Complaint Review: Nationstar Mortgage LLC - Lewisville Texas

Nationstar Mortgage purchased my mortgage in November 2011 from Bank of America. I have been in Chapter 13 bankruptcy since July 2010. Per the Bankruptcy Court ordered plan,  BofA  and subsequently Nationstar were to be paid back three missed payments and lender purchased hazard insurance (escrow account) by the Court's Trustee in monthly disbursements over the course of five years, and my monthly payments would return to principle and interest only.

However, BofA  and then Nationstar kept charging me for the same insurance escrow shortage in my monthly mortgage payments, thus the Banks were receiving a payments directly from me plus payments through my bankruptcy plan; an illegal practice by the Banks known as "double dipping".  In October 2011 I purchased my own hazard insurance policy to avoid Nationstar from setting up an escrow account which would increase my monthly payments even more.

After the transfer of my mortgage to Nationstar, I received an annual escrow statement from BofA proving the Bank's violation of the Bankruptcy Court's orders, so I informed my bankruptcy attorney.  My attorney sent BofA a qualified written request in February 2012. Four months later my attorney received a response back from BofA admitting to the illegal escrow charges and filed an Adversary Proceeding lawsuit against Nationstar and BofA in June 2012.

In October 2012 BofA and Nationstar's attorney (both banks used the same attorney) requested a settlement offer. My attorney proposed that they forfeit all payment arrears, modify my loan by lowering the principal by $30,000 and interest rate to 3%. In January 2013 Nationstar refused to take payments over the phone. I knew they had a habit of "losing" checks, so I did electronic bill pay through my checking account (at least that way I had confirmation of payment received).  Then in April 2013 the two and a half years of over-payments finally drained me to where I couldn't make a payment.  In mid-May of 2013, Nationstar informed my attorney that I was five months late in making payments, and would only agree to a settlement where they pay the missed payments and my attorney's fees.  By then, I was only behind on two payments (if you consider the 1st of the month the absolute due date) and gave my attorney proof of this, through a phone payment log I kept and the three electronic bill payment confirmations.

My attorney went ahead and accepted the "settlement",  advising me that the Bankruptcy Court would look unfavorably on me for not making mortgage payments as per the bankruptcy plan, implying that if I didn't take the settlement and the lawsuit went to Court, I would not win. Even though we had overwhelming proof that BofA and Nationstar broke several Federal and State laws, violated the Court's own orders and resulted in me paying over $3000 extra to the Banks, the court would find in the Banks' favor. How can that be?

I was behind on the two mortgage payments because the extra charge per month for the illegal escrow over the course of two and a half years had slowly bled me dry.  Nationstar knew they could keep overcharging, deny a mortgage modification application and stall settlement negotiations for as long as necessary  in order to force me into a position where I'm the bad guy, and their crimes go unpunished.

Please sign my petition to have them investigated by the Government. I do not want anyone else to be bullied by the Nationstar Foreclosure Industry.

The petition may be found here: http://wh.gov/lqdfa

Thank you.