Consumer complaint received 2023-03-30
Company: Specialized Loan Servicing Holdings LLC
State: NY
Product: Mortgage
Sub-product: Conventional home mortgage
Issue: Struggling to pay mortgage

Complaint:
Dear Madams or Sirs, My name is XXXX XXXX In XXXX we bought one family house in XXXX, XXXX XXXX. 

We survived XXXX financial crisis and XXXX hurricane Sandy. 

In XXXX, our previous mortgage servicer company XXXX, offered us the forbearance plan and had promised enroll in repayment plan or modification after the ending of forbearance plan. Meanwhile XXXX had sold mortgage to another XXXX XXXX and XXXX had refused our request for repayment or modification. We stopped monthly payments and later we modified our mortgage through the court. 

Same happened after federal disaster-Hurricane Sandy. Our mortgage was sold to another servicer, to Specialized Loan Servicer LLC ( thereafter as SLS ). We went through second modification process. 

On XX/XX/XXXX, SLS offered forbearance plan and we agreed. After 18 months, as forbearance plan was expired, SLS sent to us mortgage modification as we agreed. 

From XX/XX/XXXX we had resumed monthly payments as agreed amount of {$2500.00}. 

After three trial payment we received by mail final modification agreement. After carefully reading a agreement text, we discovered that there were two mistake - My name was spelled incorrectly as XXXX, instead of XXXX. 
- In agreement, some financial terms were unclear. 
Let us explain in more detailed way what kind of financial terms was unclear. 

Before first trial payment of {$2500.00}, Our outstanding past due amount ( because of forbearance plan ) was {$57000.00} and outstanding principal was {$430000.00} ( see statement from SLS XX/XX/XXXX ) All together, {$430000.00} + {$57000.00} = {>= $1,000,000} Let us to put Section C of final agreement entirely : Section C The Interest Bearing Principal balance of my Note will be {$460000.00} ( the 'Interest Bearing Principal Balance ' ). In addition to the Interest Bearing Principal balance of {$460000.00}, any outstanding amounts inclusive of unpaid and deferred interest, fees, escrow advances and other costs as applicable shall be deferred. The total amount deferred through this agreement is {$32000.00} and is known as ( the 'Deferred Balance ' ) and I will not pay interest or make monthly payments on this amount. The total amount payable under the note {$500000.00} ( the 'Total Principal Balance ' ) is inclusive of the Interest bearing Principal Balance and the Deferred Balance. Interest at the rate of 2.875 % will begin to accrue on the new Interest Bearing Principal Balance as of XX/XX/XXXX and the first new monthly payment on the new Interest Bearing Principal Balance will be due on XX/XX/XXXX. My payment schedule for the modified Loan is as follows : Years Interest Rate Interest Rate Change Date Monthly XXXX & I Payment Amount Monthly Escrow Payment Amount Total Monthly Payment Payments begin on Number of Monthly Payment 1-40 2.875 % XX/XX/XXXX {$1600.00} {$930.00} {$2500.00} XX/XX/XXXX XXXX Borrower promises to make monthly payments of principal and interest per the above payment schedule beginning on XX/XX/XXXX, and continuing thereafter on the same day of each succeeding month. I will make these payments every month per the above payment schedule, in addition to 1 final balloon payment, consisting of deferred principal in the amount of {$32000.00} and additional unpaid principal amount of {$50000.00}. The Balloon payment amounts stated are if all monthly payments have been made as scheduled. At the end of the term, any balance remaining will have to be paid. 

*The escrow payments may be adjusted periodically in accordance with applicable law and therefore my total monthly payment may change accordingly. Your initial monthly escrow payment will be {$930.00}. Your initial total monthly payment will be {$2500.00}. 

The above terms in this Section 3.C. shall supersede any provisions to the contrary in the Loan Documents, including but not limited to, provisions for an adjustable, step or simple interest rate. 
I understand that, if I have a pay option adjustable rate mortgage loan, upon modification, the minimum monthly payment option, the interest- only or any other payment options will no longer be offered and that the monthly payments described in the above payment schedule for my modified Loan will be the minimum payment that will be due each month for the remaining term of the Loan. My modified Loan will not have a negative amortization feature that would allow me to pay less than the interest due resulting in any unpaid interest to be added to the outstanding principal balance. 

Lets go step by step : 1. As it is stated in agreement, as of XX/XX/XXXX, amount of principal balance was {$460000.00} 2. SLS courteously offered to defer {$32000.00} at end of mortgage 3. The sum of principal and deferred amount equal to : {$460000.00} + {$32000.00} = {$500000.00} So, it obvious that our total mortgage balance, with unpaid balance is {$500000.00}. 

Please pay attention that monthly P & I payment {$2500.00} is calculated on base of principal balance {$460000.00}. 

Supposed to everything is clear and correct, but suddenly we see in same section C additional payment at end of mortgage as {$50000.00}. 

We asked numerous times to explain an origin of this {$50000.00} and every time we got so called explanation that it is Balloon payment. Please see attached exhibition 2 -Letter from SLS about additional {$50000.00}. 

SLS is threatening with foreclosure. 

Let us just put down facts : - We never missed a single payment with SLS. 
- Because of COVID19, SLS offer federal forbearance plan for 18 months, and we had agreed. 
- After forbearance option were expired, SLS had offered trial Modification payments without any details, any API and so. We had agreed. 
- On final agreement, we discovered some unclear financial terms ( so called balloon payment, and numerously asked a clarification. 
- We were ready to sign agreement but we could not because SLS were asked additional 10 % above mortgage that is by our opinion unlawful and attempt to charge us with bogus payment We still are continuing to make monthly payments as agreed in trial modification. 

We are asking to honor modification agreement. 

We are asking to remove from contract bogus so called balloon payment We survived XXXX financial crisis, XXXX federal disaster sandy hurricane, XXXX XXXX. 
Our family is hard working family and we are and always were able to make payments for our obligations. 

Please do not allow SLS take over. Trying to get advantage from federal disaster, as is COVID19, is unacceptable. 

We will upload all necessary documentation and proof.

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