Consumer complaint received 2015-08-16
Product: Debt collection — Mortgage
Issue: Disclosure verification of debt — Right to dispute notice not received
Company: NATIONSTAR MORTGAGE LLC (NJ)

In 2007 I purchased a condo in XXXX and took out a mortgage with mortgage company XXXX. About 2 years later, that company filed for bankruptcy and reorganized under the name XXXX. The statement looked the same but were in a different color. I was suspicious but continued to make payments. Three months ago I received a letter from XXXX informing me that they too are filing for bankruptcy and that I am being assigned to a new agency called NationStar Mortgage. This letter also stated that payments made to XXXX would be automatically forwarded to NationStar for 60 days. The payments I continue to make to XXXX have not been cashed. 

I have never received any certified mail or legitimate looking paperwork from XXXX or NationStar. I just recently received the foreclosure notice on XXXX/XXXX/15 by certified mail. I then consulted an attorney who was also suspicious and told me he normally does not handle these type of problems and suggested I contact your agency for assistance. I have never received any information from the lenders bankruptcy court regarding the disposition of my debt with XXXX or XXXX. Prior to XXXX, my credit score was approximately XXXX. I obviously pay my bills. 

I made my mortgage payment to XXXX in XXXX, days before receiving the notice about the change over. The following month I received a letter from NationStar saying that they never received my XXXX payment and also added a late fee which probably negatively effected my credit score. In an attempt to sort out what happened, I called NationStar however, before speaking with a representative, there was a disclaimer that stated the following : " Please be advised that NationStar is a debt collecting agency and any information provided will be used to collect that debt ''. I immediately hung up the phone. 

I am suspicious for two reasons. First, NationStar is listed on the Better Business Bureau with a F rating and thousands of complaints have been filed against this company. And second, I 've heard many stories of companies grouping mortgages together, selling the loans as a bundle with the buyers of that debt collecting money for properties that they do n't even have proper title to. I am concerned that when I finally pay the mortgage off, they will not have my documentation and essentially run off with the money. Additionally, on the new NationStar statement, it says " The Principal Balance does not represent the payoff amount of your account and is not to be used for payoff purposes ''. For all these reasons, I have not made payment to NationStar. 

Last week I received a foreclosure document from NationStar. It states that the foreclosure will be lifted if I pay the delinquent months including late fees. The FTC website states that " By law, a debt collector is a person who regularly collects debts owed to others. Your mortgage servicer is considered a debt collector only if your loan was in default when the servicer acquired it. '' Prior to NationStar trying to collect, my account has never been in default.