Mortgage -- Struggling to pay mortgage -- Complaint #9720833
Mortgage Modification Extended Loan Term Unknowingly
Complaint Overview
Complaint ID: 9720833
Company: Midfirst Bank
Product: Mortgage
Sub-Product: FHA mortgage
Issue: Struggling to pay mortgage
Sub-Issue: An existing modification, forbearance plan, short sale, or other loss mitigation relief
State: Maryland
ZIP Code: 20720
Date Received: 2024-07-31T12:00:00-05:00
Date Sent to Company: 2024-08-06T12:00:00-05:00
Company Response: Closed with explanation
Timely Response: Yes
Consumer Disputed: N/A
Submitted Via: Web
Tags: Older American, Servicemember
Risk Assessment
Risk Level: high
The consumer may have been misled or not fully understood the terms of the mortgage modification, potentially leading to a longer repayment period and higher overall interest paid.
Consumer Sentiment: negative
Topics: Mortgage Modification, FHA Mortgage, Loan Terms, Consumer Protection
AI Analysis
CFPB complaint 9720833 was filed against MIDFIRST BANK regarding Mortgage (FHA mortgage), specifically about "Struggling to pay mortgage". A consumer modified their FHA mortgage with Midland Mortgage, unknowingly extending the loan term to 30 years and increasing the principal balance, despite having less than 10 years remaining, leading to a similar monthly payment as before the modification. The complaint was received on July 31, 2024 from Maryland. The company responded with "Closed with explanation".
Consumer Narrative
I live off my XXXX since my spouse who is a XXXX passed away on XX/XX/XXXX since then I have been trying to maintain paying the mortgage with the help of my children since I live in a different state. During the Pandemic we did a forbearance and at the end of it in XXXX of XXXX, we struggled to pay a whole year of mortgage and had to pay over XXXX to the bank at the end of the forbearance. We fell behind again in XXXX when I had to sign a modification document that Midland Mortgage sent me to get back on track and told me that to get the modification the modification had to be done for 30 years when I only had about less than 10 years left on my mortgage. took the years of my mortgage back 30 years. I am not a real estate attorney and with my financial hardship, and worried stress about losing my home I believed what they told me. Midland stated that the arrears would be put in the backend of the mortgage. I wasn't aware that it didn't have to go back to 30 years. I just learned that speaking to a friend. In addition, after the modification and taking the mortgage back 30 years the monthly payment remains about the same when it was just about 5 years left to pay off the mortgage the principal balance of {$190000.00}. On XX/XX/XXXX, I received a call from Midland Bank to further discuss the option of another modification because, at that time their portal, was showing that the mortgage had been behind for one month. I explained to the representative that I was not ready to do that. Therefore, when I went to pay the mortgage for XXXX in XXXX the portal was changed showing that it was 3 months behind. This made me so baffled after it was almost a year showing that. The bank made a new change in my mortgage account showing 3 payments late when that wasn't the case after all this month. It put me at a disadvantage in making payments in their portal system. So I had to call them to make the payment for XXXX. On Monday, XX/XX/XXXX I received a letter from Midland Mortgage indicating that the mortgage monthly payment had increased from {$2100.00} to {$2400.00}. I understand that taxes do increase and decrease however I don't understand why my mortgage needed to go back to 30 years for modification paying practically the same amount that I was paying before the modification. That's just unfair business practice. I strongly believe the Midland Bank is practicing predatory lending. Midland Bank is aggressive and using tactics and deception to get me to take out another modification loan, which I can't afford to do right now not to mention that they took my mortgage back 30 more years when that wasn't necessary. I was told that was the only way to get the modification in XXXX or my home would have been in foreclosure. They pretend to try to help but they are not in the business of helping.
What You Should Do -- Consumer Action Plan
Consumers should carefully review all loan modification documents, ask questions about the terms, and consider seeking independent financial or legal advice before signing.
