Consumer complaint received 2025-12-18 00:00:00
Product: Debt or credit management — Mortgage modification or foreclosure avoidance
Issue: Problem with customer service — 
Company: WESTSTAR MORTGAGE CORPORATION
State: AZ

Complaint narrative:
We have a seller-financed wrap mortgage serviced by Weststar Mortgage . The underlying note is held by the seller with payments forwarded to his mortgage lender. This arrangement includes a Performance Agreement that states if payments are 60 days late, the property reverts to the seller, and we forfeit approximately {$150000.00} in equity/down payment. Time is therefore of the essence. We recently learned from the Seller that our payments that we made to be ahead are not accepted by his mortgage company. We thought paying a month or two ahead would keep us in good shape, especially with that Performance Agreement in place. So, when the Seller informed us that he was receiving payments late and fees from his mortgage company, we called Weststar to help us fix the issue. We asked for our payments to be increased and for them to be withdrawn on the first of every month instead of the XXXX. We filled out a form changing our automatic withdrawal with those changes. However, in XXXX, Weststar attempted to pull out XXXX payments instead of XXXX. They pulled out the old payment amount and then another transaction with the new payment amount. We use the XXXX XXXX banking system, putting our rent deposits into XXXX account and then separating those payments into each property 's XXXX account, tax account, etc. Therefore, there is never more than XXXX month 's worth of expenses in each property 's band account. So, only XXXX of those payments cleared ; the first payment for the original amount. We contacted Weststar and discussed their error but when the agent told me that I had bounced a payment to them, I explained they were only authorized to take out XXXX payment. Nothing more was said. When XXXX 's new payment did not come out automatically on the first of XXXX, I called and the agent, once again, said that I had bounced a check in XXXX, but I immediately corrected her that they took out XXXX payments. She explained that any bounced payment cancels the automatic withdrawal, so I needed to send a new one. I filled out and mailed a new Automatic Withdrawal Request Form to them, signed. However, on the second of XXXX, once again I checked the account and, again, no payments had been withdrawn ; not XXXX 's nor XXXX 's. The seller 's credit was at risk so I called ( taking notes ) attempting to get these payments sorted out, because these delays by Weststar have caused late payments to the underlying lender, damaged the sellers credit, and now put us at serious risk of default and loss of the property : plus, those advance payments we made were incorrectly applied directly to principal by the underlying lender and Weststar never caught that, now monthly payments were being delayed. After speaking to the agent, XXXX, I wrote out a very detailed email asking Weststar to pay XXXX 's and XXXX 's payment, plus send the seller ( who is now very angry and rightfully so ) an extra payment from us for {$1000.00} directly to him, and to please write a letter to the mortgage company explaining the mix up so we can fix his credit. The email was detailed and include another NEW automatic withdrawal request form. However, on Tuesday the XXXX of XXXX, I called very upset because STILL no payments have been withdrawn or paid by Weststar. I was sharp with the agent but immediately asked her not to take my tone personally, that I am just extremely frustrated with the situation. I asked to speak to her manager. She got XXXX on the line for me. XXXX started with the same statement I had heard a half dozen times by now, " Yes, but you bounced a payment in XXXX. '' Frustrated, I replied, " No, YOU attempted to pull an extra payment but only XXXX was authorized. I didn't bounce it, Weststar did. '' However, I was dumbstruck by her response because she told me, " but it doesn't matter, we paid it and you owe XXXX {$1600.00}, so I'm not doing anything to this account until you pay us the money you owe us. '' I was shocked. No one had ever said that they made an extra payment in XXXX to the mortgage company in our name. I had no idea and I told her so. Plus, that actually made me a little more frustrated. Now, this created an unintended extra principal payment but left us short on actual monthly credits. So, I said, I wish someone would have said THAT to me in any of the several phone calls I had made to them in the previous months, because I could have fixed it. I asked for wiring instructions but she said they would only except a Cashier 's Check or Money Order, per company policy. Great, our business bank, Relay, is online only. No Cashier 's Checks or money orders, so I was forced to go to my bank and withdraw the money from there. So, on XX/XX/year>, after no payments had been processed, I delivered a cashiers check in person to cover the bounced amount. Staff constantly provided conflicting information ( claiming we were still ahead when we are actually behind ) and said they needed the Seller 's updated statements. I emailed them from the Seller to Weststar. When I called back today, the XXXX, they said they would call me back but have since stopped responding to me. If I am frustrated, it is because this is an extremely time sensitive matter and it needs to be fixed. As of XX/XX/year>, XXXX has still not processed XXXX or XXXX payments, they have not sent the {$1000.00} late-fee compensation to the seller, reinstated/updated autopay, or provided a requested letter of explanation to help repair the sellers credit. 

These delays and misapplications are entirely due to Weststars errors and poor communication, not any failure on our part. We have documented everything, acted promptly to correct issues, and provided all requested information.I request that the CFPB require Weststar to : Immediately process and forward the XXXX and XX/XX/year> payments to the underlying lender. 
Send the agreed {$1000.00} directly to the seller for his late fees. 
Provide a full account reconciliation showing all payments received, applied, and forwarded. 
Issue a letter of explanation to the underlying lender acknowledging their servicing errors caused the late payments. 
Reinstate and update automatic payments per our submitted form. 
Confirm in writing that no late fees or negative credit reporting will result from their errors. 
Thank you for your assistance in resolving this urgent matter.

Company public response: Company has responded to the consumer and the CFPB and chooses not to provide a public response
Company response to consumer: Closed with explanation