Consumer complaint received 2022-10-10
Company: SERVICEMAC, LLC
State: TX
Product: Mortgage
Sub-product: VA mortgage
Issue: Struggling to pay mortgage

Complaint:
I have reached out to Service Mac several times, attempting to resume payment after the forbearance and I have been unsuccessful since XX/XX/XXXX via phone and email, XX/XX/XXXX, XX/XX/XXXX and XX/XX/XXXX. Each time that I spoke with a representative different communication was received. I was told on XX/XX/XXXX that I would receive a package and of course I received nothing, I called on XX/XX/XXXX and XXXX to obtain assistance and as usual it the it takes 2-3 days for someone to return calls, however, but I rarely receive a call back. The one time I did receive a call back the agent hung up as soon as I answered, XX/XX/XXXX and I called right back and again put in the loop of waiting for a call in 2-3 days and never receiving a call. 

I thought it was resolved on XX/XX/XXXX as the representative stated they would move forward with the modification option and it comes with a trial period and if all payments were on time, It would become official. 

I called back to check on the status and I was told on XX/XX/XXXX that that my VA loan required to me to submit and upload the document into loan service portal and that I would receive the package within XXXX hours, and nothing was sent. 
During the call I asked the representative about the complications I have experienced trying to come out of forbearance, he stated that it was required which was different from all the paperwork sent by service mac and the representatives I spoke with I checked my physical mail XXXX and received a letter dated XX/XX/XXXX I am not eligible for an alternative to foreclosure to retain my property and provided liquidation options. 
It also was not clear on why the modification was denied, it was never stated that they needed credit verification or income to move forward with the modification. In fact it was the exact opposite, I believe the agent name was XXXX who stated that is is rare for a denial this was on XX/XX/XXXX. I felt at ease, as it appeared that the lender was trying to assist post XXXX. 

The letter states that Service Mac decision was based in whole or part of information obtained in a report from the consumer reporting agencies XXXX, FTC and federal reserve consumer help. While I am not familiar with the last two, I was never asked for my credit to be pulled. My credit has been and still excellent. It was my understanding that customer consent was required to pull credit. 

This is the second time this year that it seems that ServiceMac wants to put my property in jeopardy. Earlier this year I had reached out to them for months begging for them to send in my taxes so the county would removed me from being delinquent. It was not until the complaint with CFPB that action was actually taken and they stopped giving me the run arounds. 
Now this time is the same thing, Service Mac would rather me lose my property than to retain it even though I have stated several times I can resume payments. 
The below is what they sent me sale of your property this option is available if my property is worth less than what I owe, per the document. This not applicable as my property is worth more. 


The lost mitigation review determination summary is unclear and/or untrue 1.I have withdrawn interest in loss mitigation 2.The first unsure what PI payment would exceed the targeted PI payment per investor requirements ( what is " per investor requirements '' ) 3.Modified principal and interest would exceed current principal and interest payment ( why is this not my option to decide paying a higher amount? ) How is my income insufficient? Service Mac does not know my income 4. Income in insufficient to support the modified payment amounts ( this is noted 3 times, no one at service mac as ever asked my income ) 5XXXX a 10 % payment reduction from your original installment amount could not be achieved ( unclear ) Below is what the VA rules on forbearance VA has notified mortgage companies that the missed payments due at the end of a COVID-19 forbearance period do not have to be made up in a single payment. However, if you can make up all the payments in a lump sum and resume making regular monthly mortgage payments, then you may do so. 

If you are unable to resume regular monthly mortgage payments, you have options to better protect your credit rating and still qualify for a new home loan later i.e., private sale, short sale, deed in lieu. 
I have attempted to resume normal payments and yet Service Mac is trying to force me to lose my property. 
Per the Coronavirus Relief, and Economic Service Act ( CARES Act ) Mortgage Payment Forbearance The CARES provide mortgage payment forbearance option for all borrowers who, either directly, or indirectly, suffer a financial hardship due to the novel ( COVID-19 ) national emergency. 
This relief is available to anyone who has a federally-backed mortgage regardless of delinquency status. 
Under the CARES Act, servers should ensure that the missed payments must be repaid although it may be paid over time.

Inform borrowers that they can contact you when their hardship is over or resume making their monthly mortgage payment to end the forbearance, and discuss what repayment options are available.

Note : service mac has locked me out of my account to prevent any payments to be made.

Veterans Affairs Mortgages Servicers of VA loans can not require a borrower to make a lump sum payment immediately after a borrower exit CARES Act forbearance. VA has a suite of loss mitigation options detailed in Chapter % of the VA Servicers Handbook M26-4 designed to assist Veteran borrowers in bring their home loan current. In addition to the regular loss mitigation options, VA is making all disaster loss mitigation options to further assist borrowers affected by the noel coronavirus. 
Ch 5 e. A home retention option should not be approved unless it is within the borrowers financial ability to reinstate the delinquency. The servicer should not require a substantial sum from a delinquent borrower unless there is ample justification. It is inadvisable to encourage a delinquent borrower to obtain funds from another means for a payment to cure the default on the loan. The additional burden of installment payments on such a loan is likely to worsen the already difficult financial position, and increase the possibility of future default on the mortgage. Home retention options include : 1. Repayment plan. 

2. Special forbearance.

3. Loan modification. 

f. If the servicer, and the borrower can not resolve the delinquency through a home retention option, the servicer should consider alternatives to foreclosure. 

I am confused as all documentation I have read states that the servicer should work with the borrower. Service Mac has removed any access to review my loan.

It is also odd that Service Mac would not pay the XXXX installment for my taxes and the funds were in the escrow. It took months to get it resolved and the way I received assistance is contacting CFPB. 

I am just a veteran trying to bounce back from all the adversities experienced during COVID i.e., the government making people feel like they should not work and/or pay rent. I have been a landlord since XXXX and this is the first time I experienced an abundance of obstacles from tenants. 
It is unclear to me why Service Mac refuses to do a repayment plan, special forbearance or loan medication but rather force me to lose my property? 
I am looking for upper management to assist and ensure their employees are abiding by the rules established by the government. 

Also, note I was told today that the only option available is for me to submit the loss package that was supposed to have been sent XX/XX/XXXX that it takes up to 30 days to review. I was also told if service mac has not made a decision prior to the XX/XX/XXXX payment that they will report to the credit bureaus all the months I was in forbearance as delinquent Had it been disclosed when I took the government assistance that it had a even a slight possibility of negatively impacting me I would have declined and sold the property at that time. 

Thanks in advance for resolving this issue and ensuring this assistance program offered does not negatively impact me.

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