Consumer complaint received 2021-11-18
Product: Mortgage — Reverse mortgage
Issue: Trouble during payment process — 
Company: MONEY SOURCE, INC., THE (CA)

I am filing a complaint with CFPB due to the fact that I have been misinformed and given repeated contradictory and misleading information by the Reverse Mortgage Servicer, The Money Source , Inc. ( TMS ) regarding my deceased fathers reverse mortgage account, and allowed extensions or procedures to avoid forbearance or foreclosure. It seems the misleading information may have been provided intentionally so that TMS could precipitously begin foreclosure proceedings against my fathers home, as well as adding financial damages of attorney fees and costs to the balance due on the loan. 
Through repeated calls and conversations with TMS from XXXX of XXXX through XX/XX/XXXX, I was led to believe that the beginning trigger date for extensions ( of up to one year ) on forbearance granted by TMS for my fathers specific account was the date of his death on XXXX XXXX, XXXX Beginning XXXX XXXX TMS representatives for the first time in my interactions with them stated the trigger date for default in my fathers account was actually XXXX of XXXX, when he was alive, however that information was not communicated in writing nor verbally during 5 separate phone calls with TMS representatives from XX/XX/XXXX through XX/XX/XXXX ( 4 calls in which my fathers specific account number was given to them, whereas in the other call I was told the TMS computers were not functioning ). The misleading information given by TMS during repeated conversations took my time and efforts in court proceedings, created immense stress for me, as well as creating damages for the estate, delaying the probate proceedings and adding to the balance of the loan in the way of monthly interest, insurances, and especially adding attorney fees for the foreclosure filing that are now being added daily to the account, which could have been avoided had I been informed truthfully about the options available and the deadlines for those and thus based my decisions accordingly regarding my fathers estate on correct information rather than falsehoods and deceit. 
TMS has now stated that the home will go to foreclosure and has begun adding attorney fees and additional costs, contrary to prior conversations where they advised that extensions were available through their company and through the COVID CARES Act to prevent a foreclosure status while proceeding through probate court for my fathers estate, as long as appropriate documentation was being sent to them. TMS had even repeatedly stated that extensions would be granted through their maturity department for up to one year after my fathers death, and for up to one year due to the COVID CARES Act. Appropriate documentation has repeatedly been sent by their stated deadlines, after my several documented phone calls to understand options of the heirs and repayment of this debt, and communicating verbally and with documentation to TMS my intent to purchase the family home and repay the outstanding reverse mortgage balance when the probate court process permitted. XXXX family members still occupy the family home, including children and XXXX individuals, and now unknown amounts of legal fees and costs are unnecessarily being added to the repayment of the loan of my fathers estate, while undue distress is being caused in my attempt to get clear and honest communication from TMS while grieving the loss of my father. 
Please see the timeline attached, as well as documentation of calls and correspondence. 
XX/XX/XXXX -My father passed away with no will or trust. 
XXXX I called The Money Source ( TMS ) and spoke with representative XXXX about my fathers death and options for repayment of my fathers reverse mortgage loan account. 
o I gave XXXX the account number for my fathers reverse mortgage loan from his monthly statement. 
o I informed her of my fathers death, and my intentions to petition the court to administer my fathers estate in Probate Court ( as there was no will and that is what is required to handle his estate and property ). 
o I was told XXXX would not be able to provide me anything in writing regarding options for my fathers loan to be repaid, so I typed the entire conversation to document the options. 
The four following options were provided verbally by XXXX : Sell property, whatever is owed is paid to reverse mortgage and remainder goes to his estate. 
Second option to finance the property with a lender or bank and pay off reverse mortgage balance amount. 
Deed in Lieu : basically giving property back to investor, if we didnt want it to go to foreclosure, if chosen someone still needs to sign. 
Short sale is last option if property appraised short of what is owed on loan. Also the option of an heir short sale, heirs purchase for 95 % of appraised value. 

