Consumer complaint received 2025-08-16 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: NAVY FEDERAL CREDIT UNION
State: LA

Complaint narrative:
CFPB Case # XXXX Institution : Navy Federal Credit Union Subject : Dispute of NFCUs Response Wrongful Foreclosure During Active FHA Forbearance To the Consumer Financial Protection Bureau and Navy Federal Credit Union : I am writing to formally dispute Navy Federal Credit Unions response to my CFPB complaint. Their foreclosure actions and servicing practices violated the terms of my active forbearance agreement, misrepresented key details about my accounts, and failed to honor protections afforded under federal law, including those specific to FHA-backed loans. 
Summary of Issues 1. Foreclosure Occurred During Active Forbearance Navy Federal approved me for a forbearance plan on my first mortgage ( loan ending in XXXX ), which is FHA-backed, through XX/XX/XXXX. Despite this, my home was foreclosed on XX/XX/XXXX, in direct violation of that agreement and federal servicing guidelines. 
2. No Written Modification or Cancellation of Forbearance I received no written notification revoking or modifying my forbearance prior to the foreclosure. NFCUs own documentation shows they removed the loan from forbearance on XX/XX/XXXX weeks after the foreclosure had already taken place. I was never notified or consulted about this decision. 
3. Attempts to Pay Were Blocked Between XX/XX/XXXXXXXX  and XX/XX/XXXX, I made repeated efforts to resume payments. Each time, Navy Federals representatives informed me that making payments would mess up the forbearance and that their system would not allow payment processing. I was actively trying to get back on track and was denied the opportunity. 
4. Call Two Days Before Foreclosure with No Notice Given On XX/XX/XXXXXXXX  just two days before the foreclosure I spoke directly with a Navy Federal representative for 18 minutes. At no point did they mention that my home was scheduled for foreclosure. This omission deprived me of any opportunity to take urgent legal or financial action to protect my property. 
5. HELOC Was Misrepresented NFCU assured me that the second lien HELOC ( ending in XXXX ) would be charged off like a credit card. At no time was I informed that the HELOC could lead to a foreclosure on my home, especially while I was in a valid forbearance on the first mortgage. This was misleading, and I was deprived of the chance to protect my home. 
6. I Was Never Personally Served Navy Federal claims I was served during foreclosure proceedings. That is false. I was never personally served, never received a sheriffs notice, certified mail, or legal warning. I only discovered the foreclosure after the sale had occurred. This is a violation of basic due process.

XXXXHA-Backed Loan Protections Violated It is important to emphasize that my first mortgage was FHA-backed. This gave me specific legal protections under HUD and FHA servicing guidelines, including : No foreclosure may be initiated during an active forbearance ; Servicers must provide written notice of forbearance changes ; Servicers must offer loss mitigation options before foreclosure, including repayment plans, loan modifications, or deferrals ; Servicers must document all communication attempts and avoid dual tracking ( foreclosing while loss mitigation is still active ). 
Navy Federal violated these protections by : Foreclosing while I was under an active FHA forbearance ; Providing no written notice of cancellation or removal from the plan ; Failing to offer or discuss any loss mitigation options after forbearance ; Preventing me from making payments when I attempted to. 
These are not just internal policy failures they are federal violations. Navy Federal 's failure to follow FHA servicing standards caused irreparable harm and undermined my rights as a borrower. 
Evidence of Communication Verified Call Log ( XX/XX/XXXX XX/XX/XXXX ) Below is a partial list of my calls to Navy Federal, verified through my phone records. These calls primarily concerned my attempts to make payments, confirm account status, and comply with forbearance terms : Date Time Duration XX/XX/XXXX XXXX XXXX  Unknown XX/XX/XXXX XXXX XXXX  Unknown XX/XX/XXXX XXXXXXXX XXXX XXXX minutes XX/XX/XXXX XXXX XXXX  Unknown XX/XX/XXXX XXXX PM XXXX minutes XX/XX/XXXX XXXX XXXX XXXX minutes XX/XX/XXXXXXXX XXXX XXXX XXXXXXXX minutes XX/XX/XXXX XXXX XXXX XXXX  XXXX minutes XX/XX/XXXX XXXX XXXX XXXXXXXX minutes XX/XX/XXXXXXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX minutes These calls were all focused on compliance, payment attempts, and clarification of my loan status. I respectfully request that all recordings and internal notes from these communications be produced for review. 
Additional Harm and Elder Neglect This wrongful foreclosure has caused profound and lasting financial and emotional devastation to me and my familymost tragically to my XXXX  mother. The constant stress, fear, and instability created by Navy Federals actions have led to multiple strokes, nervous breakdowns, and a broken hip. She is now confined to an assisted care facility, not by choice, but because she was robbed of her health, her home, and her sense of security. 
She lives with deep emotional despair, convinced she has nowhere to go. She asks daily why we lost our home and what she did wrong and I have no answer that can justify what has happened. 
What is especially disturbing is that Navy Federal knew she lived in the home, yet they took no steps to accommodate or protect her vulnerable condition. This demonstrates a shocking lack of care, compassion, and ethical responsibility from an institution entrusted with our financial well-being.

In addition, when we were evicted, my family and I lost all of our sentimental belongings and family heirlooms irreplaceable items that can never be replaced. This is not just about losing property this is about losing stability, dignity, memories, and peace of mind. 
What I Am Requesting I respectfully request that the CFPB : Conduct a full investigation into how NFCU foreclosed during an active FHA forbearance ; Examine how the second lien HELOC was allowed to override the FHA mortgage protections ; Require NFCU to produce all call recordings and internal account notes from XX/XX/XXXXXXXX XXXX XXXX XXXX XXXX Acknowledge that I was never personally served during foreclosure ; Provide financial and legal remedies for the wrongful foreclosure and related harm ; Consider disciplinary action or fines against NFCU for federal servicing violations. 
Conclusion This ordeal has shattered my familys stability and caused irreparable harm. I trusted Navy Federals guidance and followed their instructions in good faith. For that, I was misled, blocked from paying, foreclosed on during an active FHA forbearance, and ultimately evicted from my home.

Not only did we lose our residence, but we also lost our sentimental belongings and family heirlooms irreplaceable items that carried deep emotional value. Worse still, my mothers health and spirit have been broken as a result of this wrongful foreclosure. 
I urge the Consumer Financial Protection Bureau to fully investigate this matter, hold Navy Federal Credit Union accountable, and help bring justice, transparency, and closure to a family who did everything possible to keep their home.

Company public response: Company believes it acted appropriately as authorized by contract or law
Company response to consumer: Closed with explanation