NationStar has over 2000 complaints filed with the Better Business Bureau which services Dallas and the Northeast Texas region so our complaint filing, documented below, is only one of thousands.
Nationstar Mortgage trampled on homeowners after buying from Bank of America servicing rights to 1.3 million home loans, for $7.1 billion, a class action claims in Federal Court.
Lead plaintiffs Brian and Lanilee Johnston sued Nationstar Mortgage LLC in Clark County Court, alleging breach of contract, breach of third party beneficiary contract, breach of faith and unjust enrichment.
It all started, the Johnstons say, when Bank of America put together a program to help people affected by the mortgage foreclosure crisis.
Bank of America is not a party to the lawsuit.
"As a servicer of residential mortgage loans, Bank of American ... entered into permanent loan modification agreements with distraught homeowners through the county whose residential mortgage loans it serviced prior to January 2013," the complaint states.
"On January 6, 2013, BOA entered into a Mortgage Servicing Rights Purchase and Sale Agreement (hereinafter 'MSRP') with Nationstar. Pursuant to the MSRP, Nationstar 2 assumed the servicing rights to approximately 1.3 million residential mortgage loans, with a total unpaid principal balance of approximately $215 billion, and servicing-related advanced receivables of approximately $5.8 billion. The aggregate purchase price was approximately $7.1 billion.
"Within the MSRP, Nationstar contractually obligated itself to honor all Modification Agreements that BOA previously entered with Homeowners. Despite its contractual obligation to do so, Nationstar has uniformly failed to honor the terms of the Modification Agreements to the detriment of Homeowners, thereby compelling the initiation of this action."
The Johnstons claim that "Nationstar has refused to honor the terms of the Modification Agreements. Rather than fulfill its contractual obligation, Nationstar has made numerous homeowners reapply for loan modifications featuring lesser terms than those within their valid Modification Agreements with BOA, held payments in suspe
I wonder why they sold my loan to nationstar mortgage?
Now they want the hole amount (with back payments).. $26 000. In reality they are trying to force us to sell our apartment in depressed price and loose a lot of money.
We lost our entire savings. One crooked bank steal our savings, another one wanna steal our home.
I do believe President Obama will not be able to ignore what these banks and loan servicers are doing.
Now they want the hole amount (back .. $26 000. In reality they are trying to force me to sell my apartment in depressed market and loose money.
The Better Business Bureau has processed 2719 complaints against the company
Fast-forward six years and Nationstar, remade as a mortgage servicing firm, is now a jewel in Fortress’ portfolio.
A growing number of homeowners trying to avert foreclosure are confronting problems on a new front as the mortgage industry undergoes a seismic shift.
Shoddy paperwork, erroneous fees and wrongful evictions — the same abuses that dogged the nation’s largest banks and led to a $26 billion settlement with federal authorities in 2012 — are now cropping up among the specialty firms that collect mortgage payments, according to dozens of foreclosure lawsuits and interviews with borrowers, federal and state regulators and housing lawyers.
These companies are known as servicers, but they do far more than transfer payments from borrowers to lenders. They have great power in deciding whether homeowners can win a mortgage modification or must hand over their home in a foreclosure.
google for more.. yahoo censor my posting
Nationstar Mortgage Holdings Inc. (NSM), the mortgage servicer that collects payments on more than $300 billion of debt, was accused in a lawsuit of harming investors by auctioning home loans backing securities.
Nationstar’s loan liquidations are a “blatant abdication” of the company’s responsibilities as servicer, mortgage-bond investor KIRP LLC said in a complaint filed today in New York State Supreme Court in Manhattan.
“Nationstar has not fulfilled its duties as master servicer but rather has engaged in practices to enrich itself at the expense of” investors, KIRP said. KIRP said that it’s a “significant” investor in six residential mortgage-backed security trusts sponsored by Residential Accredit Loans Inc.
Nationstar, which is majority-owned by Fortress Investment Group LLC (FIG), increased its servicing portfolio by 94 percent last year to $198 billion through a series of asset purchases, with sellers including a unit of Lehman Brothers Holdings Inc. Its portfolio rose to more than $300 billion last month after the firm completed part of a deal for $215 billion of contracts from Bank of America Corp., according to a statement today reporting earnings.
Many of the mortgage loans Nationstar has auctioned only realized “a fraction” of the unpaid principal balance of the loans and “far less” than the present value of the property securing the loans, according to the complaint.