Consumer complaint received 2023-11-17
Product: Mortgage — Conventional home mortgage
Issue: Struggling to pay mortgage — Applying for or obtaining a modification, forbearance plan, short sale, or deed-in-lieu
Company: Shellpoint Partners, LLC (GA)

I inherited this home when my mom passed away last year, and I had a lot of trouble being confirmed as successor in interest to even get information about the mortgage. It took Shellpoint Mortgage Servicing months to confirm me, and after Id sent them the information they requested many times, they finally confirmed me as SII but didnt tell me on one of the many phone calls I had with them during this time. They foreclosed on the house, and sold it at auction, after I was confirmed as SII, without giving me the chance to apply for a modification, or giving me the same rights as the original owner. I filed a complaint on here, and was one day away from being evicted from my home, when I received an email from them that they reviewed my complaint and decided to rescind the sale. I was ecstatic after the emotional turmoil Id been through from the eviction process, and from being one day away from being homeless. I thought Id finally be given the same rights as the original owner, and be able to modify the loan, and apply for the XXXX Mortgage Assistance Program to catch up the past due payments. But when I spoke to my point of contact, XXXX XXXX at Shellpoint, she informed me I couldnt apply for a modification because the loan wasnt in my name, and I couldnt have it transferred into my name, because the loan was past due. She told me I would need to apply for a loan assumption and I would need to have enough income and credit to be considered, but I wouldnt be approved because the loan was already past due. I was not offered any loss mitigation options because she said since the loan wasnt in my name, it wouldnt be approved. I told her thats not what the mortgage servicing rules from the CFPB state, and I quoted her this from their website : - [ ] Under 1024.30 ( d ), a confirmed successor in interest must be considered a borrower for purposes of this subpart and 1024.17, regardless of whether the successor in interest assumes the mortgage loan obligation under State law. For example, if a servicer receives a loss mitigation application from a confirmed successor in interest, the servicer must review and evaluate the application and notify the confirmed successor in interest in accordance with the procedures set forth in 1024.41 if the property is the confirmed successor in interest 's principal residence and the procedures set forth in 1024.41 are otherwise applicable. Treatment of a confirmed successor in interest as a borrower for purposes of this subpart and 1024.17 does not affect whether the confirmed successor in interest is subject to the contractual obligations of the mortgage loan agreement, which is determined by applicable State law.

Also this rule about having the loan put into my name : - [ ] Todays interpretive rule explains that because an heir has already acquired the title to the home, adding the heir as a borrower on the mortgage does not trigger the Ability-to-Repay requirements. The rule does not require the creditor to determine the heirs ability to repay the mortgage before formally recognizing the heir as the borrower. As the named borrower, the heir may more easily be able to obtain account information, pay off the loan, or seek a loan modification.

But she didnt agree with that and neither did anyone above her. I spoke with a few different supervisors throughout this ordeal and none of them agreed this. They all told me I couldnt assume the loan or do a transfer of ownership, or any kind of loss mitigation without proving my income and doing a credit check. I applied for the XXXX Mortgage Assistance Program, and they were going to approve me but they needed the loan to be in my name. They wouldve paid the entire loan off because there was only {$42000.00} left to pay on it, and they provide up to {$50000.00} worth of assistance. So I researched the rules with the CFPB, and with XXXX XXXX, who I was told owned the mortgage, on transfers of ownership so I could have it in my name. I called Shellpoint and asked to have the loan transferred into my name, but was told I couldnt do that by two different supervisors. They told me again Id have to apply for a mortgage assumption, and have the credit and income to be approved. I quoted them the rules from XXXX XXXX website on transfers of ownership and the federal restrictions on the exercise of the due on transfer clause : Permitted Transfers of Ownership subject to conditions In situations where all of the following conditions are met, XXXX XXXX will permit a Transfer of Ownership of the Mortgaged Premises : At least 12 months have passed since the Origination Date The Servicer has complied with all mortgage insurance requirements applicable to the transfer Either The transfer is to a transferee who occupies or will occupy the Mortgaged Premises as a Primary Residence and is : A parent or child of the transferor, or A grandparent or grandchild of the transferor, or A brother or sister of the transferor, or An original co-Borrower of the transferor under the Note, whether or not related to the transferor In connection with any Transfer of Ownership that meets the conditions of this Section 8406.4, a Servicer may not evaluate the creditworthiness of a transferee, require a transferee to assume the Mortgage or otherwise require the Servicers or XXXX XXXX approval of the transfer.

I was still told I couldnt do a transfer of ownership without doing a full assumption and evaluation of my creditworthiness, even after quoting them all of the above information. I spoke with a few different supervisors, and they told me I was interpreting it the wrong way. I explained that I just wanted to do a transfer or ownership so I could get approved for Georgia Mortgage Assistance program, and have the remaining loan paid off. The GMA program had to have something with my name on it in order to approve me. Even though I was approved as SII with Shellpoint, my name wasnt on any documents with them. They had everything under The estate of XXXX XXXX who is my mother, and the original borrower. Shellpoint told me there was no way to have my name on the loan without doing a complete assumption. Even after reading them the guidelines from the XXXX XXXX website, none of them would do a transfer of ownership for me, so that I could have my name on the loan, and get approved for GMA program, and have the loan paid off. The supervisors at Shellpoint argued with me and said that they dont do transfers of ownership and that I wasnt understanding the XXXX XXXX guidelines or the mortgage servicing rules the correct way. So even after the first foreclosure sale was rescinded, I still wasnt given the same rights as the original borrower, or given any loss mitigation options, and I couldnt have the loan put into my name, so that I could get any foreclosure relief assistance. Even though the rules from the CFPB explicitly state theyre supposed to do all of those things. The loan was too far past due for me to catch up on my own, but I wouldve been approved for the Georgia Mortgage Assistance program, who wouldve paid off the remaining {$42000.00} owed on it, if the loan was in my name. Shellpoint wouldnt allow me to do a transfer of ownership or follow any of the rules theyre required to follow when someone inherits a home after the death of a loved one. My mother left me her home when she passed away, and the CFPB made rules for this exact situation, and to make it an easy process. But I still dont own the home. Im going to have to go through the eviction process again, and face being homeless with my son once again.