Consumer complaint received 2024-07-02 00:00:00
Product: Mortgage — Conventional home mortgage
Issue: Struggling to pay mortgage — Applying for or obtaining a modification, forbearance plan, short sale, or deed-in-lieu
Company: Mr. Cooper Group Inc.
State: VA

Complaint narrative:
1- XXXX XXXX XXXX a special forbearance with Mr Coopers and XXXX XXXX XXXXXXXX after the start of pandemic 2- The forbearance ended in XXXXXXXX XXXX XXXXXXXX with both banks 3- Mr Cooper, after the forbearance did not offer any post forbearance modification. 4- XXXX XXXX started working with both XXXX XXXXXXXX XXXX Did MrCooper in good faith post-covid forbearance modification process 5- Mr Cooper did not offer any standard post forbearance modification option if any sort and asked for lump-sum payment for past due balance. 6XXXX XXXX XXXX XXXX frequently attempted to convince the bank to offer a payment option. Mr Cooper did not offer, but and kept requested to apply for forbearance. Despite applying multiple time for forbearance Mr Cooper denied all application without a good cause without offering any alternative option. The borrower repeatedly requested the servicer for loan deferment, of the lump-sum amount, if modification is impossible, the bank did not accept it. The borrower asked for trial payment, the Servicer again rejected. 7- After multiple attempt that the borrower tried for loan modification failed the borrower applied for Virginia Mortgage Assistant Fun. XXXX XXXX XXXX approved for the funding in XXXX XXXX XXXX 8XXXX XXXX XXXX XXXX listed both Mr Cooper and XXXX XXXX XXXXXXXX as mortgagers. XXXX XXXX intended to use the fund to bring both loans current, with {$50000.00} he was approved to. At the time of application the balance on both of balances were below {$50000.00}. The borrower XXXX XXXXXXXX XXXX owed around {$35000.00} with Mr Cooper and roughly {$10000.00} from XXXX XXXX XXXXXXXX. 9- The servicer was informed about the Home Assistance Fund in the same month. 10- Mr Cooper created repeatedly obstacles to prevent Mortgage assistant fund from paying the back due balance on behalf of mortgagee and as well created obstacle paying the second mortgage XXXX XXXX XXXX hoped to pay. The Servicer initially falsely claimed to the HAF fund, that the balance in XXXXXXXX XXXX XXXX was above {$50000.00}, which was totally false. After repeated calling and even three way calling with Mortgage assistant fund and Mr Cooper, Mr Cooper accepted the mistake and promised that they will correct the mistake. After significant intentional delay caused by Mr Cooper of few months and charging additional fees. Mr Cooper twice rejected the fund for coming months claiming that the total balance with all legal fees, which was not legitimate fees, have gone above {$50000.00}. The issue brought to the Mortgagee, and XXXX XXXX XXXX made two payments in between XXXXXXXX XXXX XXXX XXXX XXXXXXXX, to bring the mortgage bellow {$50000.00}. After all the attempts made by XXXX XXXXXXXX, the servicer created another problem by reporting XXXX XXXXXXXX XXXX property as Investment property, that again caused the denial of the Mortgage Assistance Fund distribution twice more. Because of Mr Coopers negligence and lack of servicers desire to modify XXXX XXXX contacted XXXX XXXX, to report the servicer. The Mortgage Assistance Fund expired without distribution, Mr Cooper did not offer any alternative on how to bring the mortgage current. XXXX requested servicer to modify the loan and do not reject modification without their informed consent. But the servicer rejected again the modification without informing XXXX within 48 hours with a foreclosure threat with pending date 11- The borrower diligently was working with XXXX XXXX XXXX XXXX The HELOC holder of the loan ), informing XXXX about pending Mortgage Assistance Fund. But XXXX XXXX XXXXXXXX, despite receiving all documents from XXXX XXXX to modify the loan, set a foreclosure date for property in XXXXXXXX XXXX XXXX. XXXX XXXXXXXX XXXX, informed XXXX XXXX XXXXXXXX about the situation, as well the fact that XXXX XXXX XXXXXXXX has all documents including employment and Business P/L etc, they should postpone the foreclosure date. XXXX XXXXXXXX XXXX did not change its decision despite having all documents 24 hour before foreclosure date. XXXX XXXXXXXX informed XXXX XXXX XXXXXXXX, that if they dont stop the process the Mortgagee has not option but to file for bankruptcy, which it is not an ideal option, but it really affect XXXX XXXXXXXX XXXX personal and business prospect. The issue about the foreclosure sale date simultaneously reported to XXXX, MrCooper. But both entities condoned the XXXXk XXXX XXXX decision. I was told by the XXXX XXXX XXXXXXXX to XXXX XXXX, that there is a coordination between first lien holder ( Mr Cooper/XXXX ) and second lien holder XXXX XXXX XXXX XXXXXXXX XXXX XXXX on the decision to foreclose the property, seemingly both party benefited from the foreclosure transaction, while the mortgagee was losing everything as result, despite working in good faith with both banks to keep his home. 12XXXX XXXX XXXX XXXX as last resort had to declare bankruptcy just to save his property, with the prospect of losing its credibility in business. 