Consumer complaint received 2021-11-08
Product: Mortgage — Other type of mortgage
Issue: Struggling to pay mortgage — 
Company: SN SERVICING CORPORATION (CA)

Im filing this claim against SN Servicing Corporation, who has been the Lender on behalf of XXXX XXXX re : my 2nd mortgage. SN Servicing Corporation has been violating the guidelines of RESPA and the CFPB Bulletin 2021-02 : Supervision and Enforcement Priorities Regarding Housing Insecurity. 

The guidelines of RESPA include that Lenders must be transparent re : all financial requests of the borrower. Lenders must include how they calculated their requested amounts, as well as they must disclose why they are requesting the amount that they are requesting. SN Servicing has not followed any of these guidelines. 
Furthermore, SN Servicing Corporation violated the CFPB guidelines re : helping me as a homeowner during the pandemic, to keep my home. Again, SN Servicing Corp. has not followed the CFPB guidelines. 

I purchased my XXXX XXXX condo XX/XX/XXXX. My Lender was XXXX XXXX XXXX. I had a 1st mortgage and took out a 2nd mortgage that was used as a Piggy Back Loan as my down-payment. It was a 15-year loan in the amount of {$26000.00} at the rate of 9.5 % with a Balloon Payment due at the end of 15 years. The Maturity date was XX/XX/XXXX. ( I had no idea what the Balloon payment amount would be at the end of the loan. XXXX never disclosed that to me. ) In XXXX The real estate bubble had burst. XXXX XXXX XXXX took over XXXX XXXX XXXX. 

In XXXX I had no equity in my home and I could not afford both mortgage payments. I hired a Bankruptcy Attorney who advised me that because there was no equity in my home, my 2nd mortgage would become an unsecured dept and would be wiped-out in a Chapter XXXX Bankruptcy. 

In XX/XX/XXXX ( Almost 10 years later ) I received a 'Notice of Assignment, Sale or Transfer of Servicing Rights ' letter from XXXX XXXX XXXX informing me that they had been servicing my 2nd Mortgage in the amount of {$26000.00} and that SN Servicing Corporation would be my new 2nd Mortgage servicer, as of XX/XX/XXXX. 
I had no idea who any of these companies were. I had not heard from anyone about my 2nd mortgage in almost 10 years ( since filing bankruptcy. ) Now all of a sudden out of the blue, I was receiving correspondence. And from a company I had never heard of. 
In early XXXX, XXXX, ( right in the middle of one of the worst pandemics in our country since XXXX ) I received a letter in the mail from SN Servicing Corporation that they were now my new loan servicer and that XXXX XXXX was the creditor to whom the debt was owed. SN Servicing Corp. then mailed me a second letter. It stated that instead of owing {$26000.00}, ( which was the original loan amount, ) the loan had been accruing interest all these years ( at 9.5 % interest ) and that I owed {$53000.00}. 

I immediately contacted the Attorney ( that I had filed my Bankruptcy with back in XXXX ) and explained the situation. She informed me that she had retired and was no longer practicing law. She stated that although she could not provide me any legal advice, she stated to be careful and cautious of some random company that was now calling me out of the blue 10 years later, wanting money. 

After contacting some other Bankruptcy Attorneys, I was informed that I had not been provided sound legal advice back in XXXX when I originally filed bankruptcy and that Chapter XXXX bankruptcy is the only way to do a Strip Lien on a 2nd mortgage that has no equity. Not Chapter XXXX. 

At that point, I began making payments to SN Servicing Corp. ( Knowing that most of what I was paying them was just going to the interest, not the principal. ) XX/XX/XXXX, I wrote a letter to SN Servicing Corp. explaining my financial hardship due to the pandemic. I informed them that I wanted to keep my home and that I wanted to offer a Settlement in the amount of {$5000.00} ( which was my life savings. ) I also applied for a Loan Modification with them at the same time, as well. I was hoping they would accept one offer or the other. 

