Consumer complaint received 2020-03-08
Company: Shellpoint Partners, LLC
State: GA
Product: Mortgage
Sub-product: FHA mortgage
Issue: Struggling to pay mortgage

Complaint:
Since XXXX, we have reached out to New Rez/Shellpoint regarding ways to assist with payments due to hardship. We have multiple correspondence with loan representatives, but no one informed us our options. Letters were sent daily, via certified and regular mail to both loan recipients, regarding past due amounts, which we were well aware of. We were offered a forbearance plan as the 1st option when we were just a little bit past due instead of loan modification or other options. It is after speaking to a specialist in loss mitigation from a different provider that we were told that forbearance is usually the last resort and that modification should have been offered. Our loan could have been brought to current long time prior had this information been provided. We kept receiving general correspondence regarding HUD but no other details. Two and a half months into the  forbearance plan, which is for 3 months, we were informed of the loan modification and we applied. About 3 weeks or so later we  were denied due to debt to income ratio. Our income was deemed too low based on the monthly expenses since we had a loss of income in the home. Wouldnt someone who had a reduction in household income need assistance and possible reduction in payments like a refinance more than someone that has more income? No I guess not because thats not how they see it so we were denied. They sent a denial letter on XX/XX/17 and we spoke to more loan representatives after that regarding past due amounts and the denial and how we can proceed from here. Eventually after getting no where with the assigned point of contact and other reps, I decided to withdraw money from my 401K to cover the past due amount. No one ever advised me of this. We were told to sell things in our home and sell other assets like our car ( how would we get to work in order to pay the mortgage? ). So ridiculous. 
I had a 11-business day waiting period to pull the loan from my bank IRA in order to use the money. During that waiting period, we received a letter from an attorneys office regarding the total amount of the loan and that we need to pay it due to foreclosure proceeding. We called Shellpoint and spoke with a loan representative who informed me that the house is not foreclosed but that they had started the foreclosure proceedings to get a lawyer and those were legal fees of over {$300.00} that was due on top of that past due amount as well of over {$12000.00}. Not once did we ever receive correspondence that house would be foreclosed. The notifications we did receive mentioned that if the $ 12,000+ payment wasnt received by 45 days which would be sometime in XXXX and this is XXXX, that they would proceed with foreclosure. So, Shellpoint went against their word and started proceedings. I paid the past due amount without the legal fees since those arent valid fees. I was then told by a loan representative on our case that once our financial situation got better, we could apply for a loan modification again and it should be better. 
We kept getting harassing calls saying our loan is past due & tell us we owe legal fees for foreclosure. They were sending 6-12 letters at once. most of them which I returned. 

Now its XXXX & applying and told that we dont qualify for loan modification program because FHA loan doesnt qualify for loan modification and our account is in good standing. According to HUD website, there is an FHA Home Affordable Modification Program.

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