Consumer complaint received 2024-05-14
Product: Mortgage — Conventional home mortgage
Issue: Trouble during payment process — Escrow, taxes, or insurance
Company: Mr. Cooper Group Inc. (IL)

Dates are very important relative to the complaint I am submitting against my mortgage company, Mr. Cooper. On XX/XX/XXXX I applied for Mortgage Assistance through Mr. Cooper as my current mortgage was 2 months past due. While Mr. Cooper was reviewing my application for assistance, on XX/XX/XXXX I received a Notice that my home would go into foreclosure as of XX/XX/XXXX unless payment was received in the amount of {$2100.00} for the past due balance. My mother became aware of the situation relative to the upcoming foreclosure and payment in full was made on my mortgage on XX/XX/XXXX to bring the account current. I contacted Mr. Cooper at the time that payment was made and indicated that although the payment was made I wanted to still go through with the application for Mortgage Assistance. I was concerned that this payment would eliminate the possibility of assistance. I spoke to various representatives at Mr. Cooper including XXXX XXXX. I was assured that the Loan Modification Dept would continue their review for the assistance and would let me know of their decision. I questioned if the payment made by my mother to bring the mortgage current should be refunded to me in order to proceed with the Mortgage Assistance. I was advised that they would not refund the money, leave the account as current, and the Loan Modification Dept would advise me of what options were available to me. On XX/XX/XXXX I received notification from Mr. Cooper advising that I was approved for a Flex Modification. The trial period would begin on XX/XX/XXXX. My payments under the trial period would total {$1000.00} which reflected {$290.00} for P & I and {$710.00} for Taxes and Insurance. I was advised the trial period would last 4 months and as long as I adhered to making the payments as directed for XX/XX/XXXX, XX/XX/XXXX, XX/XX/XXXX and XX/XX/XXXX paying the exact amount of {$1000.00} on time the loan modification agreement would be signed by Mr. Cooper and my loan would be permanently modified. I agreed to these terms, made payments in the amount of {$1000.00} exactly as directed on XX/XX/XXXX, XX/XX/XXXX, and XX/XX/XXXX. All payments on my account were reflected as " Trial Payments '' for the agreed Loan Modification. On XX/XX/XXXX I received a Notice from Mr. Cooper stating that they were " withdrawing the agreement offered '' because they did not receive " properly executed copies as required ''. I immediately contacted Mr. Cooper and questioned why my agreement was being terminated when I fully complied with everything. All forms were signed. All documents they requested were signed and completed months before. I was then advised by Mr. Cooper that they actually withdrew my Loan Modification because the account was not in any default. I explained the situation advising that Mr. Cooper was well aware that the payment was made back on XX/XX/XXXX when they entered into the Loan Modification Agreement with me back on XX/XX/XXXX. I questioned why they would all of a sudden change their mind when I was 3/4 of the way through the trial period. I was told there was nothing they could do. I explained that this puts me in a VERY bad financial situation because they collected money over the past 3 months that was supposed to be allocated to the RE Taxes that are coming due in XXXX. I questioned if I could get that portion of the money back to apply to my taxes. I was told no. I questioned what happened to the money and was advised that it was applied to my original agreed P & I monthly payments of {$690.00} for XXXX, XXXX, XXXX, and XXXX and that the extra money was applied towards Principal on the loan. I explained that I in no way authorized this. I was then told that the only thing they could do is refund me the original payment that was made back on XX/XX/XXXX that brought the account current. Refunding it would then put me back in a Foreclosure status. Mr. Cooper then welcomed me to reapply for Mortgage Assistance but they would not provide any assurance that I would be offered any and so the foreclosure would proceed. I questioned why the money was not then refunded back to me in XXXX of XXXX before the Loan Modification was offered on XX/XX/XXXX if that indeed was going to be a problem, which I was assured WOULD NOT be and that is why they refused to refund it to me back in XXXX of XXXX. To further contradict Mr. Cooper 's decision of denying my Loan Modification because my account was " made current and no longer in default '', I questioned why my mortgage has been reported as being in default with the credit bureaus multiple times including in XXXX of XXXX, XX/XX/XXXX, and XX/XX/XXXX?? I asked them to correct this on my credit reports because it is not fair to me to deny my loan modification because I am not in default, but ruin my credit by stating I am still in default. Mr. Cooper said they will not change their reporting with the Credit Bureaus. I am beyond frustrated with the multiple continual deceptive business practices of Mr. Cooper and would appreciate any assistance or guidance you can provide to me. Thank you. 
I do have copies of all documents and agreements relative to the Loan Modification with Mr. Cooper. I also have copies of the account showing how the payments made in XXXX, XXXX, and XXXX were applied to my account as " Trial Payments for the Loan Modification. Please let me know if you would like any of this documentation.