Consumer complaint received 2025-03-03 00:00:00
Product: Mortgage — FHA 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: AL

Complaint narrative:
I am filing this complaint against Mr. Cooper Mortgage for the following : * Refusing mortgage assistance funds ( {$50000.00} from XXXX XXXX XXXX XXXX  ), which would have helped reinstate my loan. Mr Cooper initially rejected the funds, claiming I had to pay the entire past due amount, leading to further financial harm, but later stated they would accept government funds- by then, the program had exhausted its funding and has closed, leaving me without options. 
* Misrepresenting the reaffirmation of my mortgage post-bankruptcy, creating confusion about my legal obligations. Mr Cooper claims my mortgage was never reaffirmed, while my bankruptcy attorney states otherwise. 
* Failing to provide a full accounting of my payments from XX/XX/XXXX - present. I have repeatedly asked for documentation showing if I sign the modification offered, what happened to my previous payments and how would they be applied and/or deducted to the new loan terms/amounts? Mr Cooper has failed to provide clear answers. 
*Adding unexplained fees ( " lender paid expenses '' ) without proper disclosure, potentially violating RESPA XXXX These fees were imposed without my knowledge, and I have not received an adequate breakdown or explanation of the charges. 
*Offering me a predatory loan modification with a higher interest rate ( 7.125 % ), longer term ( a XXXX extended term ), and a higher payment instead of providing fair foreclosure prevention alternatives. 
*Failing to properly maintain escrow and apply payments correctly, including protection by all bankruptcies I have had to file ( as a result of being forced, due to Mr Cooper not assisting me or willing to work with me ). 

Due to XXXX, I lost my job and my dad died in XXXX. I was approved for a forbearance and an extension due to the XXXX, but since XXXX  I was denied for unemployment ( which is still under appeal ). I explained to my mortgage company what I thought would be a temporary situation became permanent, and I have been having a hard time trying to catch up my mortgage ( especially with the only options they provide ). I applied for XXXX XXXX XXXX XXXX and was approved. However, Mr Cooper refused to accept the {$50000.00} payment from them. Mr Cooper has also refused to allow me to pay anything towards my mortgage and demands the full past due amount which includes fees for " their '' attorney while I was in active bankruptcies and for inspection fees and other charges, that I had no knowledge of. The modification terms they provided include : a higher interest rate : increased from 4.25 % to 7.125 %, an increased monthly payment : from {$1300.00} to {$2200.00}, a higher principle balance : Increased from {$160000.00} to {$250000.00}, and a longer term for the loan : extended from a XXXX yr to a XXXX yr mortgage. These changes create a significant financial burden for me and are counterproductive to the intended goal of the modification process, which is to provide financial relief and stabilize homeownership. I contacted FHA and HUD and was told to apply for a FHA Supplement, a Special Forbearance, and Partial Claim. My request for a loan was made in good faith due to financial hardship stemming from the XXXX XXXX pandemic. Additionally, as I stated I was also managing the loss of my father, and my husband also being unemployed, which placed further strain on my financial and emotional well-being. I originally sought a solution that would either allow me to resume my previous payments or secure a lower, more manageable payment. The proposed terms, however, impose a nearly 60 % increase in my monthly payment, making it impossible for me to meet my obligations without risking default. I have talked to Legal Aid for assistance and Legal Aid requested additional time to thoroughly review the large box of papers Mr Cooper sent me. I needed help understanding all of it, and I really do not want to file another bankruptcy, if possible.

Company response to consumer: Closed with explanation