Consumer complaint received 2016-03-23
Company: NATIONSTAR MORTGAGE LLC
State: MN
Product: Mortgage
Sub-product: Other mortgage
Issue: Loan modification,collection,foreclosure

Complaint:
Original Owner ( OO ) bought townhome in XXXX, naming XXXX as XXXX mortgagee. Loan was taken over by XXXX in XXXX. Owner of XXXX mortgage since XXXX XXXX = Bank of NY Mellon ( BANK ), Trustee under a XXXX XXXX XXXX. BANK first filed notice to foreclose on home ( on which no mortgage payments had been made since XXXX ) in XXXX XXXX. OO ( who also became delinquent on her association dues in XXXX XXXX ) vacated home in XXXX XXXX. BANK filed a second notice to foreclose in XXXX XXXX, but again it never completed its foreclosure on this zombie home, delaying the sale date 8 times into XXXX. Our Homeowners Association ( HOA ) has records of notifying the bank at least ten times that this home had been vacated, and later that OO had won personal bankruptcy protection in XXXX. XXXX begged BANK many times to winterize home, but it refused, since squatters had moved into home in XXXX XXXX. Because of BANK 's failure to act, HOA foreclosed on this home in XXXX XXXX and paid to have squatters evicted later that year. HOA then fixed up the home that had become literally a " bunny '' sty. In XXXX XXXX agents of BANK broke into the home that HOA then owned without any warning to HOA. Severe damage was done to locks and doors by BANK 's agents. HOA then leased this home in XXXX XXXX for 18 months. BANK finally decided to foreclose on HOA 's home in XXXX XXXX. BANK sent notice to only HOA 's lessees, but never to HOA, despite the fact that HOA had been clearly recorded as the home 's owner. Throughout XXXX BANK ( through its third XXXX ' attorney ) willfully and in utmost bad faith ignored multiple requests from HOA 's attorney to negotiate a settlement with HOA. Without advising HOA, BANK auctioned off this home online in Fall XXXX. Successful bidder was a Flipping Company ( FC ). FC refused to pay HOA all that the BANK had cost HOA. Attorney for HOA tried again to negotiate with attorney for BANK ; but BANK refused to acknowledge any responsibility, claiming that the FC should be responsible. HOA 's attorney asked to see purchase agreement between BANK and FC, but BANK refused. In XXXX of XXXX, HOA reached modest settlement with FC, and later in the quarter released its association lien on the home. FC now owns the home, but HOA never reached any agreement with BANK. Since the BANK first refused to foreclose on this home in XXXX, the total NET losses ( after deducting lease income and amounts recovered under settlement agreement with FC ) that have been incurred by the members of our tiny, XXXX, townhouse community, solely because of the negligence of the BANK = {$21000.00}. These are only the special damages ; they include no general damages ( pain & suffering of volunteer HOA directors... who devoted more than XXXX unpaid hours to this problem ), nor any punitive damages, for the egregious and willful negligence of the BANK since XXXX.

Company public response: Company believes it acted appropriately as authorized by contract or law
Company response to consumer: Closed with explanation