Consumer complaint received 2023-05-30
Product: Mortgage — Conventional home mortgage
Issue: Trouble during payment process — 
Company: Mr. Cooper Group Inc. (AZ)

I am trying to sell a vacant lot that I paid cash for in XXXX. It sits next to the property I have a mortgage on. During a XXXX refi with XXXX, it was swept into the mortgage. I initialed the docs, but was unaware of the encumbrance. The loan went from XXXX to Nationstar to Mr Cooper ( sister companies ). I became aware that the lot was encumbered on XX/XX/XXXX when I was under contract to sell the parcel. The title company alerted me 12 days before closing that XXXX XXXX XXXX XXXX  was in first position. I called XXXX and they stated that it was listed as an easement ( both are XXXX acres? ) and it could be fixed. They called several days later and said that Mr. Cooper would have to issue a Partial Release of Interest. Mr. Cooper is unwilling to provide the release because " it is part of the loan '' and because in have missed several payments. The lot should not be in the loan and I would have protested it immediately back in XXXX but Mr. Cooper entered the parcel into their data base just 12 days ago. For the last 37 months there has been no mention of XXXX on any statements or correspondence. It was not to be found on their website. During escrow analysis, only the parcel with my home on it was listed. The tax bills continued to be sent to me and I continued to pay them as I always have. Had I known that those companies would lay claim to the lot, I would've voided the refi or had it amended. Because the tax process stayed the same and there was no indication on website or statements, I had no reason to suspect wrongdoing. Mr. Cooper HAD NO IDEA THAT XXXX EXISTED for the first 37 months of the loan. They did not " service it '', as they contend. They became aware when I called to say that I paid cash and needed the release to sell it. Despite dozens of calls, it took 24 days for a manger to return my call. She recommended that I check with local hospitals for payment assistance. Also, I informed Mr. Cooper prior to missing the payments that I was unemployed, would miss the coming months but be completely caught up come the XX/XX/XXXX closing date with the sale of the lot. They made note and never once was I warned or informed about the late payments... but again, their employees wouldn't have known to warn me, because Mr. Cooper didn't have it in their system. They have taken only one action on XXXX... They have prevented me from selling a parcel I own outright. In doing so, they are throwing both parcels into foreclosure. Had I received the release in a timely fashion, the loan would've been msde current a month ago. The LTV WITHOUT the vacant lot is 36 %. The do not benefit from withholding or granting the release. I even offered to pay the {$15000.00} to get current but only if I received written assurance that I would receive the release within 5-10 business days. They refused the simple request. Had they been transparent at any point during the last 37 months, this could have been corrected prior to my listing it for sale.I had no idea Mr. Cooper could prevent this sale, and neither did they. But now they tell me " protocol '' prevents them from doing so. Had their " protocol '' not missed 37 months of tax payments and had they listed the parcel correctly, none of this would've gone foul.