Consumer complaint received 2019-06-26
Product: Mortgage — Other type of mortgage
Issue: Trouble during payment process — 
Company: Lil' Wave Financial, Inc. (CA)

XXXX XXXX XXXX has been the sole owner of record since XXXX. In XXXX, XXXX, took a 5-year owner occupied, residential loan against the above referenced property that was later modified and continued until XXXX. In XXXX, the loan was called due after 10 years of payments. The lender passed away and the daughter came onto The Ranch and noted she would at once call the balloon payment due. The property went into immediate default, then Trustee Sale. XXXX was put into duress and forced to quickly find a new investor/lender to clear the existing debt and any liens against the property. Further complicating the duress, XXXX is the sole legal guardian and XXXX  of her sister, who is in a XXXX  state that requires around the clock XXXX care. 

Beginning in XXXX of XXXX, XXXX at once began looking for a way to pay off the existing loan and for funds to improve the property to increase the revenues from short term rentals. While under heavy duress, she found XXXX, XXXX who subsequently signed a borrower/broker agreement to secure the lender to clear the existing loan and liens against the property, and to provide XXXX with funds for a residential loan and any liens. 

XXXX, XXXX opened escrow with XXXX XXXX XXXX initially on XX/XX/XXXX. At that time, XXXX was furnished with loan documents and all subsequent agreements and paperwork to secure a residential loan for {$610000.00} secured by the above referenced real estate parcels which included an executed Balloon payment document in the docs for {$610000.00}. She was also provided an estimated closing statement that showed all of the fees and liens to be paid off with the funds, which was inaccurate. Mr.XXXX agreed too, 6 months of loan payments and the {$32000.00} for the shade structure as XXXX had a set of engineered plans and a job card that she had been performing on to finalize the County of XXXX lien and that it would be paid for in the loan proceeds minus escrow, closing cost and fees. 

On XX/XX/XXXX, XXXX executed a complete set of loan documents and agreements that were dated on XX/XX/XXXX, with XXXX, XXXX acting as the mortgage loan broker. On XX/XX/XXXX, she executed another set of loan documents in the amount of {$610000.00} with a signed and executed balloon payment in the amount of {$610000.00} with the escrow and title insurance company, XXXX XXXX XXXX. She was told by XXXX , XXXX to give a mailing address and it had to be a resident home address for MAILING. XXXX signed all loan docs, which was a Commercial loan with a non-owner occupied. She was under heavy duress and did not read the paperwork since there was a pressured Trustee Sale the very next day from the last lender. The Escrow Officer, XXXX XXXX, was also pressured, raged at, and confused as she notarized the document at the last minute- as XXXX , XXXX threatened that they will not do the loan and XXXX would lose the property the next morning, unless they signed it and got it immediately in the Federal Express . 

XX/XX/XXXX XXXX was called into the office of XXXX XXXX and Escrow to sign more paperwork, completely confused what was going on, still signing stacks of unread documents pressured by the imminent doom Trustee Sale date that had been moved again and set for the next morning. XXXX was told to date XXXX on a document called a Mortgage Loan Disclosure Statement, for their records. At that point, totally confused and believing it was a residential loan, which XXXX later learned was pressured fraud that would equal the cool off period. 

On XX/XX/XXXX, the day before her original loan of approximately 10 years the Trustee Sale date was moved to the next morning again, DURESS she was called into XXXX XXXX XXXX to close on the funds provided by XXXX, XXXX XXXX was not present. XXXX XXXX the Escrow Officer called XXXX when the final close happened. XXXX was NOT told who the lender was, was NOT furnished a closing statement breaking down of all charges and fees and was told that all would be signed off and mailed to her. XXXX XXXX retired immediately afterwards and expressed that the loan was the worst closing she had ever experienced in 38 years of banking escrow and title. And said she would be available if there was ever an issue, which she very strongly knew there would be. 

On XX/XX/XXXX XXXX received a phone call from XXXX XXXX, He stated he was the lender and the payment was late, and he would break XXXX legs and burn the house to the ground. XXXX was immersed into a trial proceeding concerning the torturous abuse of her sister XXXX, whom was trapped in a XXXX facility, under a HUGE amount of stress trying to save her sister. 

In XXXX of XXXX, XXXX received a phone call from Superior Loan Servicing, insisting that the payment was due for the mortgage in XXXX. XXXX explained that she had never received the closing papers, never been told who her lenders were, never told the final loan amount, and never told where to remit payments to. Subsequently, she finally received a statement from Superior Loan Servicing demanding a payment of approximately {$5000.00}, which XXXX did remit payment for at that time. 

In XXXX of XXXX, XXXX received another statement from Superior Loan Servicing. At that time, XXXX was extremely confused and still under heavy duress, and could not understand the statement and paperwork being provided by Superior Loan Servicing. Further, the new statement did NOT show any record of her first payment of {$5000.00}. XXXX called to ask questions, but no further explanations were given besides payment is due and perhaps she was too XXXX to figure out the statements quote by XXXX XXXX, who also said it was a Commercial Loan. XXXX expressed she got a Residential loan for {$610000.00} on XX/XX/XXXX, and she lived at the property as her primary residence. It was agreed that 6 payments would be held back to pay for the payments so she could increase her credit and refinance. XXXX was not receiving any mail. Further, threats were made to XXXX, that you should know better than to XXXX with us. 

