Consumer complaint received 01/20/2018 about Mortgage (Reverse mortgage) with NATIONSTAR MORTGAGE (TX).
Issue: Struggling to pay mortgage

Complaint: On XX/XX/XXXX we took out a reverse mortgage from XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX, XXXX XXXX XXXX, GA XXXX XXXX The initial loan amount or original principal according to the Settlement Statement ( HUD-1 ) ( attachment 1 ) was {$400000.00}. According to item # 2 on Page 1 of the original contract, titled Closed End Fixed Rate Note ( attachment 2 ), the maximum principal amount for the life of the loan could be {$930000.00}. 

The mortgage was sold XX/XX/XXXX to XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX, MI XXXX XXXX When we could no longer physically manage the stairs and could not physically or financially continue the upkeep on the property we moved in with our daughter and began trying to sell the house. After almost two years of the house being on the market, the loan balance with interest had climbed to about {$630000.00}. In the time the house was listed, we had only one somewhat serious looker. They made no official offer but told the realtor they would consider making an offer of {$600000.00}. {$190000.00} less than the appraised value and {$30000.00} less than the loan balance at that time. According to the mortgage company, the PMI would cover the difference in what we owed but in order to accept that offer both realtors would have to agree to take no commission because the mortgage company would get their money first. 

At that point our health issues and the fact that our savings were gone and our social security would not cover the taxes and insurance on the house, we reluctantly began the Deed-in-Lieu process. We completed and submitted all of the Deed-in-Lieu paper work to XXXX XXXX  on XX/XX/XXXX. 

On XX/XX/XXXX XXXX XXXX XXXX sent a notary to our daughters home to have us sign the final Deed-in-Lieu papers. We noticed two places in the documents where the original principal amount is misstated. Page 2 of the Deed in Lieu of Foreclosure and page 1 of the XXXX  Affidavit ( attachment 3 ) both have the original principal amount as {$930000.00}. That is NOT the original principal amount. That is the maximum principal amount had we been able to stay in our home indefinitely. Not the ORIGINAL principal amount. 

We immediately called XXXX XXXX XXXX. They said that the mortgage company had filed the {$930000.00} amount with the county as the original principal amount and that we would have to talk to the XXXX XXXX. 

Our next call was to the XXXX XXXX Reverse Mortgage Servicing department. It was late on Friday, XX/XX/XXXX but we spoke to three different people. One said our original principal amount was {$620000.00}. One said if youre giving the house back to us, what does it matter? ( Its a legal document and its wrong! ) and the third was a supervisor who tried to help but could not. She gave us the direct phone number for the Reverse Mortgage Servicing Department manager and said she could help us. We left a VERY detailed message explaining our concern. That was two weeks ago. We have now left a second VERY detailed message for her and have yet to hear from her. We HAVE had a call from a gentleman wanting to know why we wouldnt sign the documents. We explained the issue. He ALSO said the original principal amount was {$930000.00} and overnighted us a copy of the original contract as proof. 

Since then we have received our Monthly Statement for XX/XX/XXXX ( attachment 4 ) which states our Total Loan Balance with Advances as {$630000.00}. It is not possible to have a current balance AFTER seven years of interest has accrued that is {$300000.00} lower than the original principal amount! Which just proves our point. We have tried repeatedly to explain there is simply a clerical error that needs to be corrected on the Deed-in-Lieu paperwork and possibly with the county records so that we can get past this and move on with our lives. 

We have spoken to a real estate attorney. He has reviewed the documents and agrees that XXXX XXXX has indeed made an error that overstates the original principal amount on the Deed-in-Lieu which would lead to an escalation of debt forgiveness reported to the IRS. He directed us to file a complaint with CFPB so that you can help us get this resolved. 

Thank you for listening and for your assistance.

Company response to consumer: Closed with explanation