Consumer complaint received 2023-10-23
Company: Specialized Loan Servicing Holdings LLC
State: CA
Product: Debt collection
Sub-product: Mortgage debt
Issue: Attempts to collect debt not owed
Sub-issue: Debt was result of identity theft

Complaint:
To : Consumer Financial Protection Bureau XX/XX/XXXXXXXX  RE CFPB Case # XXXX Rebuttal /Amended Complaint to Response by Specialized Loan Servicing LLC dated XX/XX/XXXXXXXX  The received response letter ( XX/XX/XXXXXXXX  ) from Specialized Loan Servicing, LLC ( SLS ) is filled with false statements, traceable violations of CFPB rules and regulation and misrepresentation of actual facts. We are still studying the financial records but wish to renew a complaint of consumer abuses by Specialized Loan Servicing, LLC, prior abuses by loan servicer XXXX XXXX XXXX, XXXX. and corporations SLS identified as creditor XXXX XXXX XXXX XXXX XXXX XXXX XXXX and and trustee XXXX XXXX, XXXX XXXX as the foundation of their rights to debt collection. 
A. SLS ' False Facts Regarding Property Insurance : On or about XX/XX/XXXXXXXX  Specialized Loan Servicing, LLC ( SLS ) contacted our insurance carrier and directed them to disallow us to make insurance payments directly. In their response to the above complaint [ Case # XXXX ] SLS ' admits a single record of contact [ ing ] made to the insurance company [ XXXX ] was on XX/XX/XXXX. This is false. XXXX provided a special notice to us on XX/XX/XXXX letting us know we were : no longer listed as the payer for this policy. As a result, future bills will be sent to the designated payer i.e. your mortgage company. [ Attached as Exhibit 1 is that notice from insurance company, XXXX dated XX/XX/XXXX. ] The date of SLS ' records of contact and the outcome of their action ( s ) are a misrepresentation of facts in SLS ' XX/XX/XXXX response. This was an attempt by SLS to pile additional bogus charges to our mortgage. We have always paid our own home insurance, and have ample evidence of that fact. 
B. Deed of Trust ( DOT ) Submitted by Specialized Loan Servicing Specialized Loan Servicing offers the DOT as one of its foundation for their money claims. However there is a major problem with that for SLS. In XXXX, XXXX  we discovered the DOT was a materially altered document. XXXX XXXX  XXXX recorded in ( DOC-XXXX, XX/XX/XXXXXXXX  [ attached first page Exhibit 2 ] ) an extra page titled DESCRIPTION ( SLS Response page 23/103 ) which adds ( after the fact ) an extra 3,600 Square Foot parcel of vacant land ( APN No. XXXX ) to the security.i SLS ' submitted, altered loan contract is void. 
C. There Never Was a Forbearance Agreement On page 2/103 of SLS 's response they claim there were forbearance processes from XXXX  and XXXX. This is a misrepresentation of the facts by SLS. In a state trial for injunctive relief from a threatened nonjudicial foreclosure sale, XXXX XXXX XXXX, XXXX. admitted ( XX/XX/XXXXXXXX  ) there never was an executed forbearance agreement.ii XXXX XXXX XXXX, XXXX. using an alias of XXXXXXXX XXXX  XXXX XXXX ( XXXX ) had attempted a foreclosure based on claimed bogus piled-on insurance and property tax payments which were challenged first in qualified written requests then in a state complaint. Under the guise of XXXX, XXXX XXXX XXXX, XXXX. ( XXXX  ) had attempted to engage us in a repayment agreement for amounts that had no basis. When we refused to agree to bogus charges with no substantiation, XXXX initiated a nonjudicial foreclosure sale in XXXX. On their own, XXXX retracted the foreclosure sale filing a Notice of Rescission of the Notice of Default and Notice of Trustee Sale ( DOC-XXXX ) recorded at XXXX XXXX County Recorders ' Office on XX/XX/XXXXXXXX  . Three foreclosure attempts have used bogus charges, diversion of payments for their own use and false statement of fact ( as Specialized Loan Servicing, LLC is now doing ). Each of these attempts have been illegal and terminated via Notices of Rescission. Another example of abuse. 