o I was told that if none of the above options were chosen, then the property would be referred to foreclosure 90 days after borrowers passing. 
o I let her know were in process of opening Probate on the estate so that we may properly address his estate through court. 
o I was then told by XXXX that I could apply for a servicer extension of the loan being called due and payable within 76 days of the date of his death by sending the appropriate documents ( giving the servicer 14 days to process the documents prior to the 90-day deadline to request another extension ). 
o I was told the documentation needed to be mailed by 76 days after my fathers date of death ( to allow 2 weeks processing time by TMS before 90-days deadline from the date of my fathers death for the extension ) was the following : Copy of my fathers Death Certificate showing myself as the informant Letter of Intent ; a brief letter letting TMS know my intentions on paying off the loan, that I will be going through a probate court to become be the administrator of the Estate, signed and dated with my contact information Copies of the court filed petition for Administration of my fathers estate Some Proof of Effort ( either of the following ) : A Bank statement summary page showing funds to pay the loan Or : An Approval letter From a lender for funding to cover the loan My letter should include a Request for an additional 90-day extension o I was also told that I could request up to 3 additional 90-day extensions to be granted after the first 90-day period, as long as I continued to provide the requested documentation of my court petition for administration of the estate ( Letters of Administration when granted ), and proof of effort of my intentions to pay off my fathers debt ( proof of funds or lender financing approval ). 
o I was told I would need to submit these documents by around XX/XX/XXXX, so TMS would have 10 business days to process the documents, that the first extension would automatically be granted and my letter should include a request for the second 90 day extension. 
o I was told by XXXX that I would receive a phone call from someone hired by TMS to do an appraisal on the property, as was customary to do within 30 days of a borrower passing ( to date XX/XX/XXXX no one has called nor done an appraisal on the property ). 
o I asked about COVID extensions and relief due to hardship, and was told by XXXX that I would be granted the 6-month COVID extension with the verbal request in this phone call. I was told I still needed to apply for the other 90-day extensions through the servicer as well to protect my right to continue to apply for the further 90-day extensions. 
o I notified XXXX ( TMS )  about additional ( XXXX and California XXXX ) liens discovered on the home through the property taxes, and the need for property taxes to be paid. She said she would make note of that and have another department look into these, that they would do periodical searches for the property taxes due and pay them, adding the taxes to the reverse mortgage account outstanding balance. 

XXXX I called The Money Source ( TMS ) again and spoke with representative XXXX to confirm the necessary documentation needed to request the extensions on the loan being called due and payable due to my fathers death. 
o I gave XXXX my fathers TMS loan account number. 
o I let the XXXX know that I had filed for administration of my fathers estate, but that the assigned hearing date was in XXXX, so I needed to confirm the extension requirements. 
o XXXX confirmed the same documentation listed above was needed ( the list I was told in the call with XXXX at TMS in XXXX ). 
XXXX I submitted all requested documentation via certified mail, including : o my fathers death certificate listing me as informant o the petition to the court for authority to administer my fathers estate o a letter including my intent to repay my fathers reverse mortgage loan and purchase the home ( when it became legal to do so through probate court ) and a request for another 90-day extension on the loan being called due and payable o bank account statements showing proof of funds to cover the reverse mortgage loan XXXX I called TMS to confirm the documentation needed to communicate my progress with probate court ( being appointed as estate administrator with limited authority under the Independent Administration of Estates Act, but not receiving the court documentation yet ) and request another 90-day extension. 
o I spoke with XXXX at TMS who said computers were down at TMS, that they had been down for several hours and it was unknown when they would come back up or if they would be up by the end of the day ( a Friday ). 
o Since she was unable to look up my fathers account specifically due to the computers being down, I asked general questions referring to the information I had been given in prior phone conversations with TMS, and was told there is a hard HUD 6-month deadline requiring Letters of Administration from the Probate court in order for TMS to proceed without foreclosure on my fathers home. 
o I was told by XXXX that I would need to send these court LETTERS of Administration of my fathers estate along with updated proof of effort by XX/XX/XXXX ( since TMS would be closed on XX/XX/XXXX, the 6-month deadline from the date of my fathers death ). 
o I was also told that the COVID extensions were to prevent foreclosure. 