In XXXX of XXXX, XXXX received notice of default after she decided not to pay XXXX invoice because no proper accounting, closing paperwork, promissory note, or even final loan amount was ever disclosed to her. She questioned them about the missing paperwork, and how and why they were able to place the property in default so quickly. 

She subsequently pulled the property profile from the County Recorders and saw that an alternate version of the paperwork she had actually signed had been recorded with the county, dated and executed on XX/XX/XXXX. Upon further review, she realized that the paperwork recorded reflected a loan amount of {$490000.00} when all previous and documented paperwork showed a final loan amount of {$610000.00}. Further, she noticed that the original paperwork had been altered and replaced with documents that showed a {$490000.00} loan amount and a forged copy of her signature. 

In XXXX of XXXX under heavy duress, XXXX decided to pay off the default to prevent foreclosure. She subsequently spoke with the company and reports that she was kind and congenial to everyone and immediately began to look for other investors and lenders to take out and resolve the confusion and issues. XXXX reports her correspondence was light-handed since she won the trial of her sister, and XXXX returned home in the worst condition ever. She reported her sisters condition and her own hardship to Superior Loan Servicing by phone and was ignored. She requested to meet with the lenders in order to stabilize with a resolve, to no avail. There were escrows opened for new lenders to come in and take out the loan. Numerous requests for payoffs all were untimely. The market was at an all-time low, the property is over-improved XXXX manufactured houses, and the new loan offers were 12 % in 24 months. XXXX was told that she would need to pay approximately {$27000.00} to remedy the default. In XXXX of XXXX, XXXX remitted the payment to Superior Loan Servicing to remedy the default. No further information was provided, and no statement accurately showed the application of the {$27000.00} payment made. XXXX paid {$7800.00} and the money was taken and held instead of paying a payment. She never knew who her lenders were until the first default was found at the PO Box mailing address, in which was a false document- there was one payoff demand that had two DocuSign signatures of so-called lenders. XXXX requested on numerous occasions for approximately {$3300.00} forced placed insurance from Superior Loan Servicing and never received a copy of any invoices. 

On XX/XX/XXXX, a second notice of default was filed and served with an immediate payment due for {$34000.00} to remedy the default. Further penalties and fees were applied and approximately {$570000.00} was now due on the so-called original {$490000.00} loan that was originated on XX/XX/XXXX, in which only a {$610000.00} loan was originated on XX/XX/XXXX. 

On XX/XX/XXXX, XXXX filed Chapter XXXX bankruptcy to prevent the Trustees sale scheduled the following day on XX/XX/XXXX. The judge provided automatic stay and the next scheduled court date is XX/XX/XXXX. Superior Loan Servicing continues to post the Trustee Sale during an automatic stay, which was causing an interruption of her right to peace and quiet, causing catastrophic stress on the takeover from a fraudulent loan in which the lenders feel that they must take the property in order to cause huge attorney fees and the impossible rescission of a stolen property. 

In Summary : This is a very sophisticated fraud and forgery that involved a bait and switch where one set of documents was presented with a loan amount of {$610000.00} and instead a closing took place under heavy duress that XXXX found out later was only for {$490000.00} which was not enough to be an effective solution. Further, it appeared to her as though all of the loan documents that showed the {$490000.00} had been altered after the fact using the previous set of documents requesting the {$610000.00} loan amount. Further still, a county lien against the property for {$32000.00} was never cleared at the closing and title is still clouded. 

Allegations being made : 1. Fraud in the concealment and inducement 2. Forgery 3. Defective  contract under duress which XXXX did not qualify to afford. 4. Violations of RESPA. 5 Violations of TILA. 6. Lack of standing to foreclose 7. Overcollateralizing the loan so no financial remedy exists. 8. Intentional infliction of emotional duress. 9. Breach of fiduciary duty 10. Breach of contract 11. Slander of title 12. Real party in interest and validity of lien ; to value collateral and determine lien principal and multiple other charges 13. Violation of California Business and Professions code sections 17200 ET SEQ 14. Violation of California Homeowners Bill of Rights HBOR 15. Violations of California Civil Code 2923.5 16. Negligence 17. Intentional infliction of emotional distress Relief being sought : 1. Rescission of the current loan 2. Quiet title 3. Declaratory relief 4. Compensatory and punitive damages Potential Courses of Action : 1. A temporary Injunction and Restraining Order to prevent any further sales or notices of sale being delivered to or recorded against the property. 2. XXXX to file a Lis Pendens to protect the {>= $1,000,000} plus she put into improving the property 3. File a lawsuit in Federal Court for Jury Trial against all parties and move the current chapter XXXX case to a chapter XXXX to continue the automatic stay and buy time to work out a solution.