Consumer complaint received 2016-07-04
Company: Specialized Loan Servicing Holdings LLC
State: OR
Product: Mortgage
Sub-product: Other mortgage
Issue: Loan modification,collection,foreclosure

Complaint:
XXXX XXXX, XXXX Dispute Late Charges -- Specialized Loan Servicing -- Loan # XXXX To Whom It Concern : servicing company is Specialized Loan Servicing. The underlying lender is XXXX XXXX. It was a 10 year interest only with a balloon payment due XXXX/XXXX/XXXX. Due to a number of unforeseen circumstances including the housing bust, we experienced a difficult financial period. We had XXXX collections that were on our credit report for quite a while. Finally in the XXXX, we were able to pay off the collections and start to rebuild our credit scores. We understood this would be necessary in order to obtain a loan modification. Finally, in XXXX XXXX, our scores were above XXXX after being in the low XXXX. We were advised to contact the servicer of our HELOC loan and negotiate a modification with them. We did this. On XXXX XXXX, XXXX, the first package of documents were emailed to Specialized Loan Servicing ( SLS ) requesting a modification. Over the next eight months documents were submitted when requested. Finally on XXXX/XXXX/XXXX we received a notice that our request was denied due to the loan being a HELOC. 
It is our contention that SLS failed to negotiate in good faith. They knew from the very beginning that the loan was a HELOC and could have advised us of not being able to modify it in XXXX XXXX or XXXX at the latest. Instead they chose to prolong this over eight months while charging us with late payments each month. They have now single handedly destroyed our credit to the point that we are not able to obtain another loan to pay this XXXX off. We have contacted several lenders, including private money lenders, and due to the late charges, we can not obtain a loan. It appears that their goal is to put us into foreclosure. We do not want to lose our home of 14 years. We could have easily obtained a loan in XXXX or XXXX had we know they were not going to modify the existing HELOC. 
As a gesture of good faith, we continued to make the interest payments for XXXX and XXXX based on the bills we continued to receive from SLS during the negotiation period. A payment was made on XXXX/XXXX/XXXX in the amount of {$300.00}. A second payment of {$250.00} was made on XXXX/XXXX/XXXX. The XXXX/XXXX/XXXX payment was returned to our account on XXXX/XXXX/XXXX. XXXX/XXXX/XXXX payment returned on XXXX/XXXX/XXXX. When I questioned this, I was told by a SLS representative that they would not accept any payments that were not the full amount. They could have easily told me at that time that they would not do a modification on a HELOC. 
Again, we do not feel that SLS has negotiated in good faith, they knew from the start the loan was a HELOC and their policy not to modify a HELOC and they deliberately prolonged the negotiation period to allow them to systematically destroy our credit rating with late payment charges. 
We respectfully request these late charges be removed, our credit ratings be restored and in order for us be able to obtain a new loan to pay off this HELOC.

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