Consumer complaint received 2025-08-11 00:00:00
Product: Mortgage — Conventional home mortgage
Issue: Struggling to pay mortgage — Trying to communicate with the company to fix an issue related to modification, forbearance, short sale, deed-in-lieu, bankruptcy, or foreclosure
Company: Mr. Cooper Group Inc.
State: CA

Complaint narrative:
Complaint Narrative for CFPB Portal ( No Personal Identifiers ) I. Foreclosure and Reversion Incident Tacit Admission of Liability In XX/XX/XXXX, the mortgage servicer completed a trustee foreclosure sale of my home. The sale was publicly noticed, executed, and recorded. The opening bid was set so high that it effectively blocked third-party bidders, ensuring the servicer could take title via trustees deed and remove my name from title.

Immediately after the sale, the servicers XXXX agent contacted me to arrange relocation. We negotiated and agreed to a move-out plan, and I secured alternate housing in good faith.

Eighteen days later, without warning, the servicer abruptly terminated the XXXX agent and unilaterally reversed ( reverted ) the foreclosure, restoring my name to title. No explanation or notice was given. According to HUD-certified housing counselors, this maneuver known as a reversion is highly irregular and is considered under California Homeowner Bill of

Rights ( HBOR ) to be a tacit admission of wrongdoing. Under HBOR, once a foreclosure sale is completed in violation of protections such as dual tracking, the servicer becomes liable for post-sale statutory damages including full fair market value compensation regardless of loan delinquency status. By reverting the sale, the servicer appears to have deliberately shielded itself from liability while keeping me trapped in a perpetual pending modification status. This was not a benign clerical correction. It was a calculated move that obstructed my legal right to post-sale recovery under California law. It represents constructive fraud, intentional obstruction of borrower rights, and systemic abuse of foreclosure procedures. II. Current and Ongoing Violations 1. Dual Tracking and HBOR Violations My loan modification application was deemed complete on XX/XX/XXXX ( per servicers own written acknowledgment dated XX/XX/XXXX ). 

I filed an appeal on XX/XX/XXXX, challenging the servicers denial dated XX/XX/XXXX. This appeal is still pending.

Despite these facts, a foreclosure sale is scheduled for XX/XX/XXXX. Phone representatives claim the sale is on hold, but California HBOR requires formal cancellation, not informal holds.

Law Violated : 12 C.F.R. 1024.41 ( g ) prohibits foreclosure while a complete application is pending more than 37 days before sale.

Cal. Civ. Code 2923.6 ( c ), 2924.11 prohibits recording or proceeding with a Notice of Sale during review of a complete application or valid appeal.

2. Servicing the Wrong Loan for Over a Decade From XXXX, the servicer falsely claimed to be servicing the original XXXX XXXX loan ( already satisfied by a XXXX modification ). They denied the XXXX updated loans existence. 
In XX/XX/XXXX, buried in back-dated records, the servicer admitted in writing they had always been servicing the XXXX modified loan without explanation or correction. This constitutes long-term servicing error, concealment, and possible fraud.

3. Failure to Respond to QWRs and Appeals My attorneys XX/XX/XXXX QWR requesting escalation to the legal department remains unanswered. 

Multiple letters from me ( XX/XX/XXXX, XX/XX/XXXX, XX/XX/XXXX, and XX/XX/XXXX ) remain unaddressed in substance.

III. Requested Remedies I request that the CFPB compel the servicer to : Formally cancel the XX/XX/XXXX foreclosure sale in compliance with federal and California law.

Provide a full written explanation for the XX/XX/XXXX foreclosure reversion and the XX/XX/XXXX admission regarding the XXXX loan. 

Produce all servicing records from XXXX to present, including foreclosure actions, internal notes, and loan modification review files.

Issue a corrected account history reflecting the XXXX modified loan as the operative loan.

Provide a short payoff letter or proper modification to allow resolution.

IV. Summary of Historic Record I want to bring to the CFPBs attention the extraordinary and unlawful history of this loan, which traces back to the original XXXX XXXX Loan mortgage scandal, in which I was a documented victim. I was one of the select borrowers given a so-called XXXX XXXX mortgage, and I later learned I was among those the federal government determined had been defrauded. As a result, the U.S. government compelled XXXX  XXXX XXXX to acquire all XXXX loans. 

At the time, I was a high-ranking California constitutional officer and had perfect payment history. When XXXX XXXX XXXX sent me a letter informing me I was a victim and entitled to correction, I was instructed to intentionally fall 3 months delinquent to become eligible for a federal modification program. I complied. Over the next 14 months, I remained in modification review, submitting all documentation on time and in full. The loan was modified in XXXX, reducing my interest rate, extending the term from 30 to 40 years, and lowering my monthly payment and I resumed making payments.

However, I later noticed I had not received principal reduction, despite being told I was a top candidate. When I inquired, XXXX  XXXX XXXX invited me to reapply solely to add the missing principal forgiveness. Once again, I had to fall 3 months behind, and again I complied. In XXXX, I was under review for another 22 months before my loan was mistakenly sold. XXXX XXXX XXXXXXXX confirmed I was in line for a modification as part of the XXXX federal Attorney General settlement. 

XXXX  XXXX XXXX admitted the sale was a mistake and tried unsuccessfully for two weeks to recover the loan, which was transferred to XXXX and ultimately to the current servicer. Despite repeated attempts to correct the record, the servicer falsely claimed for over a decade they were servicing the XXXX original loan, rejecting my documentation. 

Only in XX/XX/XXXX, buried in a stack of back-dated documents, did the servicer admit they had in fact been servicing the XXXX modified loan all along without explanation. This concealment is indefensible and may constitute fraud or willful misrepresentation.

No borrower avoids foreclosure for 16+ years without good legal cause. The servicers conduct reflects deep systemic failures, repeated dual tracking violations, and improper foreclosure behavior all unresolved to this day.

Company response to consumer: Closed with explanation