Consumer complaint received 2023-05-12
Product: Mortgage — Conventional home mortgage
Issue: Struggling to pay mortgage — 
Company: Allied Servicing Corporation (AZ)

Please help me with my zombie mortgage situation. In XXXX got an XX/XX/XXXX on a {$100000.00} mortgage. My first was with XXXX  and XXXX was with XXXX mortgage. In XXXX I lost my job as a XXXX XXXXXXXX and fell behind. I tried to do a modification after getting a job at XXXX XXXX making much less than I was making. XXXX modified but XXXX went bankrupt, they wanted to settle for XXXX cents on the dollar, even though it was only {$2000.00} I did not have it and had no where to get it. XXXX told me not to worry my loan was one of the ones that would become unsecured debt and charge off due to being severely underwater. I asked for something in writing and was told they would mail me something after their BK court hearing. I never heard anything again. I did not receive any statements and did not even think about it since XXXX told me not to make payments. I assumed I no longer had a second. 7 Years went by and I started getting documents that my XXXX mortgage was sold to XXXX XXXX XXXX XXXX then to XXXX XXXX XXXX then to XXXX XXXX. XXXX called me from partners of payment relief saying that I needed to work with him to avoid foreclosure. I told him I did not have a second mortgage and hung up. The same man XXXX XXXX called me saying he is now with XXXX XXXX and they had started the foreclosure. I talked with him and he said they would modify my loan and forgive all the late fees for the years of no payments. I would just need to make payments every month. They posted a note on my door that my home would be sold at auction in 30 days. I did not know what to do or who to reach out to. My back was against the wall and I had a foreclosure sale date. I had no where to turn, I had no choice but to work with them. I did the modification to avoid the foreclosure. Instead of waiving the late fees and charges they tacked on more fees and waived nothing. I was told that they do things a little different I need to sign before they could waive the fees. I dealt with the man named XXXX and XXXX XXXX, she was the one that drew up all the documents and told me I had to pay {$1500.00} in order to get the modification and she worked with partners to payments, commercial Partners and now XXXX XXXX services by ASC. I fell behind on payments due to illness and had to file a XXXX  XXXX XXXX to avoid them from foreclosing. I have struggled for years to keep my home due to this loan and there is no solution in sight. I had a gut feeling what they did to me was illegal. How could this be legal? I am still in a XXXX  XXXX because of this loan. My 1st mortgage is current. Even after I am done with my XXXX  XXXX I will still end up in foreclosure because this loan is impossible to get out of. 

My original loan amount was {$21000.00} with at 9 %. This is what they claim I owe : 1. Ongoing mortgage {$18000.00} plus {$2900.00} interest = {$21000.00} 2. Pre petition arrears {$7100.00} plus {$2300.00} = XXXX XXXX. Forbearance amount due in full in XXXX {$9100.00} ( for missed payments, late fees and interest ). There was no where to make payments if I wanted too and I was told not to worry it would charge off and become unsecured debt.

4. Legal fees outside the Bankruptcy : {$6100.00} Grand Total : {$45000.00} They keep adding to it so that amount could and more than likely will go up. I filed bankruptcy in XXXX of XXXX and am still in the XXXX  XXXX to this day ASC has tacked on more and more fees. I have already paid almost {$40000.00} in BK payments and I filed for a past due amount of {$4200.00}. I still owe ASC over $ XXXX with a lump sum of {$9100.00} due in 3 1/2 years for an original loan amount of {$21000.00}. I can not get accurate figures from ASC. Even the principal balance keeps going up and down. They change it anytime