Consumer complaint received 2019-07-12
Product: Mortgage — Conventional home mortgage
Issue: Trouble during payment process — 
Company: RUSHMORE LOAN MANAGEMENT SERVICES LLC (TN)

I applied for a 2nd mortgage with XXXX XXXX in XXXX. To remodel this house, when I rescheduled my work so I could devote my full time efforts towards the remodel ( this is what I do for a living ) .. They had an appraisal on the home procing it's worth at $ XXXX.Which was exactly what was needed to obtain the loan.. After putting off several jobs to do the work and on signing day it was no longer a 2nd mortgage.. I was told they were illegal here in the state of TN.. ( lie ) ..and they had to assume the whole loan..and the interest was at 12 % not 8 % as discussed ... So I was told that after the renovation the house would appraise for much more, then I could refinance it at a lower rate.. again a lie.. the house was the money pit had to repair structure, wiring plumbing insulate windows and doors drywall paint. so the {$30000.00} was not enough I went back with my receipts and they told me I was maxed out and could have no more money.. So I hired a private accessor and he told me that he was having a hard time getting {$80000.00}. The house was not a 5 bed room 2 bath as they said it was a 3bed 1 and half bath as one bath was in the process of renovation.. .When I told him it was  appraised at {$170000.00} less than 2 months ago, he told me that XXXX XXXX has their own accessors and they know in advance what the house has to be worth to get the loan and that is what they do to get you to sign, that is over price your house to make it look good. faced with this new an impartial value for the property, they dropped the interest rate to 10 % this was the first modification.. did not like they were supposed to do, drop it down to actual market value.. Things did not work out for me and my new wife.. She left with her 2 children. and since I owned another home I signed the property over to XXXX XXXX ... We tried to work things out and attempted a reconciliation .In AL.. No good we were done.. When the girls got out of school for the summer of XXXX They wanted to move back here ... I contacted them to see if the place was still available ... It was and we entered into negoations for the home to be sold to me at fair market value ... After paying {$1000.00} a month for 3 months and paying the back taxes I finally got the new amount for the house.. after I moved in and started working on the house again For approx. {$150000.00} not fair market value but an interest rate of6 %  and an increase of the old over priced loan.. I refused this amount and the next day there was forclosure sales letters in the mailbox.. So either take the deal or we take the house.. second modification both times I was told I did not Qualify for a Hamp or harp ... I had direct deposit of ssi for one of my granddaughters who had lost both of her parents in a house fire, single parent, and direct payment to XXXX XXXX didn't miss a payment for 5 years..And again the principal increased.. When I confronted them with this Information. they took all payments and applied them to interest only. I told them the agreement was not set up that way they sold my loan to XXXX XXXX servicing They talked me through E signing ( XXXX XXXX ) And the Initial Agreement I was e signing was for a reduced amount of the principal to which there was 2 additional figures to be deducted on the final agreement.. Also there was a new escrow with an asterix.. again I was told this was optional and estimated ... Because I had my own home owners Ins and payed my own taxes.. The interest rate went down to 3.15 % and the mortgage only was XXXX I had it figured the new amount minus the other 2 amounts would have reduced the principal to less than {$90000.00} which is where it should have been from the {$150.00}, ,plus inflated figure. .Well they did not accept my mortgage only payment as they deemed it a partial payment. then XXXX me the agreement with nothing they promised at all. Then again Forclosure papers the next day.. Again did not qualify for Hamp or Harp ... This is XXXX well it comes around to renew my insurance and I called them and gave them my insurance name and the cost..they increased the escrow amount and when I questioned this and asked for a pay out for the account the supplied me with taxes and insurance and the total was already covered by the escrow ant this was only 8 months into the new loan in other words divisable by less than 8 not 12.. then they did not pay the taxes either ... when I took the letter from the tax department stating they were delinquent.. they sold the loan to Rushmore Loan servicing.. Every month I sent them faxes to prove I was owed escrow money and the taxes were not payed.. And I was even paying the new taxes and Ins myself so they had no payout at all.. They came up with new figures that they claimed XXXX payed out, ones not in the XX/XX/XXXX supplied by XXXX, Using terms such as Duel coverage ( Illegal ) and disreguarding the unpayed back taxes.. My monthly faxes demanding a new contract as this one was invalid went unanswered.. In fact they claimed that I owed money for taxes and insurance from before the XXXX document was signed. And clearly the document stated the new amount included all fees to include insurance and taxes.. As prior to the signing I was paying for them myself.. Well after a year they increased the escrow amount by over {$120.00} a month to recoup losses. And I payed all the taxes and Insurances from the time they assumed the Invalid loan. So I told them to waive the escrow amount until that could be fixed. They would not and by my calculations. only one city tax for {$320.00}, and one insurance for {$920.00} was ever taken out of my account. Leaving over XXXX so now again the threat of forclosure. unless I pay them {$10000.00} and up the monthly payment to over {$1200.00}. And again an increase in the principal to {$130000.00} all this for less than {$30000.00} and assuming on paper my original loan.. so after 11 years only less than {$2000.00} payed off on a 30 year note and approx. {$180000.00} made in payments.. Then the forclosure papers state XXXX XXXX is still the owner of the loan and they are selling it through another servicing company.. This is Slamming and against the law and wrongful sales, fraud and embezzlement. breach of trust and contract ... Rushmore loan Management services Just covered up and threatened me with Seizure of the property, Told me that the escrow money was theirs to do what they wanted to with it .. I payed in good faith the whole amount mortgage and escrow while paying myself out of pocket for my own taxes and insurance, hoping they would do the right thing but no {$10000.00} dollars most is my escrow money for taxes I payed and Insurance too plus Fees brought about by their refusal to accept the actual mortgage payment .. the overage in the escrow account is almost enough to cover the payments missed.. But this is made out to make me look bad and force me into bankruptcy and put them in the money And again to increase profit.. And they don't even own the mortgage XXXX XXXX still does. Hense the slamming and hiding behind false sales of my loan.. They still Profit from this indirectly with the bailout money. they received and the tax breaks they get for putting me and other families on the street and call the loan a loss.. The Gov should have let them fold and taught them a lesson..