Consumer complaint received 2023-03-05
Product: Mortgage — Conventional home mortgage
Issue: Trouble during payment process — 
Company: Specialized Loan Servicing Holdings LLC (WI)

Hello CFPB : In XXXX, we receive a mortgage on XXXX of our property from XXXX. This loan was bundled into a trust security, XXXX XXXX and sold to XXXX XXXX XXXX XXXX  XXXX We defaulted on a XXXX home loan in XXXX. 

We were sued twice for foreclosure by XXXX XXXX XXXX XXXX XXXXXXXX. The first action was dismissed in XXXX by the Bank with leave to re-file once it cleared up a cloud on the title. ( Bank did not have an endorsed note from XXXX and, the Bank first learned that the mortgage was only on XXXX of the title. ) Prior to the first dismissal, we sent XXXX XXXX XXXXXXXX, the then servicer for the Bank, a reinstatement check in XX/XX/XXXX, in the amount of {$89000.00}. This was returned as insufficient to reinstate the loan. 

At trial, SLS admitted that there were errors made in the calculations of what should have been included for reinstatement fees. As shown in the mortgage statements from XXXX and XXXX, SLS had to make another correction as to what was owed and reduced, significantly, the arrearage. Using the corrected rate, it is evident that we overpaid in the reinstatement payment and that the servicer was wrong. Our loan should have been reinstated. 

During the next XXXX years, we filed multiple requests for modifications or tried to get the servicer and the Bank to work with us on a settlement/buy out amount. None of the modifications were ever processed nor was any response received for our offers. 

In XXXX, the second foreclosure action was filed. On XXXX a decision granting the foreclosure was granted by the XXXX XXXX XXXX XXXX. In its decision, the trial court ordered, as requested by the Bank in its pleadings, that no deficiency judgment be taken against us. The decision granted judgment on XXXX of the property. 

No final judgment nor appeal was ever taken from that decision by the Bank or its servicer, Specialized Loan Servicing. In fact, nothing was done by either the Bank or SLS for the next XXXX years. 

Since the decision was made, we have tried, individually and through legal counsel, to get the Bank or SLS to either cooperate in the sale of the property or to let us buy out their judgment. Little to no response was given by the Bank, SLS or their counsel. 

In XX/XX/XXXX, on advice of counsel, we brought a partition action against the Bank to try and settle this incomplete foreclosure. XXXX year later after spending {$20000.00} in legal fees, we are still unable to get anyone to respond and negotiate a settlement or cooperate in a sale. 

The issue is that SLS, as servicer, is demanding more than XXXX the value of the house, in a sale or buy out, despite the ruling of the court. SLS has made it clear that it will simply continue to run up costs and fees so as to force us to pay more than is owed. 

In addition, SLS continues to call me and demand payment or it will foreclose, bills me monthly for " past due amount '' even though it has not taken any action on the foreclosure decision rendered on XXXX, it charges my account an interest rate of XXXX % which is greater than the rate of interest I was being charged, XXXX %, and SLS continues to pay expenses on the property, to run up what they claim we should pay back. 

( I have included XXXX mortgage statements from SLS from XXXX and XXXX to demonstrate how badly they have mixed up fees and costs on our account. You can see that despite their representation that our interest rate was XXXX %, SLS just decided to raise it. See : current mortgage statement. ) For example, we were paying our home insurance and, for no reason, SLS, decided to pay our annual insurance bill in XX/XX/XXXX. ( We were current and have been for a long time. ) As an excuse, SLS states that it can not accept a buyout from us as it would damage a pending claim it has against the title insurance company for this property. This is a false statement. 

XXXX has confirmed that there are no claims pending from the Bank or SLS. XXXX advised the following claims were made and denied : XXXX. XXXX XXXX claim was denied. ( Claim was based on error that policy should have covered entire title not XXXX. ) XXXX. XXXX The XXXX XXXX XXXX asked the company to reconsider the claim. 
XXXX. XXXX Claim denied again. 
XXXX. XXXX XXXX XXXX XXXX filed a XXXX claim/reconsideration on the grounds the title was " unmarketable ''. 
XXXX. XXXX Claim was denied. 

SLS lied to the trial court when their counsel stated it had an active claim pending with XXXX in XX/XX/XXXX. It again revived this false claim in XX/XX/XXXX, as the sole reason why it refused our cash out offer to settle. 

Frustrated, we reached out to the Bank but were told the following : " XXXX XXXX is acting as a Trustee, and therefore we do not own the loan or the property. As trustee, XXXX XXXX is not involved in the servicing of the loans or the foreclosure process.. This is the responsibility of the Servicer. Since XXXX XXXX XXXX XXXX. ( XXXX XXXX '' ) serviced the loan associated with the property, they are the direct and only contact in regards to your request. '' The Bank states it does not " own the loan '', the trust does ; and, therefore, it makes no decision about the property. Unfortunately, the Bank doesn't even know who its servicer is currently or that since the decision was rendered on XXXX, SLS has paid out an addition {$50000.00} in fees and expenses for this property. Since the trustee is not watching the bottom line, SLS is free to run up fees, unchecked, for the Bank. SLS seeks to break us financially in order to get a fee which is based on more than XXXX the value of the house. 

SLS, and thereby the Bank, is trying, by weekly phone calls, monthly demand letters and statements, and its bad faith negotiations, to get more from us than was ordered by the trial court on XXXX. 

SLS, the Bank and the Trustee, need to be held to account from its wrongful conduct and blatant disregard for the rules of fair play and good faith negotiations. 

We can not access the equity in our home because SLS and the Bank will not finalize the terms of the judgment. We can not sell our house because SLS will not cooperate in the sale and is demanding more than {$100000.00} off the top of any sale before the proceeds would be split between us. We can not get them to accept XXXX the value of the house, as SLS continues this charade of a claim against the title policy. 

Thank you. 

XXXX and XXXX XXXX XXXX XXXX