Consumer complaint received 2026-03-23 00:00:00
Product: Mortgage — Conventional home 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: WAFD BANK
State: WA

Complaint narrative:
Complaint Against WaFd Bank XXXX XXXX XXXX XXXX XXXX XXXX / Foreclosure Risk I am submitting this complaint regarding WaFd Banks handling of my insurance funds and reconstruction process following a residential fire. Their actions have prevented me from rebuilding my home and are placing me at risk of foreclosure despite my consistent efforts to comply. -- - Background & Pre-Fire Context : - XX/XX/XXXX I applied for homeowner assistance/forbearance with WaFd due to financial hardship following job loss - XX/XX/XXXX My home sustained significant fire damage ; the property listing was removed - XX/XX/XXXX Insurance funds were deposited with XXXX for the purpose of repairs - XX/XX/XXXX My request for assistance was denied due to the home being temporarily vacant during repairs - XX/XX/XXXX A Notice of Default was issued shortly after insurance funds were received The timing of these events is concerning, as insurance funds intended for reconstruction were secured, yet enforcement actions proceeded instead of facilitating repairs. -- - Post-Fire Contractor & Legal Coordination : - XX/XX/XXXX I executed a contract with a licensed general contractor and provided it to WaFd - XX/XX/XXXX I notified WaFd of an active legal matter involving the contractor ( ongoing lawsuit ). No response was received from WaFd - XX/XX/XXXX WaFd filed a Notice of Foreclosure Despite being informed of active coordination and legal considerations related to reconstruction, WaFd did not engage or provide guidance before proceeding with foreclosure-related action. -- - Timeline of Reconstruction Coordination ( XXXX ) : - XX/XX/XXXX WaFd instructed that the construction budget must align strictly with confirmed insurance funds currently held ( {$240000.00} ), excluding future or unapproved costs - XX/XX/XXXX I submitted a revised cost breakdown aligned exactly with those instructions - XX/XX/XXXX I submitted a complete reconstruction package, including : - Cost breakdown aligned to held funds - Construction timeline - XX/XX/XXXX I followed up requesting access to proceed with project setup - XX/XX/XXXX WaFd confirmed coordination with the insurance adjuster regarding a XX/XX/XXXX updated estimate and potential additional funds - XX/XX/XXXX - WaFd requested confirmation of depositing additional insurance checks- I confirmed receipt and requested next steps - XX/XX/XXXX I stated I would deposit additional funds once : - The project was fully set up - The first engineering draw was submitted - The forbearance was finalized - This was based on prior experience where depositing funds was followed by a Notice of Default - XX/XX/XXXX WaFd : - Required an updated cost breakdown and contract to match total insurance claim amounts, including evolving and not-yet-finalized supplements - Set a deadline of XX/XX/XXXX to deposit additional funds - Stated that withholding funds limits their ability to proceed -- - Core Issue : WaFd initially required that the construction budget be based strictly on confirmed insurance funds currently held. I complied fully with this requirement. WaFd has now reversed its position and is requiring : - The construction contract, cost breakdown, and insurance claim to match total projected claim values, including future and not-yet-finalized insurance supplements This creates a moving target, making it impossible to finalize the project or begin reconstruction. Additionally : - WaFd is conditioning progress on depositing additional funds before establishing a stable project structure - Insurance funds necessary for repairs are effectively restricted -- - Impact : - My home remains unrepaired months after the fire - My XXXX can not begin work- I am at increasing risk of foreclosure - Assistance was denied despite hardship and a covered loss - A Notice of Default and foreclosure actions followed shortly after insurance funds were deposited - WaFd did not respond to material updates ( contractor legal issue ) before proceeding with enforcement - WaFds shifting requirements have caused repeated delays despite compliance - This has resulted in significant financial hardship and personal stress I am a veteran, recently divorced, and have XXXX children. My goal is to rebuild my home and stabilize my situation, but WaFds actions are preventing that outcome. -- - Requested Resolution : I am requesting assistance to ensure WaFd Bank : 1. Honors its original written guidance regarding budget alignment with confirmed funds 2. Establishes a consistent reconstruction process without changing requirements 3. Allows my contractor to begin work based on funds currently held 4. Administers funds based on actual construction progress 5. Ceases actions that delay reconstruction or increase foreclosure risk 6. Forbearance until the fire restoration is complete. -- - Summary Concern : Despite repeated compliance and communication, WaFd failed to engage on critical updates, proceeded with foreclosure actions, and continues to introduce changing requirements that prevent reconstruction from beginning. -- - Sincerely, XXXX XXXX

Company response to consumer: Closed with explanation