Consumer complaint received 2020-04-07 00:00:00
Product: Mortgage — Other type of mortgage
Issue: Struggling to pay mortgage — 
Company: Mr. Cooper Group Inc.
State: IA

Complaint narrative:
Good morning. 
We are requesting assistance in liquidating our property and the associated debt as the home we purchased through the USDA program 2 1/2 years ago has fallen into disrepair and is no longer habitable. This unfortunate situation is clearly the result of a quick flip to cover up rather than fix the many preexisting issues the home had. Im curious how the home passed inspection or could have been appraised at the value it was at the time we purchased the property. There was no way that my husband and I could have ever known the problems we were to face only a year into our occupancy. 

We began to experience bubbling on our bedroom wall, which worsened over time. That following summer, we discovered a spot in the back of our daughters closet that had grown mold, her door would not shut because the doorjamb was swelling and the carpet was damp. We pulled up the carpet and cut the damp part of the wall away intending on patching it. Before we could start work, we discovered the floor buckling along the length of the house. After pulling up the boards, we discovered damp, wet concrete flooring and had to remove the doorjamb going into the hallway. The entire length of the house was wet, and it was coming from up above. Less than a year after moving in, we had to board up 1/3 of the house due to what appeared to be preexisting and new damage. The needed repairs could not be made until the heart of the problem was solved. We had roofers, basement repairs, and contractors come out. We dug up drainage tile from up above due to improper run-off and replaced it. It still leaked. We had the roof extended and replaced gutters. It still leaked. We were advised from a contractor that the entire roof would need excavated, cracks would need sealed, new rubber layed down, and then replace the dirt. The other option was to dig the parameter of the house, place footings and secure a roof over it. Dirt and all. The price ticket for the work was about $ 30K and that was just the outside. The inside was in dire need of extensive work at this point and problem spots were popping up everywhere. 

Our neighbors had informed us that previous owners went bankrupt trying to fix the problems this house had and even had pictures from when it had gone into foreclosure. All proving the problems had not been resolved. 

We finally came to the conclusion that we had to get out. We are fortunate that we qualified to buy a new home not dependent on the sale of the property associated with our Mr. Cooper USDA Loan. We have since moved into our new home and have continued to remain current on the dilapidated home which we no longer occupy. Paying both mortgages, however, this is not sustainable and we are looking to you for liquidation options. Selling outright isnt likely as the damages have undoubtedly depreciated the value and we owe more than the property is worth. Not because of a bad economy but a defective product. 
We feel we were misled and taken advantage of.We need to know how you, the servicer and the USDA are going to help right the situation?

Company response to consumer: Closed with explanation