Consumer complaint received 2016-08-09
Company: NATIONSTAR MORTGAGE LLC
State: IL
Product: Mortgage
Sub-product: FHA mortgage
Issue: Loan modification,collection,foreclosure

Complaint:
We have had an active short sale offer on this property since XXXX/XXXX/16. After sending the package to Nationstar and becoming active in XXXX, we met every demand of Nationstar. The appraisal was completed on XXXX/XXXX/16 and came back with the value of {$26000.00}. However, because the XXXX came back at {$64000.00}, we were told that Nationstar would be ordering an additional appraisal to back up the first. We were subsequently told that the XXXX is actually {$84000.00} which we find to be high suspect considering the fair market value is at {$26000.00} per the appraisal and the previous XXXX of {$64000.00}. At this time, we were 15 days away from the Foreclosure Sale Date of XXXX/XXXX/2016. Our office faxed in an escalation request with Nationstar to get the Foreclosure stopped since we had an active buyer. 

Unfortunately due to lack of motion and efforts within Nationstar to protect the best interest of the FHA, Nationstar refused to stop the foreclosure sale ; therefore, we had to hire a lawyer instead to stop the FC date. The day before the original FC sale date, the XXXX was issued and our buyer raised their offer to {$27000.00} in order to exceed the required net of {$21000.00} which was requested by XXXX XXXX at Nationstar. Nationstar claimed orgininal contract was invalid due to the date of inception, therefore, the contract was redrawn. Since this date, we have been waiting for approval from Nationstar while checking in regularly. There have been 3 separate claims that Nationstar was asking for a variance on the XXXX v Appraisal values. Today we were told that the seller needs to bring the property to a marketable status before the FHA will review for a short sale. Our firm has processed XXXX of short sales over the last 7 years and never had a servicer demand that a property be rehabbed in order for the short sale to be completed. We know of no mortgee letter issued that highlights this update procedure and/or policy of the FHA. 

It is our opinion that Nationstar is deliberately trying to foreclose on our client and that they are taking every opportunity possible to derail the short sale. We believe we have identified a trend within Nationstar 's servicing practices. We believe the pattern is as follows : Nationstar drags a property through the short sale process thus determining its real market value, its fake market value, and its future appraised value. These costs are covered by the FHA and not by the servicer. From this point, Nationstar does what it can to deny the short sale, foreclose on a property, send that same property to their auction site XXXX, and charge a 5 % buyer 's premium. In addition, Nationstar receives a servicing fee from the FHA and receives revenue from the vendors who are advertising and/or participating in the auction process. Nationstar benefits much more through this auction process than through a short sale process so they are forcing their borrowers into foreclosure instead of letting them out of the debt. This not only hurts the homeowners but the tax payers and the real estate market as well. 

A complete Short Sale Package including : pay stubs, tax returns, and bank statements, is available immediately upon request.

Company response to consumer: Closed with explanation