Consumer complaint received 2023-01-26
Product: Mortgage — Home equity loan or line of credit (HELOC)
Issue: Struggling to pay mortgage — 
Company: Franklin Credit Management Corporation (CA)

I am filing a new claim because my original claim filed XX/XX/XXXX to try and stop the sale of my house on XX/XX/XXXX was responded to by the company Franklin Credit on XX/XX/XXXX and my claim, without any option to appeal was summarily rubber stamp closed. It is disheartening that an agency that is supposed to be for the consumer, didn't even take the time to read the response and that it did NOT answer the question of the claim. I am attaching the documents I prepared to appeal thier non-answer, taking much time away from trying to fight this, filing emergency XXXX to stop it, etc... only to find out I can only leave " feedback ''. Please see my response to original claim number XXXX. I have attached all the documents so you'll have context. 

I am in receipt of Franklin Credit Management Corporations ( Franklin Credit ) CFPB response to my initial claim filed on Wednesday, XX/XX/XXXX. I received notification of the response on Friday, XX/XX/XXXX. Although I appreciate the response submitted, however well-crafted, is filled with inaccuracies, half-truths and fails to answer the question of the claim filed. I will point out inaccuracies, as well as again, ask for an adequate response/action from Franklin Credit and appeal to the CFPB for sanctions against Franklin Credit and proper remedy given to me due to the continuously irresponsible and egregious actions by Franklin Credit . 

In the second paragraph, it is accurate that my late husband agreed to a HELOC through XXXX XXXX XXXX XXXX XXXX for a total line amount available of {$230000.00}. However, Franklin Credit states it was to refinance an existing mortgage loan, which is untrue, inaccuracy # 1. Has nothing to do with my CFPB complaint today. 

I confirm that he did file XXXX  XXXX on XX/XX/XXXX while XXXX 2nd was with original issuer XXXX XXXX XXXX XXXX XXXX. As anyone who was involved in the housing market crash, this filing was not unusual given the circumstances, and done so legally. Has nothing to do with my CFPB complaint today.

Per Franklin Credit on XXXX, XXXX, XXXX, XXXX XXXX XXXX XXXX XXXX went bankrupt and sold our loan for pennies on the dollar to Bosco Credit LLC. Thats when communication stopped and I never received a bill or any notices from this new lender I personally tried calling XXXX XXXX XXXX XXXX XXXX to find out where the loan was going, but the phone just rang. So we waited for notice, new statement and I do not remember ever seeing anything, never received a phone call. According to Franklin Credit, they began servicing the loan on behalf of Bosco Credit LLC on XX/XX/XXXX. I can not confirm nor deny this as we knew nothing, again were sent nothing about them taking it over or a new statement asking for payment. The dispute over how much of the line was used still remains in contention, as I can not clearly make sense of these statements and thus far Franklin Credit has not shown actual proof of funds dispersed, theyve relied solely on the modification agreement signed in XXXX in a very stressful time, so I wont address that here. Has nothing to do with my CFPB complaint today. 

In the fifth paragraph, I confirm that the XXXX XXXX XXXX  was dismissed in XX/XX/XXXX. It is disingenuous to assert that XXXX XXXX did not contact Franklin Credit. Again, we didnt know Franklin Credit existed, so how could we contact Franklin Credit ? I can attest with certainty that Franklin Credit never contacted me at my number, and I was married to XXXX XXXX for 33 years prior to his death, and any phone message on his phone that had to do with financials, he would have 100 % told me, forwarded the message to me, write a note to me with all the information. None of that ever happened. I dont know if Franklin Credit called him or not- did anyone leave a message? The loan is in my husbands name and I was never notified of the debt. Again, this has nothing to do with my CFPB complaint today. 

On XX/XX/XXXX Franklin Credit filed a notice of default, the first I had heard from them, and acknowledge I received the notice. As Franklin states the amount was {$380000.00}. Again, didnt know who or how to find them and get in touch with them. And then when the pandemic grossly inflated home prices, here comes Franklin Credit marching along with all the XXXX 2nds coming for homes and families. Has nothing to do with my CFPB complaint today. I would also like to point out, in Franklin Credits ( Exhibit F ), which Ive attached pertinent pages noted as XXXX XXXX XXXX, on page XXXX under XXXX XXXX XXXX XXXX  with ( or exception from ) Civil Code Section 2923.55 and Authorization of Agent ( For Notice of Default ), the reason marked is The provisions of Civil Code 2923.55 do not apply because X the loan is not secured by a first mortgage or first deed of trust that encumbers real property described in Civil Code Section 2924.15 ( a ). I am not an attorney, but I can read, and it would appear to me that their reason when they tried this the first attempt in XXXX is inaccurate- there is a 2nd mortgage which encumbers the real property. Again, not an attorney but it surely looks like this was also done incorrectly. Has nothing to do with my CFPB complaint today.

