Consumer complaint received 2017-03-31
Company: NATIONSTAR MORTGAGE LLC
State: CA
Product: Mortgage
Sub-product: Conventional adjustable mortgage (ARM)
Issue: Loan servicing, payments, escrow account

Complaint:
I have been trying to sell my property as a short sale however the investor for my loan which Nationstar services insists can only be sold through a short sale auction. We have now done 3 short sale auctions. If rehabbed the home is worth about {$870000.00}. The home needs about {$150000.00} in major work per contractors who 've submitted offers previously. The 1st auction starting bid was {$860000.00} no bids. The 2nd auction the opening bid was {$610000.00} and the winning bidder won at {$750000.00} however they never inspected the property and once they did they cancelled. There were back up offers at {$610000.00} but per Nationstar the offer was too low for the investor. This most recent auction I thought we had a chance because the bidder was going to live in the home and seemed very interested. Their final bid was {$790000.00} but had not inspected the home. After inspecting it they also cancelled. I accepted an offer from an investor for {$650000.00} but it was denied from Nationstar. No investor will offer more and here 's why. {$650000.00} plus {$150000.00} = {$800000.00} plus {$50000.00} for closing costs and commissions means they 'd spend {$850000.00} to possible make $ XXXX-XXXX. I want to short sale the home and avoid foreclosure. But the process simply wo n't allow it. I know the balance is over $ XXXX but I did n't cause the problem. In XX/XX/2008 I had entered into a modification with XXXX bank and they accidentally foreclosed. When they rescinded the foreclosure they sold the loan to XXXX XXXX XXXX on the same day. XXXX XXXX XXXX would not honor the modification agreement and for years indicated that there was no loan record and therefore could not accept any payments. The loan sold shortly after they finally put together what was my balance and the same problem occurred with the next servicer. It finally transferred to Nationstar and if this loan was serviced by any other lender the short sale would 've already occurred and we could move on. But the conditions set forth by Nationstar and the investor are making the short sale an impossibility. I 'd like to buy a home again in the near future but a foreclosure or deed in lieu are simply poor options. Like I said any other servicer would simply go with the best and highest offer. The existing offer of {$65000.00} is more than generous especially considering the risk is high and the return is limited to non existing. I 'm going to seek legal advice and possible have to file a civil complaint against the investor and Nationstar simply because they are not considering real viable offers for a short sale. I should n't have to sue the bank simply to allow me to shortsale the property. I know that Nationstar will say we are doing what the investor is allowing but that simply means that I am not able to property sell the property due to the auction process and what the expectation from the investor in what will be a realistic price. 
Like I said every single bank and investor out there with the exception of these two are making a simply process impossible. I am the victim of fraud from XXXX and not being able to keep the home was due to errors on their part. By the time Nationstar offered me a modification of $ XXXX monthly payments I accepted and made those payments until I could n't afford that amount. I do n't know many people who can afford a {$4700.00} mortgage. The previous modification with XXXX was only {$3200.00} and even that was difficult but through the years the balance grew and I could n't do anything about it. The timing of this is horrible. I just want to sell the property and move on. Please help me convince them to be realistic about the short sale offers that are viable. Filing a law suit just to eventually mediate a short sale is a horrible way to resolve this.

Company response to consumer: Closed with explanation