go through so much non communication and being misinformed like we have with Chfa/Dovenmuehle. Thank you for your time and assistance. We are hoping someone can assist us in a reasonable resolution.

Company response to consumer: Closed with explanation