Consumer complaint received 2023-08-23
Company: RoundPoint Mortgage Servicing LLC
State: NY
Product: Mortgage
Sub-product: Conventional home mortgage
Issue: Trouble during payment process

Complaint:
Background details : I am currently selling a 1.6 acre parcel, which is part of 5 separate and non-contiguous parcels that are outlined on the legal description on my mortgage. The total acreage described on the legal deed exceeds 150 acres, which includes a house that sits on one of the five parcels. We are selling one small plot in order to raise funds to renovate the house, including adding over 400 square feet of additional living space, renovating the kitchen, and updating the electrical service, heating, cooling and plumbing. The renovation has been approved and permitted by the municipal Health Department. 

We have reached out to the servicer to request a partial release in order to sell the smallest plot of land, which is separate from the main house plot ( not connected ), and represents ~1 % of the total acreage of the property. We provided the servicer with a free and clear title report, a plot map of the 1.6 acre parcel as well as the other nearby parcels, a copy of the municipal permit for the renovation, and architectural drawings for the planned renovation. We have agreed to a desktop appraisal of the property to ensure that the value of the property still exceeds the mortgaged amount.

Issue : The servicer has stated that they can not approve a partial release until a full survey is completed for all 150 acres of land. A survey of this magnitude would include surveying 5 separate parcels. The cost of the survey will be {$46000.00} ( see attached quote from the surveyor ). The only relevant part of the survey is what is related to Parcel 3 ( see attached document ), and even that is not relevant once the value of the home is established by the desktop appraisal. Note, the total value of the land sale for the 1.6 acres is {$25000.00}. The cost of the survey, which is being required by the servicer, exceeds the full proceeds we would earn from the sale of the land.

We have tried to resolve this issue with the servicer, but currently have not had success. I have asked them to provide justification for the survey, including outlining where in their guidelines a survey is required. I will provide this information if they respond.

There is no reason for a survey to be completed on 150 acres of land for a sale of 1.6 acres ( 1 % of the land ). The request from the servicer is egregious and unreasonable, and presents an insurmountable financial burden, which threatens to prohibit the land sale and thus prohibit us, the property owner, from accumulating wealth and improving our property. We have provided clear plot maps to show the location of the parcel in relation to the house as well as a clear title report. We have agreed to a desktop appraisal, which will validate the property value. We have done everything we can do to follow their guidelines, but the servicer has imposed an unreasonable request.

Documents attached : - Plot map of parcels - Estimate from the surveyor - Permit from municipality for approved renovation - Architectural drawings showing planned improvements to the property - Servicer 's partial release of collateral request form - Current title search prepared for this sale - Signed purchase agreement

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