Consumer complaint received 2018-03-10
Company: Specialized Loan Servicing Holdings LLC
State: CA
Product: Mortgage
Sub-product: Conventional home mortgage
Issue: Trouble during payment process

Complaint:
XX/XX/XXXX XXXX and XXXX XXXX XXXX XXXX XXXX XXXX, CA XXXX XXXX RE : XXXX # XXXX SLS # XXXX To Whom It May Concern, We are writing today to inform you of the events, some of which many would deem unethical if not unlawful, that have led to our request for an investigation into these practices, or possible assistance in clearing up the matter. We will be listing the events in timeline order in hopes of making them easier to follow. 

First, let us give you a short recap of who we are in order to give you a better understanding of our background. XXXX is a XXXX XXXX XXXX and XXXX is a XXXX. They are extremely active in their community, with XXXX being awarded Woman of the Year in her community, and Elk of the Month in her local Elks Lodge for countless volunteer hours helping veterans, abused women and children, students in the District, etc.. They have been together since XX/XX/XXXX, meeting as teenagers and becoming young parents to XXXX, now XXXX, and XXXX, now XXXX. They bought their home in XX/XX/XXXX. When the recession hit around XX/XX/XXXX, XXXX was working long hours and often not getting paid by his clients for the work he completed, as those clients were also facing the effects of the recession. XXXX, then in her early XXXX, had returned to college, taking upwards of XXXX units per semester, graduating with her XXXX with honors before receiving her XXXX credential. With the decline in the economy, XXXX student loans carried them through financially. However, they fell behind in their mortgage. In XX/XX/XXXX, with the economy picking up, XXXX started with his plan to make double payments on the mortgage in order to help catch up with the months they were behind in paying. In XX/XX/XXXX, he made his first double payment. The following month, he called in to do the same, and  was told no payment would be accepted because they were seven months behind. When XXXX mentioned to the phone operator that he had just made a double payment and were only five months behind, he was told there was no history of that transaction. This is where our story with XXXX XXXX XXXXXXXX and Specialized Loan Servicing ( SLS ) begins ... 

XX/XX/XXXX - We receive notice that our loan has been transferred from XXXX XXXX to XXXX XXXX XXXX, a division of XXXX XXXX XXXX. 

XX/XX/XXXX - We received a notice from XXXX XXXX stating the balance owed on the home was {$350000.00}. 

XX/XX/XXXX - The last dated statement weve received from XXXX XXXX states a  balance of {$330000.00} is owed. 

XX/XX/XXXX - XXXX makes a double payment on the account, bringing the months in arrear to just five months. 

XX/XX/XXXX and early XX/XX/XXXX - XXXX makes several calls to XXXX XXXX to make another double payment and is denied, being told the foreclosure process has begun as there has not been a payment made since XX/XX/XXXX. When XXXX states he had just made a double payment the previous month, he is told there is no record of this payment. We proceed to make several more phone calls regarding the missing payments. 

XX/XX/XXXX - We receive a notice of foreclosure. 

XX/XX/XXXX - XXXX writes to XXXX XXXX regarding opening an investigation into the missing payments from XX/XX/XXXX. 

XX/XX/XXXX - XXXX responds to XXXX letter, and includes a printout of payments received, which shows there were, indeed, two payments made in XX/XX/XXXX. However, this confidential loan information is sent XXXX at a totally unknown address in a completely different state ( New Jersey ). XXXX XXXX XXXX, the recipient of this information, was kind enough to mail us those documents, along with the original mailing envelope. NOTE : This is the beginning of a pattern by XXXX XXXX and Specialized Loan Servicing ( SLS ) of mailing important and time sensitive material to the incorrect address. If not for XXXX XXXX tracking us down and mailing us our information, we would never have proof that our XX/XX/XXXX double payment was properly credited to our mortgage. 

XX/XX/XXXX - After months of sending in our information for a modification loan with XXXX XXXX, and repeatedly being told information was either missing or illegible, we spoke with attorney XXXX XXXX, and retained his services of assisting with the completion of our loan mod packet. 

XX/XX/XXXX - We contacted XXXX XXXX XXXX XXXX, a mortgage assistance program, to see if they could help with keeping our home. You will see in a future timeline entry that this did not work due to our servicers lack of response to their requests for information that would help us. 

