PNC Bank: Miscommunication or Mortgage Loan Modification Fraud?

As an attorney who assists borrowers with mortgage relief, loss mitigation, and foreclosure matters, I have dealt with many mortgage loan servicers and lenders, and come across all sorts of outrageous situations.   Unfortunately, PNC may have added itself to the list of mortgage loan servicers behaving badly.   Whether this situation involves intentional fraud and deceit as opposed to shockingly bad communication skills remains to be seen.

To briefly summarize, we obtained a mortgage loan modification from PNC on behalf of one of our clients.  That loan modification offer specifically states, in writing, that accepting the modification (verbal acceptance qualifies, according to PNC) by August 2 and making the first payment by September 1 would cause PNC to “suspend foreclosure”.  The offer warned that failure to comply, however, may result in foreclosure proceedings continuing.   

PNC had been instructed to communicate with us as opposed to our client but of course, ignored that instruction and sent the modification offer directly to our client, who only received it a few days before the August 2 acceptance deadline.   On July 30, we contacted PNC and accepted on behalf of our client.  However, PNC stated that it would not acknowledge our acceptance, despite long knowing that we were involved in the case and having a properly executed limited power of attorney/third party authorization on file.  On July 31, our client called directly and accepted the modification offer.  The acceptance of the modification offer was in reliance on PNC’s specific statements in the offer that the foreclosure would be then be “suspended”.

The payment due by Sept 1 was made in full and on time, by way of certified bank check and certified US Mail, return receipt required and obtained.  However, despite the written agreement, PNC is refusing to suspend the foreclosure process, including this client’s foreclosure hearing which remains scheduled for later this month.  It should be noted that the point of a foreclosure hearing in North Carolina is for the mortgage loan servicer/lender to get final permission to sell the home pursuant to a foreclosure sale.

When confronted with the fact that it is refusing to suspend foreclosure despite making a legally enforceable offer to do so upon acceptance of the modification proposal, PNC stated “it is not our policy to stop foreclosure proceedings until a modification is final.”  This, of course, is in complete contradiction to the written and legally binding offer PNC made to the client and the client accepted.  Making a false promise in order to get an opposing party to agree to something is commonly referred to in the legal field as “fraud in the inducement”.   In other words, one party makes a fraudulent promise in order to deceive the other party into agreeing to something that otherwise might not be agreed to.

So, PNC, are you engaging in fraudulent conduct or is this simply another “miscommunication”?

McGrath & Spielberger, PLLC provides assistance to borrowers in need of mortgage relief services, such as mortgage loan modification, foreclosure negotiation, refinancing, and deed-in-lieu or other negotiated settlement resolutions.


McGrath & Spielberger, PLLC provides legal services in Florida, Georgia, North Carolina, Ohio, South Carolina, and Tennessee, as well as in some Federal courts. The Firm offers full scale representation, as well as limited scope services, as appropriate for the situation. Please be advised that the content on this website is not legal advice, but rather informational, and no attorney-client relationship is formed without the express agreement of this law firm. Thank you.


10 Responses to “PNC Bank: Miscommunication or Mortgage Loan Modification Fraud?”

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  1. Karen Crowe says:

    We live in Kansas, so I know you can’t help us. I just want to let you and your clients know that we are caught up in the middle of the same mess with PNC Mortgage. We are five months behind on payments. We sent in a payment in Feb., 2013, and they sent it back, said they don’t take partial payments. Well, we obviously don’t have $3,000 on hand, so we’re essentially screwed. We have filled out two hardship packets, with them telling us they don’t participate in the HAMP Program, that we don’t qualify because they service our loan on behalf of an investor/group of investors. Now we have a new loss mitigation guy, and he says he can’t tell us anything about anything before he took over as our rep. Now he wants a new packet with all our information again. We’re doing it, but we’ve received a letter from PNC saying they’ve turned our loan over to an attorney in Overland Park, KS to initiate the foreclosure proceedings, all the while, they keep saying they’re here to help. When we mentioned the different options they have such as forebearance, repayment, modification, DIL and short sale, our rep knew nothing of it. We read those options off to him from a piece of paper they had sent us in the hardship packet. We are at wits end. We are going to lose our home, don’t know when, and we have no place to go. I truly hope you and your clients beat these cheating, lying thieves. Take down the whole rotten, fraudelent outfit!!! Best of luck to your and your clients.