13- XXXX XXXX was pushed to bankruptcy by three entities and deserves for compensation to make him whole. 14- mortgage servicers engage in outright deceptions and abuse of the homeowner. The XXXXrvicer was negligent and the deceptive practice and caused inappropriate foreclosure costs and impose other invalid fees caused homeowner falling behind on payments to justify the foreclosure. 15- Both companies involved in dual tracking. While iostensibly negotiating with the homeowner to modify their loan both companies were also pursuing foreclosure. The dual tracking might have result in a foreclosure taking effect before the loan modification application is complete if the XXXX XXXX did not filed for bankruptcy in timely manner, while XXXX XXXX XXXXXXXX even admitted they had all documents for modifying the loan but did not cancel the foreclosure on XX/XX/XXXXXXXX XXXX XXXX XXXXXXXX. A practice which State laws often prohibit this practice altogether, and federal law restricts its application, while caused XXXX XXXX to suffer financially as a business owner for any business and personal future for the rest of his life. 16- Mr Cooper does not have party does not have standing to foreclose, since the mortgagee has changed several times, and the information they have received from previous servicer is inaccurate or may be altered. Plus the fact that the foreclosing party failed to follow the procedures required by state law. 17-Mr Coopers questionable and negligent and incorrect amount to Mortgage Assistance Fund to reinstate the mortgage, made it impossible for homeowner to bring account current, that is. Mortgage servicers also engaged in outright abuse. For instance Mr Cooper pile up excessive fees that are not permitted under the terms of the mortgage, that caused partly the denial of Mortgage Assistant Fund to make payments on behalf of homeowner. Both Mortgagers violated federal and state laws that govern their interactions with homeowners. Both mortgage servicer were and are engage in dual tracking, which were pursuing a foreclosure while they are also were engaged in negotiating. 18- After pushing XXXX XXXX first time for bankruptcy, on XX/XX/XXXX, the foreclosure was stopped. I contacted XXXX XXXX XXXXXXXX Immediately after filing for bankruptcy. I asked the agent why XXXX XXXX XXXX did not cancel the foreclosure, despite having all the documents available for post-covid modification one day before foreclosure? The agent told me it was too late for stopping the foreclosure. I was extremely mad and disappointed. I told the representative that XXXX XXXX XXXXXXXX used dual tracking they kept my hope high just to let the foreclosure go through and keep me busy with paperwork and this was not in good faith. The agent went through the paperwork and said I am sorry, yes I see you provided all the paperwork, but XXXX XXXX  XXXX policy didnt allow to cancel the bankruptcy proceeding, last minute even if all the documents foe modification were ready. I told him that I already filed for emergency bankruptcy to save my home and give him the case file number. 19- I was told they will consider my file for modification again. I contacted XXXX XXXX XXXXXXXX I was told they have all the paperwork for modification their underwriting is verifying my source of income if they need additional documents they will let me know. I was not contacted or sent any documents after this incidents afterwards. 20- It was in XXXX I found out from an agent that XXXX XXXX  XXXX put back my property for foreclosure for XXXX, XXXX XXXX. I contacted XXXX and as well Mr Cooper about this. XXXX XXXX  XXXX told me they will mail me a modification package, if I sent the documents back they will cancel the foreclosure. I told them my bad experience from last time and asked the representative to cancel or postpone the sale date, if the bank is honest about the modification. The representative said she will not do it. If I dont sent the documents on-time the bank will go ahead with foreclosure. I was told that even though if I sent all the documents still like last time there is not guarantee that the bank will stop the foreclosure. I said this is again a dual tracking, I am sure bank is planning to foreclose on the property. 21- I contacted MrCooper and XXXX XXXX XXXX I told them that their negligence that led to the denial of my Mortgage Assistance XXXX disbursement put me in bigger problem with my HELOC. I was told they were aware of the foreclosure, but this was not in their interest to stop the foreclosure. MrCooper would be receiving their money anyway, and XXXX interest would not be affected anyway. I asked them who is responsible with lost {$50000.00} HAF money. I was not giving any satisfactory response. I told them it is not fair foe me to pay $ XXXX out of pocket, if MrCooper created roadblock for the fund to be disbursed. XXXX said all we can do is to recommend MrCooper to modify your loan. 22- XXXX XXXX  XXXX listed the property for sale on XX/XX/XXXX, I want them to stop the procedure before, they exhaust the modification process. This is also true with MrCooper too

Company response to consumer: Closed with explanation