Consumer complaint received 2016-05-10
Company: RUSHMORE LOAN MANAGEMENT SERVICES LLC
State: NM
Product: Mortgage
Sub-product: Other mortgage
Issue: Loan servicing, payments, escrow account

Complaint:
( this is a follow up to the complaint XXXX. I applied for a loan modification with the lender at their suggestion and they suggested that I look into foreclosure as a solution. After all the wrongdoings from XXXX XXXX, the person who will be most hurt is myself ) I applied for a construction to permanent loan with XXXX XXXX XX/XX/XXXX. With the builders contract, they required me to borrow more money than the original contract to ensure the home 's completion. During the course of construction, the builder stole approximately the same amount of money which was over {$100000.00}, did n't complete the home, but XXXX XXXX closed the loan and made it a home mortgage loan ( not a construction loan ). The home was never completed and the builder sued for {$250000.00}. After two years of trials and arbitration, the builder lost but did not pay the award or legal fees. Home is still not completed. 
Before the suit started, I applied for a loan modification and was denied it because I had been paying my mortgage. When I could no longer pay for the legal fees and mortgage, I fell behind with my mortgage payments and was able to get into a loan modification program. It took over 2 years and near the end of the process with XXXX XXXX ( I thought ), I paid over {$10000.00} in fees for the modification and after the last payment the loan was transferred to XXXX and then onto XXXX XXXX. I continued to work with XXXX XXXX on the modification for another year or so. On XXXX XXXX, XXXX they approved the modification, and gave me 4 hours to sign the documentation and return it to them. XXXX. I did not check my email that day ( the notification for the modification was emailed ) because I spent the day in the hospital with my parents. The same day the loan was also sold to XXXX XXXX, effectively cancelling the modification. 
After some time, XXXX XXXX accepted the original terms of the loan modification. It is a 40 yr loan with over {$300000.00} ( estimated ) in penalties added to the loan for time I was attempting to modify the loan. 
Last year the same loan was transferred to Rushmore with the same conditions, although for many weeks it was unclear where I should send my mortgage payments, and I feared might again fall behind in the payments. 
It is just very unfortunate that due to the predatory practices of XXXX, an unscrupulous builder that stole from the construction draws ( mainly from lies and asking me to make payments for materials and to contractors with the promise of repayment from the loan ), XXXX XXXX continuing to issue the draws to the builder, and XXXX unwilling to help keep the loan from going underwater, I am now in a situation where I have a home I can not sell and a loan I will probably not be able to payoff in my lifetime. Added to this burden was the legal fees owed to save the house. 
I have included with this explanation, many of the documents used during the trial and arbitration. Note, the builder lost the original lawsuit, the arbitration case, a XXXX lawsuit, and an appeal. To date, he has not paid any part of the judgement. 
1 ) lawsuit from builder ( XXXX pp ) 2 ) summary of costs lost during the construction of the home ( XXXX pp, {$70000.00} ) 3 ) summary from home inspection and cost to complete ( XXXX pp, {$120000.00} ) 4 ) summary of out-of-pocket legal fees ( XXXX pp, {$13000.00} ) 5 ) summary of legal fees for attorney ( XXXX pp, {$62000.00} )

Company response to consumer: Closed with explanation