Consumer complaint received 2021-11-29
Company: Community Loan Servicing, LLC (formerly known as Bayview Loan Servicing, LLC)
State: FL
Product: Mortgage
Sub-product: FHA mortgage
Issue: Trouble during payment process

Complaint:
My husband died of XXXX in XXXX of this year. Since then I am not only mourning his loss but in addition i find myself totally stressed out over the fact that I am unable to convince the Mortgage Loan Servicing company to allow me to take over/assume the mortgage on our home. 
I even think I may possibly face foreclosure unless this issue is resolved. 

The Mortgage Loan Servicing company apparently has a totally different interpretation of what it means to 'Assume ' a mortgage loan. I am told that I must apply for an 'Assumption ' and they sent an 'Assumption Package ' that asks for detailed mandated financial, credit, and tax disclosures and mirrors a new mortgage application. Added to that are hefty fees. 
IN CONTRAST, MY UNDERSTANDING OF TAKING OVER THE MORTGAGE LOAN AS IT EXISTS ALONG WITH THE MODIFICATION IN PROGRESS CONSISTS OF MY WILLINGNESS TO BE DECLARED THE OBLIGOR BORROWER. 

***I did recently find hope in what I read in your, the Bureaus rule, titled : 'Application of Regulation Z 's Ability-To-Repay Rule to Certain Situations Involving Successor-in- Interest ' On pp XXXX, item XXXX Subtitled : 'THE ADDITION OF A SUCCESSOR AS NAMED OBLIGOR GENERALLY DOES NOT CONSTITUTE AN " ASSUMPTION '. 
Reference is made to section B, second paragraph, which states the following : " A residential mortgage transaction does NOT arise where a successor takes on the debt obligation that is secured by property the successor PREVIOUSLY ACQUIRED. In these situations XXXX ( b ) does not apply when the successor agrees to be added as an obligor on an existing mortgage loan. ALTHOUGH THESE TRANSACTIONS ARE COMMONLY REFERRED TO AS ASSUMPTIONS, THEY ARE NOT ASSUMPTIONS UNDER XXXX ( b ) BECAUSE THE TRANSACTION IS NOT A RESIDENTIAL MORTGAGE TRANSACTION AS TO THE SUCCESSOR. Accordingly, the XXXX Rule XXXX does NOT apply to a transaction in which the successor seeks to take on the debt secured by property that the successor previously acquired. '' **** Please allow me to give background details : - BOTH names ( no other ) on XXXX DEED, listed as " JOINT TENANTS with FULL RIGHTS OF SURVIVORSHIP '' - BOTH names on XXXX MORTGAGE, however ONLY HUSBANDS NAME ON NOTE ( Please note that as part of the mortgage process was the inclusion of detailed, full financial disclosure /information that had to be submitted by BOTH ). 

- XXXX RECORDED ASSIGNMENT OF MORTGAGE to Loan Servicer states ( quote ) : " Said Mortgage was made by ( listing husbands name ) and ( listing wife 's name ) and recorded in XXXX XXXX of XXXX ( naming County & State etc. ) - XXXX - XXXX Mortgage under COVID FORBEARANCE ( Amount listed as 'Past Due at recent End of Forbearance : {$7900.00} ). 

- Following Forbearance : Letter from Loan Servicer to husband dated XX/XX/XXXX Subject : " LOAN MODIFICATION OFFER ENCLOSED - ACT NOW TO AVOID FORECLOSURE '' Letter states : " YOU ARE APPROVED FOR A TRIAL PERIOD PLAN TO MODIFY YOUR MORTGAGE PAYMENT '' - ALL REQUIREMENTS OF LOAN MODIFICATION OFFER WERE ACCEPTED AND ADHERED TO! PAYMENTS OF ALL 3 TRIAL PAYMENTS WERE MADE IN A TIMELY FASHION AND ACCEPTED BY LOAN SERVICER VIA PHONE. ( Note : 3rd Trial payment, initially was not processed correctly by agent as apparently she had entered account number off one digit and hence payment did not end up going through despite of funds being available. Immediately after noticing that funds had not been taken out of account Loan Servicer was contacted to find out what was going on. Payment was resubmitted while still a month ahead of due date ). 