XX/XX/XXXX - We received our first denial of a loan mod, due to missing paperwork. Our attorney, XXXX XXXX, disputed the rejection immediately with proof of all paperwork being turned in. 

XX/XX/XXXX - Foreclosure paperwork is taped to our front door. We continue to send in information requested to XXXX XXXX for the next several months, with communication between XXXX XXXX and XXXX XXXX continuing through email and postal mail. 

XX/XX/XXXX - We are informed by XXXX XXXX that XXXX XXXX of XXXX XXXX XXXX   contacted XXXX XXXX. Apparently, XXXX XXXX had been contacted by a Federal Monitor who, after reviewing loan modifications, expressed concerns regarding the extended amount of time the bank to resolve the loan mod. XXXX XXXX also assured a decision would be made in one to  two days of receiving one last document from us. 

XX/XX/XXXX - XXXX XXXX XXXX XXXX sends us a letter stating they are unable to assist due to the fact that our servicer failed to respond to their several requests for information, despite the fact that documents were signed by XXXX permitting XXXX XXXX XXXX XXXX to obtain said information. 

XX/XX/XXXX and XX/XX/XXXX - XXXX mails a letter to government and bank officials regarding the errors and irresponsible handling of our loan/loan modification. 

XX/XX/XXXX - Our modification loan is rejected. We are given thirty days to appeal. 

XX/XX/XXXX - XXXX XXXX writes XXXX in response to her letter to XXXX XXXX, Chairman of XXXX XXXX XXXX. In it, he incorrectly states the missing mortgage payments were from XX/XX/XXXX, when they were actually from XX/XX/XXXX. He states no payment can be accepted once foreclosure has started. The payments were received the month before foreclosure started and were not credited by XXXX phone calls in XX/XX/XXXX/XX/XX/XXXX. This shows yet again a pattern of miscommunication and lack of attention to detail that results in the foreclosure process continuing under false pretenses. 

XX/XX/XXXX - Attorney XXXX XXXX sends in the appeal, with ten days remaining before the deadline. He notes the NPV calculations used by XXXX XXXX in their reasoning for the denial doesnt make sense, and the appraisal does not coincide with several appraisal companies findings. 

XX/XX/XXXX - XXXX responds to a letter and phone call received from XXXX XXXX, an XXXX XXXX employee in the Default Escalation Department. XXXX XXXX voicemail stated he wanted to discuss XXXX letter sent to XXXX XXXX executives. While talking to XXXX XXXX, XXXX had to correct him when he attempted to discuss previous conversations between the two of them, which had never happened. After realizing his mistake and reviewing the loans history, he stated several times the loan was current. He stated our appeal sent in the time frame allotted was never received and the loan was transferred to a different department. 

XX/XX/XXXX - XXXX texted XXXX to relay the information she just learned during her phone call to XXXX XXXX. XXXX immediately called XXXX XXXX to make a payment, if indeed the account was current, only to hear the automated system stateme the loan was paid in full. Yes.  You read correctly. Paid in full. 

XX/XX/XXXX - XXXX purchases XXXX XXXX XXXX. We expect to receive paperwork from XXXX regarding our loan. 

XX/XX/XXXX - After months have gone by without hearing anything from XXXX XXXX, a document is sent to XXXX XXXX at an address he has never resided at. The address belongs to XXXX XXXX office. The document is from Specialized Loan Servicing ( SLS ). SLS has not had any dealings with XXXX XXXX. If they are taking over the loan, new documents should have been sent to the homeowner at his address and never were. The document demands {$70000.00} be paid to SLS before they would accept any mortgage payments. There was no accompanying letter, no mention of XXXX XXXX, no introduction of being the new holders or servicers of the loan. To us, it appeared to be another piece of junk mail similar to the hundred of pieces of mail and phone calls weve received since foreclosure began, asking for money. Our attorney, XXXX XXXX, responds to the request, stating if they are taking over the loan, then regular payments are required to be allowed to commence immediately. No response was received. 
XX/XX/XXXX -
SLS sends another bill to our lawyers address, but not response to our lawyers letter. Again, SLS has had no business with XXXX XXXX, so we are perplexed as to why our mail is being sent to that address and not to us. SLS is now demanding {$79000.00} before they will accept any payment on the loan. 

