Consumer complaint received 2019-10-04
Company: Mr. Cooper Group Inc.
State: NJ
Product: Mortgage
Sub-product: FHA mortgage
Issue: Struggling to pay mortgage

Complaint:
After finalization of my divorce I bought my ex-husband out in XXXX to maintain my primary residence. The deed on the property changed from me and my ex-husband to me alone. In order to do this I took out a loan from Pacific Union Financial in the amount of {$360000.00}. Because of income limitations the mortgage representative suggested a co-borrower and my parents agreed to be co-borrowers. Pacific Union Financial required my parents and myself to sign both a promissory note and mortgage document but my parents never had ownership of the mortgaged property. According to the loan officer since the loan was an FHA loan, in order to comply with FHA guidelines the mortgage document had to be signed by all three parties. 
In XX/XX/XXXX Mr. Cooper bought Pacific Union Financial and serviced my loan. Due to a financial hardship on XX/XX/XXXX I applied for mortgage assistance an asked Mr. Cooper to look at a possible modification of my loan. In the interim I remarried and in the process of the modification application, I asked Mr. Cooper to evaluate the income based solely on my income and my husbands income alone. My parents never materially participated in the payments of my mortgage and including only my household income would give a truer picture of my affordability of paying back the loan. Mr. Cooper agreed and asked my husband to sign a non-borrower support letter. I also disclosed to Mr. Cooper that the title of my property was in my name alone. The company 's response back to me was I needed to include a recorded Quit Claim Deed which would have retitled my property from Me, My Dad and My Mom to Myself alone. It according to Mr. Cooper would be an FHA requirement. Unfortunately my parents could not give up ownership of a property they never owned and Mr. Cooper declined my application because I could not provide ownership change documentation. Having questioned how under FHA guidelines the original loan was able to close when my parents had no ownership Mr. Cooper 's response was they were not liable for anything Pacific Union Financial would have done in  the past. I didn't agree with that statement and suggested that through the purchase of Pacific Union Financial, Mr. Cooper should be accountable for any errors or mistakes made by the previous  company. I recently received a denial letter ( see enclosed ) from Mr. Cooper regarding the modification and correspondence from Mr. Cooper 's attorney 's ( see enclosed ) informing me that foreclosure proceedings have started. I feel that there was a mistake with the original loan and that mistake is not allowing me the chance to modify my loan or take advantage of other options like forbearance. I have since contacted FHA directly and they are in the process of investigating my case. I also have contacted an attorney and may opt for a lawsuit against Mr. Cooper. I am hoping that Mr. Cooper will reconsider my modification or rectify the issues which started with Pacific Union Financial. Thank you for your prompt attention regarding this matter.

Company response to consumer: Closed with explanation