Consumer complaint received 2016-08-14
Company: GOLDMAN SACHS BANK USA
State: NV
Product: Mortgage
Sub-product: Conventional fixed mortgage
Issue: Loan servicing, payments, escrow account

Complaint:
In XXXX of XXXX we, XXXX XXXX and I, XXXX XXXX, loaned XXXX XXXX dollars to XXXX XXXX and took back a second deed of trust on his house at XXXX XXXX XXXX in XXXX Nevada as XXXX. He made a couple of payments and then stopped paying his payments to us. We tried to work with him but he refused to pay any further and filed for bankruptcy. After several years of fighting in court with lawyer fees and lost time and interest, we were finally given a deed after the foreclosure sale on the second deed on XXXX XXXX, XXXX. We immediately contacted XXXX XXXX Bank to get a payoff figure so we could sell the house to recoup our retirement moneys. XXXX of the bankers told us that the figure should be about {$200000.00} dollars, but he could n't handle our situation, and referred us to other bankers who did n't help. The bank would not talk with us and just kept dragging it out month after month until finally XXXX of them told us that XXXX XXXX XXXX owned the note. They apparently bought it from XXXX as a Non Performing Loan for a fraction of the out standing balance, even though we were willing to pay off the whole balance due, well before XXXX sold it. We finally made contact with XXXX, XXXX XXXX XXXX, ( and XXXX XXXX XXXX, who never got back to me as promised ), and made an offer based on what we had heard for XXXX about the amount of the balance owed. XXXX now wanted us to send certification of funds with our offer. This ties up our moneys as they would wait for weeks each time to " hear from the investors '' about our offers. It has now been almost a year and a half they are still adding fees and interest and having us up our offer, they now say that the payoff is around {$290000.00}. This seems unfair. We feel like they are taking advantage of us because we are both seniors and not up on the most recent banking tactics and strategies. 

So we discovered how banks sell the NPLs to private investors who make huge profits at the foreclosure sales. We discovered that XXXX had actually sold the note to another bank while going through other questionable corporations. XXXX of the private LLCs was actually wholly own by the XXXX XXXX Bank. Then we discovered that RLM was actually the Attorney for XXXX. It all starts to look fishy and banks seem to be colluding get these homes. In this process we discovered that after we notified XXXX that we wanted to pay off the First Loan on XXXX XXXX XXXX XXXX, they quickly sold the note to XXXX XXXX XXXX on XXXX XXXX, XXXX. Why the rush to sell this note when we were trying to pay it off. Then we discovered that XXXX had sold the same note to MTGLQ Investors, L.P. on XXXX XXXX, XXXX, over a month before they actually owned it. They tried to hide this problem by recording the deeds out of order, but the Execution Dates are clear on XXXX deeds. MTGLO is apparently owned by Goldman Sachs Bank. There have been lawsuits with these banks for not having the loan documents handled correctly. So, what are a couple of senior citizens supposed to do against the power of the big banks, especially when there are shady practices going on with these documents? 

We do n't mind the banks making a rightful and legal profit. But this seems to be an illegal practice to squeeze out an excessive and unfair profit by not dealing in good faith and adding interest and fees continuously, long after we had tried to pay off the original note, on XXXX XXXX, XXXX. 

This time I have named names and I will enclose the documents I mentioned above. I hope this what you need to help us correct this situation. Thank you for caring about seniors.

Company public response: Company has responded to the consumer and the CFPB and chooses not to provide a public response
Company response to consumer: Closed with explanation