Consumer complaint received 2024-11-25 00:00:00
Product: Mortgage — Conventional home mortgage
Issue: Struggling to pay mortgage — Foreclosure
Company: FIFTH THIRD FINANCIAL CORPORATION
State: TX

Complaint narrative:
I would to seek urgent assistance with a distressing situation regarding my mortgage account with Fifth Third Bank and investor of loan, XXXX XXXX. Despite being approved for a trial modification payment plan on XX/XX/year>, with payments beginning XX/XX/year>, I have been referred to foreclosure on XX/XX/XXXX with a sale date of XX/XX/year>. This situation has created severe emotional distress for my family and me and, in my view, constitutes a clear violation of federal regulations and fair servicing practices. 

Foreclosure Sale and Emotional Distress Since the referral to foreclosure, individuals have been coming by and taking pictures of my home, which has caused significant distress and fear for my children, who are terrified of the presence of strangers on our property. I have also been admitted to this hospital due to this stressful situation. This is deeply unsettling and unacceptable, especially as I have been actively complying with the terms of the approved trial modification plan. 

Trial Modification Payment Issues While I was approved for a trial modification payment plan on XX/XX/year>, Fifth Third Bank sent me a letter ( attached ) dated for XX/XX/year>, stating that the recent payment made was not the contractual one asked how I would like the payment to be processed because they were unsure. This contradiction and lack of clarity about the processing of my trial payments undermines my ability to comply with the modification and adds further stress to an already difficult situation. 

Violations of Federal Regulations and XXXX XXXX Guidelines The actions taken by Fifth Third Bank appear to violate multiple federal regulations and guidelines, including but not limited to : 1. Dual Tracking Prohibition : Under CFPB regulations ( 12 CFR 1024.41 ), a servicer is prohibited from initiating or continuing foreclosure proceedings while the borrower is actively performing under an approved trial modification plan. Referring my account to foreclosure after approving a trial plan directly violates this rule. 
XXXX. XXXX XXXX Servicing Guide Non-Compliance : XXXX XXXX guidelines explicitly prohibit referring a borrower to foreclosure once a trial payment plan is approved and active, regardless of whether the trial plan was solicited or borrower-initiated. 
XXXX. Fair Lending and Discrimination Concerns : The inconsistent and confusing handling of my account raises serious questions about discriminatory practices and fair treatment. I believe I have not been afforded the same opportunity to resolve my default as other borrowers.

4. RESPA and TILA Violations : Fifth Third Bank has failed to provide clear, transparent communication about the application of trial payments, violating good-faith requirements and transparency provisions.

5. Credit Reporting Violations : As a result of the improper foreclosure referral, derogatory credit reporting has been added to my credit file. This is unjust given my compliance with the trial modification and must be reversed immediately.

Company response to consumer: Closed with monetary relief