Consumer complaint received 2019-04-22
Company: Mr. Cooper Group Inc.
State: AZ
Product: Mortgage
Sub-product: Reverse mortgage
Issue: Trouble during payment process

Complaint:
In XXXX my wife and I took a Reverse Mortgage on our property in Maine. We have been totally misled on various matters that is now costing us in real terms. 
The property consists of an XXXX built 3000 Sq.Ft. home with fenced pasture, small barn, chicken coop, green house, utility sheds, and extensive gardens. The RM was through XXXX XXXX, and is now with XXXX XXXX. 
In XXXX, due to age-related health problems, it became very difficult for us to maintain the property. We listed it for sale with a prominent broker for {$460000.00}, which was just under an appraisal ( see attached XXXX #  XXXX ). For the next three + years with no activity, we incrementally lowered our asking price to {$380000.00}. We had no offers. By XXXX, XXXX, it was obvious that the loan balance would soon exceed the market value, and we were physically unable to maintain the property. We contacted the mortgage company and requested instructions. 
The middle of XX/XX/XXXX, we received written instructions from XXXX XXXX as to requirements to effect a deed in lieu. We signed and returned that agreement ( See attached, dated XX/XX/XXXX ). We hired a firm to conduct an estate sale of our home furnishings and other personal property. That contract included their agreement to dispose of all unsold personal property and sweep clean the residence. That was accomplished during XX/XX/XXXX XXXX, XXXX, and our cost was {$4000.00}. Note that this is an organic farm and there are numerous items in the barn, chicken coop, utility buildings, green house, and garage shop that are part of the operation and a buyer would expect those items to go with the sale. We excluded those items from the estate sale because we still had the property listed for sale. We felt this was consistent with the deed in lieu agreement, in which we gave Champion Mortgage permission, via their form, to remove and dispose of any personal property, trash, debris remaining on the property. 
A letter from XXXX XXXX dated XX/XX/XXXX ( see attachment ) stated that they inspected the home and found it to be vacant. It went on to explain that they would be securing and maintaining the property, including changing the locks. In mid XXXX we phoned XXXX and explained that our hazard insurance policy expires on XXXX  XXXX , st, and that the property tax is paid through XX/XX/XXXX.. We questioned a requirement that we keep the insurance and tax up, since the 120 day maximum for completing the deed in lieu process had been exceeded. The company agent instructed that we can let the policy lapse and that they will place insurance on the property and pay the tax, and those expenses will be added to the mortgage balance. 
On XX/XX/XXXX, via phone we were informed that the deed in lieu papers were about ready for our signatures. The call was to get a verbal reconfirmation that we give XXXX XXXX permission to dispose of any personal property that may remain on the property. We verbally agreed to that. 
On XX/XX/XXXX, we were served with a court summons for foreclosure. We have been verbally informed that the reason for this court action is because there is still personal property on the premises. When we contracted to have the personal property removed, we assumed that the items we excluded would enhance the value of the property, and we gave permission for the mortgage company to dispose of those items as they saw fit. They made a point to reiterate that permission in XXXX. We could have included all items in the estate sale and final clean up in XXXX had we not been misled. Now we live across the Country and would be very hard pressed to take on such a task ( Note. The summons does not offer this as a path out of foreclosure. ). 
Additionally, we are now being billed by XXXX XXXX for the cost of the hazard insurance. As explained above, we let our policy lapse due to instructions from XXXX. 
In XXXX when we received the HUD mandatory counseling before initiating the Reverse Mortgage, all terms were very straight forward. My only question was if we had to walk away from the property would that adversely affect our credit? The answer was a definite no. We have recently applied for a mortgage loan, but were turned down. The explanation was that the underwriters stated that our credit will be totally destroyed for the next five years due to the foreclosure action ( our credit score over 800 ). 
The bottom line is that we have been misled, both in writing and verbally, from the very start of the reverse mortgage. This deception is now set to cost us in real terms.

Company response to consumer: Closed with explanation