Consumer complaint received 2015-07-07
Company: NATIONSTAR MORTGAGE LLC
State: OH
Product: Mortgage
Sub-product: Conventional fixed mortgage
Issue: Loan modification,collection,foreclosure

Complaint:
The corporation I worked for reorganized and my job was eliminated. The only job I could get earns less than half what I used to earn. I am single, alone and have a XXXX year old son with special needs. I sought refinance but since 2008, the house is worth less than I owe. I applied for an FHA short re-finance in order to stay in my home and be able to make the payments with XXXX XXXX XXXX, under the government 's Making Home Affordable program. I was approved, and we got an FHA appraisal showing the home is worth about {$40000.00} less than I owe. The interest rate is also XXXX and I have qualified for XXXX. XXXX XXXX of XXXX XXXX called Nationstar Mortgage to get approval for the FHA re-finance since he has gotten their approval for other short re-finances with Nationstar. Nationstar representatives first told him they would consider that except they could n't because they were only the loan servicer and the investor on the loan would not do a short re-finance with the homeowner, but only would do short sales with a new buyer. XXXX asked who the investor was and Nationstar lied and said it was XXXX XXXX. He and I called XXXX and they said that they are not the investor, that Nationstar was sold the entire asset and Nationstar is the investor and servicer. XXXX has a copy of Nationstar making that false statement. Various representatives also said : FHA refinance is only available when the loan is an FHA ( which is not true ) ; that I am current on my payments, so what 's the problem ( the law precludes them forcing me into default, and you have to be current for an FHA short refi ) ; that even if they were the investor, Nationstar never does short refinances ( XXXX has done them with Nationstar before so that is untrue ) ; that I should simply give up my house if I can not afford it any longer ; and that short refinances are handled by the Loss Mitigation team, that, no, they are handled by the Refinance Team, that, no, they are handled by the Short Sale Team ; that they are n't done at all by Nationstar ; and that they are done by Nationstar, but the secret investor wo n't let them. When told that the investor they mentioned was contacted and said they are not the investor, that it 's all Nationstar, Nationstar 's representative replied, " I ca n't tell you who the investor is, ' but they wo n't let you use the Making Home Affordable program, and will only short sell your house to someone else, '' that you must continue paying the mortgage that is more than the property is worth, at the higher interest rate, or get out of the house or do a loan modification ( which ca n't be done because the house is worth less than the mortgage ). Even though Nationstar would get the same amount of money ( 97 % of the actual value of the property ) whether a short sale went to a new buyer, or a short refinance permitted me to stay in the home under affordable terms, Nationstar they refuse to do one with me, but would only do it with a stranger, but not me, refusing to permit me to do short refi under Making Home Affordable - even though I an qualified under that program for a short refinance and even though I have been pre-qualified, we have the FHA appraisal, have been timely paying my mortgage for 14 years, and I have a willing FHA lender ready to pay Nationstar. They are violating federal and state laws, being unreasonable, arbitrary and capricious, and acting in a discriminatory fashion. They further refused to provide the name of the group, entity, and individual at Nationstar who could make this decision considering the evidence available, rather than various reps general thoughts about what Nationstar would or would not do, saying both that Nationstar does/never does short refinances, even though the XXXX XXXX rep on the phone with me and working with me now, has done short re-finances with Nationstar before..

Company response to consumer: Closed with explanation