- Following my husbands Covid related death in XX/XX/XXXX, I CONTACTED THE LOAN SERVICER without delay, via phone, to report husbands death. I requested to : " PLEASE PLACE ACCOUNT INTO MY NAME. '' Adhering to instructions by Loan Servicer to send death certificate, I sent all pertinent documents : Death certificate, Copy of Deed ( XXXX ), The Will along, Tax Assessors records which, following husbands death, now only show my name. Also, because of different last names I included Marriage certificate for clarification. Made request to " PLEASE PLACE ACCOUNT INTO MY NAME '' To speed things up, All sent via FAX - Loan Servicer sends Letter dated XX/XX/XXXX stating " TO CONFIRM STATUS AS SUCCESSOR IN INTEREST SUBMIT '' : " PROBATE -COMPLETE PROBATE DOCUMENTS, and PROBATE DEED FROM PERSONAL REPRESENTATIVE OF THE ESTATE TO HEIR ( S ) ENTITLED TO PROPERTY " NO LATER THAN XXXX " Servicer advises that if documents are not received by deadline that it would not be possible to list me ( wife ) as Successor in Interest and request would be closed. 

In response I called several times to inform Loan Servicer that there is NO PROBATE. Explained that husband had no assets, and since deed was titled in 'Joint Tenants with Full Rights of Survivorship ' as allowed per State Law there would be NO Probate. Also pointed out that IF there had been any Probate that it would certainly take more than 30 days. 

Loan Servicer states that documents previously sent by me via Fax need to be resubmitted as they must be sent via mail. 
Also was told that in order to take over the mortgage a request for an ASSUMPTION must be made and that it must be sent to Loan Servicers Assumption Department. 

-Complying with Loan Servicers instructions I sent all pertinent documents again, this time as requested by mail, addressed to 'Attn. Assumption '. enclosed detailed letter outlining names on deed, mortgage etc. and ASKING LOAN SERVICER TO " ALLOW me to ASSUME THE MORTGAGE, ALONG WITH THE MODIFICATION " for which the Trial payments had been made via phone, as it was not possible to pay online. 
( Note that as of late after logging onto account it now states in LARGE print : " UNABLE TO MAKE A PAYMENT '' ( you can contact your dedicated loan rep with any questions ). XXXX XXXX XXXX ( XXXX ) XXXX Mon-Fri XXXX to XXXX PM ET. ) - Letter from Loan Servicer dated XX/XX/XXXX addressed to me as a " POTENTIAL SUCCESSOR IN INTEREST '' advising that the Loan Servicer has received information that : " A POSSIBLE TRANSFER OF OWNERSHIP OF THE PROPERTY HAS OCCURRED DUE TO THE DEATH OF THE BORROWER and/or co-borrower of the loan ". 
The letter further stated that : " Pursuant to applicable law, ( the Servicer ) is required to obtain certain information regarding the deceased borrower/co-borrower, including information about the transfer of the property and whether an estate has been opened. Please see below documents received from your request to be confirmed as a Successor in Interest " : **** PROBATE WARRANTY DEED **** The letter continued : " ONCE WE HAVE CONFIRMED YOUR SUCCESSOR IN INTEREST WE WILL GLADLY DISCUSS ANY LOAN INFORMATION AND/OR THE STATUS OF THE ACCOUNT WITH YOU. '' - Quite a number of phone calls thereafter to Loan Servicer followed while I pointing out that I HAVE BEEN A JOINT OWNER RIGHT ALONG and THERE CAN NOT BE A 'PROBATE WARRANTY DEED ' as there is NO PROBATE. Also repeated that the existing deed already lists me as a joint owner.. 

