Consumer complaint received 2020-01-10
Company: Specialized Loan Servicing Holdings LLC
State: DC
Product: Mortgage
Sub-product: Conventional home mortgage
Issue: Trouble during payment process

Complaint:
I have a mortgage with Specialized Loan Servicing ( SLS ) and they are trying to force me into default. In XX/XX/XXXX, I changed from monthly mortgage payments to bi-monthly payments ; making half payments twice a month, on my employment pay dates ( every other Friday ). I sent SLS a letter explaining the payment change and to apply both half payments to my monthly mortgage payment. On or about XX/XX/XXXX, I received a call from SLS informing me that my mortgage payment was past due. I informed them of the information sent to them in the XX/XX/XXXX letter and they explained that the partial payments were applied to my principal instead of my payments. They agreed to make the adjustments and reverse the principal payment and reapply to my mortgage payment. 

On or about XX/XX/XXXX, I received yet another call from SLS claiming again that my mortgage payments were past due. Again, I explained that I spoke with them the previous month regarding the adjustment of my payments. I was informed that the adjustment requests were incorrectly submitted. Again, they agreed to make the necessary adjustments and waive the associated late fees. 

On or about XX/XX/XXXX, I received another call from SLS. We had another long call walking through all the partial payments that I made and the adjustments that needed to be made. I was informed that the adjustment requests were not resubmitted. The representative submitted the request while I was on the phone and I also made a payment with my credit card for the difference to bring my account current. I was finally informed that SLS is not able to process partial payments and such payments either went into suspense or was applied to the principal which I am still not clear on. 

Today, XX/XX/XXXX, I received another unexpected call from SLS. I was informed by the first representative that the adjustment request was denied and that " the promise '' was broken and that I was in default. I was informed that I needed to make a {$3900.00} payment to avoid foreclosure. I asked why I was not informed that the adjustment requests were denied and the harm done to my account and I did not receive any response. She then agreed to transfer me to the Escalation department to further assist me with resolving the issue. 

The Escalation representative, did not require that I make any payment nor did he threaten foreclosure. He reviewed my account and made the necessary adjustment requests which he indicated would take 5 business days and I should call back for an update. I inquired about the previous adjustment requests and was informed that they were submitted for the wrong amounts. I further inquired about any impact on credit score status and was informed that the Cash Office would contact me within 3 days. 

As SLS will attest to, I have made my payments consistently. Even though, I was making 2 partial payments a month equaling my full payment. Once I was finally informed of SLS 's inability to process partial payments, I reverted back to one monthly payment and made full payment for XX/XX/XXXX. Based on SLS 's repeated ( intentional ) errors submitting and processing my adjustment requests and the conflicting information that they gave me regarding my account, I believe they are attempting to force me into default and/or extort additional payments from me.

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