Consumer complaint received 2025-06-06 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: VIRGINIA HOUSING DEVELOPMENT AUTHORITY
State: VA

Complaint narrative:
Summary of the Issue : I am filing a formal complaint against the Virginia Housing Development Authority ( VHDA ) for repeatedly violating my rights as a successor in interest to an XXXX mortgage loan originally issued in my ex-spouses name. Since XX/XX/XXXX VHDA has repeatedly failed to recognize my legal borrower status, denied me access to loss mitigation, improperly pursued foreclosure, and mismanaged my FHA Insured loan despite being in full possession of the legal documentation establishing my ownership rights. 

Key Background Facts : XXXX : The FHA loan was solely in my ex-wifes name, though both of us were on the deed ( I was added after purchase by quit claim deed in XXXX of XXXX ) XX/XX/XXXX : We jointly filed for Chapter XXXX bankruptcy, discharging the VHDA loan. The loan was not reaffirmed, and my ex-wife was no longer legally liable for this debt although VHDA still had a lien on the property until its paid off ( Attachment A ) XX/XX/XXXX XXXX was given there first notice of my Successor in Interest status and my fist assumption request was made and denied ( Attachment B ), Despite VHDA providing the assumption form ( Attachment C ) this request was improperly denied and misleading information was given that violated FHA guidelines stating you must be a first time homebuyer although the application has no mention of this requirement and it was clear from XXXX XXXX email that I was a qualifying spouse who was the future Successor in Interest to this loan by way of a protected transfer through divorce. 

XX/XX/XXXX : As part of our divorce, I was awarded sole ownership via Final decree ( Attachment D ), Equitable Distribution Order ( Attachment E ) and recorded deed ( Attachment F ) legally making me a Successor in Interest under : FHA Handbook 4000.1 12 C.F.R. 1024.36 ( i ) GarnSt. Germain Act ( 12 U.S.C. 1701j-3 ( d ) ( 6 ) ) VHDAs Pattern of Misconduct and Mismanagement ( XXXX ) : 1. Successor Status Repeatedly Denied ( XXXX ) The application for assumption sent by VHDA in XXXX seen in Attachment B is clearly aligned with FHA guidelines and Successor in Interest claims but VHDAs practices, policies and procedures clearly do not Easily made well Over 100+ calls/letters to VHDA that were all met with denials of my rights and misinformation ( e.g., successor claims only apply after death or we dont recognize / honor divorce decrees you must be a first time homebuyer ect ) Account notes were given repeatedly misrepresented.

I was not offered any loan assumption or mitigation options despite eligibility.. 

2. Federal Mortgage Relief Funds Accepted Under My Name and financial information ( XXXX ) : In XX/XX/XXXX, I was awarded {$18000.00} via the Virginia Mortgage Relief Program administered by VHDA. ( Attachment G ) In XX/XX/XXXX, I was awarded XXXX ( Attachment H ) In XX/XX/XXXX, I received an additional {$4500.00}. ( Attachment I ) These funds were approved and disbursed under my name using my financial information, showing VHDA recognized me as the borrower for servicing purposes. 
3. Wrongful Foreclosure Proceedings ( XXXX ) : VHDA updated their file to reflect my ex wifes maiden name for the legal documents and initiated foreclosure in late XXXX and again in early XXXX against XXXX XXXX XXXX, despite her having no legal ownership or liability. 
VHDA failed to : Offer me the required face-to-face meeting ( FHA servicing guideline ) XXXX 
Send the legally required certified foreclosure notices. 
I submitted a formal successor in interest request on XX/XX/XXXX. VHDA also emailed me confirming they received it but to this day have still not responded as required by law or honored my request ( Attachment J ) This email included : Divorce decree Equitable Distribution Order Recorded deed in my name 4. Relief Denied Unlawful Modification Request : On XX/XX/XXXX, I received loan modification paperwork in my ex-wifes name, not mine. 
VHDA demanded I add her back to the deed and she reaffirmed the note to proceed, which violates the terms of our court-ordered divorce and HUD/FHA successor policies . ( Attachment K ) VHDA sent a letter stating it acknowledged someone had ownership interest at the address and they would no longer send any notices unless this paper was signed and returned ( Attachment L ) 5. Obstruction and Portal Lockout ( XXXX ) : VHDA withdrew its modification offer on XX/XX/XXXX, falsely claiming I failed to submit documents. ( Attachment M ) They blocked my access to the borrower portal and removed documentation ( which previously showed critical foreclosure-related documents ). 
I resubmitted a full Borrower Assistance Package on XX/XX/XXXX email. ( Attachment N ) This Request also contained another formal request for VHDA to honor my Successor in Interest status and reply in writing ( Attachment O ) New Foreclosure Action ( XXXX XXXX ) without sending legally required documents prior again within a few months On XX/XX/XXXX, VHDA requested its attorney to promptly foreclose, again listing XXXX XXXX as the borrower. ( Attachment P ). This same urgent request and violation that was made in XX/XX/XXXX but .this record has been removed/ restricted in my online portal. 

