Harris County homeowners threatened with foreclosure despite making payments
Harris County homeowners threatened with foreclosure
Imagine being able to buy your first home, a dream you never thought you would attain, but suddenly your payments aren't being recorded properly. FOX 26 Consumer Reporter Heather Sullivan s investigating as some homeowners say they are being threatened with foreclosure.
HOUSTON - Imagine being able to buy your first home, a dream you never thought you'd attain.
But suddenly your payments aren't being recorded properly, and you're threatened with foreclosure. That's what some homeowners say has been happening to them.
Harris County woman at risk of losing her home
"This is the kitchen. I love the openness," said Marigail Cooper, showing us her home two years ago.
Marigail Cooper never thought she'd be able to buy her own home. But she was able to reach that dream two years ago through the Harris County Housing Authority's Homeownership program, making payments with her own money and her Housing Choice Voucher.
"I have a sense of peace. This is mine," she told us at the time.
However, she says that sense of peace was shattered when her mortgage was transferred 18 months ago to a different loan servicer, Nationstar Mortgage, doing business as Mr. Cooper Mortgage and CrossCountry Mortgage. She says her payments have not been consistently recorded.
"I've been fighting insomnia since November of last year," said Cooper.
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The Harris County Housing Authority reissued her first two payments since the transfer, after being notified they were sent the wrong address. But Cooper says even since then, despite her records showing her and the Housing Authority's payments, CrossCountry Mortgage sent her default notices.
"I have proof of my mortgage statements showing they received the payments, and they posted the payments. Then they want to turn around and send me a certified letter saying I owe over $8,000, or they’re going to move forward with foreclosure," said Marigail.
Another homeowner, who asked that we not identify her, says she has received past-due notices despite account statements showing her and her voucher payments.
"I’m terrified, terrified. I worked very hard to get where I am. This is the American dream, so it's hard to live the American dream to potentially lose it through no fault of mine," the homeowner told us.
Another homeowner, Neisha Black, says she had to file complaints until CrossCountry admitted it misapplied a payment from the Housing Authority to her escrow account.
"You have a copy of my check, plus a copy of the check from Harris County. You all have the money. Why is it not being applied to my account? Everybody tells you something different. Nobody gives you a straight answer," said Black.
Nationstar Mortgage, doing business as Mr. Cooper Mortgage, has faced past lawsuits, agreeing to pay nearly $6 million this year to settle allegations that it violated servicing laws that led to some borrowers losing their homes, and to pay $91 million in 2020 to settle claims that it failed to honor loan modifications.
Why the issues with Mr. Cooper Mortgage?
What they're saying:
We asked Mr. Cooper Mortgage for an interview about why the homeowners we talked to have had trouble getting payments consistently recorded.
Mr. Cooper Mortgage sent us this statement:
"We are proud to partner with organizations, like the Harris County Housing Authority, that help Americans achieve the dream of homeownership. As part of the housing voucher process, we receive a payment from the customer and a subsidy from the Harris County Housing Authority to apply to a customer's monthly mortgage. As those payments and subsidies are received, we apply them to the accounts, and if there is a delay in receiving the subsidy, we will work with the agency and customer to resolve the issue and bring their account current.
"We appreciate you sharing the information, and we are working with the agency and each customer directly to address the concerns."
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We asked the Harris County Housing Authority about the issues, which sent us the following statement:
"The Harris County Housing Authority (HCHA) administers the federally funded Housing Choice Voucher (HCV) Homeownership Program in accordance with 24 CFR 982.625. HCHA currently has a total of 53 HCV Homeownership participating families and this includes 16 families with mortgages serviced by Mr. Coope/Nationstar. The initial lender was Cross Country Mortgage before the loans were sold. The concerns about delinquency notices and foreclosure notices were brought to HCHA’s attention and staff have worked with families and made attempts for clarification and resolve. Although payments are made timely by the family and HCHA, the issue continues.
"HCHA has worked diligently with the families reaching out to this mortgage company for clarification and a resolution. Attempts have also been made by reaching out to their executive leadership to request a meeting to resolve with no response received. HCV Homeownership participating families also have an option to update their HCHA payment to be made directly to them as allowed in the HCV Homeownership HUD requirements. HCHA has reached out to our HUD partner for additional actions that may be taken to assist these families."
What to do if your mortgage payments are not recorded?
What you can do:
We asked Lone Star Legal Aid real estate attorney Amir Befroui what homeowners can do when mortgage payments are not recorded. He says they can file complaints with the Texas Department of Savings and Mortgage Lending and the Consumer Financial Protection Bureau, which will contact the company.
"If enough people complain about one mortgage company doing the same thing, what they will do at the CFPB is contact the Department of Justice to investigate," explained Befroui.
Homeowners can also write to the company’s legal department with a Notice of Error, or Request for Information.
"The Real Estate Procedures Act, RESPA, that regulates mortgage companies, requires mortgage companies to be responsive to borrowers' complaints," said Befroui.
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Marigail Cooper says she plans to take legal action.
"This is just a portion of all the documents I have. That’s 200 pages of evidence I have against them: late notices, foreclosures, and we weren’t late one time. Not once," she said.
Since we began working on this story, Marigail Cooper and Neisha Black say their payment issues have been resolved. However, the other homeowner we spoke with tells us that her issues have not been resolved.
Marigail Cooper and Neisha Black also tell us they filed complaints with the Texas Department of Savings and Mortgage Lending. We contacted the Department four times to see how it is responding. We haven't heard back.
The Source: Information in this article is from homeowners Marigail Cooper and Neisha Black, the Harris County Housing Authority, Mr. Cooper Mortgage, and Amir Befroui with Lone Star Legal Aid.