Legal Context & Consumer Protection Laws
Loan modification agreements are legally binding contracts that alter the original terms of a mortgage; consumers have a right to understand all aspects of these changes.
Regulatory Insight
Lenders have a responsibility to ensure consumers understand the implications of loan modifications, especially regarding loan term extensions and payment structures.
Resolution Likelihood
likely
State-Specific Consumer Protections
The consumer is located in Maryland, and state laws may offer additional protections regarding mortgage servicing and modification practices.
Industry Comparison
While loan modifications are common, the specific circumstances of extending a loan term significantly when nearing payoff may be less typical and raise concerns.
Related Issues
Frequently Asked Questions
What is CFPB complaint 9720833 about?
CFPB complaint 9720833 involves Mortgage (FHA mortgage). The consumer reported an issue with "Struggling to pay mortgage", specifically "An existing modification, forbearance plan, short sale, or other loss mitigation relief". This complaint was filed against MIDFIRST BANK on July 31, 2024.
Which company is complaint 9720833 filed against?
Complaint 9720833 was filed against MIDFIRST BANK. You can view all complaints against this company on their profile page at /company/midfirst-bank.
What was the company's response to complaint 9720833?
MIDFIRST BANK responded with "Closed with explanation". The response was marked as timely by the CFPB.
When was complaint 9720833 filed?
Complaint 9720833 was received by the CFPB on July 31, 2024. It was sent to MIDFIRST BANK on August 6, 2024.
What state was complaint 9720833 filed from?
Complaint 9720833 was filed from Maryland. You can view all complaints from this state at /state/MD.
Was the consumer satisfied with the resolution of complaint 9720833?
Dispute information is not available for complaint 9720833.
What product category is complaint 9720833 about?
Complaint 9720833 is categorized under "Mortgage", specifically "FHA mortgage". This is one of the product categories tracked by the CFPB.
How was complaint 9720833 submitted?
Complaint 9720833 was submitted via Web. The CFPB accepts complaints through web, phone, mail, email, fax, and referral channels.
What are the consumer's legal options for complaint 9720833?
Loan modification agreements are legally binding contracts that alter the original terms of a mortgage; consumers have a right to understand all aspects of these changes. This relates to a Mortgage complaint against MIDFIRST BANK involving "Struggling to pay mortgage".
How likely is complaint 9720833 to be resolved?
Resolution likelihood: likely. The company's current response is "Closed with explanation". The company did respond in a timely manner, which is a positive indicator.
What does the risk level mean for complaint 9720833?
This complaint is rated as high risk. The consumer may have been misled or not fully understood the terms of the mortgage modification, potentially leading to a longer repayment period and higher overall interest paid.
What regulatory actions apply to complaint 9720833?
Lenders have a responsibility to ensure consumers understand the implications of loan modifications, especially regarding loan term extensions and payment structures. The CFPB tracks complaints like this one to identify patterns of misconduct across the Mortgage industry.
What should the consumer do about complaint 9720833?
Consumers should carefully review all loan modification documents, ask questions about the terms, and consider seeking independent financial or legal advice before signing.
Are there state-specific protections for complaint 9720833?
The consumer is located in Maryland, and state laws may offer additional protections regarding mortgage servicing and modification practices. This complaint was filed from Maryland.
How does complaint 9720833 compare to industry norms?
While loan modifications are common, the specific circumstances of extending a loan term significantly when nearing payoff may be less typical and raise concerns.
Could the lender have offered alternative loss mitigation options that would not have extended the loan term?
Yes, depending on the specific financial situation and lender policies, other options like a payment deferral or a partial claim might have been available that wouldn't necessarily reset the loan term.
What recourse does the consumer have if they believe they were misled about the modification terms?
The consumer may be able to file a formal complaint with the CFPB or state regulatory agencies, and could explore legal options to address potential predatory lending or misrepresentation.
Disclaimer
This analysis is AI-generated and does not constitute legal advice.