Consumer complaint received 2015-11-20
Product: Mortgage — FHA mortgage
Issue: Settlement process and costs — 
Company: State Home Mortgage (GA)

State Home Mortgage ( servicer of FHA loan ) acting on behalf of Georgia XXXX was made aware of my Chapter XXXX discharge XX/XX/XXXX. I requested approval for short sale XX/XX/XXXX XX/XX/XXXX, and again XX/XX/XXXX. State Home Mortgage representative XXXX XXXX advised that a non-traditional short sale would be approved. State Home Mortgage was aware that the house was under contract for {$180000.00} and that I had hired a realtor to represent my interest in the sale. State Home Mortgage collected all appropriate documents XX/XX/XXXX ( sales contract, realtor representation agreement, hardship letter, previous contracts, etc. ) related to the sale. State Home Mortgage knew that XXXX additionally liens where on the title ( down payment assistance lien and XXXX lien ) and knew that I had no intention of keeping the property due to prior history of construction and safety issues with the property. XX/XX/XXXX I showed up for the closing and was advised that I had I need to write a check for approx. {$1000.00} ( of which I do not have ) related to the XXXX lien on a property that I surrender in Chapter XXXX bankruptcy. State Home Mortgage actions in fact was an approved short sale as 1 ) the document I signed prior to closing clearly stated, 2 ) emails to the buyer 's attorney from State Home Mortgage, and 3 ) they knew that the XXXX lien was their responsibility to clear on the property that I relinquished in bankruptcy per my discharge papers and Statement of Intention. However and again, they had me sign papers for a short sale and they advise ( XXXX XXXX, XXXX XXXX, and then escalated to the manager XXXX XXXX ) would have to pay the XXXX lien out of the reserves they would have given me under the provision of HUD short saleXXXX ( i.e., " cash for keys '' ). At closing, they sent a payoff that did not include the XXXX lien payoff which has created an alleged liability of {$1000.00} for me that under Chapter XXXX bankruptcy was discharged. Further according to the XXXX mediator, State Home Mortgage NEVER submitted the file for short sale approval by HUD although they had ample documentation submitted since XXXX to them and they fact that I personally visited and gave them every accounted detail of the transaction ( i.e., pictures of the damages, hardship letters ( XXXX ), income documentation showing financial hardship, tax returns, bills, etc. ) documentation showing financial hardship, tax returns, bills, etc. ) My compliment is that I was refused the benefits of a short sale although this state/governmental agency in their actions accepted and agreed to the terms of the short sale. This state agency did everything to make this process of relinquishing this property out of my name ABSOLUTELY DIFFICULT. I sent numerous letters, factual evidence, and complained to the HUD Mediator, and complained to State Home Mortgage prior to the XXXX forcing me into bankruptcy. The state agency employee, XXXX XXXX, lied to my realtor and the HUD mediator that this was not a short sale. As such the XXXX Mediator refused to listen to my compliant that the mortgage servicing was indeed processing the sale as a short sale, period!!!! The email and documents I was encouraged to signed with Georgia XXXX XXXX XXXX stated SHORT SALE. XXXX XXXX advised that the only way I could receive any funds ( i.e., " cash for keys '' ) to assist with moving was to 1 ) do a short sale or 2 ) allow the bank to foreclose. He advised of a short sale and that they would satisfy the XXXX lien. However, they forced me to sign a document to relinquish the 2nd lien and advised that they would send me a XXXX form to be claimed on my taxes. That is predatory and discriminating as per the bankruptcy. I am not personally responsible for any lien on the property that I surrendered in bankruptcy.