Consumer complaint received 2023-03-25
Company: Specialized Loan Servicing Holdings LLC
State: NY
Product: Mortgage
Sub-product: Home equity loan or line of credit (HELOC)
Issue: Struggling to pay mortgage

Complaint:
Mortgage for XXXX XXXX XXXX XXXX, XXXX XXXX I am XXXX and have been since XXXX. I am a certified XXXX survivor and am receiving Social Security XXXX benefits as a determination has been made of my XXXX dating back to XXXX of XXXX. I continued making my mortgage payments but when Covid 19 occurred I was not able to stay current consistently and requested mortgage assistance. During this process, I was approved for several mortgage resolution programs including Deed In Lieu, Short Payoff, Short Negotiated Payoff. Each time I submitted the appropriate paperwork for a program, Specialized Loan Servicing neglected to fulfill their obligation to complete the process. The first reason was that they were unable to get clear title. If that was true then no other program could be accomplished. SLS Neglected to follow through to resolve the title issues in order to complete this mortgage program. Subsequent to that, I was approved for a short sale. An appraisal done by SLS in XXXX of XXXX resulted in a value of {$7000.00}. I provided a buyer and contract for offered a short sale amount of {$7000.00}, which is 100 % of the appraised value. I was informed by my account representative XXXX that they would accept 90 % or more. SLS rejected the offer. In XXXX of XXXX another appraisal was done which resulted in a value of {$20000.00}. This was very odd that a property would have appreciated almost 300 % in 1 year. This is highly unlikely for this region. Additionally, I was informed by XXXX that the investor requires that I submit an insurance claim for the roof which is damaged. I indicated that I can not file a claim since there was no specific incident which caused the roof damage but I was informed by SLS that they would not accept any additional offers without the insurance claim because the investor needs to avoid a significant loss on the property. This could be seen as fraud as it is a known fact that a claim can not be filed when there is knowingly no justification for the damage with respect to insurance guidelines. As expected, the insurance company rejected the claim. In XXXX of XXXX, I paid for an appraisal which resulted in a value of {$10000.00} for the property at XXXX XXXX XXXX XXXX, XXXX OH. So far this is 3 separate appraisals for the property : {$7000.00}, {$20000.00} and {$10000.00}. The {$20000.00} appraisal is definitely curious specifically since it occurred after one which valued it at {$7000.00} and after SLS determined that there was significant enough roof damage to file a false insurance claim. In XXXX of XXXX, I offered {$12000.00} for the property after being approved again for a Short Negotiated Payoff and SLS insisted on another appraisal. After 3 distinct appraisals, the mortgage servicing company felt that they were still unable to make a reasonable judgement on the value of this property. This is extremely unprofessional and irresponsible. The 4th appraisal was not completed by the appraisal company as I was informed that the appraiser refused to enter the property because he witnessed animals inside. On XX/XX/XXXX of XXXX, I received a letter from SLS indicating that they would accept {$40000.00} for this property. 

I would like this company investigated with respect to the following allegations : 1. Disingenuous appraisal value and collusion with the appraisal company ( extreme variance in appraised value from {$7000.00} to {$20000.00} in a 1 year period ) 2. Insurance Fraud - requiring me to file a claim without having a specific event which caused damage 3. Failure to do due diligence in securing clear title to complete an approved Died in Lieu resolution. 

Please inform of the investigation into this behavior by Specialized Loan Servicing. 

Regards, XXXX XXXX

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