Consumer complaint received 2016-10-20 00:00:00
Product: Mortgage — Conventional fixed mortgage
Issue: Loan servicing, payments, escrow account — 
Company: NATIONSTAR MORTGAGE LLC
State: AL

Complaint narrative:
The mortgage was sold to Nationstar in approximately XXXX XXXX. The account was current at the time of the transfer and remained current. In XXXX XXXX, homeowners made the payment on XXXX XXXX ( due XXXX XXXX ). Upon receiving XXXX XXXX statement, the account was reportedly one month behind. Upon inquiry, homeowners were told XXXX payment was held in suspense as " insufficient ''. Homeowners were informed their payment amount had risen by {$97.00} due to an escrow shortage. Homeowners paid the {$97.00} and were told the account was current. XXXX XXXX payment was made and processed by Nationstar XXXX XXXX, XXXX ( due XXXX XXXX ). No other notices were received by homeowners until XXXX XXXX when a refund of overpayment to escrow was received. In the month of XXXX, XXXX, homeowners received a notice of intent to foreclose from Nationstar, informing them they owed approximately XXXX and were more than 30 days behind. Upon contacting Nationstar, the homeowners were told that due to an escrow shortage, the account was behind -- even though an escrow refund had been received. Homeowners requested a review of when the account became delinquent. On or about XXXX XXXX, XXXX, the Homeowners contacted Nationstar to get an update on the dispute. They were told to send bank account information, which they did, along with a letter and timeline disputing the missed payment. On XXXX/XXXX/XXXX, homeowners called again and were told the dispute had been referred to the investigations division. On XXXX/XXXX/XXXX, homeowners called again, were told the information sent on XXXX had not been received. Homeowners resent the letter, account info and timeline on XXXX and again on XXXX/XXXX/XXXX. On XXXX/XXXX/XXXX, homeowners called again, spoke to customer representative XXXX ( XXXX ), who admitted there was a mistake with processing by Nationstar. He transferred homeowners to his supervisor XXXX ( ext. XXXX ext. XXXX XXXX ), who informed homeowners the situation would be quickly resolved. Homeowners received several follow up emails about the dispute. In XXXX XXXX, homeowners received a second refund check from Nationstar which they returned to Nationstar, pending the outcome of the dispute. XXXX and XXXX XXXX, homeowners began a refinancing through another lender. The refinance was rejected as Nationstar was reporting their account was more than 30 days past due. Homeowners have received numerous, daily and nightly collections calls from Nationstar throughout XXXX XXXX. On XXXX/XXXX/XXXX, homeowners hired an attorney to contact Nationstar to mediate the situation. On that date, the attorney was informed the account would be referred to investigations division. Upon inquiry as to the outcome of the previous investigation, the representative was unable to see any investigation or resolution report. He informed the attorney the account was past due as a XXXX XXXX payment was never credited to the account. Upon being questioned as to where the payment was posted ( homeowners have sent bank account records, complete with reference numbers for payment to Nationstar for XXXX, payments were direct debit ), he reported he had no authority to state where payment was posted, why homeowners have received XXXX refunds if their account was delinquent, and why the original XXXX XXXX payment was held in suspension for the {$97.00} deficiency ( increase in escrow payment ) when the homeowners were not notified of the increase in their payment before XXXX XXXX and original loan documents do not prohibit " partial payments '' or give authority for " suspension accounts ''. Homeowners have now had negative credit reporting, numerous late fees, continuous harassment in debt collection, and lost time and money for failed refinance, as well as attorney 's fees to dispute the account deficiency.

Company response to consumer: Closed with explanation