Consumer complaint received 2017-05-09
Company: Specialized Loan Servicing Holdings LLC
State: FL
Product: Mortgage
Sub-product: FHA mortgage
Issue: Trouble during payment process

Complaint:
Specialized Loan Servicing ( SLS ) acq uired my loan sometime prior to  XXXX . Also, during the acquisition period, an insurance check was issued to me and the loan servicer for a roof replacement made well befor e SLS ac quired the loan. SLS did not endorse the check and return to me, rather they credited it automatically, without consulting me, to mortgage payments. When I learned of the credit towards the mortgage payments, I accepted it and noted that  the next 4 payments were paid in advance. During that 4 month period, SLS determined that they did not have the right to apply the funds to mortga ge payments and reversed the payments ( thus immediately creating a default ) and then placed the funds in an escrow account. I was then sued for foreclosure. I tried to contact  counsel for SLS wh o refused to provide a workout or application for workout. In  XXXX   XXXX  I received notice of foreclosure sale having never had the opportunity to apply for modification nor did they provide me with the $  XXXX  which  SLS was   holding. My attorney got involved and I received a modification package. My attorney also provided me with an email that accidentally included an internal email between SLS and their counsel stating that they had already set the sale, would deny my application when received and go forward with the foreclosure sale. In other words, they had no intention of processing the modification package. When it was brought to SLS ' attention, they asked that the email be destroyed and they provided me with a modification. When I asked about my $  XXXX  the  SLS r epresentative said that I would get it back after paying 6 months of mortgage payments. I objected but they refused to return me the money. Further, my mortgage is now over {$200000.00} because of fees, costs, unpaid interest, etc. that they tacked onto the back end of the mortgage. My original mortgage in  XXXX  was for {$120000.00}. It was refinanced once and was approximately $  XXXX  at the time this issue began with SLS. I paid 6 months of mortgage and have spent the past 5 years trying to get my $  XXXX  back. I sent emails on the SLS site, I spoke with representatives and finally at the beginning of this year, I was told that they would not return my money without an attorney. I told them to apply it to my mortgage payments. They refused and now they are returning the mortgage payments I am making monthly. I expect that I will be receiving a foreclosure suit at any time.   I have also learned of others who have SLS mortgages that went into foreclosure, that were not provided a mortgage modification package until days before the foreclosure sale and lost their homes because SLS did not process the modification package in time.   I did not delete the email and still have the email string containing the discussion about automatically denying the application when received and that a foreclosure sale date was set before ever providing me with the modification package.

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