- In a letter dated XX/XX/XXXX the Servicer declared me to be a 'Successor in Interest '. 
That letter, while supposedly listing my rights and options, failed to bring about clarity and instead left me very confused and stressed. There was no reference made to the fact that I already had asked the Loan Servicer to " Place the account in my name '' and then again requested to " Allow me to Assume the Mortgage along with the modification '' meaning, that I have a desire and willingness to take over the loan and the modification along with the responsibility of the loan. 

However, a subsequent call to the Loan Servicer actually brought about hope as the Loan Service Representative I spoke to appeared to be listening when I told him that I AM on the deed as a Joint owner since XXXX, that I AM on the mortgage since XXXX easily confirmed by looking at the recorded 'Assignment of Mortgage ' to the Servicer on XX/XX/XXXX. After lengthy periods of time that I was placed on hold as he 'checked on things ' he asked if i received the modification papers which I had not. He told me that they are in the mail, in transit, on their way for me to sign! However, all that was disputed the very next day when I called with a follow up question. Instead of the Modification papers being in the mail I was told that they were not, and that I would not be able to sign them as they were made out to my husband and not to me. I was asked if I received an 'Assumption Package ', which I had not. In addition I was asked if I would like to have an XXXXAssumption Package ' sent to me. While never in my wildest dreams thinking that an 'Assumption ' in the eyes of the Servicer is a Mortgage transaction with full Financial disclosure and fees my initial response at the time was " Well, yes, if you have not mailed one yet '', and so they did. 

***After extensive research it is now my understanding that THE TERM 'Assumption ' AS USED BY THE LOAN SERVICER and THEIR INTERPRETATIONS OF THE MEANING OF AN " Assumption '' ARE WORLDS APART from WHAT IS MY UNDERSTANDING an 'Assumption ' SHOULD BE, while giving consideration to my circumstances and my desire to take over the mortgage obligation and to become an obligor. *** - Please Note : the last 3 Statements received are interesting in themselves as it pertains to dates, modification, and the addressed name change in # 3 ( I called and asked for clarification only to be told that supposedly " it does not mean anything, it's still the Estate '' ... ). 
Also, please note that all 3 statements show no Modification amounts, although the last 2 statements show : " Our records indicate your Supplemental Modification Program status is Modified/active '' : 1. Statement date of XX/XX/XXXX, received on XX/XX/XXXX, and a due date of XX/XX/XXXX, addressed to : " Estate of ( husbands name ) '' with a 'Total Amount Due ' listed as {$7300.00}. 
NO reference to any Modification, not showing any Modified monthly payment, just a 'Regular Monthly Payment '. 

2. Statement date of XX/XX/XXXX (! ) received XX/XX/XXXX and a due date of XX/XX/XXXX, addressed to : " Estate of ( husbands name ) '' with a " Total Amount Due '' listed as {$7900.00} Statement : " Our records indicate your Supplemental Modification Program status is Modified/active '' NOT showing any Modified monthly payment, just a 'Regular Monthly Payment ''. 

3. Statement date of XXXX, XXXX received XX/XX/XXXX and a due date of XX/XX/XXXX, addressed to " Name of wife '' with an " Unpaid Past Payments '' of {$7300.00} and a " Total Amount '' {$7900.00}. 
Statement : " Our records indicate your Supplemental Modification Program status is Modified/active '', NOT showing any Modified monthly payment, just a 'Regular Monthly Payment '' _____________________________________________________________________ Please know, that at age XXXX and XXXX I find it of utmost importance to continue to live in this home and this neighborhood that I have uninterrupted lived in for the last XXXX and where I have made friends that have become my family. 

It is my Sincere hope that your Bureau will be able to be of Assistance, and help me resolve the issues with the Loan Servicer including the apparent threat of foreclosure.

Company response to consumer: Closed with explanation