Consumer complaint received 2023-12-08
Company: PLANET HOME LENDING, LLC
State: MD
Product: Mortgage
Sub-product: Home equity loan or line of credit (HELOC)
Issue: Struggling to pay mortgage
Sub-issue: Trying to communicate with the company to fix an issue related to modification, forbearance, short sale, deed-in-lieu, bankruptcy, or foreclosure

Complaint:
I am originally XXXX XXXX and XXXX this country since XXXX being US Citizen. I am staying in home since XXXX. 

I want to bring this matter to your attention and seeking desperate help to avoid foreclosure considering the nightmares of dealing with this second mortgage so called Zombie Mortgage surfaced back after 17 years since I refinance my house in XXXX. 

I was thinking about the issue and I am sure that I may not be the first one in this country dealing with this surprises about Zombie Mortgage and how they are torturing us for their greed with unrealistic demands of the mortgage interest from XXXX that was all time high and enforcing foreclosures, similar to what we witnessed during XXXX mortgage meltdown. 

I know that I am not the only who may be facing this issue and decided to do online research about these Zombie Mortgages and agonizing experiences home owner like me are going thru while dealing with and to resolve this matter in a most amicable way. 

I learned about XXXX XXXX, CFPB Director who noted that the foreclosure crisis erased decades of closing the racial wealth gap and zombie second mortgage debt could threaten to do the same if we dont make changes in predatory debt collection tactics. 

I am glad to see that CFPB is working with congress to resolve this issue of Zombie Mortgages as ( NY Attorney General XXXX XXXX, XXXX ) rightly said : [ Zombie debt ] places homeowners who were victims of the XXXX subprime lending [ foreclosure crisis ] at risk again of losing their home due to predatory practices. 

Like me, many home owners who are dealing with their 2nd home lien that was taken between XXXX like mine and kept on paying only one mortgage as second mortgage ( home equity line ) we assumes and thought that may have already paid off. 

But as a result of mortgage meltdown with unethical practices and many homeowners were victims of of the XXXX subprime lending [ foreclosure crisis ] practices of the mortgage lenders that time who provided sometime upto 100 % of the value of the loan and some cases over 120 % of the appraised value that time. 

I was doing online research to avoid foreclosure on my home which is just 12 days away from today which is enforced by the 2nd lien holder ( Zombie Mortgage from XXXX which is no more in business ) and that Zombie Mortgage may have sold at even less than XXXX XXXX  against the dollar while exchanging hands many times before Planet Home Lending & their investor XXXXXXXX XXXX from XXXX, Florida who registered this Zombie Mortgage in XXXX when none of the previous owners of this mortgage except first one " XXXXXXXX XXXX XXXXXXXX XXXX '' in XXXX along with my 1st Lien on the same day XX/XX/XXXX. 

As I exhausted all options, I turned to online research and learned from the " XXXX XXXX XXXX XXXX '' and XXXX XXXX, Managing Director at that Center, who testified at the Consumer Financial Protection Bureau Field ( CFPB ) Hearing on Zombie Debt in XX/XX/XXXX. During his testimony, XXXX suggests that the CFPB work toward new laws that require lenders to disclose how much they paid to acquire debt before they can enforce it, saying if they did pay XXXX cents on the dollar, maybe they can get XXXX or XXXX XXXX  for itthey dont need XXXXXXXX XXXX 

I repurchased my house in XXXX in my divorce settlement from my x-wife and took mortgage with lender/service provider called " XXXXXXXX XXXX XXXX XXXX XXXX XXXX They sold my loan to XXXXXXXX XXXX in XXXX and XXXXXXXX XXXX  sold my loan to XXXXXXXX XXXX  in XXXX. 

I only recollect about writing one check for my mortgage payment to " XXXX XXXX XXXXXXXX XXXX '' from XXXX to XXXX and then to XXXXXXXX XXXX when they took over in XXXX. I saw two separate payments going to XXXXXXXX XXXX between XXXX ( XXXX ) before they went under water during mortgage meltdown crises we witnessed in XXXX. 

I believe before XXXX, I was only combining both payments ( Primary 1st mortgage and secondary Home Equity Line of Credit to support the payments of divorce settlement expenses ) until XXXX took over and they separated those two mortgages under two different loans. 

As XXXXXXXX XXXX filed bankruptcy, XXXX took over my loan ( Only 1st Lien ) but second lien went as Zombie Mortgage which I thought that I may have already paid off between XXXX based on the whatever amount of Home Equity Line of Credit I may have used. 

But unfortunately there is no traceability nor any document linkage today going back to the payments those I made to XXXXXXXX XXXX XXXXXXXX XXXX ( from XXXX combined for both liens ) and to Central Mortagage ( From XXXX ) under what scenarios except this second Zombie Mortgage which is claimed by Planet Home Lending have records showing that I stopped paying to XXXX Mortgage in XX/XX/XXXX and my loan is in default for over 13 years and waited for so many years to collect their debt with all interest based on the XXXX note that I signed as Home Equity Line of Credit at unprecedented level of interest rate. 

Since XXXX went bankrupt between XXXX as a result of Mortgage Meltdown issues, XXXX picked up my loan and I was paying only one mortgage to XXXX which last year merged with XXXX XXXX XXXX 

Since my 1st lien holder in my recollection and the only one that I was aware off who is paying all taxes and insurances for so many years, the 2nd ( Zombie Mortgage - Home Equity Line of Credit ) that resurfaced back in XXXX, It was not a surprise to me as another mortgage company called XXXX XXXX did threatened me in XXXX that they will foreclose on my house similar to what Planet Home Mortgage as they claimed the ownership of this 2nd Zombie Mortgage. 

