Consumer complaint received 2023-07-18
Product: Mortgage — FHA mortgage
Issue: Struggling to pay mortgage — 
Company: Mr. Cooper Group Inc. (IN)

We have owned our home since XXXX and refinanced into an FHA loan in XXXX that is now through Mr. Cooper. We are very concerned with the way that they have handled the servicing of our loan as they have started the foreclosure process against us and assigned an Attorney to come after us. We ALWAYS paid our mortgage on time until we had major health issues related to XXXX and after effects of a XXXX. This started a snowball effect where we struggled to get caught up. We tried to reach out to Mr. Cooper multiple times to see if there were any programs to help our family skip payments or make partial payments or be considered for any type of homeowner assistance programs but were repeatedly told no, sorry, nothing we can do to help. 

This is outrageous and wrong because we have an FHA backed government loan, and as a servicer of this loan Mr. Cooper is required to provide access to all distressed homeowner options and they did not do this, they told us there was nothing they could do and then started foreclosure proceedings. My husband has a good job with XXXX XXXX on the XXXX XXXX and has worked there for 25 years. I have worked in education for 21 years and as a XXXX XXXX for the last two years. We never had a problem making our payment until my husband had an emergency medical event during a routine XXXX. This led to a weeklong hospital stay followed by XXXX followed by XXXX. We lost over a month of his income as well as staggering medical bills and major car repair emergency and were struggling but still making mortgage payment. 
I began calling Mr. Cooper at that time ( XX/XX/XXXX ) to see what types of programs may be available for our family. This financial struggle was XXXX related and as a servicer of an FHA loan I was under the impression that Mr. Cooper was supposed to offer us assistance such as a forbearance due to XXXX. But this did not happen. I continued to try and make the mortgage payment but finally had to begin making partial payments late XXXX and early XXXX. Once again I contacted Mr. Cooper to see if there were any programs available for struggling homeowners with FHA loans and again I was told sorry. At that time XX/XX/XXXX we were told that Mr. Cooper would no longer accept partial payments and we were not able to make the payment for 3 months. To make matters worse my husband was laid off from his job in XX/XX/XXXX, although we were blessed that it was a temporary situation and he is now back at work. 

At this time Mr. Cooper has told us they refuse to accept payments unless we reinstate in full. We received a letter from XXXX XXXX XXXX XXXX XXXX  who said they are coming after us and Mr. Cooper also sent us a letter that we are going into foreclosure. 

This should not be happening, because we have an FHA loan and from my understanding Mr. Cooper is required to consider us for all homeowner assistance programs including partial claim, recapitalization of delinquent payments, loan modification or repayment plan. We were told repeatedly that none of these options were available.