Consumer complaint received 2016-10-26
Product: Mortgage — Home equity loan or line of credit
Issue: Loan modification,collection,foreclosure — 
Company: Specialized Loan Servicing Holdings LLC (MD)

My wife and I filed a Chapter XXXX due to excessive medical bills on XXXX/XXXX/XXXX and it was discharged on XXXX/XXXX/XXXX. Beginning back in XXXX XXXX, I requested a loan modification with Specialized loan Servicing , LLC ( SLS ) -- our loan is with XXXX. Since XX/XX/XXXX, I submitted another formal loan modification request to SLS and during the last 7 months, I have been beating my head against the wall with SLS. They would delay and then ask for the most recent bank statements and now advise that my XXXX XXXX, XXXX loan modification has expired and that I may submit a new one XXXX XX/XX/XXXX. I have attempted to speak to my assigned SLS account person but told due to my Chapter XXXX discharge that I can not talk directly to them. First, they still have my Chapter XXXX as pending and refuse to change my status to discharged effective XXXX/XXXX/XXXX. I have provided a comprehensive package of support to them including a specific hardship justification. They have not accepted my monthly net income/tracking sheet which documents a negative cash flow. The negative cash flow is made worst because my 10 year draw down interest only loan ( was 6.875 % ) with SLS ended XX/XX/XXXX. My monthly payment had been {$260.00} and then rose to {$410.00} in XX/XX/XXXX and can increase up to the maximum interest cap of 18.0 %. While the approval of the Chapter XXXX has significantly improved our financial situation, failure to get SLS to modify our current non-fixed rate loan to a fixed rate loan around 4.00 % for 40 years, continues to make our financial status problematic if we want to remain in our home. The Bankruptcy court required {$5800.00} of my XXXX Tax refund and over {$3000.00} of jewelry that my wife had inherited from her Mother. Our only savings is around {$1300.00} which we use to help cover the {$300.00} negative cash flow still existing made largely up of the increased SLS monthly loan payment. Our only income is my Federal XXXX check as my wife receives no XXXX income or any other income. My wife is permanently handicapped from a previous auto accident ; I suffer from XXXX, and my XXXX year old son has medical issues and is unemployed and lives with us. We truly love our home and its location to many of our Doctors but if we can not secure a loan modification from SLS, we will be forced to leave. Based on the attorney 's advice, we did not reaffirm our primary mortgage with XXXX, SLS or our car loan with XXXX. In XXXX, XXXX ( then XXXX XXXX ) did approve a significant loan modification at a 4 percent interest rate which reduced our month payment by over {$500.00} and recently XXXX also approved another smaller loan modification of about {$60.00} per month by extending the laon again to 40 years.I have also been working with a HUD counselor in XXXX, MD who recommended that I file a complaint with the MD XXXX, the Consumer Financial Protection Bureau, and the Attorney General of the State of Maryland. I most recently called SLS on Tuesday, XXXX XXXX, XXXX to again attempt to get the process moving but was informed that they will not change my Chapter XXXX status unless an Abandament of Property Order is issued by the Bankruptcy Court. Any guidance will be most appreciated regarding this matter.