Consumer complaint received 2017-09-09
Company: RUSHMORE LOAN MANAGEMENT SERVICES LLC
State: NJ
Product: Debt collection
Sub-product: Mortgage debt
Issue: Took or threatened to take negative or legal action
Sub-issue: Threatened or suggested your credit would be damaged

Complaint:
I filed chapter XXXX bankruptcy which included the property in question which was reassigned XXXX to XXXX XXXX. as the first mortgage holder and Rushmore as the Loan Servicer.  This property has been in foreclosure since XXXX and has been sold/reassigned many times since then because XXXX XXXXXXXX XXXX kept the second lien and refuses to release it to the first mortgage holder. Rushmore Loan Managent and XXXX first promised they could do a deed-in-leui and have my name off the property title by XXXX of XXXX. They asked for a hardship letter and paperwork. I cooperated with this effort for months beginning XXXX. Then around XXXX XXXX Rushmore told me the foreclosure date might happen before they can get the deed in leui and that I should wait JUST 6 more months and the foreclosure would occur and the house would soon after be transferred out of my name. On XXXX/XXXX/XXXX, I was informed by XXXX, In XXXX TX, that they were charging off the mortgage as bad debt. He suggested, I get XXXX XXXX  XXXX to release the second liens so I could do a short sale quickly. Meanwhile, Rushmore 's employee in the loss and mitigation Dept tells me that the " charge off of mortgage '' is going to hurt my credit scores. I told her that they were not allowed to report that to the credit bureaous. She insisted that they will report it!!! I asked to talk to someone in the whatever department there that could stop Rushmore or XXXX from making this mistake by reporting it to bureaus because it would cause great distress for me financially after just recovering 3 years out from from a BK. She insisted that I was wrong and that I would have to take that up with the credit bureaus after it was reported and if it was not supposed to be on there then the bureaus would remove it. So this seems intentional to me! she would n't transfer me to the appropriate dept. Although, XXXX acknowledged under breath quickly brushing it off that the information could not be reported so it seems Rushmore and XXXX Investors are conflicted on this issue of reporting " charge off mortgage '' to the credit bureaus after its been discharged in Chapter XXXX in XXXX. So this complaint is to make sure they are no longer conflicted. This mortgage was discharged and can no longer be reported on to credit bureaus by Rushmore or XXXX. I am taking these broken conversations as a very serious threat to hurt me and my lines of credit on purpose. These threats I received sounds to me as if they expect me to pay or settle a discharged second lien with XXXX XXXX XXXXXXXX so they do n't have to pay for the foreclosure while threatening to ruin my credit temporality until I do what I am told to do. I sent the loss and mitigation Dept at rushmore an email letter requesting them to get the bankruptcy information to the correct person before they make this grave mistake. However, the email kicked back a message saying she was n't in the office on Friday. I then, called the main number and spoke to XXXX and again asked if she could get me to the person in charge to make sure they understand this mortgage was in my bankruptcy 3 years ago and discharged so if they wanted my bankruptcy paperwork to confirm that  information so I could fax it or PDF it to them. She took the time to tell me not to worry. If the company reports it to just dispute it with the bureaus and that It would be no big deal, nothing to loose sleep over. She gave me a fax number and told me to put attn legal dept, still not a name of a person! She also mentioned I should mail the information just in case they do n't get the fax. So I decided to write to the CFPB instead so I know they get the information to the person who understands reporting " charge off '' mortgage on my report is illegal and they would be violating bankruptcy law. Also, would like to mention despite the recent threats and bullying tactics by Rushmore and XXXX I am actively pursing measures to help them get liens released from the property so they do n't have to do the work themselves. I have a complaint filed with CFPB for XXXX XXXX XXXX and I also have the cooperation of my congressmans office in assisting the bureau in getting my complaint for the lien release request to an officer at XXXX XXXXXXXX XXXX that can make an excustive decision. If XXXX XXXXXXXX XXXX cooperates then I will gladly hand over the deed of the property to Rushmore and XXXX. XXXX XXXX Assignment of mortgage to XXXX XXXX is on public record recorded on XXXX/XXXX/XXXX in the county records.

Company response to consumer: Closed with explanation