Consumer complaint received 2015-05-14
Company: NATIONSTAR MORTGAGE LLC
State: NH
Product: Mortgage
Sub-product: Conventional adjustable mortgage (ARM)
Issue: Loan modification,collection,foreclosure

Complaint:
XXXX XXXX XXXX XXXX. 
XXXX XXXX XXXX XXXX XXXX XXXX XXXX. 
XXXX NH. XXXX Nationstar Loan # is : XXXX To Whom It May Concern : This is a follow up to a complaint concerning our mortgage with Nationstar Mortgage. We filed a complaint in XXXX XXXX with the Consumer Financial Protection agency, ( complaint number is : # XXXX ). Shortly after submitting this complaint, we received a call from our mortgage company Nationstar in an attempt to resolve this matter. We were advised to apply for the Government HAMP loan as a solution to our complaint*. * ( In short we are requesting our 5 year ARM be converted into a 30 year fixed mortgage ) After 6 months of working with Nationstar, in XXXX of XXXX we were contacted by Nationstar Mortgage Company and were told we had been accepted for the government ( HAMP ) Home Affordable Modification Program. We were not provided any written information about the term of the new loan, only the monthly payment amount was provided. ( {$2100.00} our new monthly payment ). We were told we would be required to make 3 payments ( 90 day trial period ) and if we successfully made those payments we would then receive written documents outlining the terms of loan. In XXXX we successfully completed the terms of the trial period and received the final loan modification documents provided by Nationstar Mortgage. After reviewing the loan documents we were very uncomfortable with the terms of the new loan agreement. We would be required to agree to accept a 40 year mortgage at 4.125 % interest rate with exorbitant, penalties, interest, fees and other costs added to the loan bringing the new principal balance to {$350000.00}. Our original loan amount when we purchased the house in XXXX of XXXX was for {$240000.00}. Despite the fact that we have been making monthly payments for over 8 years the new loan balance would be over XXXX. We feel this is an excessive amount of fees to pay on top of the 40 year mortgage interest payments. The only " supposed '' relief offered was described in Point XXXX. Section XXXX of the new loan documents by deferring {$56000.00} of the new principal balance to be interest free for the period of the loan. {$350000.00} less {$56000.00} equals the new interest bearing principal balance of {$290000.00}. This XXXX will be charged interest at a rate of 4.125 % for 40 years. Using an amortization schedule, the 40 year payback amount on the interest bearing principal balance is {$600000.00} plus we would need to pay the {$56000.00} deferred amount in full before the loan would be paid in full. That is {$650000.00}. This is an exorbitant amount of interest to earn on this mortgage. In XXXX we wrote and submitted to Nationstar an appeal letter asking for a sizable reduction in the principle balance on the loan before we could accept the new modification agreement. ( You should be aware that the town of XXXX NH has appraised the value of the property to {$250000.00} most recently ). XXXX XXXX I received a response from Nationstar denying all of the requests I made in our appeal letter leaving us with few options. XXXX XXXX, XXXX we formally refused the terms of the HAMP modification loan closing options to prevent the foreclosure of our home. Nationstar then offered us a program called " Keys for Cash '' with a {$35000.00} payment if we voluntarily sign the house over to the bank. We agreed to the Keys for Cash program and shortly after Nationstar withdrew the financial offer of ( {$35000.00} ). Supporting documents attached.

Company response to consumer: Closed with explanation