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Mortgage Co. forced me into an unfair settlement after I sued them.

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    Mortgage Co. forced me into an unfair settlement after I sued them.

    I couldn't find any posts related to my specific issue, but if there are please let me know.

    Nationstar Mortgage purchased my mortgage in November 2011 from Bank of America. I have been in Chapter 13 bankruptcy since July 2010. Per the BK Court ordered 5 year 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, 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 prevent 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 so he filed an Adversary Proceeding 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. We had overwhelming proof that BofA and Nationstar broke Federal and State law, violated the Court's own orders and resulted in me paying over $3000 extra to the Banks, yet the Court would rule in the Banks' favor. How can that be? Additionally, Nationstar has never accepted (or received) plan disbursements from my Trustee. Why, I do not know, but there is over $2,900 sitting in the Trustee's account that has not been payed to the mortgage arrears. So it seems the Bank is playing games with the Court as well.

    I admit missing two mortgage payments is bad, but I was behind 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. Add to that, they paid my 2012 property taxes for me without my knowledge, so I'm sure they're going to try to raise my monthly payments.

    I have started petitions with Change.org and We the People to have Nationstar investigated for fraud. Am I allowed to post links to those petitions here?

    #2
    Boa is a joke. I'm sorry you are going through this. They should be made to pay!
    Filed 13: 8/22/2012 341 Meeting: 10/2/2012 Confirmed: 11/2/2012
    10 payments down 50 more to go!

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