Consumer complaint received 2020-03-12
Product: Mortgage — Reverse mortgage
Issue: Struggling to pay mortgage — 
Company: Mr. Cooper Group Inc. (MA)

My grandfather passed in XXXX. My grandmother began to suffer from XXXX and XXXX soon after. She passed away XX/XX/XXXX. 

The original mortgage that was borrowed against was around {$110000.00}. Before my grandmother passed I had begun the process of a short sale and my dealings with Champion began. The updated loan balance at that time I had received was around {$270000.00}. More than 100K over the original amount borrowed due to accrued interest. I had an appraisal done XX/XX/XXXX that came back at XXXX. Ironically, Champion refused to budge from an amount very close to the amount owed on the loan.They never had an appraisal done. My father had gone through probate court and was appointed the personal representative of her estate in order to sell it to me. At the time XXXX had sent me a letter with an interest for XXXX out of the sale which at the time was the market value of the house. I stopped pursuing the short sale due to this, because it was my understanding from the lawyer that I would have an outstanding lien against the house after the sale, however I have recently discovered that this advice was misguided and false as I contacted XXXX and they confirmed that because there is no surplus beyond the balance due to the mortgage, the superior lien, their claim would be wiped out. 

Despite all of this my parents kept the property taxes and insurance current up until the end of the year last year. They did not disclose this to me out of shame. They own a three family that is draining them financially and they were not able to make ends meet and stopped paying the taxes and insurance on my grandmothers house. Just a few weeks ago I was notified that there was an auction scheduled for XX/XX/XXXX. I immediately contacted the champion to negotiate postponing the auction so I could have everything sorted. I even suggested repaying the {$5500.00} they paid on behalf of the estate for taxes and insurance. They denied this, however offered to send me a 95 % pay off letter. I received this letter nearly a week later indicating that I had 10 days to express my intent to purchase. Due to their rushed timeline I wouldnt have had enough time to get anything required back to them. With that being said, the 95 % pay off was to be based of a current appraisal value. This is where Im infuriated and disgusted because they never had an appraisal done, and with the approaching auction date there would not have been enough time for all of this to be conducted without postponing the auction- which they did not do. 

I have the capital, the credit, and am already pre approved. I decided to attend the auction and I thought for sure there was no way I would walk away without ownership of the property. I thought foreclosure auctions were utilized to recoup as much money back and move on! To my shock, horror, disgust etc the auctioneer began the bidding at {$300000.00}. The bank won the bid. Today, exactly one week later I was served paperwork on behalf of the new owners ( champion ) that I can choose to be evicted or purchase. The representative for the company that came to my home expressed to me that direct family members ( my dad and uncle ) would be required to pay the full loan balance of {$300000.00}. He is supposed to get back to me asap to let me know if this applies to second generation family as well. It is absolutely not feasible for me to pay {$80000.00} or more over the appraised value because Im family. Ive exhausted all of my avenues with champion and they have not been helpful in the slightest. I didnt stand a chance when the auction began at XXXX and I feel like this was highly predatory in order to put the home on the market and make a higher return. Im not looking for a deal or anything for free I just WANT TO PAY A FAIR PRICE!! Just like anyone else down the road would should this house go on the market. 

I am desperate and on an extremely tight timeline. I am here seeking help to save the home that means the entire world to me and to further expose champion for their deceptive practices and the entire reverse mortgage institution as a whole!