Consumer complaint received 2020-07-30
Company: FCI Lender Services Inc.
State: CA
Product: Mortgage
Sub-product: Other type of mortgage
Issue: Struggling to pay mortgage

Complaint:
I am a XXXX widowed and disabled XXXX XXXX XXXX, California homeowner who, since COVID-19 came to California in XXXX, has suffered 2 different XXXX XXXX and 3 different hospitalizations. Since XXXX, I always paid County property taxes on time, including those due in XXXX, and always made timely mortgage payments. I have maintained in good standing my FIRST mortgage but, earlier this month, learned that my SECOND mortgage lender, without advising me in advance, recorded a NOTICE OF DEFAULT/SUBSTITUTE OF TRUSTEE on XX/XX/XXXX. 

My FIRST mortgage -- in place since XXXX -- carries a balance of {$230000.00} and my SECOND mortgage -- in place since mid-XXXX -- carries a balance of {$110000.00} including newly added foreclosure fees. The property in question recently carried a market value of {>= $1,000,000}. 

Because of the unexpected XX/XX/XXXX foreclosure action that violates all existing COVID-19 Federal and California Foreclosure Moratoriums as well as California XXXX XXXX Abuse Law,  over this month of XX/XX/XXXX, I faxed three different BORROWER NOTICES OF ERRORS to the Lenders and their Loan Servicer. I attach only the THIRD most recently faxed BRROWER NOTICE OF ERROR successfully transmitted last Sunday, XX/XX/XXXX. No response ever has been received from lenders or lender servicer to any of my three BORROWER NOTICE OF ERROR faxes. 

All BORROWER NOTICE OF ERROR faxes noted the following : 1. Second Mortgage Lenders did not fairly advise Borrower in advance of Lenders ' XX/XX/XXXX Notice of Default/Substitution of Trustee recording. 
2. Lenders ' XX/XX/XXXX Notice of Default was recorded in violation of the COVID-19 Federal 2020 moratoriums on foreclosures. XXXX XXXX XXXXXXXX 3. Lenders ' XX/XX/XXXX Notice of Default also was recorded in violation of Californias XXXX suspension of foreclosure actions that remains in effect until 90 days after the COVID-19 pandemic emergency is lifted or the judicial authorities otherwise suspend the rules. XXXX XXXX XXXXXXXX In spite of the property 's recent XXXX market value of {>= $1,000,000}, Lenders ' improper XX/XX/XXXX recorded Notice of Default not only violated nationwide foreclosure moratoriums but also prompted XXXX to slash its market value " zestimate '' for the property to {$780000.00}. Permanent market value damage needlessly caused by the reckless, XX/XX/XXXX recorded Notice of Default/Substitution of Trustee is financially abusive to an " elder '' Borrower and unconscionably unfair to the Borrower 's property. 

Borrower since has learned of California XXXX XXXX that, if passed, would prohibit all recordings of Notices of Default to further support existing COVID-19 Moratoriums on Foreclosures. 

The attached THIRD BORROWER NOTICE OF ERROR fax asks for immediate reinstatement of Second Mortgage with Borrower-proposed new fixed term interest rate of 2 % - 3 % which reflects today 's mortgage interest rates that range from 2.75 % to 3.19 %. Please note that Borrower had made one year of timely monthly payments that carried a high 14.500 % interest rate -- a rate that is usurious and one that an elderly Borrower on a fixed income can not afford. 

Borrower THIRD Notice of Error fax further stated that, if lender would negotiate mortgage reinstatement terms to reflect today 's interest rates AND also immediately cancel the unannounced XX/XX/XXXX recorded Notice of Default/Substitution of Trustee, then Borrower would begin to pay the reinstated Second Mortgage on XX/XX/XXXX. Borrower has received no response from lenders, and lenders ' loan servicer also confided that loan servicer is still waiting for a response from the lenders. 

In the meantime, please help me challenge the XX/XX/XXXX unannounced Lender-recorded NOTICE OF DEFAULT/SUBSTITUTION OF TRUSTEE that flagrantly violates COVID-19 Federal and California foreclosure moratoriums.

Company public response: Company has responded to the consumer and the CFPB and chooses not to provide a public response
Company response to consumer: Closed with explanation