    • Karen, I am truly sorry to hear about your challenges with PNC, although I am not surprised. In the case I referenced, PNC then brought in a Chicago law firm, and the lawyer did not have a clue as to what she was doing.

      I encourage you to file a complaint with the Consumer Finance Protection Bureau (you can do it pretty easily online). You may also want to see if the Attorney General or anyone other state agency will accept complaints.

      I wish I was able to represent you. I do wish you the best of luck.

  2. Julee Myers says:

    Good luck. They have lead me on for 3 years. My husband left, so I needed to modify my mortgage. I wanted to pay. I wanted to honor my debt. I was willing to work with them. I sent paper after paper to them. I jumped through all of their hoops. We decided to sell the house. My son and I left our home and moved into an apartment that costs almost as much as my mortage. We didn’t get any buyers and it sat and ate up our equity. For the past year, we have been trying to do a short-sale. They have refused at least 5 offers on the house. It was supposed to finally go to sheriff’s sale at the end of March. They decided to delay it for two months more. Meanwhile, expenses are adding up. I was just notified that they accepted the last short-sale offer. I am doubtful that it will come to fruition.

    I really hope that you are able to resolve your issue with them before you end up like me and hundreds of others.

  3. Matt que says:

    We just meet with an attorney today to deal with pnc, were deal with the same issues after a17 month

  4. Matt que says:

    We just meet with an attorney today to deal with pnc, were deal with the same issues after a17 month

  5. Brian miguez says:

    I’m in louisiana and been dealing with pnc for almost three years now. Went in front of the judge Monday and they proved they are exempt from any litigation from a home owner that they misled and lye to about modification. I have to go back to court on dec 9 and the only thing we can claim is that they are not trying to help home owners modify but just trying to take the house exspecialy if u are a FHA loan but this is very hard to prove. If anyone has any info or anything that can help me get these crooks please let me know. Basically they can take your house and there is nothing u can do about it which I think is wrong.

  6. Althea B says:

    PNC did the same to me ” false promise” and then foreclosed on the property. I filed Chapter 13 Bankruptcy to keep my property. I still have my property but PNC’s servicer is after the property again. I cannot get an Attorney to help me because of the active Chapter 13 Bankruptcy but I am personally preparing a lawsuit against PNC Mortgage.

    Oh yea, I have contacted almost all government agencies, Senator, Attorney General of VA, President etc.. about PNC and still NO help. My personal feelings about Consumer Finance Protection Bureau a paper/forum collecting agency.

    • Diane B. says:

      I thought Green Tree was bad, they are worse. They took over our mortgage in April 2013 and its been a nightmare ever since. They put us in loss mitigation from the start and we weren’t late. We had paid Green Tree and apparently they didn’t process it and it went into unapplied funds. Both have different dates that the transfer was supposed to start and I just found out that the investor was changed from Fannie Mae and no one told us. It took 4 months to find our March 2013 payment and they would not take a payment from us before that because they still wanted the March payment. Then they added past legal fees that no one could explain. I would get a certain point of contact John J. whom I’ve never spoke to. I sent this to the Banking Dept but I would love to sue them for all the inaccurate information and documents they have sent me. They should be shut down and they are Bank of America.

  7. Darla says:

    I’ve been trying to short sell my house for a yr. We got an offer within the first month on the market, my first lender agreed to the terms PNC is our second lender, and would constantly prolong long our process by claiming they didn’t have all the documents required. My real estate agent was working really hard and asked me to get her everything they needed and I would comply the same day! I know they had everything!!! Every week they would say everything looks good, yes we have everything. Then, I would get a paper in the mail stating that we are missing so and so document. And we would fax it as soon as possible. So, our time ran out with the first bank after an extention, so all in all the offer fell through.Few months go by my bills are adding up and my home value is going down. Finally, we get another offer. Same damn thing is happening! Now we got our summons for a foreclosure. We tried to work it out. I have 20 days to write the court in my behalf. How does this help them out any?

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