Complaint Review: Nationstar Mortgage

Although my complaint pales in comparison to many here, I had major problems with Nationstar as well. Fortunately I was eventually able to refinance with a different company and escape their clutches. I've read every complaint on the internet about this company and I think I see a pattern developing over whose loans get bought by Nationstar. Please keep in mind that I am not a conspiracy theorist.

I filed an FDIC complaint against my previous mortgage lender, which was ultimately upheld. It had to do with statements they made which were aimed at tricking me into not paying my mortgage. A little over a year later my mortgage was sold to Nationstar, and that's when the problems began. I have excellent credit and have never been late on a mortgage payment. In my opinion, mortgage companies know where to send you to exact their revenge, or shop your loan if they think you may be a problem in any way.

My loan was sold to Nationstar on 6/11/10 while I was in the process of finalizing a refinance with another lender at a great 30 year fixed rate. I was informed of the sale by my former lender, but Nationstar never sent me a statement, or even a notice for that matter. I immediately attempted to get a payoff statement for the new loan, but was stonewalled by Nationstar, who demanded payment of the July mortgage even though they didn't even have an account number for me. They claimed that they didn't know who I was, but mysteriously knew how much I owed for my monthly payment, and insisted that I pay it immediately.

Of course I refused to pay without a statement or an account number, so they started calling me in June, demanding payment and threatening me with collections, while the payment was still not due. I called at least 50 times during June, and July, as did my new lender to try and obtain the payoff, which Nationstar refused to provide in violation of California State law. All required documentation was provided from the beginning. I caught them in numerous lies on my calls to them and documented them on tape. I always informed them that they were being taped which made the calls more formal and businesslike.

Here is the key: Find out who licenses the company to do business in the State and complain to them. In California it is the Department of Corporations that licenses Nationstar Mortgage. Write your congressman and post on the internet. Be relentless. In the end, Nationstar had to comply because I forced them to through my complaints. Unfortunately in the process the lock-in period for my refinance expired, even though the new company extended the time allowed on their own dime. It ended up costing me about $650 to keep the same interest rate. Nationstar continued to call and threaten me even a month after the loan was paid off and transferred to the new lender. That $650 will be repaid many times over before I'm done. I never paid a dime to Nationstar other than the loan payoff.

Know your rights. RESPA laws guarantee that you cannot be charged a late fee for 60 days when a new lender buys your loan. California State code 2943 makes it illegal for a mortgage company to withhold a payoff statement for more than 21 days from the original request, with a $300 fine due for every request beyond that time frame.

Do not be a victim!