Consumer complaint received 2026-05-14 00:00:00
Product: Mortgage — FHA mortgage
Issue: Struggling to pay mortgage — An existing modification, forbearance plan, short sale, or other loss mitigation relief
Company: U.S. BANCORP
State: OH

Complaint narrative:
I am requesting urgent assistance regarding my mortgage servicers handling of my loan modification and payoff process during a pending home sale. During the COVID-19 pandemic, I experienced financial hardship and fell behind on my mortgage. I contacted my mortgage company multiple times seeking assistance and was repeatedly advised to accept partial claims, which I was told would move missed payments to the back of the loan. Over time, I entered into four partial claims while continuing to communicate with the servicer regarding my financial hardship and efforts to regain stability. My circumstances worsened when my health declined and I became XXXX XXXX XXXX. I applied for XXXX XXXX and kept the mortgage company informed throughout the process. Despite my continued communication, my loan eventually entered foreclosure status. At that point, I again contacted the mortgage company and explained that I was still in the XXXX process. I was offered a loan modification with a 3-month trial payment plan. The proposed modification extended my loan term to 40 years and increased my interest rate from 3.125 % to 7.5 %, which significantly increased my monthly payment and was not affordable. However, the representative instructed me to accept the modification and intentionally miss the first payment so that the modification would cancel and I could be reviewed for additional options. I relied on this guidance in good faith. After further review by underwriting, I was offered a second modification that extended my loan to 40 years and increased my interest rate to 6.5 %, resulting in an approximately {$400.00} increase in my monthly payment. In order to avoid foreclosure, I accepted the modification despite the increased payment burden. Because the modified payment remained unaffordable due to my XXXX and XXXX XXXX XXXX, I decided the best option was to sell my home. My home sold quickly, within approximately one week. When I requested the payoff amount for closing, I was informed that the payoff reflected the pre-modification amount because the modification had not yet finalized. I was told that once the modification completed, the payoff would decrease significantly. However, my closing date is scheduled before the modification completion date, meaning I may lose the benefit of the modification that I accepted in good faith specifically to avoid foreclosure and facilitate resolution of the loan. I contacted the mortgage company multiple times requesting an escalated review of the payoff amount, a waiver of fees, or for the post-modification payoff to be honored due to the pending sale and urgency of the matter. I explained that a completed home sale benefits both parties and avoids additional foreclosure costs and damages. Unfortunately, representatives repeatedly told me that nothing can be done, refused to transfer me to management, and advised that any escalation could take up to 14 days despite my pending closing deadline. During these calls, I was frequently interrupted and was not allowed to fully explain my situation. I believe I relied on the mortgage companys representations and guidance in good faith throughout this process. I also believe the servicer failed to provide meaningful assistance or proper escalation despite the urgent circumstances and pending sale. I was also told by my mortgage company that they are not the ones that own my promissory note, that I would need to contact my investor. I asked who owned my note, who my investor was and they advised FHA. I asked how they couldve started foreclosure processes with me if they werent the owners and they only service the account and they couldnt provide an answer. I called FHA and they told me that they did not own the loan and that I needed to call a HUD Counselor for better clarification and they emailed me a list of counselors. After calling down the list I was able to secure a call with a counselor. The counselor informed me that I needed to call FHA back and escalate the issue, that there was nothing they could help with. I then called FHA back and explained my situation again and they advised they would escalate my situation and it could take up to 14 days but they are putting a note in saying that its time sensitive and urgent but they can not guarantee anything. They also couldnt guarantee that the escalation they were sending was to the correct area that I will need. I am requesting : An immediate escalated review of my payoff amount ; Consideration of the post-modification payoff terms prior to closing ; Waiver or reduction of unnecessary fees and charges associated with the pending foreclosure/modification timing ; Direct contact from a knowledgeable escalation specialist before my scheduled closing date ; and A full review of the servicing conduct and contradictory guidance I received throughout this process. This matter is extremely time sensitive because my home sale is pending and delay could jeopardize the closing, increase damages to me financially, and potentially result in avoidable foreclosure-related harm to all parties involved.

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