XX/XX/XXXX - Foreclosure paperwork is delivered to our home. 

XX/XX/XXXX - XXXX XXXX is retained as a second attorney to assist with a lawsuit in regards to the mismanagement of our loan and severe lack of communication from SLS. 

XX/XX/XXXX - Another loan modification application is sent in and is received by SLS on XX/XX/XXXX. 

XX/XX/XXXX - XXXX XXXX files our lawsuit. 

XX/XX/XXXX - a TRO is put on the sale of our home while XXXX XXXX XXXX reviews the case. 

XX/XX/XXXX - XXXX XXXX sends a response to SLS who stated on XX/XX/XXXX no postponement of foreclosure would occur. XXXX XXXX states that while a loan modification packet is in their possession and being reviewed, no foreclosure can take place, citing dual tracking. 

XX/XX/XXXX. XXXX - Opposing Counsel, XXXX XXXX, at XXXX XXXX XXXX XXXX XXXX contacts XXXX XXXX and offers a loan modification in exchange for dropping the lawsuit. 

XX/XX/XXXX - XXXX XXXX accepts the HAMP loan mod on our behalf, which requires three trial payments being mailed. 

XX/XX/XXXX - We sent in the first of three trial payments. Including in the mailing was a check from my XXXX card account, the necessary signed forms agreeing to the trial loan mod, and a letter from XXXX asking that any further communication be sent to our home address or phone number. The envelope was sent with a signature required for delivery. 

XX/XX/XXXX - Our second trial payment was sent in, along with the signed trial loan mod paperwork, another letter asking to be contacted at our home address, and a check from our  personal bank account. 

XX/XX/XXXX - Our third and final check, drawn from our personal bank account, was sent in with the necessary paperwork and another letter asking SLS to contact us directly, something they have failed to do from the get go. 

XX/XX/XXXX - We emailed XXXX XXXX inquiring as to why we hadnt heard from SLS regarding the trial loan mod. For the next couple of weeks, she emailed back and forth with opposing counsel, XXXX XXXX, about the checks. XXXX XXXX asked for proof of the payments being mailed in. After several weeks, we discovered SLS was sending correspondence to XXXX XXXX previous office address, ignoring our three requests for communication to come to our home address. SLS had cashed two of the payments, refusing to cash the check from XXXX XXXX card account, which would cash the same as a personal bank account check. XXXX XXXX said SLS demanded a personal bank check to be sent in. Meanwhile, SLS had canceled the trial loan mod after claiming payments were not sent in on time. Our signatures accepting the payments at SLSs XXXX XXXX, CO address says otherwise. Nowhere in the paperwork for the trial loan mod was there any stipulation of where the payments were drawn from. A replacement check was sent to SLS after waiting several days for XXXX XXXX to instruct us where  to send it. 

XX/XX/XXXX - XXXX XXXX, another XXXX XXXX XXXX XXXXXXXX counsel person writes that a letter dated XX/XX/XXXX from SLS rejects our trial loan mod. This letter was sent to an address no longer being used by XXXX XXXX. No communication was sent to XXXX or XXXX. 

XX/XX/XXXX - XXXX XXXX rejects XXXX XXXX counter and offers a walk away. 

XX/XX/XXXX - Another loan modification is completed and then sent in by XXXX XXXX on behalf of XXXX and XXXX. 

XX/XX/XXXX - The one and only piece of communication sent by SLS is attached to our door, in the form of a slip of paper asking XXXX to contact a SLS representative at a number verified to belong to SLS. 

XX/XX/XXXX - A class action lawsuit against SLS for their unlawful practices dealing with loan mods and mortgage fraud is filed. We are not affiliated with the lawsuit, but can relate to the claims. 

XX/XX/XXXX - After not receiving word on the last loan mod application we sent in, XXXX XXXX helps up complete another one and it is sent in by XXXX. 