I asked XXXX XXXX  that time ( XXXX ) to provide me the linkage of my loan documents to XXXX that I took originally from XXXXXXXX XXXX when I signed those liens which they claimed that debt I owe them. I also agreed with them that if the debt they claim is valid, I have no issues to start monthly 2nd mortgage payments. But they never provided straight answer about how they purchased that note from the previous investor but instead, XXXX XXXX in XXXX came up with one time settlement of {$36000.00} ( Offer Letter Attached ) which I turned down as they never provided proper documentations to prove their claims. 

Now, since similar threat came last year ( XXXX ) from Planet Home Mortgage like XXXXXXXX XXXX in XXXX. Since, I was locked in with my other personal and very complicated business-related legal matters since XXXX, I ignored their threats. After going thru similar agonizing exchanges with their lawyers and whoever is the investor who decided to cash out this Zombie Mortgage which must have exchanged hands at least 5-6 times considering how many times I received those 2nd mortgage claims with no substance. Planet Home Mortgage also provided me one time settlement of {$90000.00} from their legal advisor ( XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXXXX/XX/XXXX Attached ). 

Since I was not in a position to make such payment, I went thru taking XXXX route because of my financial crises & hardship due to significant business losses during COVID to save my home. I have no issues with the 1st lien XXXX and they kept me in my home during COVID-19 and gave me the forbearance plan to delay my payments. 

XXXX ( 1st Lien Holder ) also gave me the loan modification, but 2nd lien holder that is currently claimed by Planet Home Lending ( Zombie Mortgage from XXXX ), only interested in foreclosure on my home that I am residing since XXXX because when they did their own Internal BPO by hiring independent 3rd party licenses appraiser of {$760000.00} ( XXXX XXXXXXXX Attached ), they learned that what they expected the value of my home must have gone significantly higher and knowing that I owe 1st Mortgage over {$630000.00}, they may not even get {$25000.00} in one time settlement. 

I did offer them to have peace in my life the settlement that XXXX XXXX gave me in XXXX and even increased to {$50000.00} but whoever the investor ( XXXXXXXX XXXX From XXXX who registered that company in XXXX and claimed this mortgage in XXXX ), because of their greedy nature, they denied and forced me to list the property for sale. My property went on sale in later XXXX, but no offer received what they expected to be over {$1.00} XXXX, considering the high-power tension lines and significant area is under XXXXXXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX The only offer we received from one landscaping company for {$700000.00} considering all those issues and I requested them to do the short sale which they denied. 

After talking to my close friends, well-wishers and relatives who are willing to pull together to keep me in my home, I submitted Loan Modification application and One Time Settlement offer on XX/XX/XXXX for {$90000.00} ( Letter Attached ) what their lawyer mentioned that the investor will not take a single dime less than {$90000.00} XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXXXXXX XXXX XXXXXX/XX/XXXX Attached ) but ruthlessly, Planet Home Lending/Investor even denied their own offer with no counteroffer except forcing the foreclosure. 

I also submitted the Home Loan Mortgage Assistance to modify the loan as One-time settlement offer denied and they came up with 37 days window before the foreclosure that I must apply and technically speaking I did but they killed valuable time by either not responding to my requests or asking me to wait for 3-4 days every time when I used to call them for status update on my options as loan modification. Planet Home Lending informed me last week, that they have received my complete application for the loss mitigation assistance on XX/XX/XXXX ( Letter Attached ). 

Also, on the same day t ( XX/XX/XXXX ) coincidently, they asked their lawyer to send me Foreclosure Notice ( Notice Attached ) which I received on Monday ( XX/XX/XXXX ). I called them on Monday ( XX/XX/XXXX ), to check whether they are still working on my Loan Modification request or not and they told me to wait for another 3-4 days since their back office need to reopen my case. 
I was calling them every day since XX/XX/XXXX and today they told me that I need to resubmit the package for consideration when they already in reality I was working with them since XX/XX/XXXX and they confirmed that they received all documents to complete my application on XX/XX/XXXX. 

I tried to resubmit all documents again today ( XX/XX/XXXX ) on their portal and learned that they revoked my privileges to submit documents on their site ( XXXX XXXX XXXX XXXX - Unable to Request Assistance Details Attached ) and they closed my Mortgage Loan Assistance Package today ( Activity Report Attached ). 

It is clear that never had intention to offer me the loan modification nor to accept any other alternative except to foreclose my house to seek the entire claims they made on the interest for over 16 years of this Zombie Mortgage with the claims of over {$330000.00}. Planet Home Lending Mitigation Department Representative I talked to today asked me to submit all documents via email ( Email Communication Report Attached ) but I know it is absolutely of no use except they are killing me and my wife with this painful process and unrealistic demands when we all know that this investor may have purchased this Zombie note for less than {$25000.00} and others already taken write-off as our tax codes allowed to do that but it is unfair on the home owners like us when there is no value in the house, someone is knocking on the door for their greed to kick us out of the house by flashing their ownership of Zombie Mortgage and the First Lien Holder who is actually paying all taxes and insurances to protect the house and made all efforts to keep us in the house during our financial hardship and COVID-19 pandemic while me ( undergoing XXXX XXXX XXXX XXXX  health issues ) and my wife ( who is undergoing XXXX XXXXXXXX XXXX  ). 

I exhausted all options and seeking your help to investigate this matter and need justice to resolve this matter in a most amicable way as me and my wife both having serious health issues and we want to save our home and avoid this unprecedented level of stress caused by this Zombie Mortgage owners. 

I really appreciate your assistance on this matter ASAP as time is of the essence as this Zombie Mortgage owner/Service provider Planet Home Lending selling my home in auction/Foreclosure XXXX XXXX XXXXXXXXXXXX XXXX that I am in living as our Primary Residence since XXXX. 

Thanks.

Company response to consumer: Closed with explanation