Nationstar Mortgage Foreclosure Defense

Nationstar Mortgage was once one of the biggest mortgage lenders in the country. However, in 2016, Mr. Cooper purchased the company. Still, many homeowners who originally took out a mortgage with Nationstar are now in fear of losing their homes. Mr. Cooper has had many complaints filed against it and before it stopped operations, Nationstar Mortgage was also the subject of many grievances and was also named in several different lawsuits.

If you have received notification from Nationstar Mortgage or Mr. Cooper, it is important to know the legal defenses available. Below, one of our Fort Lauderdale foreclosure defense lawyers outlines more about this company and the complaints against it.

What is a Judicial Foreclosure?

If you have been threatened with foreclosure, the first thing to know is the foreclosure laws of the state. Florida is a judicial foreclosure state, which means lenders must file a lawsuit against you if they want to foreclose on your home.

Once the lender has filed a lawsuit against you, a summons and complaint will be sent to you. This documentation will explain the reasons for the lawsuit, a detailed explanation of the overall foreclosure, and provide you with a limited amount of time to respond. After the lender has filed a lawsuit, the burden is on them to show that the foreclosure is valid and that they have justification for taking legal action against you.

How to Answer to a Foreclosure Notice

If you have received notice of default or a lawsuit that was filed against you, the first step is to write an answer to the complaint. Within your response, you must explain your defenses to the foreclosure and the reasons why the lender cannot legally foreclose on your home. You must file your response within 20 to 30 days, or comply with the deadline on your summons.

You may also need to include a defense for a motion for a summary judgment. If the lender has requested one and is successful with the motion, it means they will be able to foreclose and you will not have an opportunity to defend yourself. You can also include strong evidence that the servicer or lender made a mistake during the foreclosure process. Common errors include failing to send you a notice of default, initiating a foreclosure too quickly, or failing to follow proper procedures.

Ask Nationstar or Mr. Cooper for Proof of the Debt

There are many different defenses available in foreclosure cases, and a lack of documentation is one of the most common. You should ask any lender who is threatening foreclosure to provide any document pertaining to the original loan. Documents may include the mortgage or deed of trust, refinancing papers, and any promissory notes. You can also ask for any notice the lender sent to you, as well as any agreement you signed.

These documents are important to show that there were omissions in the procedure or paperwork. Without this important evidence, the lender may be able to move forward and obtain a default judgment against you.

Complaints Against Nationstar Mortgage

The long history of complaints against Nationstar Mortgage shows that the company did not always operate honestly or fairly. The Consumer Financial Protection Bureau filed a complaint against Nationstar Mortgage on December 7, 2020, several years after the company was sold to Mr. Cooper.

Within the complaint, the Bureau alleged that the company violated many different federal consumer financial laws. The complaint also stipulated that the violation of these laws caused significant harm to homeowners. In total, the complaint required Nationstar to pay approximately $73 million in damages to over 40,000 impacted homeowners. On the same day the complaint was filed, attorneys general from every state in the country, as well as the District of Columbia, settled their own separate complaints with the lender.

In addition to these formal complaints, many consumer review websites have also shown that people who have used them in the past are generally dissatisfied with them. These complaints include loss of escrow payments, a failure to notify of mortgage payment increases, returning mortgage payments in order to foreclose, and a continuance of automatic withdrawals from bank accounts even when people had fully paid off their mortgage.

The high number of formal and informal complaints against Nationstar Mortgage shows just how deceptive the company sometimes was in its mortgage dealings. If you have received notice of foreclosure or you are experiencing trouble with the company, it is important that you have legal representation by your side to give you the best chance of saving your home.

Defenses to Nationstar Mortgage Foreclosure

Too many homeowners panic and want to give up after receiving a notice of default or lawsuit. This is one of the biggest mistakes anyone could make. There are many defenses available and they are as follows:

• Fraud: Many of the tactics Nationstar has used in the past constitute fraud. These include failing to notify homeowners of increased mortgage payments and returning payments so the company could go ahead and foreclose.
• Failure to prove the debt: Any time one mortgage lender purchases another, such as when Mr. Cooper purchased Nationstar, there is an increased chance that important documents will become lost. If the company cannot prove that it own the debt, it can serve as a strong defense in your case.
• Unclean hands: Any time a mortgage lender engages in illegal behavior, you can use it as a defense in your case. The Consumer Protection Financial Bureau accused the company of violating federal law and so, that could help prove your case.

Our Foreclosure Defense Lawyers in Fort Lauderdale Can Help with Your Case

At Loan Lawyers, our Fort Lauderdale foreclosure defense attorneys have been defending against lawsuits filed by Nationstar Mortgage and Mr. Cooper for years. We know the defenses to use against unfair and dishonest practices and will put that expertise to work for you. Call us now at (954) 523-4357 or fill out our online form to schedule a free review of your case and to learn more about how we can help.