Consumer complaint received 2017-08-15
Company: NATIONSTAR MORTGAGE LLC
State: NM
Product: Mortgage
Sub-product: FHA mortgage
Issue: Applying for a mortgage or refinancing an existing mortgage

Complaint:
We bought XXXX XXXX XXXX XXXX XXXX nm XXXX on a wrap around mortgage land contract, we were told the payments and balances mirror the actual mortgage and payments will be done through escrow ( XXXX XXXX in NM ) and drafted by attorneys ( XXXX XXXX at XXXX XXXX XXXX XXXX XXXX, reg agent of XXXX XXXX, also both real estate brokers.
At closing the title company does not give accounting of some money around 2700 $ disbursed. Aparently it was given to the buyers not through escrow but to them directly, The companies involved are Nationstar ( HUD mortgage wherein I am named defendent in foreclosure action as owner ) and title company ( XXXX XXXX XXXX XXXX of no defect on title yet it was in default and not disclosed ) and escrow company ( XXXX XXXX ) We are claiming Nationstar artificially brought about a due on sale clause to force a foreclosure.
We were asked by Nationstar ( and I believe they are selling to another mortgage ) that they will let us assume and modify the loan and we sent all the financial documents except fior their last requirement, they wanted us to take title to the property from the mortgagors, XXXX XXXX  and XXXX XXXX, so that they complete the modification, and since they mortgagors who have not paid the mortgage since 2008, took a long time, we finally got the deed and sent them the copies of recorded deeds.
they said that they needed this paper to modify and eliminate the foreclosure action. and in their letter it says also that they needed this so the XXXX ( mortagors ) do not have any redemption rights (? ) Instead of doing the modification, they sent the file to the legal department. And refiled the foreclosure action.
We were recently advised by the courts paralegal division that the mortgage has a due on sale clause and that changing the title to us, was a factor triggering the due on sale clause.
We are perplexed, did Nationstar did this intentionally to make us trip to the due on sale clause? This should strike their remedies on that clause since if their motivation was not the result of the mortgage alternative program in court, but a way to strike out the XXXX 's and extort full cash payment from us being that we are the only party paying on the mortgage through sunwest trust, and that nationstar accepted payments, was that a trick to get all the money that the bank already got from My mother and I comingled into their mortgage loan? Nationstar has been taking mom 's money, XXXX ' did not pay since 2008 They can not foreclose and deny modificaiton to us, they extended that offer to us in court, see court documents and modification letter to us. I am submitting another mortgage modification to them today, they can not go after any due on sale or accelerate a balloon pyament on our Real estate contract, since it was done in bad faith.
The REC mom has with the mortgagors is protected under the safe act since the mortgageors used mom 's money, when the mortgage returned some of it to her to flip more than 3 o4 poroperties a year while they had a REC. there should be no balloon or one that could be created with an artificial due on sale acceleartion in bad faith by the bank.

Company response to consumer: Closed with explanation