XXXX I went to the courthouse completing an urgent request for the judges signature to be expedited while I wait in the courthouse due to the eminent foreclosure on the property if I did not obtain a signed copy of the Letters of Administration of the Estate of my father and submit them to TMS before XX/XX/XXXX ( the date I was told is HUDs deadline as 6-months from the date of death of my father : XX/XX/XXXX ). 
XXXX I urgently called TMS again on the afternoon of Monday, XX/XX/XXXX, after returning from the court with the signed Letters of Administration , to confirm what documentation and where documents needed to be sent to request another 90-day extension by 76 days after the prior date of 90-days after my fathers death, as directed by TMS. 
o I spoke to XXXX in the Default Department, giving her my fathers reverse mortgage loan account number. 
o XXXX at TMS told me that I should request 6-months of extension this time, as I had already been granted the first 6-months when I requested an additional 90-day extension in XX/XX/XXXX. 
o I was told to submit proof of funds again, along with the updated Letters of Administration from probate court, with my request for a 6-month extension o TMS agent XXXX confirmed that she could see the letter of intent to pay the loan balance and the death certificate I had submitted in XXXX in the account file. 
o I was told I could email the documents the same day and to allow 7-10 business days for processing before I call for an update on the account. 
o I emailed all of the above requested documentation the same day ( XX/XX/XXXX ) to XXXX and also to XXXX which had been provided to me during my call to TMS on XX/XX/XXXX, including : A copy of the certified Letters of Administration from court dated XX/XX/XXXX A letter requesting the extension be granted for another 6-months and reaffirming my intention to repay my fathers loan balance when permitted by the probate process to do so Proof of Effort : Bank statements showing sufficient funds to payoff the loan XXXX XXXX I called TMS again and spoke to XXXX, who confirmed that the emailed documents ( Court Letters, proof of funds ) were received by the Maturity Dept. and Occupancy Dept. ( both departments emailed on XX/XX/XXXX with the letter requesting an additional extension. 
o She mentioned that she would email her supervisor named XXXX and have her call me back later that day or the next day to confirm I had completed all the necessary steps to communicate with the servicer my intentions and provide appropriate documentation. 
o I requested that all further documents and correspondence be sent to my home address rather than my fathers address, as I had been officially appointed by the court to administer my fathers estate, and had provided that documentation. XXXX updated the account to reflect my address. 
o I asked if I needed to send anything to HUD to meet the XXXX deadline to avoid foreclosure, and was told that TMS would XXXX forwarding the necessary documentation from what I had sent. 
XX/XX/XXXX - I followed up with a phone call to XXXX, as I had not received any return call from an agent or supervisor throughout the week. I spoke with agent XXXX and gave her my fathers loan account number. XXXX said that my fathers account was not eligible for any extensions and had been in default while he was still alive, and that the account was referred for foreclosure. 
XXXX I followed up with another phone call to TMS and spoke with XXXX XXXX with my lender on the call with me also. I audio recorded a good portion of this call. 
o First XXXX said a 6-month COVID extension was granted on XX/XX/XXXX, in response to the documentation I sent. 
o I asked when that extension would expire. I was first told that I would need to apply for another 6-month COVID extension by XX/XX/XXXX, one month before the expiration of the extension granted in XXXX that would be through XX/XX/XXXX. 
o Then XXXX said I would have until XX/XX/XXXX before any foreclosure proceedings would begin or a foreclosure sale date would be set. 
o I was then told that no more COVID extensions were being granted, at which point I mentioned the CARES Act provided that another extension could be granted as the first extension had been requested before XX/XX/XXXX. 
o I pointed out that I had also been providing all the necessary documentation for maturity extensions on the loan being called Due and Payable due to my fathers death because I needed to go through the probate process with my fathers estate, whereas the CARES Act does not require any documentation of hardship to be granted COVID relief. 
o Then XXXX said that I had requested and been granted another COVID 6-month extension on the phone call with XXXX on XX/XX/XXXX. I pointed out that was not my recollection of the conversation on XX/XX/XXXX with representative XXXX. 
o XXXX said that I was granted a second COVID extension through XX/XX/XXXX. 
o It was reiterated that I have shown good faith and sent TMS all requested documentation, and that I must go through the court system to handle the estate according to the laws and rules of the court. 
