Consumer complaint received 2024-11-22
Product: Mortgage — Conventional home mortgage
Issue: Struggling to pay mortgage — Trying to communicate with the company to fix an issue related to modification, forbearance, short sale, deed-in-lieu, bankruptcy, or foreclosure
Company: Shellpoint Partners, LLC (FL)

This is a continuation of Complaint XXXX, where among other things I requested that the servicer permit a partial reinstatement of the loan. I have been told that because my loan is in foreclosure, I am ineligible for a partial reinstatement. Despite this, the current servicer invited me to apply for either a partial or full reinstatement in XXXX of 2024. I ask that the servicer be required to honor its obligation, or correct the error of placing my loan in foreclosure. 

It should be pointed out that some of the issues may be because the servicing of my loan was transferred. It is not clear if the new servicer has access to, or has reviewed all of the file, or the completed loss mitigation application. 

That said, the current servicer continues to ignore that the loan should never have been referred to foreclosure. This is because before it was referred and placed in foreclosure I already submitted a complete loss mitigation application. The completed loss mitigation application was submitted on XX/XX/year> and the loan was referred to foreclosure XXXX  days later on XX/XX/year> ( per the servicer 's records as noted in your prior response ). I have previously submitted copies of the completed loss mitigation application to the servicer. 

Sending my loan for foreclosure referral represents dual tracking under Regulation Z, and is not permitted which the CFPB summarizes as follows : " Servicers can not start a foreclosure proceeding if a borrower has already submitted a complete application for a loan modification or other alternative to foreclosure, and that application is still pending review. '' And this is exactly what happened here. 

In XXXX of 2024 I spoke with the servicer, and we went through a partial reinstatement analysis. I was initially told that the loan was eligible and that the partial reinstatement figure was {$37000.00}. As the call proceeded, however, she told me that the loan had just been referred to foreclosure and therefore it was no longer eligible. I was told that the ONLY reason my loan was ineligible for a partial reinstatement was because the loan had been referred to foreclosure. Because this is a mistake that the servicer should correct, once corrected the loan will be eligible for a partial reinstatement. 

Accordingly, I am not requesting a custom loss mitigation option, rather a partial reinstatement. A partial reinstatement is available from the investor regardless of default status as long as the loan is not in foreclosure. As noted above, the loan should not have been in foreclosure because a complete loss mitigation application had already been submitted. 

Finally, the servicer sent me a letter in XXXX of 2024 stating that I could apply for either a partial or full reinstatement. I told the servicer I again wanted a partial reinstatement. Despite being told I could request a partial reinstatement, I was only offered a full reinstatement. The servicer should be required to honor its offer.