Consumer complaint received 2023-08-23
Product: Mortgage — Conventional home mortgage
Issue: Struggling to pay mortgage — 
Company: Shellpoint Partners, LLC (CO)

I am writing to file a formal complaint against Shellpoint Mortgage Servicing ( " Shellpoint '' ) regarding their unfair and deceptive foreclosure practices that have led to substantial financial and emotional distress. It is with great concern that I bring to your attention a series of actions by Shellpoint that appear to violate established consumer protection laws and regulations. I believe these actions have directly contributed to the wrongful foreclosure of my property located at [ Property Address ]. 

Background : In XX/XX/XXXX, I made the life-changing decision to purchase my home for {$470000.00}, which, according to recent valuations, is now estimated to be worth around {$700000.00}. At the time of purchase, Shellpoint was the designated servicer for my first mortgage, which amounted to approximately {$410000.00}. My monthly mortgage payments were consistently met, totaling {$2300.00}, until XX/XX/XXXX. This was when Shellpoint claimed that I owed an additional {$150000.00} in various fees, a contention that triggered an ongoing dispute over the actual loan amount. 

The heart of the issue stems from my participation in Shellpoint 's forbearance plan during the COVID-19 pandemic, which concluded on XX/XX/XXXX. Following the forbearance period, Shellpoint extended a three-month trial plan to me, promising that if I made all three payments on time and in the correct amount, my mortgage would be modified to accommodate the previously unpaid amounts from the forbearance period. Initially set for XX/XX/XXXX, XX/XX/XXXX, and XX/XX/XXXX, the payment dates were later shifted to XX/XX/XXXX, XX/XX/XXXX, and XX/XX/XXXX, to better align with my financial circumstances. 

It is crucial to note that, in response to the trial plan, I received an email communication from a Shellpoint loss mitigation specialist, who stated that my trial payment would amount to {$2200.00}. Curiously, this figure differed from the payment amount listed on my mortgage statement, which still indicated {$2300.00}. Nevertheless, I meticulously made the three trial payments in the amount of {$2300.00}, adhering to the adjusted schedule. The transaction activity on my mortgage statement corroborated these timely payments, and Shellpoint even reported to credit agencies that all three payments were accurately received and processed. To my surprise, however, approximately seven days after the second trial payment was submitted, Shellpoint returned the funds, asserting that there were insufficient funds in my bank account to cover the payment. I find this assertion puzzling, as my bank confirmed the availability of funds in my account throughout the entire seven-day period both before and after the payment was returned. Strangely, I never received any notification from Shellpoint indicating insufficient funds, a practice they had followed in the past when warranted. Adding to my bewilderment, my inquiries about this issue to my designated single point of contact at Shellpoint remained unanswered or inadequately addressed. 

Eventually, I did manage to establish contact with my single point of contact at Shellpoint, albeit after a significant delay. By the time this contact was established, interest rates had surged considerably, causing Shellpoint to reject my loan modification application due to the resulting high payment amount resulting from the elevated interest rates. This rejection marked a pivotal turning point, as Shellpoint subsequently initiated foreclosure proceedings on my property. The foreclosure process formally commenced on XX/XX/XXXX, with an initial foreclosure sale scheduled for XX/XX/XXXX. However, this sale date experienced multiple postponements, rescheduling for XX/XX/XXXX, XX/XX/XXXX, XX/XX/XXXX, XX/XX/XXXX, and ultimately culminating in a final foreclosure sale date of XX/XX/XXXX. 

Additional Complications : In the latter part of XXXX, my household experienced a roof leak that caused extensive damage to the master bathroom of our residence. To address this issue, our insurance provider, XXXX XXXX, approved a sum of {$25000.00} for necessary repairs. We received a check intended for both us and Shellpoint, the latter receiving roughly {$12000.00}. Intending to utilize these funds for repair work, we forwarded the check to Shellpoint with the expectation that they would return the funds to us for engagement with a contractor. To our astonishment, Shellpoint fragmented the {$12000.00} into four smaller payments of approximately {$3500.00} each. This division of funds placed us in a predicament, as most contractors required the full amount upfront. As a result, my spouse and I opted to tackle the repairs ourselves, navigating the restrictions that Shellpoint had imposed on the use of these funds. 

