Consumer complaint received 2015-04-07
Company: NATIONSTAR MORTGAGE LLC
State: CO
Product: Mortgage
Sub-product: Conventional adjustable mortgage (ARM)
Issue: Loan modification,collection,foreclosure

Complaint:
We filed a complaint against Nationstar a couple of months ago because they had failed to work with us or give us an opportunity to resolve our mortgage issues with them. We have now completed the initial review, and frankly we are very concerned with the way the servicing of this loan has been handled, specifically the failure to review the loan for capitalization modification, cap and extend modification, in house programs or even a repayment plan. It is obvious that this is an avoidable foreclosure and also obvious that we do not have the necessary funds to reinstate the loan in full. We have been told that the payment is so low in relation to my current income that we ca n't fit into guidelines to LOWER our payment. My XXXX issue is that Nationstar miscalculated the income. But going back to the initial issue, I know there are programs where they put the late payments back into the balance and the payment goes up. Why are they not looking at this program? Also they are claiming to use specific formulas to calculate my income and they are making errors. Also they have provided a property value that is nearly 20 % off from what all of the neighborhood comparable sales show. I am not sure why Nationstar wo n't be forthright and work with me towards resolving this issue1. Miscalculated income : The RMA that was submitted with my application listed a W-2 income of approximately {$4500.00} per month. That is based on my salary, and the guaranteed income that is received each paycheck. However, the Nationstar underwriter calculated the W-2 income as {$7100.00} a month. This does not add up, unless the underwriter is making the misguided assumption that I receive vacation pay, paid time off, bonus pay and recognition pay and holiday pay EVERY SINGLE CHECK. That is not the case. I have provided the same paystubs that were used to calculate the income that was used in the last denial. I would like a senior underwriter to review this taking into account my salary and guaranteed income, not occasional bonuses, vacation pay etc. 


2. Inaccurate Property Value : Nationstar has somehow arbitrarily come up with a value of {$190000.00} for this property. However, there are XXXX comparable sold properties in my neighborhood with similar or LESS square footage and the average sale price is {$230000.00}. I have included a list of sold comparable properties with square footage and the sale price. Additionally, I have included a list of XXXX properties under contract in the same neighborhood, referred to as " comps '' and the average sales price of these properties is {$240000.00}. 

Based on these facts I assert that my current value is {$230000.00}, as opposed to the {$190000.00} that was calculated by Nationstar. 
Once again, I want to know why my loan was not reviewed for a capitalization modification or a repayment plan or even an in house program? Based on the documentation included in the Nationstar denial, their agents only looked at HAMP and HAMP Tier XXXX, even though I know these other programs exist. I am not sure why they are denying me access to these other programs.

Company response to consumer: Closed with explanation