Consumer complaint received 2025-04-30 00:00:00
Product: Mortgage — Conventional home mortgage
Issue: Struggling to pay mortgage — Foreclosure
Company: Mr. Cooper Group Inc.
State: CA

Complaint narrative:
I am filing this complaint due to a misleading and ultimately harmful experience with Rushmore Servicing that led to the foreclosure of my home, which I have owned for 24 years. This was followed by a XXXX XXXX bankruptcy filing made solely to protect my home and subsequently, a denial of student loans due to the bankruptcy, which disrupted and now threatens the suspension of my college education. These cascading harms occurred despite clear communication on my part, the assignment of a specific Rushmore representative, and my good-faith efforts to resolve my delinquency. 

I am a XXXX XXXX XXXX  who relies entirely on timely federal financial aid disbursements to pay my mortgage. In XX/XX/XXXX, I began studying XXXXXXXX XXXX XXXX XXXXXXXX , aiming to secure sustainable employment upon completing a XXXX degree. While I was two months behind on my mortgage when school started, I had every reason to believe that upcoming financial aid would arrive in time to bring the loan current and avoid reaching the 120-day foreclosure threshold. 

Between XXXX and XX/XX/XXXX, I proactively contacted Rushmore Servicing and explained that my aid, expected on or around XX/XX/XXXX, would allow me to pay the two months of missed mortgage payments. During this time, I repeatedly tried to contact my assigned point of contact, XXXX XXXX, but received no response. 

In XXXX, concerned about possible delays in my aid disbursement, I informed Rushmore. I was advised by one of their agents to schedule a payment by XX/XX/XXXX even if the funds wouldn't be available yet since weekend bank processing might provide a short grace period. Following this guidance, I scheduled the payment and worked diligently to ensure funds would be available. 

By the afternoon of XX/XX/XXXX, I had the full ~ {$4300.00} available in my bank account. The amount was temporarily drawn from my account, but the next morning ( XX/XX/XXXX ), I discovered the funds had been returned. I called Rushmore immediately and was told by an agent that it might still process. I relied on that statement. 

However, by XX/XX/XXXX, Rushmore rejected the payment as short ( despite the full amount being available ). That same day, I finally reached XXXX XXXX. After explaining the situation in detail, he clearly assured me that if I made three full payments by the end of XXXX, the foreclosure would not proceed. I confirmed this multiple times, and he reiterated the same promise each time. I made plans to meet that payment target using my delayed student aid. 

On XX/XX/XXXX, when my aid finally arrived, I contacted Rushmore to make the payment only to be informed that my home had already been referred to foreclosure on XX/XX/XXXX. XXXX XXXX, who had given me repeated verbal assurances, was now dismissive and claimed he couldnt have known, despite our multiple conversations. 

Key Issues : Promissory Estoppel / Detrimental Reliance : I relied on repeated verbal promises fro

m Rushmores representative. I made life and financial decisions based on these assurances in good faith. Servicing Failures : Rushmore failed to communicate con
sistently, rejected a legitimate payment attempt, and provided misleading guidance that directly contributed to the foreclosure. 

Life-Altering Impact : I suffered foreclosure, was forced to file bankruptcy, and lost access to student financial aid jeopardizing my education, financial recovery, and mental health.

Company response to consumer: Closed with explanation