Consumer complaint received 2017-10-18
Product: Mortgage — Conventional home mortgage
Issue: Struggling to pay mortgage — 
Company: West Coast Servicing, Inc. (CO)

It 's a rather long story. I am self employed. My husband was diagnosed with XXXX in XX/XX/XXXX and is on SS XXXX. Shortly after my husband was diagnosed the company that he worked for elected not to take him back when he wanted to return from his short term XXXX. He was a XXXX XXXX and his XXXX and XXXX had become XXXX and were the symptoms that caused the lengthy testing and final diagnosis. I believe since the company was self insured that it was their concern more than him being capable of performing the same duties, although he was not going to be able to continue the 60 to 65 hour work weeks. Due to my being self employed we paid the XXXX XXXX until it was exhausted at which time I had formed a small group of one and could add him to the policy. I am telling you all this because it has a lot to do with how I got to where I am. Those premiums started at approx. 1500/mo and increased annually. In XX/XX/XXXX, the economy began to shift, I had absolutely no idea where it would take us and of course thought it would only be short term. In order to meet all of the increased obligations I refinanced our property with XXXX XXXXXXXX XXXX XXXX. They refinanced me into an 80 % interest only first with a 2 year prepayment penalty and a 30 year fixed second at 10.125 %. As those first two years began to pass the spiraling direction of the economy became clearer, the interest was going to adjust on the first and I began to panic. I worked extremely hard to refinance out of that situation. Of course it did n't work. So XXXX transferred the 1st to XXXX and the second to XXXX. I did start to work with XXXX to modify the first mortgage. It took quite a while but was successful and that loan is now 8 years old and still in place at 5.5 %. Then I approached XXXX and requested a Loan Modification. They initially put us on a trial loan mod at 7.99 %. I began to make those payments. The first couple months went by and all seemed to be fine, then I started to receive late notices, I did n't understand until I figured out that the amount that they were considering late was the amount that was the difference between the modified " trial '' payment and the original amount in addition to accrued interest and late charges. They would not accept any further payment unless I brought the entire amount current and said that I would need to re-apply for a modification since they did not have any record of a previous " trial '' modification being approved. So I sent everything in again including their own paperwork showing the modification approval. This time they responded with a denial stating that I did n't qualify financially for a modification and recommended that I consider a short sale on the house. That made no sense. At that time we owed approx. XXXX on the first, XXXX on the second and the house exactly like ours across the street had just sold for XXXX, they stood to get nothing, I was asking for a loan modification so that we could afford to stay and make more affordable payments, seems to me that was better than them getting nothing in a short sale and obviously if I did n't qualify for a mod I was going to struggle with the higher payment that I already had. Shortly thereafter XXXX closed down their mortgage division and transferred all their loans and I did n't hear anything from anyone, no phone calls, no statements, nothing!! I was nervous and certain that the second would surface and the entire amount would be demanded all at once and I would n't be able to do anything to i.e. refi etc..to get that much money. By this time someone being self employed looking to obtain mortgages or refinances were pretty much out of luck, no one was lending let a lone to the self employed. Long story short, this second has transferred 5 times, Over all these years ( almost 8 years ) I have received 2 phone calls and not one statement. Until, 2 months ago I received a threatening letter from West Coast Servicing. Upon receipt of the first notice they sent I retained an Attorney in hopes of resolving this once and for all. He told me that West Coast Servicing very likely bought the debt for pennies on the dollar and he would negotiate with them and try to get them to settle for anamount that was fair and that we could afford, the original loan amount was XXXX, West Coast Servicing has added XXXX, making the total they are demanding approximately 90K! The Attorney sent them 2 letters asking for them to take less, they said no. I have applied to 5 lenders, the most recent being a hard money lender. I initially received approvals but I have obviously told them about the second mortgage and I have sent them the notices and recent notices that I received from West Coast Servicing knowing that there would be questions when a Title search was done since the second only showed recorded by XXXX for XXXX and just recently West Coast recorded a servicing transfer on title. In the beginning the lenders say no problem then they come back and need 12 to 24 months of payment history on the second, Since I cant provide that I have been told that I cant get a conforming loan and need to seek out Hard Money Lenders. The Hard Money lender had even lower allowable LTV and DTI, so there was no way he could help me. He said the same thing all the others have said and that is that the Attorney certainly should have done more and I should be filing this complaint and getting things straightened out because the original second of XXXX ( it was less than that when it went in to default )@10.125 % should not be XXXX now and said the very same thing as the Attorney that West Coast Servicing bought bad debt for pennies on the dollar and are looking to make a huge return. Since I have only received notices of Servicing transfers ( none of which have been recorded until West Coast Servicing several months ago ) and only 2 phone calls in all most 8 years I can not help but think that this has been well planned and thought out. Why did no one ever reach out to me during the many years that the second and at least a third of the first mortgage was under water? Why now? After almost 8 years and absolutely no statements, no contact all this time? Negotiations have failed with West Coast Servicing, they are not willing to work out a payment plan or anything other than paying the amount in arrears ( approx.42K ) by XX/XX/XXXX and resuming monthly payments at 10.5 % and at XXXX with interest continuing, where does this end? It will go on and on forever. I do n't have the XXXX, Obviously we have lived in our home for 26 years and we do n't want to lose it, my husband not only suffers with XXXX but is now in XXXX XXXX XXXX with only 25 % XXXX capacity. I honestly do not think he would survive a move. 

