Consumer complaint received 2015-06-25
Product: Mortgage — Conventional fixed mortgage
Issue: Loan servicing, payments, escrow account — 
Company: NATIONSTAR MORTGAGE LLC (CO)

Nationstar Mortgage failed to comply with HAMP XXXX Supplemental Directive XXXX. 
" Servicer must notify borrower if loan modification is denied. " Nationstar repeatedly and falsely told Plaintiff that his loan modification was either in-process or had been approved. 
18. XXXX entered the Streamlined Modification Program Loan Workout Plan ( " SMP '' ) XX/XX/XXXX. 

19. Nationstar 's agent, XXXX, told XXXX on XX/XX/XXXX, that his SMP modification had been approved. 

20. XXXX made XXXX payment under the SMP. 

21. Thereafter, Nationstar called XXXX and informed him that SMP had been cancelled, and XXXX would instead enter a Trial Period Plan under the Home Affordable Modification Program ( " HAMP '' ). 

22. XXXX entered HAMP XX/XX/XXXX. 

23. HAMP requires that applicants complete a three month trial period by making the payments that would be required under a proposed modified loan terms. If a HAMP participant makes these required trial-period payments, the participant 's loan may be modified to reflect the trial-period 's payment terms. 

24. XXXX timely made his XX/XX/XXXX and XX/XX/XXXX payments under HAMP. 

25. XXXX pre-paid his XX/XX/XXXX HAMP payment with his XX/XX/XXXX payment. 

26. XX/XX/XXXX, XXXX called Nationstar to ensure that it had received his XX/XX/XXXX, XX/XX/XXXX, and XX/XX/XXXX HAMP payments. 

27. By timely making his XX/XX/XXXX, XX/XX/XXXX, and XX/XX/XXXX payments to Nationstar, XXXX successfully completed the HAMP trial period. 

28. Assuming that XXXX met other HAMP program requirements, XXXX ' successful completion of the HAMP trial period entitled him to have his loan modified in accordance with the trial-period payment terms. 

29. Nationstar confirmed to XXXX that ( a ) it had received his XX/XX/XXXX, XX/XX/XXXX, and XX/XX/XXXX HAMP payments ; and ( b ) it was sending his plan to another Nationstar department to draft new loan documents for XXXX ' new and modified HAMP loan. 

30. XXXX ' HAMP loan-modification application was denied on or about XX/XX/XXXX. 

31. On or shortly after XXXX ' HAMP application was denied, Nationstar knew that XXXX ' HAMP application had been denied. 

32. Nationstar did not notify XXXX that his HAMP application had been denied. 

33. Nationstar was required to notify XXXX that his Hamp application had been denied. 

34. XXXX did not receive new HAMP loan documents from Nationstar. 

36. Nationstar consistently told XXXX that his new, modified, HAMP loan documents were in progress. The communications between XXXX and Nationstar, include, but are not limited to the following communications : a. XXXX called Nationstar on XX/XX/XXXX, and informed it that he had not yet received any new, modified, HAMP loan documents. Nationstar informed XXXX that it was " still working to prepare new loan documents, could take another month. " b. XXXX called Nationstar again on XX/XX/XXXX. He informed Nationstar that he still had not received the new, new, modified HAMP loan documents. Nationstar told XXXX that " everything is ok. '' c. At the time Nationstar made the statements in the immediately preceding paragraphs ( a ) and ( b ) to XXXX , Nationstar knew that these statements were false. 

37. On or about four days after the XX/XX/XXXX, telephone conversation in which Nationstar told XXXX that " everything is OK, '' Nationstar set a sale date for the Foreclosure. 

38. The XXXX County Public Trustee held a Public Trustee 's sale of the Home on XX/XX/XXXX ( the " Foreclosure Sale '' ). 

39. XX/XX/XXXX, was the last date on which Nationstar could schedule the Foreclose Sale without having to file a new action to request a Public Trustee Sale of the Home. 

40. At the time of the Foreclosure Sale, XXXX had no notice that Nationstar intended to continue with the Foreclosure.