Continued to disregard for the FHA servicing rules again violates : FHA Handbook 4000.1, II.A.2.k ( xii ) 12 C.F.R. 1024.36 ( i ) 12 U.S.C. 1701j-3 ( d ) ( 6 ) Violation of Federal Regulations : These are just a few of the violations I have in my well documented records that VHDA have willfully and repeatedly committed against me for nearly a decade. If more information is needed I will gladly provide it. 


1. Garn-St. Germain Act ( 12 U.S.C. 1701j-3 ( d ) ( 6 ) ) : Refusal to allow assumption of the mortgage despite a transfer resulting from a protected transfer such as divorce decree.

2. FHA Handbook 4000.1 ( Sections III.A.2.k & III.A.3.h ) : Failure to recognize my status as a successor in interest and denial of loss mitigation options.

FHA Servicing Guidelines Failure to pause foreclosure when borrower status is under review.

Failure to offer all available loss mitigation options ( e.g., XXXX yr ect ). Failure to treat me as the borrower for loss mitigation relief HUD Regulation ( 24 C.F.R. 203.512 ) : Denial of mortgage assumption without requiring a credit review for protected transfers.

4. RESPA, Regulation X ( 12 C.F.R. 1024.36 ( i ), 1024.38 ( b ) ( 1 ) ( vi ), 1024.41 ( c ), 1024.17 ) : Failure to respond to successor-in-interest notices, lack of proper servicing policies, improper handling of loss mitigation applications, and escrow account mismanagement. 

Failure to acknowledge written requests within 5 days. 
Failure to respond to successor in interest documentation within 30 days.

5. TILA, Regulation Z ( 12 C.F.R. 1026.2 ( a ) ( 27 ) ( ii ) ) : Failure to provide required disclosures to a recognized successor in interest.

6. Fair Housing Act ( 42 U.S.C. 3601 et seq. ) :
Discriminatory practices based on marital status.

7. Consumer Financial Protection Act ( 12 U.S.C. 5531 ; 12 C.F.R. Part 1030 ) : Engagement in unfair, deceptive, or abusive acts or practices.

8. Virginia Foreclosure Statutes ( Va. Code 55.1-500 et seq. ) : Initiation of foreclosure proceedings without proper notice or opportunity to cure The amount of times VHDA have violated these laws rules, regulations, guidelines and procedures since XXXX until XXXX has caused me sever emotional distress, and significant delays resulting in missed opportunities for relief. I pray the CFPB can assist in VHDAs compliance of these matters, not just for myself but for all of there customers. 

By submitting this complaint, I do not waive any rights to pursue legal action under federal, state, or local laws, including but not limited to claims for RESPA violations, wrongful foreclosure, and damages caused by unfair servicing practices. 

Respectfully, XXXX XXXX XXXX

Company response to consumer: Closed with explanation