Consumer complaint received 2021-03-03
Company: Specialized Loan Servicing Holdings LLC
State: NE
Product: Mortgage
Sub-product: Conventional home mortgage
Issue: Trouble during payment process

Complaint:
Current Background to the story : XX/XX/XXXX to XX/XX/XXXX Specialized Loan Servicing, SLS, mortgage forbearance. 
XX/XX/XXXX, XX/XX/XXXX Attempts to connect with SLS via phone XX/XX/XXXX automated phone application with waiting approval. 
XX/XX/XXXX, XX/XX/XXXX, XX/XX/XXXX request for additional three month forbearance. 
XX/XX/XXXX additional forbearance was approved. 
XX/XX/XXXX Confirmed via customer service rep ; forbearance approved. 
continued calls from SLS customer service regarding forbearance ending XX/XX/XXXX. 

XX/XX/XXXX, XXXX XXXX received call from SLS rep with inquiry about mortgage fitness. Rep denied existence of forbearance, questioned my veracity ability to resume mortgage payments. 
Rep directly violated my human rights with personal questions and accusations of falsehoods. Proclaimed me a liar, versus a customer in need of help. 
Rep yelled over me to make her point. 
Afterwards called back immediately to make a complaint ; referred to supervisor. Never received a call back from a supervisor or anyone else regarding my loan. 
Or this incident of poor customer service. 

XXXX XXXX, received notice of mortgage assistance or modification denial. My home was approved for short sale on the basis, I failed to meet modification contract and had late payments for the previous year, XXXX. 


THIS IS NOT TRUE. 

SLS has violated the Consumer Financial Protection Act of XXXX by failing to credit partial payments that where put in a suspense account to my monthly mortgage on a regular basis. 

Instead of my account being credited as soon as a suspense account had a full payment, they took payments that were specifically directed to the mortgage, and applied them to principal. Then they insisted I was late on payments and subsequently in breach of the modification contract. 

SLS owes me at least two months or more of mortgage payments that were incorrectly applied through suspense accounts to the principal of my loan, as opposed to the monthly mortgage payments. 
Although specifically requested every payment be applied to the monthly mortgage, from XX/XX/XXXX until XX/XX/XXXX, SLS consistently violated the law, by putting payments is suspense accounts and when I wrote the servicer to dispute the claim, they insisted these payments were made properly. 

They insisted it was my fault that the payments were misapplied, although I literally did everything I could to correct the mistakes. 
As you can see from the documents submitted that SLS constantly switched my account representatives, failing to give me a single point of contact who could consistently help me with my account, subsequently leading to extreme mismanagement of my account and the correct information I received. 

In fact, the knowledge base of each customer service rep is so variable that unless you are fortunate to get a good rep, your mortgage literally will not get properly serviced. SLS has very little invested in making sure reps are up to date with services. 

My bank statements indicate regular monthly payment transfers to SLS, in increasing amounts from XXXX, XXXX until XXXX, XXXX. 

As you can see from my bank statements, I tried to make an arrangement for a bimonthly payment plan. Indeed, payments of {$2200.00} were made for two consecutive months, in order to enter a bimonthly payment agreement. My intention was to help amortize the loan and reduce the stress of falling behind by getting ahead with paying smaller amounts twice a month. 

I was told the plan was set up, but in fact, payments were put into a suspense account and then held for some time. These payments where then applied to principle, effectively setting me behind instead of in advance. 

In spite of repeated attempts to have suspense payments applied properly, I got nothing but a run around for more than a year, and finally culminating into my complaint today as SLS contends that I am in breach of contract on my mortgage and is trying to force a shirt sale of my house. 

Indeed I did send a written dispute, however I was not ever given a response and further inquiry did not reveal the mismanagement of suspense account funds. 

In the table below, I have documented my consecutive electronic payments and automatic withdrawals from SLS. 

As you can see, I did not miss a payment from XXXX, XXXX and the start of my XXXX loan modification until XXXX, XXXX and the start of the pandemic. 

Indeed, there is the evidence here that not only did I not miss any of the steadily increasing monthly mortgage payments but was debited for three payments in XXXX, XXXX, yet SLS improperly misapplied the funds by first putting them into a suspense account, where reps consistently denied the funds existed, then applied these finds to principal instead of towards the mortgage payment. 

The customer service is so terrible, and as I have been consistently without a single point of contact, that at one point when I spoke to a rep, I was told not to make a payment because I was ahead of payments that needed to be applied. This rep said that if I submitted another payment on time that it would not get applied to my monthly mortgage after the extra XX/XX/XXXX, payments. 



I followed his advice and in the next call was told I was delinquent and so could not have a bimonthly plan and this is reflected in the cancellation of my ACH in XX/XX/XXXX. Indeed, I finally got the correct ACH bimonthly payment plan in XX/XX/XXXX, after months of trouble with my payments being misapplied while they steadily increased my monthly mortgage based on escrow shortfalls. 

This brings us up to today where SLS has denied any loan modification and lump sum payments being put into my loan. They have denied this modification and indeed as they currently sit on a half month payment, they refuse to release the payment unless I pay a full mortgage payment this month. 

As we are still currently in a pandemic, I can not force SLS or my investor to do the right thing by helping me stay in my home, however I am indeed shocked and disgusted that during all my years of being a single, XXXX woman homeowner, every effort has been made to displace me from my home and this particular location, just XXXX minutes from the home of XXXX XXXX. 