XX/XX/XXXX - SLS denies our loan mod, sending the denial to an address not affiliated to XXXX or XXXX, XXXX XXXX, or XXXX XXXX. It is addressed to XXXX XXXX XXXX XXXX XXXX XXXX , XXXX XXXX, CA XXXX. This address is XXXX XXXX previous office address and has not been her office address for almost two years. Opposing counsel was made aware of this back in late XX/XX/XXXX when SLS was sending the trial loan mod check back to this incorrect address. Opposing counsel and SLS continued the practice of not updating their addresses on file, even when made aware of the change. Not only was the denial sent to the wrong address, there is no floor or office number, no mention of XXXX XXXX ( whose office it was two years prior ). It is unknown where the mail ended up, but XXXX XXXX is not the attorney who prepared our loan mod packet, XXXX XXXX is. There is no reasonable conclusion as to why SLS mailed the denial to this expired and incomplete address. 

XX/XX/XXXX - The court case is dismissed, as we were not allowed to enter all the new misconduct from SLS onto our original claim. 

XX/XX/XXXX - XXXX XXXX sends a letter to the Attorney General and the Consumer Protection Financial Bureau. SLS responds to XXXX XXXX saying they will only deal with XXXX XXXX. 

XX/XX/XXXX - Letters of foreclosure are delivered to XXXX and XXXX address. The amount due has gone from {$330000.00} to {$430000.00}. The sale date is XX/XX/XXXX. 

To this date, SLS has not returned the money from the two checks they cashed during the trial loan mod in late XX/XX/XXXX. SLS also repeatedly refuses to disclose who holds the loan, stating they only service the loan. 

Hopefully this timeline of events gives you an insight of what we have been dealing with for the past several years. The mental, emotional and physical stress we have endured has been taxing to say the least. We have been bombarded with solicitations through the phone, mail, and have even had men accost our daughter as she attempted to leave for school asking to speak to us about saving our home. We have spent countless nights trying to find a way to continue to make payments on our mortgage. XXXX has been physically ill due to the stress and worry over the home she has raised her children in being taken away while every request for proper review of IXXXX XXXX/SLSs oversights have fallen on deaf ears. We have spent tens of thousands of dollars on legal fees trying to save our home. 

We are hoping those connected with the banks and firms involved in these events will take steps to correct the errors made by their staff in the past several years. As is always requested, please send any correspondence to our home address. We look forward to your prompt reply as this is a time sensitive matter with the sale date being less than four weeks away. 

Thank you, XXXX and XXXX XXXX The included documents are listed in order below : * XXXX notice of transferring our loan to XXXX XXXX XXXXXXXX, a division of XXXX XXXX XXXX. 
( one page ) XXXX XXXX XXXXXXXX letter regarding amount owed as of XX/XX/XXXX ( one page ) *Jeffs letter to XXXX asking them to find the two missing payments from XX/XX/XXXX. (one page ) *XXXX proof of payment that was mailed to a complete stranger, XXXX XXXX of New Jersey . Included are the outside of both mailing envelopes, XXXX XXXX note to us, the statement showing both XX/XX/XXXX payments, and a letter from XXXX showing the incorrect address. ( four pages ) *XXXX XXXX XXXX XXXX letter stating XXXX is not  responding to any communication sent by XXXX . ( one page ) *Response letter from XXXX XXXX XXXX , where he incorrectly states our missing payments were from XX/XX/XXXX, a month after foreclosure had started. The two missing payments were made in XX/XX/XXXX. ( two pages ) *XXXX letter, sent to XXXX XXXX , who was representing us with our loan mod application with XXXX XXXX months earlier and had no dealing with SLS. ( two pages ) *Email from opposing counsel, XXXX XXXX , promising a loan mod in exchange for our lawsuit against SLS being dropped. ( two pages ) *SLSs loan mod paperwork sent to us. As laypersons, we could not find any mention of what type of check we were allowed to use. ( twenty pages ) *Our three trial payments for the loan mod. ( seventeen pages ) *SLSs denial of our loan sent to an address formally used as an office by XXXX XXXX , and XXXX XXXX had informed opposing counsel representing SLS that the address was no longer her office address at least eighteen months prior to this. The floor/office number is also missing from the address. ( three pages ) *SLSs response to XXXX XXXX complaint against SLS to the Consumer Financial Protection Bureau , including payment histories. ( ten pages )

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