Consumer complaint received 2023-12-15
Company: Mr. Cooper Group Inc.
State: OR
Product: Mortgage
Sub-product: Conventional home mortgage
Issue: Struggling to pay mortgage
Sub-issue: Trying to communicate with the company to fix an issue related to modification, forbearance, short sale, deed-in-lieu, bankruptcy, or foreclosure

Complaint:
Right Path took over our mortgage loan and once this happened everything fell apart due to their unethical servicing practices once the servicing was transferred from XXXX XXXX. Our family was dramatically impacted by Covid resulting in income loss and our original mortgage company XXXX XXXX offered the CARES act forbearance as required by the government. Once the hardship was resolved and the forbearance ended in XX/XX/XXXX XXXX XXXX followed government guidelines and began the process of reviewing our financial situation for a solution to address the arrearages and were told they were likely going to recapitalize this amount into the balance of our loan. However, the loan then got transferred to Right Path and instead of completing a review for options to recapitalize or defer or modify the loan to address the forbearance payments they instead demanded full reinstatement. This is in complete violation of CARES program guidelines as servicers are REQUIRED to work with borrowers and review financials to offer all options to address the forbearance arrearages. 

When we pushed back we were eventually put into review for a workout program to address the arrearages. This process took several months and we had multiple points of contact but at the end of the day were told there were no options to help. The account manager XXXX XXXX told us that the reason we were denied was because a restructure of our loan would result in the monthly payment increasing ( even though we had sufficient income to afford a higher payment ). XXXX XXXX told us NOT to appeal and that he would request a managers exception since this was the result of Covid income loss and forbearance that had been granted by the servicer, and should be approved since the hardship was resolved and we have the ability to pay. 

However, we have not heard from anyone at Right Path since that conversation and now we are facing a foreclosure sale date of XX/XX/XXXX. This is not right. Our delinquent payments were part of an authorized government forbearance, and Right Path is required to work with us to come up with a program to address the arrearages so that we can resume making mortgage payments and save our home. 

My husband XXXX XXXX passed away in XXXX and I struggled emotionally and financially. I was able to get approved for a loan modification with XXXX XXXX in XXXX which helped. I had no problems until Covid 19 hit our family in XXXX. XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX  XXXX. My husbands employer shut down and laid off all employees in XX/XX/XXXX. I work as a XXXX XXXX and XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX. XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX. Due to these issues there was no income and I called in to XXXX XXXX and found out about the new Covid forbearance. The agents said dont worry about it ; just touch base with us periodically. We started the forbearance in XXXX of XXXX and by the time the program ended in XX/XX/XXXX we were back on our feet. We entered into this government program because we were told that the lender would work with us on a solution to cover the delinquent payments and recapitalize or modify the loan so we could make the regular payment. Instead Right Path is demanding full reinstatement and threatening a foreclosure sale in violation of guidelines.

Company response to consumer: Closed with explanation