Consumer complaint received 2016-08-16
Company: Specialized Loan Servicing Holdings LLC
State: LA
Product: Mortgage
Sub-product: Home equity loan or line of credit
Issue: Loan servicing, payments, escrow account

Complaint:
Over the last 10 yrs I have faithfully paid appr XXXX in interest on a heloc. In XXXX I received a letter that the full amount was due in XXXX. In XXXX I called to ask about this and was told that the loan would be reassessed. I was not informed that the whole loan would be called. I did find in the original loan agreement that it would be called. I wish that in XXXX they would have disclosed that and not promised reassessment. I was informed in XXXX that I could not apply for hardship until XXXX when the loan came due. In XXXX I applied for hardship. I had XXXX interest only payment due in XXXX. I asked about paying it and was told it would just be sent back because it was not the XXXX that was owed. They told me not to pay it, that it would not be applied and that it would be returned. I keep getting a bill for it. I again asked the employee assigned to my case, XXXX, why I keep getting a bill of XXXX. She also told me not to pay it. I have been recently following my credit report. They have reported me as delinquent and they claim it is on the XXXX. I do not understand this. If I have applied for a hardship program, have been accepted into the hardship program, have made my trial period payments then why am I being reported as delinquent for 30, 60, 90 and soon 120 days? On this XXXX bill it asks for the XXXX and has a late fee of XXXX. When looking at the details it does not show my XXXX payment as going towards the XXXX. In the loan modification trial paperwork it states that if any late payments the XXXX would go towards those late payments. This first payment does not appear to have gone towards it. I feel that I was told not to pay the XXXX in order for them to put me in a position where I had no other choice but to accept their load modification. With reporting to the credit bureau that I am late they are closing all doors to refinance and get away from them. It feels like entrapment. I discovered today when researching my legal rights that when I was informed a few years back that my heloc was cut off because my house was no longer valued at the original value was illegally done. They cut off my line of credit, still reported to the bureau it was active at XXXX even though I only owed XXXX and they did not prove my house had decreased in value. My house was appraised at {$180.00} when I took out the heloc and again appraised at {$180.00} when appraised for this trial period. They cut me off with no justification or evidence. I am being dealt with unethically and unfairly. I want the late payments removed from all three credit reports. They are receiving their payments and have been receiving them faithfully for over 10 yrs. To advise me that a payment would be sent back twice and then report me as delinquent to the bureaus is against my fair credit reporting act. I demand this rectified immediately

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