Consumer complaint received 2015-08-16
Company: NATIONSTAR MORTGAGE LLC
State: NJ
Product: Debt collection
Sub-product: Mortgage
Issue: Disclosure verification of debt
Sub-issue: Right to dispute notice not received

Complaint:
In 2007 I purchased a condo in XXXX and took out a mortgage with mortgage company XXXX. About 2 years later, that company filed for bankruptcy and reorganized under the name XXXX. The statement looked the same but were in a different color. I was suspicious but continued to make payments. Three months ago I received a letter from XXXX informing me that they too are filing for bankruptcy and that I am being assigned to a new agency called NationStar Mortgage. This letter also stated that payments made to XXXX would be automatically forwarded to NationStar for 60 days. The payments I continue to make to XXXX have not been cashed. 

I have never received any certified mail or legitimate looking paperwork from XXXX or NationStar. I just recently received the foreclosure notice on XXXX/XXXX/15 by certified mail. I then consulted an attorney who was also suspicious and told me he normally does not handle these type of problems and suggested I contact your agency for assistance. I have never received any information from the lenders bankruptcy court regarding the disposition of my debt with XXXX or XXXX. Prior to XXXX, my credit score was approximately XXXX. I obviously pay my bills. 

I made my mortgage payment to XXXX in XXXX, days before receiving the notice about the change over. The following month I received a letter from NationStar saying that they never received my XXXX payment and also added a late fee which probably negatively effected my credit score. In an attempt to sort out what happened, I called NationStar however, before speaking with a representative, there was a disclaimer that stated the following : " Please be advised that NationStar is a debt collecting agency and any information provided will be used to collect that debt ''. I immediately hung up the phone. 

I am suspicious for two reasons. First, NationStar is listed on the Better Business Bureau with a F rating and thousands of complaints have been filed against this company. And second, I 've heard many stories of companies grouping mortgages together, selling the loans as a bundle with the buyers of that debt collecting money for properties that they do n't even have proper title to. I am concerned that when I finally pay the mortgage off, they will not have my documentation and essentially run off with the money. Additionally, on the new NationStar statement, it says " The Principal Balance does not represent the payoff amount of your account and is not to be used for payoff purposes ''. For all these reasons, I have not made payment to NationStar. 

Last week I received a foreclosure document from NationStar. It states that the foreclosure will be lifted if I pay the delinquent months including late fees. The FTC website states that " By law, a debt collector is a person who regularly collects debts owed to others. Your mortgage servicer is considered a debt collector only if your loan was in default when the servicer acquired it. '' Prior to NationStar trying to collect, my account has never been in default.

Company response to consumer: Closed with explanation