Consumer complaint received 2022-04-20
Product: Mortgage — Reverse mortgage
Issue: Struggling to pay mortgage — 
Company: NOVAD Management Consulting, LLC (CA)

My Father, a XXXX XXXX  acquired an HECM reverse mortgage for his property through XXXX XXXX XXXX. In reviewing the contract documents, we have a reason to believe there may have been predatory lending.The loan was transferred to HUD at some point and serviced/managed by NOVAD Management . 

Despite our numerous attempts ( verbal and written ) to communicate with NOVAD Management since our Fathers passing in XXXX to purchase his property as his rightful heirs, we have been met with nothing but negligence on the part of NOVAD Management.

Timeline in our COMMUNICATION WITH NOVAD Management : Total of 2 communications from NOVAD Management to the Estate in a 4 year time period ( from XXXX to XXXX ) : 1. XX/XX/XXXX - Condolence letter stating options given regarding the property. 
2. XX/XX/XXXX, XXXX - Notice to Occupants of Pending Acquisition Total of 1 communication from Trustee Corps 1. XX/XX/XXXX - Notice of Default and of Foreclosure Sale ( NOD was recorded on XX/XX/XXXX and Notice of Foreclosure Sale recorded on XX/XX/XXXX at XXXX XXXX XXXX  ) Heirs were not provided sufficient notice for reinstatement of the Loan or sufficient notice for the Proposed Sale scheduled for XX/XX/XXXX. 
Spanning the time of an almost four year period, the property was in limbo. 

In XX/XX/XXXX, the Heirs received their first communication from NOVAD Management Consulting [ NOVAD ] in the form of a Condolence Letter directed to the Borrowers estate. This letter stated resolution options for the Loan. In XX/XX/XXXX, the Heirs contacted NOVAD via the phone number provided in the Condolence Letter, stating that the Heirs intended to satisfy the lesser of the outstanding Loan balance or XXXX of the current appraised value of the Property. The Heirs asked how they should proceed ( documents needed for submission, to whom they should be addressed, and what actions needed to take ). In response, NOVAD stated that the Property was not in its system and that the Heirs should contact the original lender, XXXX XXXX XXXX. 
XXXX XXXX XXXX  indicated that the Loan was paid off, was no longer in its system, and that XXXX XXXX XXXX  had no information on the Loan. 
In XX/XX/XXXX, the Heirs sent a letter to NOVAD requesting an extension as the Heirs still had no information as to how to proceed to satisfy the Loan. NOVAD did not respond to this communication. 
In XXXX XXXXa full three years laterthe Heirs received a second letter from NOVAD. This letter ( a Notice to Occupants of Pending Acquisition ) stated that the Property would be entering foreclosure within the next 60 to 90 days, in addition to stating that the then-current occupant would be afforded the opportunity to apply for continued occupancy by submitting request form HUD-9539. Nevertheless, no forms were included in the Notice to Occupants of Pending Acquisition. 
Upon the receipt of the second letter, only other communication from NOVAD, the heirs proceeded to take action promptly, contacting NOVAD Management via mail ( certified, return/receipt ), and were met with the same negligence. The letter was never responded to.

Additionally, NOVAD has refused to communicate with the Heirs because the Borrowers will [ Will ] was not notarized. Notarization is not a requirement in the State of California to validate a will. The Borrowers Will is a statutory will that was signed by two witnesses. The Borrowers Will is valid and NOVAD should have been previously and presently communicating with the Heirs. 
Because of NOVADs noncompliance with its HUD-ordered duties, including to communicate with the Heirs, the Heirs were not able to arrange with NOVAD to satisfy the Loan.

The Heirs properly requested an extension to comply with the Condolence Letter options, and to obtain guidance. Yet NOVAD failed to respond to this communication, depriving the Heirs of their ability to resolve this situation and further impeding the Heirs attempts to save the Property from foreclosure. Scheduled three days from today. 
I am appalled that an agency of our government such as HUD has contracted services with such a company. Many of the complaints from the XXXX, come from vulnerable elderly senior citizens potentially loosing their homes to foreclosure for lack of communication and clarity and negligence from NOVAD Management. This is not a current issue related to COVID circumstances. This goes back before COVID. We are not an isolated case, or the exception to the rule. We are an example of what is going on with many people loosing their homes, becoming homeless at a time when we are fighting homelessness in our streets. 
Elderly abuse, predatory lending in HECM Reverse Mortgages, non compliance with the law in following the guidelines and timeline within foreclosure processes, in a country like America, is unfathomable!!

My Father, a US Veteran, a proud American Citizen who worked for the XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX, and who followed his civil duties teaching us the principles of Honesty and Integrity, would be incredibly disappointed, that the injustices he saw while stationed in different parts of the world, are the injustices being committed towards the most vulnerable people in our country. 

I/We represent the thousands of Americans that are directly being affected by a poorly managed company doing a great disservice to a government agency ( HUD ) that is there to protect the public.