Consumer complaint received 2024-04-03
Product: Mortgage — Conventional home mortgage
Issue: Struggling to pay mortgage — Foreclosure
Company: Specialized Loan Servicing Holdings LLC (MD)

We are a XXXX family and our house is going through a lawsuit that was caused due to complications after the mortgage forbearance procedure. We applied for Mortgage Forbearance during COVID 19 and our original mortgage servicer, XXXX XXXX XXXX transferred our mortgage to a new mortgage servicer Specialized Loan Servicing. 

After this transition, we received a mail from a new servicer Specialized Loan Servicing about an instruction on how we can make a payment and the amount we should pay. Therefore we resumed our payment from XX/XX/XXXX. 

However, in XX/XX/XXXX, we received the call from the third party agency that the property was foreclosed. We learned that the mortgage servicer put our property into foreclosure without any single notice. We began to work with the lawyer and learned that they began the foreclosure case in XX/XX/XXXX, that we did not receive any single mail, call, or mail notice either. From XX/XX/XXXX until XX/XX/XXXX, we had received all kinds of mails and deliveries, and XXXX packages therefore we doubt that they really had sent any notifications to us. We have requested USPS to invest if there have been any misdelivery or extortion of mails. 

In XX/XX/XXXX, XXXX, the debt collecting company working with the mortgage servicer, posted the property on the market to sell, even if the case is still open.

Since this unfortunate situation happened after the covid forbearance, we were wondering if there is any government support to assist this kind of lawsuit due to the lack of/willingness of communication by the mortgage servicer. We suspect fraud that the company intentionally did not communicate with us. They can easily notice us via mail or other methods but we did not receive any notice via phone, email, or mail. We resumed our payment right after the forbearance period followed by the guidelines in the mail we received.

From the government website, it indicates that Federal regulators have made it clear that if you receive a forbearance under the CARES Act, your mortgage servicer can not require you to repay your skipped payments in a lump sum once the forbearance period ends. 

https : //www.consumerfinance.gov/coronavirus/mortgage-and-housing-assistance/cares-act-mortgage-forbearance-what-you-need-know/ Our mortgage servicer did not even inform us to pay back the skipped payments in a lump sum, what is even worse, they just put our property in foreclosure without any notice. If the purpose of CARES Act Mortgage Forbearance is to help citizens who are having a hard time, the government should investigate mortgage servicers whether they purposefully cheated general citizens to take their properties like this case.

We hope the government 's support with good intentions does not end up resulting in a loss of our home due to the mortgage servicers fraudful acts upon general citizens who are willing to pay back diligently after the forbearance. We strongly urge the mortgage servicer to send a proof of previous notification documents to us, whether they requested payments in a lump sum, withdraw the foreclosure and put down the posting to sell the property on market. In addition, we request help from the government and its agencies to support us in resolving this case.