Consumer complaint received 2015-12-11
Product: Mortgage — Conventional fixed mortgage
Issue: Loan modification,collection,foreclosure — 
Company: Seterus, Inc. (TN)

I got a divorce in XX/XX/XXXX. My ex-wife and I owned XXXX propertys ( a primary home and a weekend cabin ) In the divorce decree I kept the primary home and she got the cabin property and we each were given 45 days to have the other person 's name removed from the respective mortgage accounts. The property that kept was finance with XXXX XXXX XXXX at the time and the one that she kept was finance with XXXX XXXX. 
We were upside down in the mortgage for the property that I kept and therefore refinancing was not an option ( we could n't afford to pay and make up the difference ). But XXXX XXXX XXXX offered a XXXX XXXX XXXX program that they said I could use to assume the loan and remove her from it. I started that process immediately and filed all of the paperwork and request, etc ... When they processed it they said that they could n't approve it at that time because my name was still on the other mortgage with XXXX XXXX ( my ex-wife refused to complete her required refinance to have my name removed ). The only other option was for me to prove to XXXX XXXX XXXX that I had been making the payments by myself for at least 12 months. About 11 months later she ended up selling the other property which got my name off of it. So I contacted XXXX XXXX XXXX and started the process again. But then in the course of it they changed the servicing of my loan over the Seterus. So I started again with Seterus. But Seterus does n't offer a Qualified Loan Assumption program like XXXX XXXX XXXX does. But they told me that I could do a Loan Modification and change the terms, reduce my monthly payment, and remove her name. So I went through that process with them and made those changes. And they only required my signature to do so ( not hers ) and her name was removed from everything associate with my account with them. And I checked and double checked this with them several times to make sure. This was completed XX/XX/XXXX. 
In XX/XX/XXXX I was served with a petition from my ex-wife claiming that she was still on my mortgage. So I called and checked with Seterus again. And again they told me that she was no longer on my mortgage or the account, etc ... But when I asked if she was still considered to be an obligor on the account they said that yes, she it still considered to be an obligor on the original loan. So it still shows up on her credit report and if I defaulted on the loan then they would approach her about it. I have talked with Seterus numerous times to try to find some way to resolve this. Unfortunately my credit score is not good right now and I do n't qualify to refinance it. And Seterus is n't actually a lendor so they ca n't refinance it anyway. I thought that I had done the right thing over a year ago. And if my ex-wife had cooperated XX/XX/XXXX then I would have completed the Qualified Loan Assumption with XXXX XXXX XXXX and this would n't be an issue. I had not idea that that was a XXXX XXXX XXXX program only. And again, when I explained the situation to Seterus and what I needed to do they directed me to the Loan Modification and told me that my ex-wife 's name was removed from my account. And now Seterus is offering nothing in terms of working this out. My children live with me and I 'm fighting to hang on to our home. My attorney feels that if we go to court the judge will likely tell me that I have to sell the house in order to get her off of that mortgage.