The culmination of these unfortunate circumstances occurred in a manner that deeply affected the property 's market value. Specifically, the incomplete state of the master bathroom following the roof leak damage had a direct bearing on potential buyers ' perceptions of the property. This was exacerbated by the fact that buyers seeking conventional mortgageswere unable to proceed due to the presence of an unfinished bathroom, a condition that precluded approval for conventional loan underwriting. As a direct consequence, the market value of the property plummeted below the outstanding mortgage balance, rendering the property 's sale an unsustainable solution. 

In light of these predicaments and as a contingency measure, my family decided to list the property for sale. Despite our best efforts, it became apparent that the unfinished bathroom negatively impacted the property 's marketability, resulting in offers that fell short of the mortgage balance. Consequently, we applied for participation in Shellpoint 's short sale program, a step we believed would enable a more amicable resolution. 

The Short Sale Program Fiasco : This is where the situation took a further turn for the worse. I received XXXX separate letters from Shellpoint, dated XX/XX/XXXX, and XX/XX/XXXX, respectively. Both letters expressed conditional approval for participation in the short sale program, provided that specific requirements were met. These requirements pertained to short sale marketing and the submission of necessary documents for evaluation of offers. The timeline for acceptance was set at XX/XX/XXXX, indicating a definitive opportunity for resolution and foreclosure avoidance. To confirm our participation, I promptly communicated our intent and complied with all necessary documentation, both through Shellpoint 's online portal and direct emails to my assigned single point of contact. 

Regrettably, my experience with maintaining consistent single points of contact with Shellpoint had been characterized by change, leading to inconsistencies in communication and accountability. Between XX/XX/XXXX, and XX/XX/XXXX, the identity of my single point of contact shifted multiple times, introducing additional uncertainty and complexity into an already fraught situation. The shifts from XXXX XXXX to XXXX XXXX, and subsequently to XXXX XXXX, only to revert back to XXXX XXXX, further compounded my challenges. 

Despite my diligent compliance with Shellpoint 's requests, the outcome remained disheartening. Following offers that exceeded the mortgage payoff, including offers with waived inspections, Shellpoint inexplicably rejected them without providing clear explanations. This, despite their own subpar bid during the foreclosure process, which had been lower than the rejected offers. The culmination of these events transpired on XX/XX/XXXX, the very same day that the deadline for acceptance into the short sale program was set. On that day, Shellpoint placed a bid amount of {$460000.00} during the foreclosure proceedings. Not only did this bid fall below the property 's market value, it left a deficiency of {$60000.00}, a stark contrast to the initial offer that Shellpoint had dismissed for being too low. 

Two days later, the property was sold to a third party for {$550000.00}. This sale price exceeded Shellpoint 's bid, leading to an overbid amount of {$20000.00}. The most troubling aspect is that despite submitting a bid lower than market value, Shellpoint proceeded to collect the deficiency payment of {$60000.00}, creating an untenable situation wherein the lender not only retained the property but also coerced a financially crippling payment from me. 

In Closing : Considering the extensive series of events outlined above, I am convinced that Shellpoint Mortgage Servicing 's actions have violated numerous laws, regulations, and ethical standards intended to protect consumers. I beseech the Consumer Financial Protection Bureau to thoroughly investigate the matter at hand, ensuring that justice prevails and my grievances are adequately addressed. The grave financial, emotional, and psychological toll that this situation has exacted upon my family and me underscores the urgency of rectifying the situation. 

I earnestly thank you for your attention to this matter and eagerly anticipate a resolution that will restore fairness, transparency, and integrity to my dealings with Shellpoint Mortgage Servicing