Consumer complaint received 2021-03-30
Company: Shellpoint Partners, LLC
State: CO
Product: Mortgage
Sub-product: Conventional home mortgage
Issue: Struggling to pay mortgage

Complaint:
Shellpoint Mortgage Servicing Loan # XXXX Date XX/XX/XXXX RE : Failure to honor 2nd forbearance agreement, leading to erroneous loan default beginning XX/XX/XXXX and continuing through the present. 
To whom it may concern : I applied for the CARES Act due to the hardships and uncertainty surrounding the COVID pandemic as it affected our household. I understood that all I needed to do was to submit a letter stating our hardship and a loan forbearance would be forthcoming. I have 2 separate mortgages ( for 2 properties ) one with Shellpoint Mortgage Services ( SMS ) and a second with XXXX XXXXXXXX XXXX ( XXXX ). With my XXXX mortgage I have spent literally 30 minutes in total arranging a forbearance agreement ( XX/XX/XXXX thru XX/XX/XXXX ) along with a loan modification agreement ( payments resuming XX/XX/XXXX ), without submitting a single document. I expected a similar process with SMS and this was not the case and the result has been highly complicated, stressful and placed my home at risk of foreclosure. So if they are not allowed to demand documents then this nightmare could be over in moments.

SMS provided the initial 3-month forbearance with little difficulty, however when I applied for a continuation of the forbearance agreement I was met with obstacle after obstacle, obfuscation of what was required of me and continued confusion about documents required and received. My single point of contact ( SPOC ) changed 3 times in the matter of a month and XXXX XXXX ( my official SPOC ) was never directly available to talk with ( not once did we speak directly despite repeated attempts on my part ) and her surrogates were uninformed and unable to reliably confirm where I was in any process ( initially of forbearance, then of loan modification ) ever. 
What I understood to have happened was I was never approved for a second loan forbearance because I was unwilling to provide the bank statements of my employer. I freely offered all my personal bank statements as requested, inquired as to why SMS would need my employers bank statements and never received a reply to my inquiry, in fact I never received any replies to any of my email and letter inquires literally ever from SMS or Ms. XXXX. I was in regular phone contact ( phone records available ) with SMS employees who were unable to answer my questions since they were not my SPOC. 
At the end of XX/XX/XXXX when I realized my financial situation had improved and I no longer needed the loan forbearance, I requested a loan modification. SMS appeared to shift to processing my loan modification request, but since my loan had never made it through the forbearance process my loan was then considered to be in default. Due to the lack of communication from my SPOC ( outside of conflicting form letters see attached documents ), I thought SMS was processing my loan modification request as XXXX began, so I successfully submitted my XXXX mortgage payment online. I continued with the XXXX mortgage payment only to discover SMS had cancelled my ability to submit payments online, so I mailed my mortgage payment only to have it returned by SMS a few weeks later. 
I have reviewed all correspondence between SMS and myself since this process began. If as the CARES Act states, documentation is not required for loan forbearance or loan modification, I find this entire experience intolerable, unnecessary, and horrifically stressful. I am now facing close to {$3000.00} in late fees, foreclosure fees, etc., not to mention the adverse effect this will have on my credit rating which to date has been exceptional. 
I am asking that all fees related to a so-called default leading to a foreclosure be removed, that my loan forbearance be honored beginning with XXXX of XXXX thru XXXX of XXXX and that my loan modification be completed immediately with all amounts due ( minus all late fees, etc. ) moved to the end of the loan interest free, and that my credit rating be restored. 

Timeline of events - highlights : ( see attached documents in chronological order ) XX/XX/XXXX I was originally given a 3-month forbearance ( with one additional month added later ). Account was originally assigned to SPOC XXXX XXXX as of XXXX, then SPOC XXXX XXXX on XXXX and finally arriving at the desk of SPOC XXXX XXXX on XXXX. On XXXX I received the letter required by Federal law informing me of my options. 
XXXX Requested continued loan forbearance. 
XXXX Requesting clarification for why SMS SPOC is requesting my employers bank statements. Form letter received stating that my forbearance plan has been extended through XXXX ( 4 months ). 
XXXX Phone call at XXXX with SMS where I was told that my loan forbearance was granted from XXXX thru XXXX but not by my SPOC XXXX This verbal confirmation made me think that our situation was finally resolved, when in fact it was not. This was only the first of many conflicting messages from SMS. 
XXXX SPOC requested documents, they were provided, minus my employers bank account statements. 
XXXX Letter from me requesting continued forbearance and answering questions from SPOC. 
XXXX - SMS sent letter saying documentation missing which I provided on XXXX ahead of their XXXX deadline. 
XXXX Spoke with XXXX XXXX of SMS ( since SPOC not available ) regarding letter dated XXXX from SMS, who recommended sending the letter dated XXXX requesting further forbearance and answering more questions. 
XXXX I continued to request forbearance and included a loan application ( Form XXXX XXXX XXXX XXXX ), Profit and Loss for XXXX thru XXXX per SPOC request. 
XXXX SMS notice that I am in default prior to foreclosure. This came as a shock. 
XXXX to XXXX -Back and forth emails about missing documents. 
XXXX SMS confirms my application for forbearance is COMPLETE. 
XXXX SMS confirms my application is INCOMPLETE ( another mixed message ). 
XXXX SMS confirms my application is COMPLETE ( Is it or isnt it? ) XXXX I complete XXXX mortgage payment online for {$3400.00}. I think ( erroneously as it happens ) at this point that SMS is processing my loan modification request since by now I submitted a loan application and provided all my personal bank statements as well as my employers bank info, etc ... 
XXXX -SMS reports that I have not applied for a loss mitigation workout after forbearance and that my loan is past due for the XXXX installment ( but I actually had a forbearance agreement that began in XXXX and continued thru XXXX another confusing and inaccurate communication ) XXXX I request from my SPOC the status of my loan modification request and received no reply whatsoever My SPOC is still focusing on transfers from my bank statements while I am being foreclosed upon!! 
XXXX I reply to her questions. 
XXXX SMS replies that my loan is in default and that foreclosure proceedings have or may commence soon. 
XXXX SMS reports that my application is once again COMPLETE and this has granted you protection from foreclosure, yet on XXXX thru XXXX I am assessed {$1600.00} in fees related to foreclosure. This is just not right ( see mortgage statement dated XXXX ). 
XXXX SMS reports that my documents are once again INCOMPLETE and that I have until XXXX or we may conclude that you have withdrawn your request for loan mitigation XXXX SMS reports that my application is COMPLETE, and they will need 30 days to complete their assessment. 
XXXX SMS returns my XXXX mortgage payment. 
XXXX In an email I express my frustration with the process and timing and misunderstandings, that since XXXX I have been providing documents and filled out forms and information and I still have nothing to show for my efforts except a home that is somewhere in the process of being foreclosed. Not a good situation.

Company public response: Company believes it acted appropriately as authorized by contract or law
Company response to consumer: Closed with explanation