Consumer complaint received 2023-12-11
Company: Specialized Loan Servicing Holdings LLC
State: NY
Product: Mortgage
Sub-product: Home equity loan or line of credit (HELOC)
Issue: Trouble during payment process
Sub-issue: Trying to communicate with the company to fix an issue while managing or servicing your loan

Complaint:
My Heloc was modified in XXXX, and I have made payments consistent with the amounts scheduled in the modification for 12+ years- including SLS for more than a year. Earlier this year, SLS claims they accidentally adjusted my maturity date in accordance with the original HELOC note ( maturity of XXXX ) as well as the payment due was adjusted upward. Once SLS reviewed the modification, they corrected the maturity date ( to a maturity date of XXXX ) - though they did not adjust the payments back to the agreed upon schedule in breach of the agreement. SLS is claiming that in order to pay the note in full by the maturity date of XXXX, that the payment must be adjusted upward and the schedule in the modification agreement is just a guide. While the modification states that it is a guide- it ignores not only XXXX years of strict adherence of multiple servicers to the payment schedule ( which I have paid in full and on time ), the precedence set, but also the additional guidance within the modification agreement that SLS ignores supporting that there could be a significant balance remaining due at maturity that must be paid in full at that time. I have a highlighted copy of the modification agreement- which shows not only the table of payments- but also the areas that SLS has not responded to which further support my comments that the payment in the schedule could have principal and interest components that vary monthly ( as a simple interest loan ) but the total payment due will equal the amount in the schedule. Paragraph 11 of the modification states that the loan is payable in full at maturity- indicating that at the point of maturity the balance could be significant ( potentially requiring the borrower to find a lender to make the final payment ). This supports my statement that the agreement I signed- and was agreed upon for 12+ years, that payment due follows the payment schedule as outlined in the modification agreement and that it should not be adjusted if there is an instance that requires the payment to be recalculated routinely if principal payment is insufficient. Further I paid a few days early or on time ( on autopayment ) on a regular basis, which would reduce the interest owed in terms of the agreement ( in the case of the early payments, not the on time payments- but most months was a few days early ) - and not add to the interest necessitating additional principal repayment in the first place. The terms of the modification- legally, 12+ years of precedent, and the spirit of the modification were to align with the scheduled payment plan which now reflects an increased principal payment causing the monthly payment to far exceed the amount I agreed upon. Additionally, SLS damaged my credit score by reporting the modification 12+ years after the event occured ( as the original modification was not recorded publicly ). This resulted in a XXXX point hit to my credit score. Since the event happened more than a decade prior, my credit today should not be impacted by an even that happened so far in the past. SLS claims they did not enter a negative credit event- but that is precisely what their actions resulted in.

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