Nationstar Loan Modification Problems

[Mike]

Hi Everyone. I am new here and have been watching the board for quite some time. There is a lot of good advice here. I hope someone can help with our ARM through Nationstar. This is long. Sorry. We were granted a loan modification with Nationstar in February 2008. Dealing with Thomas Brown in the loss mitigation department, we reached an agreement. The agreement was sent to us and in turn we signed and notarized the paperwork and sent it back to Mr. Brown with a requested payment of $1859.27. The agreement says that the interest rate would be frozen at 8.65% and our payment would be $1325.09 per month for one year. We made our first payment in April 2008 of $1325.09 per Mr. Brown. In May of 2008 when we called in our payment, we were told our payment was $1504.26. We told the customer service rep that was incorrect and explained what the agreement said. We suggested the customer service manager talk with Mr. Brown in the loss mitigation department to correct the situation. In June 2008 we were again told our payment was $1504.26. Again we explained to them what the agreement said. At that time I sent a letter and a copy of the agreement to Mr. Brown (via email and certified mail). I explained to him what was happening and asked him to correct the situation on his end per our agreement. I, also called and spoke with a Justin Oler to find out what this extra money was for. He told me the money was for ‘escrow’. I told him that should be in our payment of $1325.09 per our agreement. He told me the agreement was done wrong and the payment is $1504.26. I explained the agreement to him again and suggested he talk with Mr. Brown. I again got nowhere. Between June and September we have had no response from Mr. Brown, the loss mitigation department or customer service. We have also learned via phone when we called in our payment , that Nationstar is withholding our payments and only applying the money to our account when they have a ‘full payment’. This month when we called in to pay, Nationstar refused to accept our payment. The reason was they couldn’t accept a partial payment. Again we explained the agreement and were accused of just not wanting to pay the taxes and insurance on the home. So I sent the check to them in the mail. Let’s see if they cash the check. Last week I sent my “Qualified Written Request” via certified mail. Hopefully they will respond. I do not know what to do from here. I do know that when this agreement expires, the interest rate will go back up and we will not be able to afford this house anymore. We would like to refi but are in a Chapt 13 so the credit isn’t the best. We have been told by a couple of realtors the house is not worth what we owe based on selling prices of other homes in the area. Plus we would have to get someone to appraise the house for what we owe. I do not believe Nationstar is standing by the agreement in regards to the payment. I am not sure why they aren’t. I do not know what else we can do to rectify the situation. I have thought of foreclosure at some point or just walking away. I do not know if I can give in to that though. Anyone have any ideas? Any help is appreciated. Thanks. James