Consumer complaint received 2016-11-10
Product: Mortgage — FHA mortgage
Issue: Loan servicing, payments, escrow account — 
Company: NATIONSTAR MORTGAGE LLC (TX)

On XX/XX/XXXX, my home was unfairly foreclosed by NationStar Mortgage , LLC. When I originally purchased my home in XX/XX/XXXX, XXXX XXXX serviced serviced my loan and in my original loan I had no escrow. I paid taxes and insurance separately. XXXX serviced my mortgage loan after XXXX and XXXX honored my original loan and did not collect additional escrow. In XX/XX/XXXX, Nationstar Mortgage , LLC began to service my loan and they fraudulently added escrow to my original loan note. Nationstar Mortgage unlawfully collected escrow from my regular monthly mortgage payments and in XX/XX/XXXX they began to return my monthly mortgage payments back to my bank. I called Nationstar Mortgage , LLC to inquire on why they returned my payment. They claimed it was because I did n't have insurance on my home and they needed to collect the entire escrow amount for taxes/insurance instead of my regular monthly payment of {$560.00}. I explained that I 've never escrowed and I 've always paid my taxes and insurance separately. They asked me to fax proof of insurance and I did just that. The next month they did exactly the same thing and refunded my payment again. I called them again and they claimed they never received my fax. I sent in proof of insurance again and sent my mortgage payments once more. This time they acknowledged receipt and claimed they would correct the escrow error in their system. That did not happen as they continued refunding my mortgage payment for the next 5 months. Nationstar Mortgage negligently foreclosed on my home despite the proof of insurance they asked me for. I went as far as conference calling them with my insurance agent on the phone where she explained to Nationstar 's customer service XXXX that I did indeed have coverage and had not lapsed since I had been their customer, from XX/XX/XXXX-XX/XX/XXXX. Nationstar Mortgage , LLC sent me a letter acknowledging that I had insurance coverage and stated they were going to credit me for overpaying and they were going to correct that information in their system. That obviously never happened. They never corrected it and every time I would call them to inquire on why they were still reimbursing me my mortgage payments, no one knew what I was talking about since there were no prior notes made from their reps informing them about the escrow issue being resolved. At XXXX point I phoned Nationstar Mortgage and I was told that I had over {$4700.00} in escrow balance with them and that from there they were going to pay my taxes and insurance. They never paid my property taxes nor did they credit me back for the insurance amount they negligently placed on my mortgage note. I stopped sending payments to them in XX/XX/XXXX because they continued sending my payments back and they refused to work with me to resolve this matter. Please see my attached documents that verify proof of insurance, proof of property taxes that I 've paid from XX/XX/XXXX-XX/XX/XXXX. I had a previous mortgage loan with Nationstar Mortgage , LLC for a home I briefly owned in XXXX, XXXX. That property was foreclosed on back in XX/XX/XXXX or XX/XX/XXXX. I bought the home for {$320000.00} in XX/XX/XXXX and when Nationstar foreclosed on it the property was valued at about {$240000.00}, which is what they sold it for. NationStar began to send me collection invoices for the difference of about {$77000.00}. Then the last statement I received from them was for about {$150000.00}. Next thing I know they are servicing my home loan for my home in XXXX and insisted that my home loan had escrow. Some of the statements I began to receive from them had my name and the XXXX, XXXX address and loan number with my XXXX home loan amount. I strongly believe they confused the loans and wrongfully foreclosed on my XXXX homestead property and forced me and my XXXX sons out of our home!!