Consumer complaint received 2021-03-16
Company: FCI Lender Services Inc.
State: CA
Product: Mortgage
Sub-product: Other type of mortgage
Issue: Struggling to pay mortgage

Complaint:
My family home of 60  years was wrongfully foreclosed on by FCI Lender Services. They conspired along with private investor XXXX XXXX XXXX XXXX XXXX XXXX, XXXX XXXX Specialists, XXXX, XXXX XXXX XXXX and XXXX XXXX XXXX in a scheme to trap me and ultimately steal my home. They also defrauded the government and FHA and California through this scheme, where they unjustly enriched themselves. XXXX XXXX XXXX and supposed non-profit XXXX facilitated a bailout loan to save me from foreclosure and told me that through the new loan my payments would be covered for 12 months. I never received a mortgage statement or coupon from FCI. I never even heard of them until they filed a Notice of Default against me. I thought they were REQUIRED to provide me with statements, payment coupons, loan number, loan status. My first communication with them was when they filed an NOD. They did not conduct a review or evaluate my finances and " ability to pay, '' they did not provide the proper disclosures, and they violated California law. On the NOD statement they try to sell the lie that they do not need to follow California civil code 2923.5 because the loan was not secured by a first mortgage. ( NOD statement attached ) However, in the same loan paperwork ( attached XXXX XXXX XXXX XXXX is listed as a participant and beneficiary of the transaction and they do have a trust deed. This is obviously part of the " racket '' that XXXX, private investors, XXXX XXXX XXXX, FCI Lender Services and California XXXX Specialists engages in over and over. 

I had major health issues in 2016 and fell behind on my mortgage with XXXX XXXX. That is when I heard about the Cal HFHA program offered through the state of California and the government with balance forgiveness. This caught me up, but my health problems persisted and a couple years later I was in foreclosure again. 

I contacted XXXX a non-profit that could help struggling homeowners modify their payments and get out of foreclosure. Once XXXX  and the loan officer XXXX XXXX learned that I had a Cal HFHA loan it seems their focus changed from modification to writing a new loan. I spoke with the XXXX Attorney and they told me they could get me a bridge loan to get me out of foreclosure and provide some extra money for repairs and they also would help with credit repair -- -I was told that it would be a loan with payments deferred, no payments for 12 months and they would also set aside money to put towards fixing home -- -within a year my credit would improve and I could refi into conventional loan. It sounded too good to be true -- and it was. As I filled out the paperwork I was told by broker XXXX XXXX and the team at XXXX that if I wanted the loan to go through I needed to list the address of a neighboring home where I had provided in home care as my primary residence, and that I needed to list my home as a rental house. I did not ask any questions, this was a respected nonprofit, a licensed Attorney and a licensed loan broker telling me what to do. 

This was a predatory hard money loan funded by private investor XXXX XXXX ( XXXX XXXX ) interest rate of 11 % with interest only monthly payments of {$2400.00} with a 3 year term with 1 year prepayment penalty then balloon payment of {$260000.00}. The broker charged me a {$25000.00} origination fee as well as a processing fee of {$2000.00}, XXXX placed a deed of trust on my title ( attached ) for {$15000.00}, and took a {$12000.00} origination fee as well as a {$1700.00} processing fee and {$990.00} underwriting fee. I was told that this money was going to be used to " repair my credit '' through XXXX Consumer Services, however I don't know why a trust deed for {$15000.00} needed to be placed on my title with over 100 % fees charged to allegedly help with a credit repair service that had a contracted fee of {$3000.00}? However, when FCI came out of nowhere with the NOD and they told me to pay them $ XXXX I ended up losing my home.

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