It is my observation that from the moment I started the process of homeownership, I was treated with deference exactly because I am XXXX. 
From the XXXX, who did not properly handle my closing and final walk through, after my taking ownership, essentially leaving me with tons of junk and garbage from the previous owner instead of making sure it was removed from the property To XXXX home loans, who redlined my original mortgage, as well as giving me a terrible adjustable rate and subsequent refinance, again by XXXX, where I was forced into a 9 % rate! 

When I lost my XXXX  in XXXX and my ability to XXXX and continue to work as a XXXX XXXX XXXX XXXX XXXX  and my XXXX ran out, I asked XXXX  XXXX XXXX for help making my home affordable due to my XXXX. I was told they would not help until I was behind in payments and then when I got behind in payments they pretended like they were going to help, but then at the same time sold my loan to SLS who immediately tried to foreclose. This can be seen in the documents fro SLS. 

The earliest notification I received was not a mortgage assistance application, but a XXXX valuation on XXXX/XXXX. 
This was in spite of the fact that XXXX  XXXX XXXX had sent me a Request for mortgage modification form and when I completed and tried to return it XXXX XXXX XXXX notified me that no longer held my loan. 

So although, I was asking for mortgage modification, in XXXX of XXXX, after I knew I was facing a massive life change with my new found XXXX of XXXX XXXX XXXX and XXXX XXXX, I was being dual tracked into foreclosure. Yet all the while I was under the impression and indeed told by XXXX, that I would be getting the help I need to make my home affordable with my new normal as a XXXX, XXXX XXXX  and Veteran. 

I contend that as early as, XX/XX/XXXX, when XXXX took over and then sold my loan, there wasnt even the slightest intention to help me, but every intention was there to foreclose on my property and reap the benefits of the location. 

XXXX sold my mortgage to SLS who came onto the scene and said they were servicing XXXX XXXX XXXX loans and would now help me. Yet as you can see from the documents with the earliest notification dated XX/XX/XXXX, I never received any help from SLS from the beginning, and they actually prepared and attempted to foreclose my house all the while I was asking for help and loan modification. 

So while I was struggling to put food on the table, while I was struggling to XXXX  and recover my health, instead of giving me one person who could actually speak to me about my loan and the process of modification, I got a company whose sole intent and purpose was to foreclose on my loan and make money off my property which I worked so hard to afford for my children. Essentially forcing the ONLY XXXX person out of the neighborhood. 

Indeed, the fact that I had to apply for mortgage modifications XXXX times is pretty clear evidence that SLS has been dual tracking me since the moment they assumed my loan and this continues to this very moment, as they are now trying to short sale my home the moment forbearance is done. 

This week, XX/XX/XXXX, I was told the investor did not have to comply with Federal rules ; FHA mortgages because my mortgage was not Federally backed, although my original mortgage included FHA financing for house purchase XXXX, XXXX. However, XXXX sold and repackaged my mortgage and resold it, multiple times. 
Since, XXXX settled class action lawsuit for redlining mortgages of XXXX people, I got part of the settlement, clearly indicating my mortgage already has a history of racism and discriminatory practices against me. 

XXXX and XXXX are well aware I am a single, XXXX woman and have taken advantage with unfair practices. When XXXX was disbanded, XXXX  XXXX XXXX took my loan and sold it to XXXX. In spite of asking for loan modification from XXXX, when I experienced XXXX XXXX, resulting in sudden XXXX XXXX XXXX resulting from the onset of XXXX XXXX, they dual tracked me to foreclosure. Instead of helping me, they refused to speak with me about options until I was several months behind, then they sold me to XXXX. 

In fact, in all the many months and now years of dealing with SLS, I now recognize they have NEVER actually given me ANY information on handling disputes or dispute resolution. In fact, over the course of years, each time I had a dispute and asked for the address and information for resolution, they have failed to actually give me the proper information. Or even direct me to the information on the website. After years of mishandling my account, in order to force me into foreclosure, I now realize, the process of dispute resolution is basically a process of giving customers constant misinformation to misdirect, distract and stonewall without actually pointing customers in the right direction. 

After restating my story, once again about requesting and being approved for extension on forbearance, the rep again confirmed I was approved for more forbearance and would be receiving a confirmation statement in the mail. 

Indeed, my current investor has demanded I short sale effectively making me homeless in a pandemic which has already killed XXXX. 
I am refusing this decision and contend this action is further evidence that SLS assumed my mortgage for the sole intent and purpose of forcing me out of my property to enrich investors. Dual tracking me to foreclosure while pretending to help keep me in my home. 

I also contend that as a XXXX single mother, Veteran and XXXX, that SLS and XXXX has purposely targeted my property because I am actually the ONLY XXXX person in the neighborhood. 

After living in my property since XXXX and maintaining on time mortgage payments for more than XXXX years, after I became ill with sudden XXXX XXXX XXXX and subsequent XXXX XXXX, the lender at that time XXXX XXXX XXXX refused to work with me prior to my mortgage coming into arrears. 

Then after, my mortgage became delinquent, the loan was passed to SLS for servicing, which I have discovered is actually not servicing the consumer, but a company actually built on the sole intent and purposes of forcing people like me into foreclosure so they can take our hard earned properties. 

According to the Consumer Financial Protection Bureau mortgage servicers must deploy a fair review process that considers all foreclosure alternatives available from either the investors or mortgage owners. 
As well SLS is no longer allowed to steer borrowers to options that are most financially favorable to the servicing shop. I say they are in violation of this practice as well. 
As you can see in the documents I have provided, from the very moment SLS assumed my loan, they were intent on foreclosing as opposed to helping me make my home affordable. 

I have included bank statements and statements from SLS supporting my claims. 


CC : XXXX. 
XXXX XXXX XXXX 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