Consumer complaint received 2018-03-22
Product: Mortgage — Conventional home mortgage
Issue: Struggling to pay mortgage — 
Company: RUSHMORE LOAN MANAGEMENT SERVICES LLC (NY)

Since XX/XX/XXXX, I have been involved in the short sale of a property that my late husband owned. Previously, my late husband had been making an effort to short sale the property without success. In XX/XX/XXXX, the XXXX XXXX XXXX declared that the property was not habitable due to a water leak, debris, faulty utilities, and black mold in the basement.

OnXX/XX/XXXX, XXXX bid Property ID : XXXX  there was a winning bid for {$330000.00} for the sale of the subject property. The asset manager was named XXXX XXXX. We made communications with her through Equator property system. The previous loan servicer XXXX XXXX stated that the investor for the home laon desired {$320000.00} net at the closing in XX/XX/XXXX and stated that the loan had been transferred in XX/XX/XXXX. I had submitted in XX/XX/XXXX that the purchaser would pay the {$320000.00} but XXXX XXXX  did not submit the HUD1 to the investor.

OnXX/XX/XXXX, I had submitted through my realtor a short sale a HUD1 for a property in XXXX County and we also provided a closing date to XXXX XXXX XXXX.

The HUD1 statement submitted to the new loan servicer, XXXX XXXX XXXX stated that the purchaser would pay {$320000.00} net. My husband past away and I have been depressed and since we do not live at the property, we wanted to sell the property. We informed the bank that my husband had medical bills and expenses owed and that was around {$25000.00} and we asked if it could be taken from the proceeds but we later had the purchaser agree to pay these expenses. In XX/XX/XXXX, we informed Rushmore that we were concerned about having black mold remediation because of the mold in the basement of the property it is a serious health problem and public safety risk and the cracks in the foundation of the property.

Rushmore stated that the investor wanted a net amount of {$340000.00}. They stated that the investor was firm based on an increase in value of the property. I know that the property did not increase in value because in XX/XX/XXXX, I told them through my agent that I was concerned about the increased damage to the property including the roof, cracks in the foundation and the mold. I was also concerned whether XXXX XXXX XXXX had hired a third party contractor because locks were changed on the property and someone had put a tarp on the roof. I requested on XX/XX/XXXX, for Rushmore to have any third party contractor cease and desist work on the house because the XXXX XXXX XXXX had stated that my realtor would have total liability for any damage or injury to the property. Previously on or around XX/XX/XXXX, Rushmore was sent photos detailing the property condition that included cracks to the foundation, damage to the walls, damage to the roof and debris. The photos showed that the mold had spread from the basement to the first floor. A subsequent email was provided later in XX/XX/XXXX detailing that the mold was likely to be spreading to the second floor as well as any temperature above 50 degrees could cause the mold to spread.

Rushmore representative in the liquidation short sale department, XXXX XXXX stated in an email " Sorry for any confusion but I have never had an approval on this short sale. When it transferred over to us we were under the impression that the prior servicer had issued an approval for the XXXX   maybe thats where the confusion is coming from. I will update the file with all the info you have sent in but once again the investor is firm on the counter ( $ XXXX ). '' A response was provided that et amount of $ XXXX and the winning XXXX bid was $ XXXX. The investor can confirm this with XXXX XXXX. The property has black mold on two floors and this can be verified despite the investor stating their offer is firm we state that the offer is not based on facts nor the history of this file.

On XX/XX/XXXX, Rushmore was sent an email on my behalf that stated : " We have a serious issue with the black mold as the temperature today is over 70 degrees which will increase the growth of the black mold. It is already on the first floor and due to the increase in temperature that it is likely to increase to the second floor. I have no plans to enter into the home as it threat to my personal safety. No one should be inside the property with the exception of black mold hazmat team of professionals. I am concerned that if this house becomes infested that there will be no market value as it will be condemned. ... .. the family is frustrated ... and want to close as soon as possible. The investors have not been back to the property but we are concerned if they went back it would be a problem because of the black mold growth would depress the value of the property. It is in the best interest of all parties to close as soon as possible. We may not have a buyer if the mold grows because mold remediation for all three floors removal, demolition and replacement of walls and treatment of the walls could cost well in excess of $ XXXX  The last appraisal confirmed the extensive damage and mold and this was the banks appraisal.

On XX/XX/XXXX, the XXXX XXXX XXXX condemned the property and Rushmore was notified by email. The bank failed to understand the seriousness of the mold despite informing them since XX/XX/XXXX that the mold was getting worse.

On or around XX/XX/XXXX, Rushmore stated by an email of XXXX XXXX   that they were firm on their request net amount of $ XXXX. They did not provide any evidence of how they believed that the property was still worth $ XXXX when it was now condemned by the XXXX XXXX XXXX.

OnXX/XX/XXXX, I responded by my agent that this made no sense at all. What comparative values support this valuation for the condemned house. How can they say that the property value increased when it was declared condemned by the XXXX XXXX XXXX. The loan servicer and investor should know that a condemned property is not habitable and when it is condemned it voids the certificate of occupancy.

I would like the bank to just provide a net amount that they would like based on the current condition of the condemned property so that we can submit a HUD1 and close on the property. They need to stop being deceitful and deceptive by stating that the home improved without providing an appraisal and they are aware that the property can not be inspected or entered because of the black mold and the fact that it was condemned.

Please assist me I am a widow suffering from this ordeal with the bank and I do not want a foreclosure and just want to short sale the property and waive any outstanding debt for the estate of my husband.

I seek justice and fairness and speedy resolution so that I may sell the property and move on with my life.