Consumer complaint received 2025-12-25 00:00:00
Product: Mortgage — Conventional home mortgage
Issue: Struggling to pay mortgage — Trying to communicate with the company to fix an issue related to modification, forbearance, short sale, deed-in-lieu, bankruptcy, or foreclosure
Company: Mr. Cooper Group Inc.
State: NJ

Complaint narrative:
What is the issue? 

Mr. Cooper is unlawfully advancing foreclosure while a loss-mitigation application is pending, misrepresenting the status of required documents, failing to articulate alleged deficiencies, and denying the borrower any meaningful opportunity to appeal. The servicer has never issued a proper denial letter, yet claims it is too late to proceed solely because of a long-scheduled foreclosure sale date that it allowed to remain pending while continuing loss-mitigation review. 

What happened? ( Detailed narrative ) I have been engaged in an active loss-mitigation review for the above-referenced loan for months. Between XXXX and XX/XX/XXXX, I submitted all documents requested by Mr. Cooper, including income explanations, contributor documentation, paystubs, bank statements, Profit & Loss statements, and related materials. 

On XX/XX/XXXX, I filed a formal Notice of Error under 12 C.F.R. XXXX, expressly documenting that all required documents had already been submitted and that foreclosure activity was continuing despite a pending review. 

Despite this, Mr. Cooper continued to claim documents were missing or expired. On XX/XX/XXXX, solely to rebut those false claims, I re-sent copies of documents that had already been submitted weeks earlier, clearly stating in writing that these were not new documents but re-transmissions necessitated by XXXX XXXX inaccurate assertions. 

According to XXXX XXXX own Mortgage Assistance Overview / To-Do List, as of XXXX XXXX there was nothing outstanding except : A mortgage statement for my other property ( which had already been submitted in XXXX ), and A vague notation stating that the servicer had a question about the contributor. 

Critically, no question was ever articulated. Within a day or two of receiving that notice, I wrote to Mr. Cooper asking what the question was, specifically requesting clarification so I could respond. I never received an answer. 

Instead, on XX/XX/XXXX, at XXXX XXXX. EST, Mr. Cooper sent a letter asserting that it was too late for loss mitigation due to the XX/XX/XXXX foreclosure sale. They also for the first time mention that I have a Chapter XXXX discharge making me ineligible for loss mitigation ( hard to understand as it is not clear ). However, that has NEVER been raised before, was clearly disclosed in my UBAF. That letter is not a valid denial letter under Regulation X : It does not identify a specific loss-mitigation option reviewed; It does not state a clear reasoned basis for denial ; It provides no notice of appeal rights ; and It was issued during a holiday period with virtually no business days remaining before XX/XX/XXXX. 

To date, I have never received the denial letter that Mr. Cooper claims is forthcoming. 

Compounding this misconduct, my long-time domestic partner and contributor to the household died shortly before XXXX, a material change in circumstances that increases available survivor and support income and directly affects loss-mitigation eligibility. I informed Mr. Cooper immediately a few days ago. I followed up yesterday and today ( today by telephone ). Rather than allow time to update financials or appeal, Mr. Cooper rushed to foreclosure while simultaneously blocking access to alternatives such as a deed-in-lieu or short sale, which can not be opened under XXXX XXXX own rules while loss mitigation is pending. 

The servicer has created a procedural dead end : continuing foreclosure, refusing to clarify alleged deficiencies, withholding a formal denial, and denying the borrower any realistic opportunity to respond. 

Please know what this servicer does is they dual track, close a loss mitigation application by constantly moving the goal posts, and then if they feel like they want to charge more interest, legal fees and modify their judgment, THEY will adjourn the sheriff 's sale. That is EXACTLY what happened here. They applied for more fees to be added to their judgment ( on VERY late notice to me- the order was entered before I even had a chance to respond ). Please know they CONSTANTLY send copies of documents for ALL parties in this case to MY address, thus it makes sense that I never get things in the mail! I attached photocopies of all of these envelopes ( I'll attach a few here ) and they do not even address that problem! 

Why is this a problem? 

XXXX XXXX XXXX violates federal mortgage-servicing protections, including : Unlawful dual tracking ( continuing foreclosure while loss mitigation is pending ) ; Misrepresentation of document receipt and application status ; Failure to conduct a reasonable investigation or provide a lawful response to Notices of Error ; Failure to issue a proper denial letter with appeal rights ; and Bad-faith timing, issuing a too late letter on XXXX XXXX when there were virtually no business days to act. 

The servicers own records show the application was substantially complete. Any alleged deficiency was never explained, and the borrower was denied a meaningful chance to cure or appeal. 

What resolution are you seeking? 

I am requesting that the CFPB require Mr. Cooper to : Immediately halt foreclosure activity, including the XX/XX/XXXX sale ; Correct the servicing record to reflect that all required documents were submitted no later than XX/XX/XXXX ; Acknowledge that the XX/XX/XXXX transmission was a re-submission, not a new or late submission ; Issue a proper, written loss-mitigation determination, if any, that complies with Regulation X and includes appeal rights ; and Allow a reasonable period to update financials in light of the contributors death and increased available support income.

Company response to consumer: Closed with explanation