Consumer complaint received 2023-08-22
Company: Specialized Loan Servicing Holdings LLC
State: NC
Product: Mortgage
Sub-product: Home equity loan or line of credit (HELOC)
Issue: Trouble during payment process

Complaint:
I obtained a second mortgage in XXXX with XXXX. I made several payments on this loan, and it was combined into a single mortgage with XXXX XXXX XXXXXXXX when XXXX went out of business. Or so I thought. Around XXXX I started receiving notifications from Specialized Loan Servicing that I owed for a mortgage. I tried contacting them, when I put in my social security number and the property zip code, they said that I did not have any loans. I assumed it was a scam, and when I see something in the mail sometime later, I got the same result. Finally about a year or two later I had something hanging on my door from the same company. I tried going through them again and eventually spoke to a person there. I gave them the same information, they said they had no record of it. I started to sell my property around XXXX, at that time an attorney started searching for title. He did find a second lien that was still out on the property. It took him several months to find out who the company was and it was XXXX XXXX XXXX that was currently holding the lien. It took a while to be able to communicate with them, they actually had the wrong address information on the loan. I repeatedly tried to negotiate with them, and create a settlement. They refused to do anything. Knowing that I was trying to sell my property, they would not negotiate on anything. I did receive a response for some of my settlement offers that said that the loan was charged off for administrative and accounting purposes in XXXX. This went on for a while, and I had to close on my property, plus I had a contingency on the place that I was buying that I had put down a considerable down payment. I had disputed this with them, to no avail. I had to get an attorney to send them documents requesting everything that they had regarding this loan. We received them, but not in time for my closing of my property. I was forced to pay off this lien of {$140000.00} on a {$60000.00} loan. {$81000.00} of interest on a {$60000.00} loan is excessive. I also question the amortization of the loan with XXXX along with payments made in XXXX not being applied. They are no longer in business, so there's not much to do there. Specialized Loan Servicing was not able to contact, because they had incorrect information regarding my loan. And then they also did not want to settle or even discuss anything that would be a reasonable settlement amount. They held out knowing that had finally built up equity in my property, knowing that I was selling it, and also told me they were not even listening to settlement offers until I sent them a copy of my first mortgage statement. All these tactics created this loan to balloon to the excessive amount. The typical XXXX mortgage scam. They buy these loans on the secondary market for less than value, no one knows who actually has the loan. And then they created a scenario where I was not able to determine if it was legitimate or a scam. Even until I received the documents, I was surprised that the second mortgage was never combined with the first one to begin with. They held out knowing that they had me over a barrel, and cleaned out all the profit I made from the sale of 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