Consumer complaint received 2017-06-14 00:00:00
Product: Mortgage — Conventional home mortgage
Issue: Struggling to pay mortgage — 
Company: RUSHMORE LOAN MANAGEMENT SERVICES LLC
State: CA

Complaint narrative:
My complaint is against Rushmore Loan Management Services of XXXX, California. They took over my conventional loan in XX/XX/XXXX when I was going into three months past due on my mortgage payments with XXXX being the 3rd month. I right away started getting call after call from them demanding payment in full as well as dunning letters. We got into XXXX at which time they kept threatening me with imminent foreclosure if I did not bring the account current. Having gone thru a period of financial stress during the months of XX/XX/XXXX thru XX/XX/XXXX and with Rushmores relentless threats to foreclose, I was left with no other option but to apply for financial assistance from Keep Your Home California at the end of XX/XX/XXXX.
I was instructed by KYHC to submit my application with the necessary documentation and to make sure that I did not avoid the calls from Rushmore but to keep them informed and updated as to the progress of my application which I did. On Saturday XX/XX/XXXX I received an e mail from KYHC informing me that they had approved my request for assistance from the Principal Reduction Program ( PRP ) and would be forwarding the funds directly to Rushmore in the amount of {$70000.00} shortly. These funds were to be applied towards my past due payments and the remaining towards the principal with the objective of reducing my the principal amount due and thus reducing my monthly payments in order to make my payments more affordable.
I immediately informed my contact person at Rushmore on Monday XX/XX/XXXX to let her know that I had been approved by KYHC for financial assistance in the amount of {$70000.00}. She then provided me with the amount that would be due including the month of XXXX which was {$24000.00} and that this amount would be due up to XX/XX/XXXX. And as stated on their monthly statements if payment is received after XX/XX/XXXX, a {$100.00} late fee will be charged. I told her ok and that I would stay on top of this matter to make sure Rushmore gets these funds on a timely basis. I asked her if she needed any documentation from me to prove to Rushmore that I had been approved for financial assistance, she told me no and I thanked her for working with me throughout the month of XXXX during my application process.
On Wednesday XX/XX/XXXX I received another e mail from KYHC stating Please be advised that Principal Reduction Program ( PRP ) benefits have been sent on your behalf to Rushmore Loan Management Services to pay any past due amounts ( as applicable ) and reduce the balance of your first mortgage loan.
Knowing this, I made it a point to make sure that I checked on either Monday or Tuesday XX/XX/XXXX or XXXX to make sure Rushmore had received these funds. I tried to log on to my account via Rushmores website but I was not able to pull up my account, instead it said This loan is currently inaccessible. I immediately called my contact person at Rushmore and I asked her why cant I log on at which time she informed me that they had forwarded my account to their foreclosure department on Friday XX/XX/XXXX. I could not believe what I was hearing. I asked her why would she allow this to happen without even calling me, sending me an e mail or a letter. This is the young lady that would constantly call me in XXXX and XXXX demanding payment in full. Her reply was that until they received the funds in house they have the right to move forward with foreclosure which I know is correct. But the problem that I have with what transpired here is that they knew they would be receiving well over what I was in arrears but did not bother to pick up the phone to let me know at least a day or two before they moved forward. Not only did I let them know funds had been approved but they knew this from their direct communications with KYHC who communicated with them on XX/XX/XXXX requesting their written authorization to move forward with funding and authorizing KYHC to forward payment to them directly. Rushmore replied via e mail on XX/XX/XXXX in the affirmative.
I not only spoke with my contact person at Rushmore on XX/XX/XXXX but two other individuals trying to make my case that what they are doing is totally wrong and unethical because I could clearly see what they were attempting to do which is to hit me with several thousands of dollars in foreclosure fees which they knew they would be able to collect without any problem because they knew without a doubt these funds were on their way. They did not turn me over to foreclosure because they thought I would not be able to come up with the money they turned me over to foreclosure because they knew 100 % they would be getting the money. Their objective is to apply amount to my past due balance take another several thousands of dollars in foreclosure fees and this way not apply as much towards my principal balance and thus make more from me in interest.
I got the same excuse from these two other individuals that it was their right to proceed and that if I did not like I could call their foreclosure attorney and they provided me with his name & phone number. I decided to call their foreclosure attorney the following day on XX/XX/XXXX since I was making every effort to notify anyone on their side that this step was not necessary and try to minimize any kind of foreclosure costs they were attempting to try to justify. When I called their attorney on XX/XX/XXXX the first question I asked her was when did you get my file? To which she replied that they had just received it the day before on XX/XX/XXXX which is the same day I called Rushmore to complain about this. How much work could they have possibly done on my file to try to justify the thousands of dollars they are going to try to hit me with. I once again tried to work with my contact person at Rushmore and I also let her know that I just found out that their attorney got my file he same day ofXX/XX/XXXX. But again I could not get any where with her. I told her that its very unfair that they are planning to hit me with several thousands of dollars in additional fees. She tried to tells me they had no way of knowing what the bill would be until they received the figures from the attorney. Which is not true because late on XX/XX/XXXX I called KYHC and they told me that they were already notified by Rushmore that the new figure due was {$28000.00} only 24 hours after their foreclosure attorney received my file. How is this possible that Rushmore knew how much to charge me in foreclosure attorneys fees when the attorney just received my file 24 hours before this and when Im sure the attorney has not even invoiced Rushmore. Im thinking its because Rushmore knows how much more they can hit me with in foreclosure fees before the file even leaves their offices. Additionally, I have no doubt that an actual person at Rushmore looked at my file to see what was the status of my payment and they saw fund forth coming. They did not see home owners has not made payment arrangements. They saw guaranteed certified funds forth coming and this triggered them to see the opportunity to make more fees off me.
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This is unjust and unfair!!!

Company response to consumer: Closed with explanation