D. Promissory Note /Adjustable Rate Rider : The promissory note and adjustable rate rider are subject to law as found in Note 6 [ SLS 's response page 6/103 ] and DOT 14. In both documents, changes in interest rates are required to comply with state and federal laws. In this case California Civil Code 1916.5 supersedes the loan terms for interest adjustment. In their response, SLS referenced the Note and Deed of Trust language, but refuses to comply with the commitment to follow the laws and rules of California or Federal Rules as they have been determined by law. iii E. Unauthorized Charges In the response periodic statement for amount due XX/XX/XXXXXXXX  SLS still shows it charged our mortgage account periodic unauthorized fees now totaling {$69000.00} in year to date Fees/ Charges/ Optional Product. ( See page 102/103 of SLS ' response. ) These charges are contrary to the Bankruptcy closing records showing amount outstanding as {$0.00} See attached Exhibit 3 : Form 4001R filed XX/XX/XXXXXXXX  by SLS ' attorney : XXXX XXXX. 
Another example is, Specialized Loan Servicing, LLC received a mortgage payment cashiers ' check # XXXX on XX/XX/XXXXXXXX  per signed return receipt USPS Record XXXX XXXX XXXX XXXX XXXX in the amount of {$22000.00}. Specialized Loan Servicing, LLC did not record receipt until XX/XX/XXXXXXXX  as Single Item Receipt but placed the funds in Unapplied Funds keeping this money for itself and never crediting at any time towards principal or interest. The alleged principal balance both before and after this XX/XX/XXXXXXXX  payment stayed unchanged at {$350000.00} ( SLS ' Response pages 41-42/103 See copy of check and signed receipt attached as Exhibit 4. 
Conclusion/Request for Help What we have seen from XXXX XXXX XXXX XXXX XXXX. and Specialized Loan Servicing, LLC 's responses to our multiple ( 16 ) qualified written requests are poorly organized, contradicting financial reporting, misapplication of payments when received and what appears are, to our knowledge, illegal diverting our mortgage payments for their own use and profits. SLS presents their financial information in a manner that does not follow generally accepted accounting practices. 
As an example in response to some qualified written requests SLS admits to taking a mortage payment of {$7900.00} and reversed off the account on XX/XX/XXXXXXXX  ( See letter XX/XX/XXXX attached as Exhibit 5 ) ( SLS response page 70/103 ) But, SLS never credited this payment to reduce principal or pay interest. Instead, SLS increased the outstanding principal balance after receipt of the payment. 
Another example is 13 fraudulent late charges, each for {$990.00} on XX/XX/XXXXXXXX  ( SLS Response pages 75-76/103 ) and a bogus charge of {$99000.00} ( Fee Billed ) on XX/XX/XXXXXXXX  ( SLS Response page 74/103, see also Exhibit 5 ledger page 4/7 ). SLS and XXXX XXXX XXXX, XXXX. refuse to provide any substantiating proof of those charges or explanation of where the money has disappeared to ( though corporate criminality is certainly a possibility. ) We have excellent and accurate evidence of our payments made. Each month we send a certified check via USPS tracked mail with signed returned receipt. We know when SLS receives each check and when they cash it ( or hold it and illegally charge late fees. ) We suffer financially as principal is not reduced when payments are diverted to SLS ' own accounts and interest charges are based on inflated outstanding loan balances. In addition when interest rates are illegally inflated by failure to adhere to California laws, we are forced to pay extra amounts each month. 
We believe you know that XXXX XXXX XXXX, XXXX. and Specialized Loan Servicing, LLC ( alter ego of XXXX XXXX ) have miserable reputations and numerous complaints against them. We have been dealing with this abuse and incessant criminal actions for years. At this point it could legally be called elder abuse! We seek guidance and assistance from CFPB in stopping the loan servicer abuses SLS makes for their own gain and on behalf of trustee XXXX XXXX, XXXX, and Real Estate Investment Trust pooling agent XXXX XXXX XXXX XXXX XXXX XXXX XXXX ( SLS ' response page 1/103. ). 
We will diligently address all 103 pages of SLS ' response and bring CFPB up to date as soon as possible. However these financial records are presented in a difficult and obscure manner which it seems is to purposefully obfuscate the information. 
Thank you in advance for any help you can offer in bringing SLS and its cohorts to stop their fiscal past and present white collar shakedown. 



XXXX XXXX XXXX XXXX XXXX XXXX

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