Consumer complaint received 2020-09-04
Product: Mortgage — VA mortgage
Issue: Trouble during payment process — 
Company: Mr. Cooper Group Inc. (IL)

I am a 1XXXX XXXX XXXX veteran who purchased a home in XXXX of XXXX. My father is my XXXX  and attended my closing. It was advised by my attorney that because I am rated at 100 %, I am not responsible for property taxes and any money I got back from my closing was mine to do what I wanted to do with it. It wasnt until late XXXX that I was advised that my taxes have been sold, and I was in jeopardy of losing my home. I was unaware that the money I got at closing was given as a credit for the XXXX taxes and partial of XXXX since taxes are paid for the prior year and I had to pay them. My dad as my witness at the closing, this was not told to me by my attorney, who now states there is nothing he can do about the situation. By this time, the amount owed to redeem my taxes that were sold, as of XX/XX/XXXX, was {$6800.00} plus an {$18.00} fee, for a total of {$6800.00}. On XX/XX/XXXX, my lender, Mr. Cooper, redeemed those taxes, but only applied the {$6800.00} onto my escrow shortage on my XXXX statement. 

I was then still responsible for the prorated taxes of XXXX from XX/XX/XXXX XX/XX/XXXX in the amount of {$4400.00}. Mr. Cooper paid the first installment of {$2200.00} on XX/XX/XXXX which included a fee of {$5.00} because they were late and the second installment submitted by them on XX/XX/XXXX in the amount of {$2200.00} which was applied on XX/XX/XXXX. As of XX/XX/XXXX, the total amount that Mr. Cooper paid on my behalf was {$11000.00} in past due taxes that included {$6800.00} & {$4400.00}. You will see on my Escrow Review Statement dated XX/XX/XXXX that I have a shortage in escrow in the amount of {$17000.00}. I understand that normally they hold 1.5 times the amount in an escrow account, but this is completely unnecessary as I am no longer responsible for property taxes after the second installment of XXXX has been paid, which it has, and this has been told to Mr. Cooper, and they have received a letter from the XXXX County Assessors Office stating this. The only escrow that should be held is the XXXX insurance, which as been included in my mortgage payment since I purchased my home. They raised my payment from {$2000.00} to {$4600.00} per month, which is impossible for me to afford. 

I have contacted them many times asking to take the escrow for property taxes off my payment, and they still have not done so. I contacted my Veteran Service Officers ( VSO ), with Veterans Assistance Commission of XXXX County, and they have advised me that their office will assist me with paying the past due payment for the taxes that were paid out by Mr. Cooper, and all they need is a statement/letter from the lender reflecting the amount due. My Veteran Service Officer sent an email to Mr. Cooper at XXXX, addressed to XXXX, on XX/XX/XXXX. The next day, I was sent a payoff letter ( which is not what was requested ) and this payoff letter dated XX/XX/XXXX shows Escrow Advances in the amount of {$10000.00}, which does not add up to what has been paid out to that date, which was {$6800.00} ( tax redemption ) + {$2200.00} ( 1st installment XXXX ) = {$9000.00} ( difference of {$1500.00} ). Im not sure where they came up with that number of {$10000.00}. My VSP then sent another email to XXXX at the same email address on XX/XX/XXXX. I then received another letter which was dated XX/XX/XXXX by Mr. Cooper stating they received her request asking for the amount past due, and a response should be sent no later than XX/XX/XXXX. ( letter enclosed ).

In May, I applied for a refinance, and was advised by Mr. Cooper that I did not need to make my mortgage payment because it would be included with the refi, so I did not make my XXXX or XXXX payment. I was then told that my refi was denied because of the taxes that were delinquent and that had to get caught up first, which that was the main reason I was trying to refinance in the first place, because I did not have the money to get the taxes caught up. I then made a payment of {$2000.00} in XX/XX/XXXX and as you can see on the enclosed mortgage statement, that payment is sitting in a non-interest bearing account and has been labeled as a partial payment that has been unapplied, which makes it look like I am not making my payments. 

On XX/XX/XXXX, I was sent a letter by Mr. Cooper offering me an opportunity to enter into a Trial Period Plan for a VA streamline modification by paying {$2200.00} for XXXX, XXXX and XX/XX/XXXX, but I would have to submit payment by XX/XX/XXXX, then once each of those three payments are made, they will send me final modification paperwork. This is completely unnecessary, as all I need is the amount that is past due on Mr. Cooper letterhead stating what I owe for what has been paid out and I will get my mortgage caught up with the help of Veterans Assistance Commission of XXXX County. This amount that is need on the letter can not include the {$17000.00} that Mr. Cooper is stating I am short, as my taxes that were paid out arent even that much and I no longer need to escrow my property taxes. I  have also enclosed a letter from the XXXX County Assessors office stating I am no longer responsible for property taxes for XXXX ( payable in XXXX ). 

Because it is going to take at least another month for them to even possibly come up with a letter as to how much is due to get me caught back up based on the taxes that have been paid by Mr. Cooper, I am missing out on my chance to refinance at a much lower interest rate. I could have gone from 4.875 % down to 3.125 %. I also am requesting that they change my mortgage payment to take the escrow off as I am no longer responsible for property taxes moving forward. All past due taxes have been paid current, and I just need a document showing what I owe back to Mr. Cooper for that past due amount of {$11000.00}. 

My main issue at this point is trying to get a letter from Mr. Cooper reflecting the exact amount of money that has been paid out for the delinquent property taxes from XXXX and partial XXXX and to have them take the escrow for property taxes only off my current mortgage statement. This letter can not include the extra amount they are trying to withhold for escrow, as I am no longer responsible for property taxes due to being approved for the XXXX Veterans Homestead Exemption for 100 % service connection. I need this letter to give to my Veteran Service Officer so they can assist me with paying this amount to Mr. Cooper to get caught up, and bring my mortgage payment back down to the original payment. 

This entire situation has been a nightmare, and because I am a combat veteran rated at 100 % for XXXX, this is causing severe undue stress on my mental health. Any assistance you can provide to help me out with this situation would be greatly appreciated, as I am not being threatened with foreclosure proceedings if I do not get this caught up. I have enclosed all supporting documents that have been forwarded to Mr. Cooper. All documents referenced above and that have been included with this complaint have all been sent to Mr. Cooper as well. 

If my documents did not upload, please let me know. I waited an hour before hitting submit and they were still in the " uploading '' phase. Also, the " additional person '' listed as " additional account holder '' is not on my mortgage or loan, this is my Veteran Service Officer who is assisting me.