Consumer complaint received 2018-03-02
Company: Franklin Credit Management Corporation
State: MD
Product: Mortgage
Sub-product: Conventional home mortgage
Issue: Struggling to pay mortgage

Complaint:
I have a property that I am trying to complete a short sale and the debt for the property was included in a bankruptcy that was discharged almost 6 years ago. I made arrangements with the primary mortgage company ( XXXX ) to still pay the monthly mortgage amount for them to allow me to stay in the home which I had been doing for over 2 years. Last year around XX/XX/2017 I received a notice of foreclosure proceedings that was going to be started on the property by the junior lien holder on the property XXXXXXXX XXXX  who is being serviced by Franklin Credit. I did not receive any of their prior notices because everything was being sent in my ex husbands name and I was served notice because I lived in the property at the time about the pending foreclosure. When I reached out to them I tried to do a loss mitigation process with them and offered then a settlement amount of XXXX at the time which they declined stating that the offer was too low. After going back and forth with their servicing company Franklin Credit we could not come to a resolution and they would not accept my offer. Franklin Credit opened a foreclosure case in XX/XX/2017 for me in Maryland and started the process even though I was trying to make arrangements with them. Since they would not accept the settlement offer I decided to do a short sale on the property to avoid the foreclosure. I put the house on the market last year in XX/XX/2017 and received a cash offer from a buyer asking to purchase it for the agreed upon amount of the first lien holder XXXX. When we were ready to go to settlement and the title company tried to clear us for settlement we found out that the junior lien holder had filed a lien against the property preventing me from selling the property and obtaining a clean title. I reached out to Franklin Credit who is the servicer for the junior lien holder and I have been working with XXXX XXXX and he told me to resubmit an offer to the company to see if it would be accepted. XXXX will only allow a maximum of XXXX be paid to the junior lien holder which I offered to Franklin Credit to get the lien released. They refused the offer and countered it stating that they are looking for a payoff of {$30000.00} before they will release the lien or they will proceed with the foreclosure. I have been rebuilding myself and my credit since I filed for the bankruptcy 5 years ago and I am trying to protect my credit and not have a foreclosure on my record when I have been trying to work this out with them. I am in danger of loosing the buyer that I have as we were supposed to go to settlement in XXXX of last year and he wants to pull out his offer. It seems that Franklin Credit is trying to cause me an undue stress by forcing me into foreclosure. The home is vacant I have already moved but I do not want to have this fall on my credit. As this process is drawn out by them their are fees that keep adding up from the HOA for the property that I am trying to avoid as well.

Company response to consumer: Closed with explanation