Consumer complaint received 2025-04-07 00:00:00
Product: Mortgage — VA mortgage
Issue: Trouble during payment process — Escrow, taxes, or insurance
Company: Mr. Cooper Group Inc.
State: MN

Complaint narrative:
In XX/XX/XXXX, just XXXX months after purchasing my XXXX home, I experienced an XXXX incident when XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX As I had never filed an XXXX XXXX before, I immediately informed my mortgage lender, XXXX  ( also known as Mr. Cooper ), about the incident. I was incorrectly told by a representative that I didnt need to make my monthly mortgage payment, as it would be covered by the insurance check. 
However, by the next month, I was contacted by a different representative at Mr. Cooper, who informed me that I would need to either adjust my loan or pay the past-due balance. At that point, I had already XXXX XXXX for immediate XXXX XXXX. I attempted to catch up on payments and mistakenly sent the insurance check for ( {$4000.00} ) to Mr. Coopers office in XXXX I notified the XXXX XXXX Department about the mix-up and explained that I needed the funds for XXXX XXXX. Unfortunately, the money was never returned. I called several times to follow up, as I had already arranged for small contractors to begin repairs, but I was repeatedly told that the funds would be sent back eventually. 
On XX/XX/XXXX, I spoke to a representative who told me that the funds would not be released to me. They explained that the money had been sent to another account but refused to specify which one. When I pressed the representative for more details, they responded with, What are you going to do about it, sue us? At that point, I ended the call. 
In the following months, I continued to struggle with Mr. Coopers automated system, which only sent me payment reminders, but no one was available to address my concerns regarding the insurance funds. On XX/XX/XXXX, I reached out to a licensed insurance agent who is a friend and contacted Mr. Coopers XXXX XXXX Department again. After explaining the increased damage to my home, the representative seemed to recognize the error and promised to issue a check. They also apologized for the confusion. 
At this point, I had been making payments but was struggling with worsening home issues and health problems, which made it increasingly difficult to stay current on payments and handle the repairs. In XX/XX/XXXX, I received a check for ( {$4000.00} ) from the lender, but it included a release of funds request. This request stated that I would not hold the lender accountable for damages incurred to the property, which made me uncomfortable, as the damage had worsened due to the delay. Additionally, I was asked to send the new insurance check for ( {$40000.00} ), which I was not comfortable endorsing. I mailed the check unsigned along with a letter requested that Mr. Cooper endorse it first to ensure the funds could be used for repairs. They refused and sent me a letter asking me to sign the endorsement and agree not to sue them for any damages. When I spoke with someone in the XXXX XXXX Department, I expressed my concerns about the liability clause, but the representative refused to remove it. They also insisted that by cashing the check they had sent me for ( {$4000.00} ), I was legally agreed to the terms and could not pursue further legal action. However, I never signed or cashed that check that the representative spoke of. 
Over the following months, I became more frustrated. My health continued to decline, and I sought help from local law offices and professionals, though many advised that I try to resolve the issue directly with Mr. Cooper, as they didnt believe I had a strong case. Despite my repeated complaints to the collection department, no one seemed to address my concerns, and they only continued to push for payment. 
In XX/XX/XXXX, I was involved in a car accident, which set me back significantly. I was unable to work or address my home issues. I also stayed with family due to my health problems, and during this time, my home was occupied by others who were looking after it. I notified the lender about the accident, and they assured me that the account was noted. However, from XX/XX/XXXX until XX/XX/XXXX, I was unable to speak with a representative. Every time I tried calling, the calls dropped, and when I used the automated system, it only requested payments without connecting me to a person. 
In XX/XX/XXXX, I learned that Mr. Cooper had started foreclosure proceedings, cleared the XXXX XXXX  ( which I never endorsed ), and that my insurance claim had been closed. Despite ongoing issues at my homeincluding XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX  company has stated they will not re-open the claim and will not get involved in any disputes between me and Mr. Cooper. I contacted the XXXX back in XX/XX/XXXX, informing them about the actions of my mortgage lender. While they expressed sympathy for the situation, they made it clear that once the check was cleared, they had no further involvement in the matter. 

Since these incidents I have felt defeated, weak, and lost all hope in feeling as though I can do anything. I do not know what crimes have been committed but all I know is, the money was never put in the escrow account, I never signed the insurance check of ( {$40000.00} ) and it was cleared anyways into an account I do not know, and I never cashed the check from the lender that they sent me for ( {$4000.00} ), and I never signed the statement to not sue them for damages. I have fallen behind on payments due mounting health problems, becoming XXXX, and XXXX XXXX have not even started. I had insurance to help with Mortgage payments in the event I become XXXX from another insurance company, but they also are refusing to help or get involved.

Company response to consumer: Closed with explanation