o I asked to receive something in writing regarding the extension, and XXXX said she would email the request to the department that takes care of that, but she could not give me a name of the department other than the Default Department, when I asked for the name of the department that handles sending something to me in writing, sh said that it is part of her department ( the Default Department ) and she would request that I be send something in writing. 
o XXXX said the COVID extension through XX/XX/XXXX would prevent a foreclosure sale date, and prevent a foreclosure from being filed, that the loan is in Called Due status and not in Foreclosure status, and that I would have the 6-months time preventing foreclosure to go through the court process. She also confirmed that the COVID extension through XXXX of next year would ensure that a foreclosure is not filed. 
o My lender inquired about verification of the payment of property taxes for XXXX, and XXXX said they still showed as delinquent in her system. 
o I then looked up the property taxes online through the county website which showed paid for the XXXX taxes. She then said they were paid on XX/XX/XXXX. Then she said taxes were advanced on the account on XX/XX/XXXX while looking at the transaction history on the account. 
o I requested a transaction history be mailed to me for my fathers account. 
o My lender asked about what happened with the taxes that triggered to show the account in default on the call on XX/XX/XXXX. We were told that any impound account would have been frozen anyhow when the borrower passed away. 
o We asked for an updated payoff statement. 
o I reiterated that XXXX is telling me that a first 6-month COVID extension was granted in XXXX and a second 6-month COVID extension was granted on XX/XX/XXXX which will go through XX/XX/XXXX, and I would be sent something in writing regarding that. I recapped that XXXX stated the loan is still in a Called Due status and not in a foreclosure status, and the extension granted through XX/XX/XXXX would prevent a foreclosure from being filed, that property taxes for XXXX were paid through TMS, and that I would receive a transaction history by mail, and emailing an updated payoff statement good through XX/XX/XXXX XXXX XXXX had stated that she would request the payoff and it would take 7-10 business days, and could only be granted up to 30 days from todays date of the call on XX/XX/XXXX. ) XXXX repeatedly said Youre good until XXXX of XXXX. 
o My lender confirmed that I have sent in all the necessary documentation and XXXX confirmed that all necessary documents have been received by TMS. 
o I mentioned that I was given contradictory information and XXXX apologized and said that the COVID extension is a right to be requested through XX/XX/XXXX. 
XX/XX/XXXX - I received an account transaction history dated XX/XX/XXXX covering transactions between XXXX. 
XX/XX/XXXX I received a monthly TMS account statement dated XX/XX/XXXX showing the account in a Called Due : Tax & Insurance status, the same status as in prior monthly statements viewed after my fathers death. 
XXXX I called TMS and spoke to XXXX in the Insurance Dept. , and gave my fathers loan account number to inquire about a letter received in XXXX about providing Hazard/Fire/Real Property Insurance for my fathers home . XXXX let me know that the lender placement of insurance would go into effect until I provided a declaration page, and the difference would be prorated for any coverage provided by the lender placed policy, and that there are no cancellation fees if it takes some time to place a policy for the estate. I began getting quotes for insurance coverage through several companies. 
XXXX A payoff quote was received on XX/XX/XXXX by email good through only XX/XX/XXXX. 
XX/XX/XXXX A second letter was received from TMS regarding placement of Hazard/Fire/Real Property Insurance. 
XX/XX/XXXX I paid for placement of Hazard/Fire/Real Property Insurance through XXXX XXXX for my fathers property and emailed XXXX with the declaration page of coverage naming TMS as mortgagee, also asking the Insurance Agent to fax the same day to provide TMS notice of coverage XXXX 
XXXX A Monthly Reverse Mortgage Statement from TMS was received at my address for the Estate dated XX/XX/XXXX, showing the Loan status as Called Due : Tax & Insurance XXXX I received Evidence of Cancellation of the lender insurance placed policy from XXXX XXXX XXXX XXXX which showed the price of the difference in days covered between XXXX, the time which I purchased the coverage from XXXX XXXX on the property. 
XXXX I received two separate copies from TMS XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX to my father, but sent to my address via a cover page that had my fathers name and my home address. 
