Consumer complaint received 2024-04-13
Product: Mortgage — Conventional home mortgage
Issue: Struggling to pay mortgage — Applying for or obtaining a modification, forbearance plan, short sale, or deed-in-lieu
Company: Mr. Cooper Group Inc. (NY)

This property was owned by my father who died. The house fell into foreclosure after his passing. We attempted to resolve it originally through home retention, but ultimately decided to use loss mitigation to resolve all outstanding estate debts associated with the property. We hired a real estate company, and they started a loss mitigation application with Rushmore Servicing on XX/XX/XXXX. Most of the interaction between the mortgage servicer happened online through my representative. The home was listed on the XXXX. Several open houses were conducted, and several offers were received. The highest offer, at the time, was submitted to Rushmore. The home is XXXX square feet and hasnt been renovated in several decades. The bank sent in an inspector that evaluated the home and priced it a little higher than the purchase contract we had already signed. Our rep advised us to wait to allow the lender to consider the contract that was submitted. The home remained listed, and our rep communicated with the current buyer to be prepared to increase their offer to settle all the debts and liens on the property to clear the estate. We diligently complied with all document requests during the entire loss mitigation procedure and waited patiently for Rushmore Servicings review. Rushmore told us that the lender was considering the offer. They sent letters indicating we were approved for a short sale. We also received follow up letters stating they needed more time to evaluate the current purchase contract. As months went by, and we waited for approximately two months to hear back, Rushmore became increasingly less communicative. We also started receiving confusing and mixed messages from different representatives at Rushmore. Then Rushmores foreclosing attorney mailed a notice that they were scheduling an auction of the house for XX/XX/XXXX. My rep contacted the lender who told us that all foreclosure actions were suspended while they continued to review the offer, and we also received the same in writing although the auction remained on the schedule. This was very confusing. Then they stopped communicating when my rep tried to get confirmation about the suspended auction sale to determine why an auction was even scheduled while we waited for the contract for sale to be reviewed. And they were also telling us everything was suspended. We contacted Rushmores attorney directly to inform them we were waiting on a response from Rushmore Servicings investor regarding the purchase offer, and that we were told this matter was escalated by the POC to determine why an auction was scheduled when on their end it stated everything was suspended. Rushmore Servicing POC told us that the auction was suspended and would be rescheduled on XX/XX/XXXX, while they continued to evaluate the current purchase offer. So, we thought everything was okay but continued to notice the auction sale was never removed from the schedule. We continued to get conflicting information when calling Rushmore Servicing. Then the night before the auction sale, the loss mitigation representative closed the application online and sent a message to my rep indicating the application was denied and the auction was going to go forward the next day even though we were told the opposite information for months. We waited all this time and my rep attempted to repeatedly communicate with Rushmores loss mitigation department only to be misled and denied any further remedies in settling the mortgage debt through a short sale, which is a violation against my successor in interest rights through fraudulent misrepresentation on the behalf of Rushmore and their agents under Loss Mitigation Procedures 12 C.F.R. 1024.41. They did not explain the mixed messages. They just canceled everything after we waited for months. The buyers had already increased the offer, but they never gave us an opportunity to even submit. Rushmore Service acted in a disingenuous fashion in an attempt to disenfranchise my XXXX XXXX  family out of our home that we were trying to settle for the estate. Second, Rushmore was required to review additional loss mitigation options before proceeding with foreclosure, and Rushmore not only lied to my representatives and my family, but they continued to proceed with the foreclosure sale after their own agents continued to lie and mislead and steer me and my agents away from completing the short sale process. This was all a continuing attempt to deny my rights in regards to settling the outstanding debts owed by the estate and violating my rights as another XXXX XXXX  family trying to not go through a foreclosure sale.