Consumer complaint received 2017-10-05
Product: Mortgage — Other type of mortgage
Issue: Struggling to pay mortgage — 
Company: 21ST MORTGAGE CORP. (MD)

Complaint : The XXXX XXXX XXXX, 21st Mortgage, is Forcing A Foreclosure due to their refusal to accept their junior lien status to a XXXX XXXX XXXX Lien Holder and rejecting the Short Sale Guidelines XXXX XXXX Requires. 

Specifically : 21st Mortgage has rejected the XXXX payout the XXXX XXXX is required to give 21st Mortgage in a short sale settlement and has stated that if their demands for over XXXX are not met that they will only accept a Foreclosure. Which makes no financial sense when 21st Mortgage will get XXXX in the event of a Foreclosure ( Letter from 21st attached ) To Complicate Matters : The Requirements of a XXXX XXXX XXXX XXXX during a short sale forbid the buyer, seller, or anyone from paying 21st Mortgage/the junior lien holder any monies during a short sale. They also forbid us ( the seller ) from offering to make deficiency payments after settlement ( because XXXX XXXX requires all XXXX mortgages to waive any deficiencies / XXXX XXXX XXXX attached XXXX. 

**Effectively, these arbitrary rules and demands between XXXX lenders have made it IMPOSSIBLE for any negotiation and/or assistance from anyone involved with the short sale. Somehow, 21st Mortgage expects us ( the sellers XXXX to pay over {XXXX directly to them prior to settlement before 21st will accept the terms of the short sale which include an additional XXXX  XXXX. IE 21st mortgage is demanding over XXXX XXXX from us in a short sale because we are distressed sellers and do not have the money available for a standard sale ... If we had over XXXX XXXXXXXX cash available then we would n't even qualify for a short sale!! FYI : the total owed to 21st Mortgage is about XXXX XXXX so demanding XXXX XXXX for a short sale approval appears unreasonable as that would be a payout of more than XXXX XXXX to a XXXX lienholder in a short sale. ( email detailing communications from our Short Sale Attorney, XXXX XXXX attached ). 

Adding XXXX to XXXX : 21st Mortgage is not the original XXXX lien holder we purchased with. So we never chose this bank but rather it was forced upon us ( assignment attached ). Also, online research shows that the majority of complaints against 21st Mortgage are Foreclosure related ( screenshot attached ). 

Goal : It is the sincere intent of ours to mitigate the losses to the lenders. The home has been well maintained and continues to be maintained ( property preservation winterization was declined so that heat/utilities are still on to allow for home inspection & appraisal for buyer ) ( photo attached showing home status ). Forcing a foreclosure will have an immediate, negative impact on the home value. No buyer will be able to get a mortgage once the home is winterized and water/utilities are turned off making an acceptable appraisal impossible. Plus as the home requires maintenance, there will be no homeowner to do it ; which will hurt all lenders in the long run ( i.e. reduced home value ) and will hurt the community as a foreclosure drags down their property values. 

Request : CFPB please require 21st mortgage to accept the XXXX XXXX requirements in a short sale that gives them XXXX at settlement rather than the XXXX they will receive in a Foreclosure.