Please see timeline below : Second Mortgage Summary XX/XX/XXXX -  Refinanced with XXXX XXXX XXXX XXXX, received an interest only adjustable rate first mortgage starting at 5.99 % ( Principle {$210000.00} ) with a concurrent second mortgage fixed at 10.125 % for 30 years ( Principle {$53000.00} ). 
First Mortgage servicing transferred from XXXX XXXX XXXX XXXX to XXXX XXXX XXXX Second Mortgage servicing transferred from XXXX XXXX XXXX XXXX to XXXX on XX/XX/XXXX XX/XX/XXXX Began working with XXXX to negotiate Loan Mod for 1st Mortgage with XXXX XXXX XXXX, after refusing initial offer from XXXX due to higher interest rate, a second offer was made, trial period entered and completed. First mortgage Loan Modification was finalized on XX/XX/XXXX. The first mortgage was modified to a principle of $ XXXX@5.525 fixed interest for 294 months beginning on XX/XX/XXXX. 
XX/XX/XXXX Initiated Loan Modification Request for Second Mortgage being serviced by XXXX. 
XX/XX/XXXX XXXX offered trial period to reduce fixed interest to 7.99 % reducing the current payment of approx. {$450.00} to approx. {$400.00}. 
XX/XX/XXXX, began to get late notices from XXXX. Late charges were being charged. We were not receiving credit for the lower agreed to payments that were being made. I sent receipts to XXXX, called XXXX, tried to straighten out the record keeping with XXXX, had no success. 
XX/XX/XXXX, sent in all new paperwork requesting Loan Mod ( Second Request ). Also, went above and beyond and sent current Sold Comps showing value on property.
XX/XX/XXXX, Received Denial from XXXX for Loan Modification, stated we lacked sufficient income to qualify for modification and was advised to Short Sale Property. The first mortgage was under water, the second mortgage had no value. 
XX/XX/XXXX, Servicing transferred to XXXX XXXX , XXXX XX/XX/XXXX, Notice received from XXXX XXXX, XXXX  XX/XX/XXXX, Email correspondence with XXXX XXXX/XXXX Rep,  indicated that an offer to settle for XXXX had been made, I had not received anything and explained that I would not be able to put that amount of money together on such short notice. I never received anything in writing in regards to a Settlement of any sort. XXXX said that the deadline to pay in full on the XXXX offer would be XXXX. When I told XXXX that I could not/did not have XXXX, she told me to tell how much I could do and I told her no more than 2K,  she said she would present whatever I wanted her to and she would see if she could get it accepted. I never heard anymore from her. 
XX/XX/XXXX Servicing transferred from XXXX to XXXX XXXX XXXX , XXXX. 
XX/XX/XXXX, Notice received from XXXX XXXX XXXX XX/XX/XXXX, Letter sent to XXXX XXXX XXXX requesting evidence of debt, I sent certified, the certified letter was received and signed for by Rep of XXXX on XX/XX/XXXX XX/XX/XXXX, Received letter and copy of Deed from XXXX XXXX ( formerly known as XXXX XXXX XXXX XXXX ) per the bottom of their letterhead XX/XX/XXXX, Received Privacy Policy from XXXX XXXX  XX/XX/XXXX, Received Privacy Policy from XXXX XXXX  XX/XX/XXXX, Notice of Assignment, Sale or Transfer of Servicing Rights received from XXXX XXXX, Servicing being transferred to West Coast Servicing , Inc XX/XX/XXXX, Notice of Transfer of Servicing Rights received from West Coast Servicing , Inc .
XX/XX/XXXX, Received Certified Mail, Collection Letter from West Coast Servicing giving 14 days to request a meeting with them. The total owing on this letter is now {$89000.00}. ( No other letters or statements show any additional amounts ).