Consumer complaint received 2020-12-16
Product: Mortgage — Conventional home mortgage
Issue: Struggling to pay mortgage — 
Company: SN SERVICING CORPORATION (GA)

The estate trustee, XXXX XXXX, believes her deceased mothers, XXXX XXXX XXXX consumer rights were violated by the lender, XXXX XXXX XXXX in XXXX during the loan modification process. She believes the loan was modified under predatory terms with erroneous and unsubstantiated fees and added costs. Now the complainant is unable to refinance the loan into her name due to the loan is underwater. She would be able to refinance if the erroneous amount of {$33000.00} is removed from the loan. 

On XX/XX/XXXX, the home was purchased by XXXX XXXX XXXX. The lender was XXXX XXXX. The amount of the mortgage loan was {$170000.00}. ( see attachment XXXX XX/XX/XXXX the loan was assigned to XXXX  XXXX XXXX. ( see attachment ) At the end of XX/XX/XXXX and during XXXX was diagnosed with a life-threatening illness ; the homeowner became ill and missed her mortgage payments. She had submitted at least three applications during the period to request a loan modification from the lender. From XXXX through XX/XX/XXXX, the homeowner received correspondence stating that her 3 requests for a loan modification were denied ( see attachments ). 

On XX/XX/XXXX, the homeowner signed a loan modification agreement that increased the loan amount from approximately {$170000.00} to {$210000.00} XXXX see the loan document ). The homeowner was confused because she had received correspondence that her request for a loan modification was denied. She called the lender because the amount of her loan would increase by over {$30000.00}. She was told to take the loan option or look for the lender to foreclose on the property. According to the loan agreement, the lender had added an erroneous amount of {$33000.00} to the loan instrument. There was no documentation to support the additional amount of up to {$33000.00} to be added to the mortgage during the loan modification period. In fear of losing her home, Ms. XXXX XXXX XXXX homeowner ) signed the agreement. 

The daughter was unaware that her mother had signed a loan modification agreement. It was not until the daughter opened her mothers mortgage statement that she saw that the loan amount on the house had increased significantly. The daughter asked her mother to explain what happened. The mother stated she had missed 90 days of loan payments due to her hospital stays and medical treatments and she had to request a loan modification, otherwise the home would go into foreclosure. The borrower explained to her daughter that the lender stated that in order to stay in the home she had to agree to the loan increase ; therefore she signed the agreement with no explanation of the reason for the added erroneous {$33000.00} to the balance of the loan. 

Since XXXX both the homeowner and her daughter attempted to resolve the erroneous additions to the loan. The homeowner had asked for an investigation into the matter. XXXX XXXX XXXX ignored the homeowners inquiries into the matter. They requested a fee schedule to substantiate the additional up to {$33000.00} added to the balance of the loan. The homeowner and her daughter continued to pay her mortgage. In XX/XX/XXXX, the homeowner received correspondence stating that a document had been filed in the courts, Affidavit Affecting Title ( see attachment ). 

In XX/XX/XXXX the homeowner received notification of an Assignment of Security Deed. The amount on the assignment is {$170000.00} and not the {$210000.00} as stated in the loan modification agreement signed on XX/XX/XXXX, by the homeowner. The daughter began to inquire of XXXX  XXXX XXXX, but with no prevail. The assignment was recorded twice on XX/XX/XXXX and XX/XX/XXXX In XXXX - XX/XX/XXXX the homeowner received several notifications of changes made to the security of the loan. There was Corporate Assignment of Security Deed. The recording was filed three times. 
o Record First recorded XX/XX/XXXX o Record Second recorded XX/XX/XXXX o Record Third recorded XX/XX/XXXX o The amount on the document stated {$170000.00} and not the {$210000.00}. The daughter began to inquire of XXXX  XXXX XXXX and of XXXX XXXX XXXX ( as stated by the new document ), but with no prevail. 
Corrective Assignment of Security Deed. The recording was filed three times o Record First recorded XX/XX/XXXX and XX/XX/XXXX o Record Second recorded XX/XX/XXXX o Record Third recorded XX/XX/XXXX o Record Fourth recorded XX/XX/XXXX o The documents referenced the amount of {$170000.00} and not the {$210000.00} under the loan modification agreement. 

From XXXX through XXXX the mortgage changed to five ( 5 ) different servicers, making it difficult for the homeowner to know who to send her monthly mortgage payments to. In XX/XX/XXXX the mortgage was transferred to a new servicer, XXXX XXXX XXXX, XXXX, XXXX XXXX XXXX as Owner Trustee of the XXXX XXXX XXXX XXXX XXXX. Then it was transferred to XXXX XXXX  XXXX XXXX XXXX as Trustee of the XXXX XXXX  XXXX XXXX. The documents referenced the amount of {$170000.00} and not the {$210000.00} under the loan modification agreement. She sent payments to the last statement received, XXXX  XXXX XXXX. Once XXXX  XXXX XXXX transferred the loan to a servicer, the lender did not record that payments were received by the homeowner. The next lender then transferred it to another servicer ; they too did not have proof of the payments that the homeowner paid, although the homeowner provided proof through bank statements and canceled checks. This continued from one lender to the next. 

In XXXX, again, the homeowner found out that she was sending her mortgage payments to the incorrect servicer, and the new servicer, XXXX XXXX  XXXX XXXX XXXX XXXX XXXX had not received any of the mortgage payments paid to the prior servicer. The servicers records showed that the payoff amount was {$220000.00}. An amount that is {$10000.00} above the previous balance from the prior servicer. The daughter attempted to make inquires to investigate the cause of the discrepancies. The servicer stated they could not see what happened in XXXX, therefore the amount owed is the amount showed in their records. 


On XX/XX/XXXX, the homeowner/borrower died. The daughter XXXX XXXX continued to make payments on the loan to the newest servicer, SNSC.. It was not until XX/XX/XXXX that SNSC emailed instructions to allow daughter, XXXX XXXX, of the mortgage loan borrower, XXXX XXXX, to access and have the authorization to obtain account information about the mortgage loan. She outlined to SNSC the chronological events and the current loan amount has erroneous fees In XX/XX/XXXX XXXX XXXX requested a loan modification due to the COVID-19 pandemic. She submitted all necessary documentation. On XX/XX/XXXX, she received approval for a loan modification agreement. 

The estate trustee, XXXX XXXX, has stated that she has asked each lender and servicer to investigate the erroneous and unsubstantiated amount of over {$33000.00} to the loan modification loan in XXXX. She believes she is hostage to the current upside-down loan amount erroneous and unsubstantiated costs added to the original loan of {$170000.00}. XXXX  XXXX XXXX refused to remove the fees on the loan, and all the transfers of the loan to various services make it difficult for XXXX XXXX to refinance the loan into her name. The consumer refuses to accept the loan modification offer or refinance the loan under the current conditions because she believes XXXX XXXX applied the erroneous amounts to strip her mother from the equity in her home and diminishing any opportunity to refinance with another lender without incorporating the erroneous fee into the new mortgage. 

The homeowner is requesting the CFPB to investigate the reason for the lenders applying the erroneous {$33000.00} during her mothers loan modification agreement. This application is keeping her from the opportunity to refinance her loan in order to get a low-interest rate. She believes her mother was given a predatory loan because she was desperate to keep her home while she was attempting to concentrate on healing from a life-threatening XXXX. She wants the erroneous {$33000.00} removed from the loan so that he can refinance at a lower interest rate into her name.