Consumer complaint received 2019-10-22
Company: Specialized Loan Servicing Holdings LLC
State: TN
Product: Mortgage
Sub-product: Conventional home mortgage
Issue: Struggling to pay mortgage

Complaint:
I purchased my home in XXXX with a 1st and 2nd mortgage and the home value has been underwater ever since. At the time of purchase the home appraised at {$480000.00}. In XXXX the home appraised at {$250000.00} and I applied and was approved for a modification which enabled me to stay in my home. At the time, I thought I could avoid any negative credit issues by sitting tight and making my monthly payments. Assuming that, one day, I would be able to sell the home and, at least, break even. Due to a significant decrease in income, I was no longer able to make my mortgage payments and the last one was paid in early XXXX. I have applied with my first mortgage servicer ( XXXX/XXXX/XXXX ) and 2nd mortgage servicer ( Specialized Loan Servicing ) for approval to do a short sale. I have had no issues completing the process and gaining approval for the short sale with the 1st mortgage servicer. I have followed the requirements set forth by both servicers. The house was listed for sale at the current appraised value of {$360000.00} and has been under contract for three months at a sale price of {$350000.00}. The second mortgage servicer, Specialized Loan Servicing, has been an absolute nightmare to deal with. 

They have " removed my application '' from their process on two separate occasions ; 1st ) because they were waiting to receive documentation that I had already submitted and they had failed to process ( for three weeks ) and, 2nd ) when their investor denied the offer from the 1st mortgage because it did not include any monies being paid to the second. Instead of allowing me to go back to the first mortgage servicer and request that they share some of the sale proceeds ( which they did approve ) with the 2nd lien holder, they simply determined that I had " defaulted '' and cancelled my application. Throughout this 90 day process I have been diligent about calling in every few days to be sure that that the process is still moving forward and that they have all the documents they require. Every rep I speak to tells me something different so I provide what they request or accept their word that everything is on track, just to learn a few days later that I was not given accurate information and NOTHING is happening with my file.

I am concerned that after 90 days of a dealing with the incredibly flawed process at Specialized Loan Servicing, that the buyers will become frustrated and withdraw their offer. I can't afford to continue to keep the utilities on to secure a buyer when Specialized Loan Servicing has a process that appears to be designed to frustrate their customer and force these short sale situations into foreclosure.

There must be some recourse for the consumer to pursue legal action and/or some type of penalty process to hold servicers accountable and someone needs to be investigating the servicing practices and the default process at Specialized Loan Servicin
g.

Additionally, I vacated the property in XXXX and notified both servicers of my new address. As of yesterday, XX/XX/XXXX, all mail correspondence from Specialized Loan Servicing is still going to the old address which has caused delays from 10-17 days in receiving their updates. This delay, causes them to think I'm not responding and they close the file. I've verified with multiple representatives that they have the correct address and they have no idea why the mail keeps going out to the old address. It's complete incompetence!

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