Consumer complaint received 2020-07-01
Company: Specialized Loan Servicing Holdings LLC
State: CO
Product: Mortgage
Sub-product: Conventional home mortgage
Issue: Trouble during payment process

Complaint:
this is in regards to my Mortgage company : SLS or Specialized Loan Servicing, XXXX XXXX XXXX, XXXX XXXX. XXXX XXXX, CO XXXX. 

This complaint is in reference and regards to my XX/XX/2020 mortgage payment. 
I usually pay in partial payments as I get paid biweekly and pay SLS when I get paid via transfer from my bank to them online. It has never been a problem, however, this time around, my last partial payment of XXXX was returned due to my bank holding the funds. When I realized that XXXX ( my bank ) was holding my funds, I immediately called SLS customer service and told them what had happened. I then made another transfer from a different account, that I used, to make sure that full payment for XXXX was made. As of XX/XX/XXXX I then saw online that my funds for XXXX were being held in a so called unapplied funds account or Suspense account but was not applied to my mortgage. 
I then called SLS customer service on the XXXX of XXXX and asked, why those funds were still sitting in the unapplied funds side and she said, that they would be applied for my XXXX payment shortly. 
I had specifically asked to have this funds properly applied because I was going to refinance my house in my name and my daughters name and could not afford, to have a late payment history with even one time on my credit record. 

She assured me, that this would not be the case and I Iet it go. 
To my surprise, it became XXXX and my XXXX payment still had not been applied properly, so I called customer service a third time, to ask why my XXXX payment still was not applied to my mortgage. Customer service then told me, that my account had to be satisfied by Certified Check/Cashiers Check and that my payment for XXXX was to be returned. I had no knowledge about this, as I had neither received a letter nor an email or a phone call to tell me, that I had to sent in my payments via Official Bank check. Had I not called and inquired about my payment I would not have known to sent my payment via Cashiers Check. Never mind that my funds still were held in a Suspense account, instead of applying those funds to my XXXX payment. 
I then immediately rushed to the bank and got a Cashiers check for both XXXX and XXXX as instructed. I received finally a letter from SLS on XX/XX/2020 telling me, that I had to pay by Cashier Check and that this would be in effect for 6 months due to my latest payment being returned. 

As soon as they received my check, they applied my payment to my XXXX and XXXX mortgage and I am now paid ahead. 

However, I recently went online to check if SLS applied everything correctly and to my surprise, they reported me as being more than 30 days late on my XXXX payment and I cant therefore not be guaranteed, that I would a great mortgage rate under FHA rules. 

I feel appalled and very upset that they are dishonest and unethical with my finances and that is why I need to file this complaint. When I go on their website, I can see, that they have more than 400 complaints against them and most are about the same problem that I am facing. My question is, why report me being late, while that whole time the funds were held in a different account but were clearly there.They never answered my direct question, just said since I had to pay by Cashier Check they had to keep my XXXX payment in a suspense account and not apply this to my mortgage until they received my Cashiers Check. 


Thank you so much for your time. 

Sincerely, XXXX XXXX from Colorado

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