Consumer complaint received 2020-10-19
Product: Mortgage — FHA mortgage
Issue: Trouble during payment process — 
Company: SN SERVICING CORPORATION (FL)

I applied for and was approved for a Loan Modification on XX/XX/XXXX with a first payment start date of XX/XX/XXXX. All payments were made on the TPP Loan Modification and the Final Loan Modification was received on XX/XX/XXXX. The Final LM Documents were signed, notarized, and the original copies sent back to the lender. On XX/XX/XXXX my loan was transferred from XXXX to XXXX XXXX. On XX/XX/XXXX XXXX XXXX  stated that they were not honoring the Final Loan Modification that was received from XXXX and paid from XX/XX/XXXX to XX/XX/XXXX. Our client continued to make the mortgage payments to XXXX XXXX until XX/XX/XXXX. XXXX XXXX   deposited the payments, but did not apply them to the loan. Instead, they applied them to a suspense account. We believe this to be a violation of the lender/servicer requirement to protect struggling borrowers during service transfers. 

Below is a timeline of the details of the file. 

1. File was approved for a TPP LM on XX/XX/XXXX ( attached ). The first payment was due XX/XX/XXXX for $ XXXX/month. 
2. File was approved for a Final LM on XX/XX/XXXX ( attached ). The first payment was due XX/XX/XXXX for $ XXXXmonth. 
3. Final LM Documents were sent via registered mail XX/XX/XXXX ( see attached receipt ). 
4. XX/XX/XXXX There was a notification sent to my client indicating receipt of the final loan documents. 
5. We then received a correspondence from the lender dated XX/XX/XXXX titled Family Transfer Package. It stated, Please note, completion of this Family Transfer Package may be required prior to finalizing any mortgage modification. 
a. This package was completed and faxed and emailed back to the lender on XX/XX/XXXX ( attached ). We mailed the original documents by mail as well. 
6. On XX/XX/XXXX opposing counsel asks for copies of transfer documents and death certificate. They are provided the same day via email. 
7. On XX/XX/XXXX opposing counsel responds and asks for the complete loan modification package once again. They are provided the same day via email. 
8. On XX/XX/XXXX the death certificate is sent to XXXX and lender via email, fax and regular mail. 
9. On XX/XX/XXXX we received a correspondence from the lender ( attached ) requesting the probate documents to complete the Family Transfer Package and make our client the Successor in Interest. 
a. The updated probate documents were emailed to the lender on XX/XX/XXXX and XX/XX/XXXX. All requested documents on the XX/XX/XXXX correspondence were emailed to the lender. 
10. On XX/XX/XXXX we received a correspondence from the lender ( attached ) confirming Ms. XXXX as the Successor-In-Interest ( attached ). 
a. The executed documents were emailed and mailed to the lender on XX/XX/XXXX ( attached ). 
11. XX/XX/XXXX the loan was transferred from XXXX to XXXX XXXX. XXXX XXXX refused to accept the LM even though it was Finalized in XXXX and payments were up to date. They refused to accept Ms. XXXX XXXX payment. 
a. I contacted the lender and submitted the XXXX Final LM to XXXX via email on XX/XX/XXXX. 

Basically my client made timely payments from XX/XX/XXXX-XX/XX/XXXX when the loan mod was transferred to XXXX and they then refused to accept payments. She then continued making payments until XX/XX/XXXX where payments made were placed into a suspense account and suddenly refunded to Ms. XXXX. My client has not cashed these checks so the lender is still holding these funds.