Consumer complaint received 2018-12-28
Company: RUSHMORE LOAN MANAGEMENT SERVICES LLC
State: CO
Product: Mortgage
Sub-product: Conventional home mortgage
Issue: Struggling to pay mortgage

Complaint:
I want to file a formal complaint against the servicer of my mortgage Rushmore Loan Servicing. They engaged in unethical servicing and foreclosure practices resulting in the loss of my home through wrongful foreclosure. Their agents engaged in dual tracking, their foreclosure department failed to follow Colorado law regarding protocol and notification and they made the mistake of auctioning off our home even though we were engaged in active litigation. Instead of a Rule 120 hearing and Attorney notification Rushmore sold our home out from under us on XX/XX/XXXX. We want to know why proper protocol was not followed and why required notifications were not sent out? How was this foreclosure allowed to move forward when our homeowner assistance application was in active review at Rushmore, a clear case of dual tracking by Rushmore. Why they would move forward with this auction while we are engaged in active litigation?? The worst part is that this was an avoidable foreclosure ; our income is more than sufficient to afford a fair and reasonable payment and we were in active review for modification. Instead of following Colorado foreclosure protocol Rushmore and their law firm XXXX XXXX, jumped the gun and wrongfully foreclosed on our home we have owned for 17 years. 
We purchased our home in XX/XX/XXXX and in order to get some money for our growing business refinanced in XX/XX/XXXX. Although our payment more than doubled, we were OK with it at the time because we needed the money for the business. Our company XXXX XXXX ( XXXX  company ) continued to grow, and a great deal of our business came from no-bid government contracts. However, after we completed a certification process, there was a change in the way the government contracts were allocated and assigned and there was a decline in business in XX/XX/XXXX, with gross receipts dropping from XXXX XXXX in XX/XX/XXXX to $ XXXX in XX/XX/XXXX. We attempted to refinance through our lender XXXX but were not approved and were forced to reorganize our debt through bankruptcy. We continued making payments on our loan through the bankruptcy and attempted to qualify for a permanent loan modification. We could not make any progress with XXXX and our loan was then transferred to Rushmore. 
We submitted multiple modification applications but could not get any traction. We were then contacted by a mod company that told us they could get help, but they advised us to stop making our payments through the trustee to Rushmore. Since Rushmore had not been working with us, we took this step. At that point our business had regained traction and was bringing in good XXXX We were certain we would qualify for assistance but were told that the file was still in review. Rushmore then filed a motion for relief of stay from the bankruptcy, even though we were in active review for a modification. As a result of these developments, we hired an Attorney and filed a civil suit against Rushmore and the investor of this loan. We were told by their agents in XX/XX/XXXX and XX/XX/XXXX that our file was still in review for assistance options, and our legal team was under the assumption that foreclosure activities had been temporarily placed on hold while the modification review was being conducted and while the ongoing litigation progressed through the system. We were shocked and horrified to find out that our home had been sold without proper notification of sale date or Rule 120 hearing and the complete abandonment of protocol. We are not disputing the fact that we were delinquent on this loan, but we are disputing the right of this entity to conduct this foreclosure, we dispute that this is a lawful foreclosure because they did not follow Colorado rules, regulations, laws and procedures relating to foreclosure and furthermore we are quite certain that neither the foreclosure attorney or Rushmore notified my counsel!!

Company response to consumer: Closed with explanation