Consumer complaint received 2023-01-31
Product: Debt collection — Mortgage debt
Issue: False statements or representation — Attempted to collect wrong amount
Company: Mr. Cooper Group Inc. (FL)

RESPONDENTS FAILURE TO COMPLY WITH 12 C.F.R. 1006.18 ( b ) ( 2 ) 12 C.F.R. 1006.18 ( b ) ( 2 ) False, Deceptive, or Misleading Representations provides that : * ( b ) ( 2 ) A debt collector must not falsely represent : ( i ) The character, amount, or legal status of any debt; and ( ii ) Any services rendered, or compensation that may be lawfully received, by any debt collector for the collection of a debt. 

On XX/XX/XXXX, a final judgment of foreclosure was entered in favor of XXXX, Mr. Cooper ( XXXX or MR. COOPER ) in the total amount of {$590000.00}. Paragraph five ( 5 ) of the XX/XX/XXXX final judgment provides in relevant part as follows : 5. Cost. Plaintiff shall advance all subsequent cost of this action and shall be reimbursed for them by the clerk if plaintiff is not the purchaser of the property for sale, provide however, that the purchaser of the property for sale shall be responsible for the documentary stamps affixed to the certificate of title. If XXXX is the purchaser, the Clerk shall credit plaintiffs bid with the total sum with interest and costs accruing subsequent to this judgment or such part of it as is necessary to pay the bid in full. ( Emphasis added ). 

Therefore, according to paragraph five ( 5 ) of the final judgment, XXXX and/or its principles ability to advance post-judgment fees and cost, are not triggered until if, and when the property is sold. A copy of the XX/XX/XXXX final judgment, is attach hereto as Exhibit A. 

However, on XX/XX/XXXX, XXXX, by and through its attorney agent, sent us a letter showing the total amount we ( or someone on our behalf ) needed to pay, in order to pay off the balance of the subject mortgage loan. XXXX  XX/XX/XXXX collection letter is misleadingly false, as it is based totally on an Unpaid Principal Balance amount of {$520000.00}, and not on the XX/XX/XXXX final judgment amount of {$590000.00} - that fact alone, renders the XX/XX/XXXX payoff demand inaccurately misleading and false. A copy of XXXX  XX/XX/XXXX payoff demand is attached hereto as Exhibit B. 

Nevertheless, it is clear on the face of its XX/XX/XXXX collection letter, that XXXX is demanding additional expenses other than the {$110000.00} interest charges thats authorized by the XX/XX/XXXX final judgment. Certainly, such a demand on the part of XXXX is falsely representing the true character and amount of the alleged debt, and therefore, does not comply with 12 C.F.R. 1006.18 ( b ) ( 2 ). 

As of the date of this Complaint, NO complete foreclosure sale of the subject property located at XXXX XXXX XXXX XXXX, XXXX, Florida XXXX has occurred. Therefore, XXXX  XX/XX/XXXX letter is clearly an unfair attempt to collect additional expenses that ( according to the final judgment ), it is not yet entitled to collect. Thus, XXXX  XX/XX/XXXX demand/collection letter is in violation of this Bureaus Rules under 12 C.F.R. 1006.18 ( b ) ( 2 ).

Based on paragraph five ( 5 ) of the XX/XX/XXXX final judgment, XXXX, through the letter, is falsely representing the true character of the {$690000.00} total payoff amount, because said payoff amount prematurely includes post judgment expenses other than post judgment interest. As a result, our ability to determine the validity of the total amount allegedly owed, has been impaired by the XXXX. The XX/XX/XXXX letter is indeed false and misleading under 12 C.F.R. 1006.18 ( b ) ( 2 ), and is an unfair attempt to collect unauthorized fees and expenses.

To begin correcting the above stated error, we are hereby requesting that MR. COOPER provide us with a detailed explanation of why it included post judgment fees and cost prior to filing a motion to amend the final judgment, and prior to the sale of the subject property. Additionally, we are requesting that MR. COOPER correct the above violations by providing us with an undated payoff statement that does NOT include post judgment fees and cost other than post judgment interest as authorized by the XX/XX/XXXX final judgment. 

CONCLUSION The above violations on the part of XXXX, are preventing, hindering, and/or delaying us, or someone on our behalf, from confidently making a final payment that would pay off the correct balance of the subject mortgage loan. Moreover, MR. COOPERs misleading and unfair pre-mature demands for post judgment fees and cost, is preventing us from selling the subject property, and extinguishing the alleged debt and to do, before the property is lost in a foreclosure sale.