Consumer complaint received 2025-04-27 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:
Nature of Complaint : * Mortgage Servicing Misconduct * Refusal to Accept Approved Assistance Funds * Improper Assessment of Fees During Bankruptcy * Inflated Principal Balance and Predatory Modification Terms * Wrongful Threat of Foreclosure Despite My Ongoing Efforts to Resolve the Account Detailed Description of the Issue : I am filing the 10th -12th complaint against Mr. Cooper Mortgage ( Nationstar Mortgage LLC ) due to serious misconduct in the handling of my mortgage, including refusal to accept and properly apply mortgage assistance funds, failure to provide transparency regarding additional unauthorized fees added to my account while in bankruptcy, inflating my principal balance, and wrongful foreclosure procedures which include threatening foreclosure despite my efforts to resolve the account. 

Summary of Events : * I filed for XXXX XXXX bankruptcy with my husband in XXXX ( converted to XXXX XXXX  and discharged ), due to him being unemployed from his job permanently shutting down. 
* I filed for XXXX XXXX bankruptcy alone in XXXX ( dismissed in XXXX after COVID-related job loss and the death from my dad due to XXXX ). 
* I filed XXXX XXXX bankruptcy again in XXXX after job loss. 
* Mr. Cooper claims my mortgage was not reaffirmed after bankruptcy, but my bankruptcy attorney confirms it was reaffirmed. 
* I have requested but have not received, a full explanation for fees added to my mortgage account, specifically a detailed breakdown explaining unauthorized fees such as " inspection fees '' and " attorney fees, '' which were charged while I was in active bankruptcy protection - a practice that may violate the Bankruptcy Code and RESPA.

Mr. Cooper eventually provided a loan payment history - however, they failed to provide a clear, itemized breakdown of unauthorized or unknown fees charged to my account. 

Additionally : * I was approved for {$50000.00} in mortgage assistance through the Mortgage Assistance of Alabama program. 
* Mr. Cooper refused to accept those funds, claiming I would need to pay the full-past due balance instead. 
* After filing a complaint with CFPB XXXX XXXX, Mr. Cooper said they would accept the funds- but by then the Mortgage Assistance of Alabama had exhausted its funding. 
* Mr. Cooper 's refusal of approved assistance placed me at greater financial risk and blocked my ability to cure my arrears. 
* I consulted with an attorney at Legal Aid. She stated she would need to thoroughly review the over 100+ page document from Mr. Cooper after I authorized her to speak on my behalf. Legal Aid stated Mr. Cooper has not contacted them regarding my mortgage or modification although Mr. Cooper is aware I have retained legal counsel and Mr. Cooper has confirmed Legal Aid is added as a participant on my account. 

Further : * Mr. Cooper offered me a loan modification offer that did not change the terms despite my financial hardship. The " modification '' would : ( 1 ) force me into a higher interest rate ( 6.875 % ) from 4.25 %, ( 2 ) have a higher monthly payment despite my financial hardship ( 3 ) have a longer 40-year term ( my current loan is 30 years ) - causing me to lose all of the payments I made from XXXX to present. 
( 4 ) have an inflated principal balance of {$250000.00}, instead of my rightful post-modification balance of {$160000.00}.

* This inflated balance erases the years of mortgage payments I have made since XXXX and unfairly wipes out my accrued equity. 
* The modification terms offered are predatory, punitive, and unaffordable, and do not comply with industry standards for XXXX hardship assistance, HUD, FHA supplements XXXX or consumer protection laws. 

In addition : * I am currently working out of state ( in Arizona ) and I informed Mr. Cooper that I could not open or electronically sign modification documents while away. 
* I also informed Mr. Cooper that I might have a potential buyer for my home and requested information about selling instead of foreclosing. They failed to provide any guidance. 
* Despite being fully aware of my situation, Mr. Cooper has now threatened foreclosure if I did not sign and return the modification by XX/XX/XXXX - even though they were made aware of my working situation, financial hardship, and willingness to resolve the matter in good faith. 

Why This is Wrong * Charging fees during bankruptcy protection is improper and not fully disclosed. 
* Refusing {$50000.00} in available mortgage assistance deprived me of curing my arrears. 
* Inflating my principal balance by nearly {$90000.00} is deceptive and erases any and all payments I have made, going all the way back to XX/XX/XXXX. 
* Offering only an abusive modification without other options violates the intent of consumer protection laws.

* Threatening foreclosure under these circumstances is unfair, predatory, and devasting to me financially and emotionally.

Company response to consumer: Closed with explanation