Consumer complaint received 2025-02-27 00:00:00
Product: Mortgage — Conventional home mortgage
Issue: Struggling to pay mortgage — An existing modification, forbearance plan, short sale, or other loss mitigation relief
Company: Village Capital & Investment LLC
State: VA

Complaint narrative:
Fall of 2024 we received approval, with the approved numbers required for consideration, and began the process of a short sale with Village Capital and Investments LLC, with the support of the Realtor and XXXX XXXX XXXX XXXX During the beginning of this process, information was provided that we had junior liens attached to the mortgage due to updates that had been made to the home. We received a buyer and the short sale team negotiated the junior liens down to meet the required numbers for review and consideration for submission to the XXXX Not one time during the communication had it been mentioned that the junior liens were required to be settled for them to approve the short sale. In XXXX a draft of the numbers ( XXXX ) had been submitted to Village Capital, meeting the required numbers provided by the lender, they had then informed us that the liens had to be settled prior to approval. We also received information that the numbers submitted ( even though meeting the originally approved numbers ), Village Capital stated they would have a deficit of - $ XXXX. The team attempted to renegotiate the junior liens and had minimal movement, then they had received approval from the highest lien ( approx $ XXXX ) would allow us to remove that one which would allow that lien to return to me as a personal loan to increase the net proceeds for Village Capital. Once again, one employee rejected it stating they require junior liens to be settled prior to submitting to the XXXX for approval. Another employee mentioned they would reconsider/review again if we could increase their net, which removing the highest lien would have done. The information received has been non-consistent and they have expressed their unwillingness to provide clear expectations to allow us to make all attempts to complete a successful short sale. Due to their failure to provide this extremely crucial information in the beginning of this process, knowing we had these liens is forcing us to the foreclosure resolution because I had other options I had been discussing with the XXXX  to retain the property, but due to the pre-approval and an already pending short sale with a solid buyer I made the decision to proceed, which I would not have done if I knew those were required to be settle from the beginning. If the option to cover those financial obligations that are connected to the property were something I was in a position to take care of I would not be in the position to be requesting a short sale. The realtor team and short sale team has never heard of or experienced this requirement and has always settled liens at the end of the short sale. I have not been able to fully understand what they are wanting out of the short sale, other than higher net proceeds, which I don't understand why they didn't specify these requirements and their bottom line numbers at the beginning of this process so we knew what to work towards with our solution. Myself and the short sale team has made many attempts via email ( communication attached ) and phone calls with what feels like a " runaround '' with no clear expectations. I have also reached out to them regarding a Deed in Lieu of Foreclosure as my goal was to take the least impact on my credit, and once again, being informed the liens have to be settled, also forcing me into a foreclosure. While I understand that I unfortunately put myself in this financial situation, life situations had presented themself, but I am attempting to make all possible steps to find the best resolution this lender has not been forthcoming or reasonable with their requests.

Company response to consumer: Closed with explanation