XXXX I filed an Ex Parte petition for Administration of my fathers estate with Full Authority with under the Independent Administration of Estates Act, after hiring a paralegal to draft the appropriate documentation, as I understood this full authority would allow me to move more quickly through the probate process regarding my fathers property and repayment of his outstanding liens on the home. 
XXXX I received a letter addressed to my father with a cover sheet with my fathers name and my address dated XX/XX/XXXX, from XXXX XXXXXXXX XXXX which stated that they had been retained by THE MONEY SOURCE , INC. in connection with my fathers loan with TMS XXXX stating that the debt is owed to TMS and that XXXX is authorized to collect payment on your loan. 
XXXX I received an email from the court that my Ex Parte petition for full authority with to administer my fathers estate under the Independent Administration of Estates Act had been approved by the judge, and subsequently sent the Amended Letters to court to be signed, requesting and paying for certified copies to be sent ( court is still processing these documents and Amended Letters have not yet been received to date XX/XX/XXXX ). 
XX/XX/XXXX My lender and I called TMS to discuss the status of the recent correspondence received from XXXX XXXX XXXX and TMS California Homeowners Bill of Rights statements. XXXX at TMS answered the call and threatened to disconnect the call when I asked to record the call. We were transferred to XXXX who said the call was being recorded. 
o When inquiring about the status of my fathers account, we were told the account was referred to foreclosure but no sale date had been set. 
o We were then told that TMS went by a default date of XX/XX/XXXX, rather than the date of death of my father, and I was not eligible for maturity extensions. 
o XXXX said the COVID extension in place on the account is good until XXXX of XXXX, but this does not prevent the account from foreclosure status. 
o He said there was a HUD hard deadline of XX/XX/XXXX. 
o He said they can not sell the property while the COVID extensions are in place but that does not prevent the foreclosure process and legal fees. 
o XXXX got a supervisor to review the account while the lender and I were on hold, and came back to say that the status of the loan changing from Called Due to Foreclosure occurred on XX/XX/XXXX. 
o We were then connected to the supervisor named XXXX, who reiterated that the COVID extension expires in XXXX of XXXX and the loan is in Foreclosure status. 
o XXXX apologized for the misinformation provided in other calls, and said they are following HUD regulations that the loan does have to go into foreclosure status after 6-months, and that the loan went into foreclosure on XX/XX/XXXX. 
o She added that there will be no auction date during the COVID extension. 
o When asked about legal fees incurred with the foreclosure actions, she looked up that as of XX/XX/XXXX there were an additional {$840.00} of legal fees added to the account. 
o Another payoff quote was requested. 
o XXXX was asked about what can be done to fix this at this point. XXXX said that management would listen to prior calls to ensure that correct information would be provided in the future. 
o The need for a complaint to be filed with CFPB was mentioned. 
o XXXX said the legal fees are a HUD requirement and again apologized for the prior miscommunication from TMS in prior phone calls. 
o XXXX mentioned a letter being sent to my home address from TMS in XX/XX/XXXX regarding foreclosure ( I did not receive this, nor were they sending any correspondence to my address until XXXX of XXXX after my request on my call with XXXX on XX/XX/XXXX that TMS update in their system the address of my fathers account to reflect my home address ). 
o An updated payoff statement was requested again, which was said would take 7-10 business days. 
o Filing a CFPB Complaint was mentioned as the next step, as XXXX apologized again saying that HUD requires the legal fees and there is no way to reverse or waive them due to the misleading and incorrect information provided by TMS. 

XX/XX/XXXX - A Monthly Reverse Mortgage Statement from TMS was received at my address for the Estate dated XX/XX/XXXX, showing the Loan status as Refer for FCL : Tax & Insurance for the first time ( showing this status ) XXXX An updated payoff quote was received from TMS via email on XX/XX/XXXX including Attorney fees/costs totaling {$1400.00} and good for only 7 days through XX/XX/XXXX. 
XXXX Documentation of the timeline of events between TMS and my fathers estate were sent in a letter to TMS and XXXX XXXX XXXX from an attorney on my behalf requesting written documentation of the facts in the matter be sent to me within 15 days, for which added legal services will be paid from my fathers estate.