Consumer complaint received 2023-04-28
Product: Mortgage — Home equity loan or line of credit (HELOC)
Issue: Struggling to pay mortgage — 
Company: Specialized Loan Servicing Holdings LLC (FL)

Dear CFPB, I appreciate your assistance in my dispute ( XXXX ) with Specialized Loan Servicing LLC ( SLS ) regarding my Home Equity Line of Credit ( HELOC ) account. I have reviewed SLS 's response and would like to request further clarification on the following points : 1. SLS 's lack of communication : SLS mentioned that they did not contact us from the time the lien ownership and servicing were transferred to them in XXXX until XXXX ( 10 Years ) due to the account being under XXXXXXXX XXXX XXXX  bankruptcy protection. While we understand the limitations on debt collection calls and monthly billing statements, SLS 's response does not address why they could not have communicated with us in any other way during this period. For example, they could have sent informative correspondence about the lien status and servicing or addressed any non-discharged obligations. Their failure to do so has caused significant financial harm and potentially constitutes a failure to properly service the loan. We would have been able to manage this debt/lien if it had been communicated to us at any point. Is it acceptable for SLS to purposely withhold information about the lien and not reach out to us for such an extended period? This raises concerns about their compliance with the Real Estate Settlement Procedures Act ( RESPA ) and the Consumer Financial Protection Act ( CFPA ). Can the CFPB please assist in providing clarity on this matter? 

XXXX. Misinterpretation of settlement offer : Although I sent a letter with a settlement offer at the beginning of XXXX, SLS claimed that my letter opened a short sale discussion in their written response. This misinterpretation may indicate miscommunication or mismanagement on SLS 's part. Can the CFPB provide clarity on if this is proper management?

3. SLS 's insistence on providing the first lien payoff amount : When I called SLS for clarification regarding their confusing response to my settlement offer, they insisted that I provide the first lien payoff amount before even considering my offer of {$61000.00}. I believe this requirement is unnecessary and could potentially lead to foreclosure. It's important to understand that my financial situation is quite challenging. In XXXX, XXXX faced significant healthcare costs due to XXXX XXXX, and we also support my elderly mother here at the house. Unfortunately, we don't make a lot of money as we don't have college degrees and immigrated here to make a better life for our family. The proposed amount of {$61000.00} is genuinely the most we can afford without risking our ability to keep our home, which we've been planning to retire in one day. 

XXXX. Ownership of the lien : We know that SLS is the current owner/originator of the lien, but they have not been forthcoming with this information in their response to the CFPB. Please ask SLS to clarify their relationship with the lien and explain why they did not disclose this information in their initial response. 

XXXX. Inadequate payment history : SLS provided a payment history to us and the CFPB that only states " Fee Billed '' without any additional information on charges. I find it difficult to understand the fees and interest applied to our account due to this lack of transparency. I'm unsure if this might be related to the Truth in Lending Act ( TILA ), which, as I understand, requires creditors and servicers to disclose essential information about the terms and conditions of a loan, including interest rates, fees, and payment details. Could the CFPB please clarify whether SLS 's provided payment history is in compliance with TILA? And, if possible, request SLS to provide a detailed breakdown of all fees and interest charged, including the dates and amounts for each, so we can better understand our loan situation. For context, the 2nd loan had a balance of {$56000.00} at time of foreclosure and loan modification. 

XXXX. Confusion during the loan modification process : The notice I received from XXXX  XXXX XXXX in XX/XX/XXXX about the lien transfer to SLS was ambiguous and did not provide a clear and direct statement about the transfer, leading to confusion regarding the transfer and the parties involved. Additionally, since the second loan was discharged and charged off, I was under the impression that I had no obligations. It later came to my attention that XXXX  XXXX XXXX did not include this second loan as part of the loan modification I underwent in XXXX. Although this oversight was my mistake, I feel that XXXX  XXXX XXXX 's failure to inform me that the second loan was not included, despite providing its information during the process, constituted improper behavior. Can the CFPB take this into consideration? 

XXXX. Difficulties in communication with SLS : I've experienced difficulties in communication with SLS, through long hold times, transfers between departments, the inability to contact my main point of contact, and unclear letters, which has caused undue stress, time away from work, and impacted my well-being. 

We acknowledge that we made an error during the foreclosure process and subsequent loan remodification in XXXX, and were unaware of the ongoing existence of the HELOC lien. Despite this, we are fully committed to paying the principal amount, any applicable fees, and working with SLS in good faith to resolve this matter. However, we can not help but feel that being unexpectedly confronted with this loan, the start of the foreclosure process, the lack of proper communication, and the seemingly arbitrary fees and interest have placed an undue burden on us and our family. We believe that everyone deserves a fair chance, and that includes us in this challenging situation. 

We're reaching out to the CFPB in the hope that you can help us obtain more information and ensure that we are treated fairly in this matter. Your support means a lot to us, especially when we're dealing with something so stressful. 

We have compiled some of the paperwork and documentation that are relevant to the points above in the shared onedrive link below. https : XXXX! XXXX? XXXX Thank you for taking the time to address our concerns. We look forward to your response and any additional assistance you can provide in resolving this issue. Please let us know if you need any additional paperwork or documentation as we would be happy to provide them.