Consumer complaint received 2016-03-24 00:00:00
Product: Mortgage — Reverse mortgage
Issue: Loan servicing, payments, escrow account — 
Company: Reverse Mortgage Solutions, Inc.
State: CA

Complaint narrative:
We obtained a Reverse Mortgage on our mother 's home via her living trust in order to provide her with in home medical care. Our mother passed away in XXXX. Our loan was sold to Reverse Mortgage Solutions for servicing. We notified Reverse Mortgage solutions of our intentions to complete the terms of the living trust and sell the house to pay off the Reverse Mortgage in XXXX. We were instructed by the representative of Reverse Mortgage Solutions that we would have three months to settle the trust and sell the house, and that if we could show the house was in process of being sold, we could have a three month extension to complete the sale if needed, for a total of 6 mos. We were also told in our HUD counseling session prior to signing the loan that we would have 6 months to settle the trust and sell the house. We settled the trust in XXXX and sent copies of the trust documents to Reverse Mortgage Solutions. We followed up via telephone and email to confirm the documents were received and informed representatives of Reverse Mortgage Solutions the house was being readied to go on the market and should be listed in mid XXXX. In XXXX we again notified Reverse Mortgage Solutions by email and by phone of our progress and requested a payoff statement for the loan in anticipation of closing the sale on XXXX XXXX. The Payoff statement we received states it is good until XXXX XXXX. During escrow in XXXX, the escrow officer requested a revised payoff statement as she could not accept our copy and needed XXXX sent directly to the Escrow Office by Reverse Mortgage Solutions. She was told it could not be sent before XXXX XXXX. We delayed the close of escrow to accommodate the schedule of Reverse Mortgage Solutions. The statement did not come on XXXX XXXX and when we called were told the loan was in default, and had been in default since XXXX, that Foreclosure procedures had been started, that they had received no communication from us regarding our intentions, and that once a property is in default, it is not possible to request a payout statement for a specific time frame. Our buyer needed to be out of their existing home by XXXX XXXX, and their approved loan expired end of XXXX. We spend one and a half hours on the phone talking to various representatives of Reverse Mortgage Solutions and all of them insisted they were not able to provide us with the payout document. We were trying to pay off the loan and they were the only obstacle to doing so, and they repeatedly and steadfastly refused to give us the document we needed that only they could provide. They said their records showed we had never contacted them to discuss our intentions or progress, but we have well documented our correspondence and conversations with the various representatives. They also claim we were notified we were in default, but we never received any notification that we were in default or that Foreclosure proceedings were in process neither in conversations, email or by post.

Company public response: Company believes it acted appropriately as authorized by contract or law
Company response to consumer: Closed