Louise and Ceith Sinclair almost lost their Altadena, Calif. home even though they were current with their mortgage payments.
The Sinclair’s mortgage was sold by Ocwen Financial Corporation to Nationstar Mortgage, which failed to honor a loan modification that the Sinclairs had finalized with Ocwen Financial Corporation.
“Every time we call [Nationstar Mortgage] back, they give us the run-around, saying 'call back in two days, call back in two days,'" Louise Sinclair told ABC 7 (video below).
Then in June, Sinclairs were told that their house had been sold. Nationstar Mortgage had foreclosed on the house and sold it to another financial company without ever notifying the couple.
“They said that we didn’t notarized one paper of the modification, and in fact, we did,” added Sinclair.
After ABC 7 start investigating the loan documents and proved the Sinclairs were current on their payments, Nationstar Mortgage suddenly changed their minds. The illegal foreclosure sale was rescinded and Nationstar Mortgage says it will now honor the pre-existing loan modification (as required by law).
However, Nationstar Mortgage will not face any criminal charges.
Nationstar Mortgage, which buys mortgages from banks by the millions, has been sued for allegedly seeking to liquidate the mortgages instead of service them. noted Bloomberg News.
The foreclosure market is big bucks for companies that buy mortgages, foreclose and then sell the home for a quick profit.