I acknowledge that my attorneys office contacted Franklin Credit to submit a modification request and mitigation. I cant speak to the owners, I dont know who they are. I acknowledge that Franklin Credit did return to my attorneys office with a trial modification shown in ( XXXX XXXX ). I confirm that I did reject it- and was then forced to file XXXX XXXX. It would appear that Franklin Credit and its owners are very benevolent in granting a trial modification that I just simply rejected. Here is the offer and the truth : Down payment due in 30 days from letter date of {$150000.00}. Thats correct, nothing in the trial modification means anything unless I magically produce {$150000.00} in cash ( certified check ). Not to mention there would still be a large principal and then a balloon payment of {$130000.00}, and a monthly payment of {$2000.00} due 17 days later from the {$150000.00}. Here again is Franklin Credits artful language which left all that detail out of the letter and buried it in ( XXXX XXXX  ) which Ive attached ( notice the mailing address is incorrect ). How can anyone with a straight face think this was a reasonable offer of modification? Its truly the worst part of corporate capitalism greed. Franklin Credit made it crystal clear they had no intention of working with me as each time my attorney went to court, the court was told that Franklin Credit was, in fact, working with me and had offered a trial modification, then they came back again, which isnt mentioned in the letter, for a second modification offer of {$50000.00} down payment and $ XXXX mo XXXX Again, if I had {$50000.00} I likely wouldnt be I this situation, but then the monthly payment is unreasonable. They made their intentions clear and my only remedy was filing bankruptcy- they forced me into it. Due to Franklin Credits unwillingness to be genuine in their offer of reasonable mitigation, the plan became unfeasible due to the large increase in plan payment, so it was dismissed late XX/XX/XXXX. Heard nothing from Franklin Credit. Has nothing to do with my CFPB complaint today. I am willing to pay the debt if we are able to work out a reasonable loan workout that offers an affordable payment on a monthly basis. I have offered this to Franklin and was denied. 

On XX/XX/XXXX, Franklin Credit posted a Notice of Trustees sale on my house. My HUD Housing Counselor informed me that a servicer must, by law, give notice of intention to foreclose with NOD and workout options prior to posting a Notice of Trustee Sale, which Franklin Credit did not comply with. Franklin Credit as much as admits to it in their response- The Notice of Trustees Sale notified XXXX XXXX that a foreclosure sale was scheduled for XX/XX/XXXX and indicated the amount of unpaid balance and other charges was {$670000.00}. This represents an increase in less than 24 months of {$290000.00}. I acknowledge it was posted on XX/XX/XXXX, but as I had no prior notice that they were going to file a Trustees Sale on the property, actually nothing from them still in writing other than the ridiculous trial modification. I started calling the 1st mortgage servicer XXXX XXXX as I believed that was who had filed the notice on my house. In clearing up with a XXXX loss mitigation representative and both of us realizing that her system didnt show any notice, I realized it had to be the XXXX. Since I had no prior notices, no contacts, no phone numbers from Franklin Credit, I called the number on the notice, which is the Trustee Attorney. I left a message, and got no response and my call was never returned. Panicked, I immediately contacted XXXX XXXX, a HUD housing counseling agency for help as my attorney was no longer representing me, I was advised to call Franklin Credit and at the conclusion of our conversation, I was advised to file a complaint with CFPB for notice violation and to stop the sale of my property. The complaint was filed on XX/XX/XXXX. Much to my surprise and hope, I received a call from XXXX XXXX of Franklin Credit on XX/XX/XXXX at XXXX PST regarding a letter they received. On XX/XX/XXXX after receiving the message, I dialed XXXX TEN times before I was even able to get through to leave him a message, which by that time was after XXXX EST. I called the main number I found XXXX EIGHT times, left message, no response. I called on XX/XX/XXXX always busy. I called NINE times on XX/XX/XXXX, and in pure desperation, I called both numbers at least ELEVEN times on XX/XX/XXXX before finally speaking with XXXX XXXX. That is FOUR days wasted. Here is what may be the most egregious and disingenuous language in this response letter, Although foreclosure sale is scheduled for XX/XX/XXXX, XXXX XXXX has been notified that her account may be reviewed for available loss mitigation options if a complete application package is submitted by XXXX EST on XX/XX/XXXX. On the face of it, thats correct. Again, Franklin Credit leaves out the reality of my conversation with XXXX XXXX. It is true that after the majority of our call on the XXXX XXXX XXXX did offer to consider a review with no guarantee if I can submit a modification package within the hour. Given that I was at work that would be difficult but was prepared to leave work to do it. They were giving me unrealistic timelines to get the loan mod information back which is not offering me ample time to submit a full packet for a reasonable workout. However, what Franklin Credit has conveniently left out of this, is that I was also told that if I didnt have a very substantial amount as down payment it wont be considered- no matter when I filed or didnt file it. I asked him to clarify what that amount would be and his general response was your trial modification required a {$150000.00} down payment, its increased to {$210000.00}. As calmly as possible, I told him all of it is ridiculous and unreasonable. Who has {$210000.00} sitting in the bank and in this situation? This should be criminal. I told him there is no way I have anything close and what I clearly heard from him is without a $ 100,000+ down payment, Im wasting both our time submitting anything. As I cried hysterically, I received the notice of the Franklin Credit response to CFPB and was absolutely floored at the lengths this company will go to in glossing over the real story here. So, just like in XXXX, they forced me to file an emergency bankruptcy that didnt need to happen if they would have followed the law and actually were genuine in their words and actions. 

So, I ask, where in this response does Franklin Credit EVER answer my complaint of no notice prior to the Notice of Trustee Sale? How can they honestly believe theyve adequately addressed anything but everything that didnt answer the complaint? This company is expert at skating the truth and I am sure they take advantage of many borrowers who had no say in being thrown to these wolves with these tactics. It is crystal clear they intend to deep corporate pocket me until my XXXX daughter and I are on the streets. I have always been willing, but a person cant be willing with offers as ridiculous as these non-offers. I request CFPB look further into this for sanctions and at a minimum requiring them to start the process over with proper notice, and Ill hope against hope that maybe someone there will actually try and help me. I am asking for them to provide me the full package required as XXXX XXXX just told me documents verbally, and the opportunity to submit a loan modification application and it be reviewed so I can work with them and get a reasonable workout. I am currently working with my HUD housing counselor to get financial counseling in an effort to pay my bills and obtain a loan workout to stay in my home. I appreciate your help in resolving this matter.