Consumer complaint received 2022-02-20
Company: Specialized Loan Servicing Holdings LLC
State: VA
Product: Debt collection
Sub-product: Mortgage debt
Issue: Attempts to collect debt not owed
Sub-issue: Debt is not yours

Complaint:
Specialized Loan Servicing ( SLS ) is engaged in 1. bad-faith dealing ; 2. making me. a trustee, assume the mortgage loan personally and transfer the deed from the trust to me which is a financial felony ; 3. unfair banking practices. 
1. BAD-FAITH DEALING : When I ended the forbearance agreement XXXX, XXXX, the loan was with XXXX XXXX . SLS took over in XXXX, XXXX. In discussions about paying back the forbearance balances, I suggested that they be deferred to the maturity of the loan. SLS granted the request on one loan, but denied it on another. Instead, I was coerced to modify the loan which was to pay interest on interest in exchange for a longer maturity and lower monthly payments. I was sent the modification agreement which I signed and returned on XX/XX/XXXX. It was received by XXXX XXXX. The mortgage on the XXXX XXXX property was then put on trial payment period for three months. SLS set up the automatic draft payments. The trial ended successfully in XXXX, XXXX. In XXXX, instead of getting a permanent modification with payments automatically drafted, I received a call asking me to pay a higher amount, from the trial payments of {$1200.00} to {$1200.00}. No explanation provided. I set up recurring payments for that amount beginning in XXXX. It was returned because I was told the account is in default. SLS required me to mail the payments. I do not understand why SLS is making it extremey difficult to make the payments. It is not sufficiently explained why it would accept mailed payments but not automatic payments by bill pay from my bank. In XXXX, I received a call asking me to personally assume the loan and transfer the deed from the trust to me. I objected because I told them that it would be financial felony. 
2. SLS WANTS ME TO COMMIT FINANCIAL FELONY as a condition to modify the loan. I informed SLS that I am only a successor trustee with no beneficiary interest on the property whatsoever. I provided SLS the documents it requested.

I was recognized as successor in interest trustee after many months of discussions. As noted before, SLS wanted me to assume the loan personally and transfer the deed to my name. I objected telling them that it would be a financial crime to appropriate an asset that it intented for the sole beneficiary of my sister 's trust ( her one and only child ). Because I objected, SLS is now threatening to foreclose on the property unless I accepted its loan modification terms.

3. SLS is engaged in unfair business practices in violation of RESPA rules. It has already been penalized by CFPB for those violations, but it seems that it is still continuing its practice. For example, even though I have told its debt collectors not to call me after XXXX XXXX, it continued to call me even as late as XXXX XXXX, insisting that it is within its legal right. Another example : it did not notify me that it would be charging late fees and inspection fees. I informed SLS that the property has always had persons present in the property, and is now leased for 2 years. SLS proceeded neverteless with charging inspection fees without notifying me. SLS also is in error in designating me as successor-in-interest trustee even though I informed them that I have no beneficial interest in the property. Initially, SLS wanted me to go to probate court to be designated as executor. I submitted to SLS the trust documents naming me as successor trustee which makes it unnecessary to go to probate court. SLS accepted the trust documents and named me successor-in-interest trustee instead of just successor trustee.

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