Consumer complaint received 2017-03-03
Company: Seterus, Inc.
State: MD
Product: Mortgage
Sub-product: FHA mortgage
Issue: Loan modification,collection,foreclosure

Complaint:
I applied for a loan modification with Seterus, Inc. in XX/XX/2016. All required documentation and trial payments were completed in XX/XX/2016. My ex-spouse filed bankruptcy, I was able to purchase his interest in the property from his bankruptcy trustee. I hired an attorney to draw up a quit claim deed, and my ex-spouse 's Bankruptcy Trustee signed on my ex-husbands behalf. The Quit Claim Deed is approved and recorded by the Bankruptcy Court and is filed in the County Courts. I provided Seterus with the Quit Claim Deed. I received Loan mod confirmation letter from Seterus in XX/XX/2016. XX/XX/2016 was to begin my 1st new modified payment, I even received a confirmation letter from Seterus stating my automatic payments will be drafted from my account starting XX/XX/2016. The payment was not processed, I inquired by calling the customer service number in XX/XX/XXXX to find out why the payment was not taken, only to discover Seterus had an issue with Quit Claim Deed I submitted. I was told I had to submit in writing my concerns to the Correspondence Department and they would reply within 30 days. I typed a letter on XX/XX/XXXX asking Seterus to explain why they felt my Quit Claim Deed was invalid. Seterus told me they needed the recorded copy of the Quit Claim Deed. I sent another letter to the Correspondence Department on XX/XX/2016 along with the RECOREDED QUIT CLAIM DEED that was retrieved from the PACER System. I also explained my concern about feeling as though Seterus was drawing out the modification process. I submitted the recorded Quit Claim Deed as requested. I was told by the Customer Service Agent that my loan was being escalated and t Seterus only needed the recorded deed to continue to convert the loan. On XX/XX/2016, I received a Notice of Intent to Foreclose from Seterus. I was completely overwhelmed and confused by the written correspondence received in the mail. I quickly contacted the Customer Service Number and spoke to a representative who told me the modification was still active and the notices are sent out automatically and that I should not worry. The next day, I received another notice from Seterus dated XX/XX/XXXX thanking me for asking for assistance with my mortgage loan. I received yet another correspondence from Seterus dated XX/XX/2016 stating the Quit Claim Deed I submitted was not valid, as it was not signed by my ex-spouse. It further stated Seterus could not accept the Quit Claim Deed with his Chapter XXXX Trustee 's signature, as there is not a Power of Attorney on file for him. Seterus declined to implement the loan modification. The letter also stated in order for Seterus to reconsider the loan modification, my ex-husband must sign the Quit Claim Deed, or provide a notarized power of attorney from his Trustee. I then responded with a letter to Seterus on XX/XX/2016 stating his Trustee has the authority to act as an agent on behalf of my ex-spouse because he filed bankruptcy. I also send copies of the final order from the Bankruptcy court granting the Trustee to sell his share of the property to me. I enclosed the recital agreement ( document where I purchased the ex-husbands share of property from trustee ). Seterus responded to my letter on XX/XX/XXXX stating the Quit Claim Deed I submitted is incomplete as the document states I sent XXXX pages, they only received XXXX pages! The letter from Seterus also states I need to have the Quit Claim Deed signed by either my ex-husband or his trustee, in order to remove him from the mailing address for the loan! I have sent Seterus the Quit Claim Deed signed by his Trustee on three occasions and yet again on XX/XX/XXXX! Now on XX/XX/XXXX, I received the mod. packet w/documents informing me I MUST SIGN AND RETURN THE DOCS ALONG W/ QUIT CLAIM DEED ( WITH EX-HUSBANDS SIGNATURE ) BY XX/XX/2016.

Company response to consumer: Closed with explanation