Consumer complaint received 2021-05-11
Company: Mr. Cooper Group Inc.
State: CA
Product: Mortgage
Sub-product: Conventional home mortgage
Issue: Struggling to pay mortgage

Complaint:
Hello. 
My name is -- -- -- --. 
I am An XXXX American and a XXXX XXXX XXXX. 
I live at -- -- -- -- XXXX, XXXX XXXX California, XXXX. 
My neighborhood is predominately XXXX American and low income. 
In XXXX of XXXX i became unemployed due to the Civid stay at home orders. 
I applied for Unemployment assistance and began to receive benefits in XXXX of XXXX. 
I Currently have a Mortgage loan on my home with Nationstar Mortgage LLC ( Mr. Cooper ) XXXX. XXXX  XXXX, XXXX, Texas, XXXX XXXX XXXX XXXX XXXX XXXX # -- -- -- -- -. The Loan property address is my home address. 

As of XX/XX/XXXX my Loan term had 134 months to pay off the balance of {$61000.00} at an interest rate of % 6.875. My Monthly Principle and interest payment was {$980.00}. 

In XXXX of XXXX I entered into a 6 month Forbearance agreement with the loan holder Mr. Cooper. 
The agreement was that at the end of six months, my loan could be reinstated by one of three options offered by Mr. Cooper. 
Option one was to repay the entirety of balance of the missed payments during the time of the forbearance. as of today that outstanding amount is {$16000.00}. this is for the time period from XX/XX/XXXX to XXXX of XXXX. 
Option two would be to have the forbearance balance moved to the end of the loan term and financed. 
Option three would be a loan modification in which the term, interest rate and monthly payments would be adjusted to a more affordable payment plan. 

in XX/XX/XXXX at the end of the 6 month forbearance i contacted Mr. Cooper to discuss the options and restart monthly payments. 
I Was told that option three was no longer available. i was advised to use option two and apply for a loan modification with Mr. Cooper. 
In order to qualify for the Loan Modification, it was agreed that i would make 3 trial payments from XX/XX/XXXX to XX/XX/XXXX in the amount of {$750.00} for the months of XX/XX/XXXX, XX/XX/XXXX and XX/XX/XXXX. 
In XX/XX/XXXX, at the end of the three-month trial period i was told i was eligible for the Loan Modification and that Mr. Cooper would contact me to discuss and negotiate the terms of the Loan modification. 
I contacted the Lender, Mr cooper every two weeks since XX/XX/XXXX and was assured the modification was being written and they would contact me soon to discuss the terms. 
I received the Loan modification Documents by XXXX  on XX/XX/XXXX. 
I contacted Mr. Cooper by phone to discuss the terms and was told there was no room for negotiation of the Loan modification offer. 
I Was also told i could not refinance this loan unless i paid the full Forbearance balance of {$16000.00} or accepted the current Loan modification offer as is.. 
I was told a refinance might be considered for lower interest rates after three to six months if i accepted the Loan modification offer as is and began making the new monthly payments of {$700.00}. 
My first payment would be due before XX/XX/XXXX. 
I was told the loan Modification offer must be signed and notarized by XX/XX/XXXX. 
the loan modification offer has a pay off balance of {$69000.00} at an interest rate of % 6.875 for a term length oh 480 months. 

My Complaints are ; 1. the offer from Mr. Cooper to have the forbearance balance moved to the end of the loan term was taken away without explanation.

2. the interest rates of the loan modification is much higher than current interest rates and a forty year term is unacceptable when prior to the 6 month forbearance my term was eleven years. 
3. by taking the initial forbearance my credit rating was negatively impacted .Because of the drop in my credit score I can not refinance at current lower interest rates.

My goal was and still is to have full ownership of my home, Mortgage free within ten years. 
I wish to continue to Live and retire in my home. 
I do not wish to Sell my Home. 
I feel the Nationstar Mortgage LLC XXXX  Mr. Cooper ) Loan forbearance plan was predatory and has trapped me into a position where i can not refinance my home at and affordable interest rate and a reasonable term. 
If not for the effect it had on my credit rating, i would qualify for a loan at or near current market interest rate levels. 
The Loan Modification also does not have current lending interest rates.

Company response to consumer: Closed with explanation