Consumer complaint received 2025-02-01 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: MIDFIRST BANK
State: AZ

Complaint narrative:
XXXX the updated letter with the claim date added : -- - **Mercury and XXXX XXXX XXXX XXXX XXXX XXXX XXXX, AZ XXXX XXXX : XXXX Email : XXXX XXXX : ** [ Insert Date ] **U.S. Department of Housing and Urban Development XXXX HUD XXXX XXXX XXXX XXXX XXXXXXXX XXXX XXXX DC XXXX **Subject : ** Complaint Against Midland Mortgage Improper Partial Claim Handling Dear Sir/Madam, We are writing to formally file a complaint regarding the practices of XXXX Mortgage, XXXX XXXX lender, XXXX connection with a Partial Claim on our FHA-insured mortgage. The handling of this claim has resulted in an unjust financial burden on our household and has now escalated to a foreclosure threat. 

# # # **Background Information : ** - **Mortgage Holder Names : ** XXXX and XXXX XXXX XXXX XXXX Address : ** XXXX XXXX XXXX XXXX, XXXX, AZ XXXX - XXXX Number : ** XXXX - **FHA Case Number : ** XXXX - **Date of Partial Claim Initiation : ** XX/XX/year> XXXX Mortgage secured a Partial Claim XXXX FHA to address our delinquency, which, as per HUD guidelines, should have involved XXXX reimbursement of their advancement of funds on our behalf to bring our mortgage current. We understand that FHA Partial Claims do not accrue interest and result in a subordinate lien against the property.

# # # **Complaint Details : ** Despite the use of the Partial Claim to assist with our mortgage delinquency, Midland Mortgage has : 1. **Increased Our Monthly Payments** : Midland Mortgage nearly doubled our original mortgage payment following the Partial Claim, an amount we were not informed or prepared to handle.

2. **Charged Additional Interest** : We have observed charges for interest that were neither outlined in the terms of the Partial Claim nor permissible under FHA guidelines XXXX 
XXXX. **Failed to Properly Apply Payments** : Over the past XXXX months, we have consistently made the doubled mortgage payments requested by Midland Mortgage . Based on this payment history, we should now be current on our mortgage and may even have a surplus. However, Midland Mortgage has not provided confirmation of this status, and the increased charges remain unexplained.

4. **Escalated to Foreclosure Threats** : Unfortunately, due to the unsustainable increase in our payment amount, we have fallen behind on the mortgage. Midland Mortgage is now threatening foreclosure on our home, despite the fact that their improper handling of the Partial Claim and their failure to adhere to FHA guidelines have directly caused this situation. 

These actions directly contradict FHA policy regarding Partial Claims, which explicitly states that no interest is to accrue on the Partial Claim. Furthermore, Midland Mortgage failed to provide adequate explanations or disclosures about how these adjustments were calculated or justified.

# # # **Impact on Our Family : ** This unjustified payment increase has placed significant financial strain on our household, leading to missed payments and the looming threat of foreclosure. The emotional and financial stress caused by this situation is immeasurable, and it jeopardizes our ability to retain our home.

Thank you for your attention to this matter. Please feel free to contact us at XXXX or XXXX if additional information or clarification is needed. We trust that HUD will take the necessary steps to protect homeowners from such practices. 

Sincerely, XXXX and XXXX XXXX ---

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