Consumer complaint received 2015-08-21
Product: Mortgage — Conventional fixed mortgage
Issue: Loan modification,collection,foreclosure — 
Company: NATIONSTAR MORTGAGE LLC (FL)

I made a loan in XXXX for a 30 year fixed, XXXX loan. When I went to sign, the mortgage company had switched the loan to an interest only loan, and when I called them, they said my credit had not been good enough for a conventional. I told them that it was untrue, and they had approved me, that was why I was at the signing table. The company told me they had made a mistake, but if I would go ahead and sign, and they would refinance it in 6-8 weeks. I did and they immediately sold the mortgage to Aurora Loan Services. 
Two years later, I lost my job and had to move. I managed to continue to pay the mortgage for some years XXXX until XXXX ). I repeatedly contacted Aurora, and they would not modify the loan, even though they verbally admitted numerous times after discussing my finances, that I could not afford the loan. Finally I told them I was going to file a Deed in Lieu ( DIL ). They said I must be at least 30 days behind, and try a short sale. I quit paying, contacted a realtor, put the house on the market, and they filed intent to foreclose. It is now called dual tracking. 
After they filed the foreclosure, they sold my loan to Nationstar Mortgage and XXXX XXXX ( XXXX ). However, neither Nationstar nor XXXX were ever legally on the deed, as the property was in judicial foreclosure at the time. I went ahead and filed a DIL in XXXX XXXX, and my name was taken off of the property by the county recorder in XXXX XXXX. 
Aurora did not want a DIL, as they were trying to sell the loan to make it easier to foreclose on, as there was originally only XXXX lender for both first and second liens. I had signed over the property via the DIL to Aurora and to XXXX, as I thought that would be fair. I sent copies of the filed DIL by certified mail to all three companies. Aurora did not file with the county recorder 's office to showing ownership had passed to another bank, and could not, as they had already started foreclosure proceedings. 
The foreclosure proceeded and Aurora filed a motion to substitute a party XXXX Nationstar XXXX on the very day the foreclosure took place. They did not legally own the property until that time. Although the DIL took the property out of my name in the recorder 's office, the foreclosure in XXXX XXXX gave the property to Nationstar bank. 
With the judicial foreclosure in Oregon, the foreclosure ended any financial responsibility for the property. " This judgment shall not create a personal lien or liability against Defendant XXXX ... The Property is encumbered by a second position deed of trust securing a second loan also originated XXXX XXXX XXXX XXXX Funding, but then transferred to Aurora. Because both the plaintiff 's Loan and the second position loan are residential trust deeds and were originated at the same time XXXX XXXX Funding they are subject to the anti-deficiency provisions of ORS XXXX ( XXXX ). In no event should it be construed as establishing personal liability for any persons whose debt has been extinguished in bankruptcy or by an In Rem order granting relief from stay, but only to foreclose the deed of trust mortgage. In the event the proceeds of sale are insufficient to pay the amounts due to Plaintiff, Plaintiff shall not be entitled to any further judgment, including a judgment for deficiency. " The statute has been revised to say " after a trustees sale under ORS XXXX or after a judicial foreclosure of a residential trust deed, an action for a deficiency may not be brought or a judgment entered against the grantor, the grantors successor in interest or another person obligated on the note. " My responsibility ended on the day of the foreclosure.