XX/XX/XXXX, I emailed XXXX ( the account manager ) asking what the status was of my Settlement offer and Modification request. I received the following email from her : The investors have responded with the below- If you do not agree you can write an appeal letter and I will submit your letter of appeal to be reviewed. 
Option 1 : Were willing to settle for {$42000.00} by XX/XX/XXXX. 
Option 2 : Minimum {$3500.00} Down Payment on or before XXXX Immediately defer loan current for XXXX Borrower to pay contractual pmt of {$220.00} from XXXX maturity Borrower to satisfy all remaining balance or seek a formal extension prior to maturity Of course, it would have been great to defer loan current and then I would have just continued to pay the contractual payment of {$220.00} per month until maturity date, however I didnt understand why SN Servicing Corp. was asking for a down payment of {$3500.00}. They did not explain how they came up with that particular amount, which is a RESPA requirement. I just knew that I currently had a Loan Modification on my 1st mortgage and was never asked by my lender ( or any lender Ive had for my 1st mortgage ) to pay money down as a down payment in order to receive help. I would have paid $ XXXX to actually settle my loan and be done and no longer have the loan, but it felt shady for a Lender to be asking me for a down payment. Especially with no explanation. 

XX/XX/XXXX, I emailed the account manager asking her to email me an attached " formal letter '' from the lender, as to the reasons they declined both my Settlement Offer and my request for a Loan Modification? 

Account managers email response : So technically at this point with option one being that they would accept a settlement of {$42000.00} or option two which was putting {$3500.00} down and then granting a forbearance bringing it your account to current standings I believe you will get a denial letter for the modification but thats because they are offering a forbearance which isnt considered a modification. 

I received a letter on SN Servicing letter head dated XX/XX/XXXX re : the reason for declining me a Modification : [ X ] Ineligible Borrower : We are unable to offer you a modification because your current monthly housing expenses, which include the monthly principal and interest payment on your first lien mortgage loan plus property taxes, hazard insurance and homeowners dues ( if any ) is not within the allowable debt to income ratio which would entitle you to be eligible for a modification. 
They then stated : [ X ] Investor Declined Loan Modification : We are unable to offer you a modification because : We have offered a Forbearance Plan instead. 

It was very confusing. They declined me a Modification because my debt-to-income ratio was not within the allowable amount, but then on the other hand they offered me a Forbearance Plan instead, but only if I paid them {$3500.00} down, which is not actually a Forbearance. 

I continued to pay my monthly payment on-and-off through XX/XX/XXXX. Meanwhile, I kept my 1st mortgage payments current and up-to-date. 

XX/XX/XXXX, I requested a copy of my NOTE and Deed of Trust from SN Servicing Corp. to see if they actually owned my note. ( They emailed me a copy of my Note and Deed of Trust, which had XXXX XXXX XXXX name on the Deed. ) So now, I still had no proof that SN Servicing Corp. actually owned my mortgage. But since they had all of my information and there was a lien on my home, I knew I needed to continue to address this situation. 

XX/XX/XXXX, I was in the middle of working with a Lender ( XXXX XXXX, ) to receive a refinance. I contacted SN Servicing Corp. to negotiate a lower pay-out settlement amount. I asked SN Servicing in an emailed letter, that If I was able to come up with the principal amount of {$26000.00} would their company be willing to accept my offer as a paid in full settlement? I informed them once again that my condo was my primary and only residence and my intent was to keep my home. I also informed them that since I had filed bankruptcy in XXXX and neither of my mortgages were showing on my credit reports it would be much easier if my 2nd mortgage was for the principal amount of {$26000.00} instead of closer to $ XXXX. 

XX/XX/XXXX The investors responded to my Settlement Letter request, by emailing XXXX my account manager, who forwarded me what their response was : We are not trying to offend her but business is based on facts. The fact is that XXXX values the property for XXXX. Even at a 20 % discount, the property is worth XXXX. Her initial offer is inadequate to be considered for a short payoff. 
Even if she sold the property at a steep discount, say XXXX, we would net close to full legal. 
She is free to counter our initial offer and we will review accordingly. 
A bankruptcy filing is her right and not a threat. It is important that she understands this. A XXXX takes her out of the equation and a XXXX will require her to pay XXXX on a full debt claim over 60 months which would be roughly $ XXXX. 
If she is unable to increase her offer, then she can list for sale or complete a DIL. 
Another solution would be to complete a forbearance agreement. For {$3000.00} on or before XXXX, we can defer the loan current. All terms remain the same. She would resume her {$220.00} installment XXXX. Before maturity, she will need to attempt to refinance and if unsuccessful, apply for an extension. 
We respect that she is in a challenging position. The XXXX appears to have mismanaged their fees and maintenance. However, there are multiple options to resolve her default positively. 
We are engaged in good faith and remain so. 

No. The Investors have not engaged in good faith. Ive been in the middle of a financial hardship due to the pandemic and they have not been willing to help me, unless I paid them a down payment. 

Last year they offered me a forbearance and asked that I pay {$3500.00} down. And now theyre asking that I pay them {$3000.00}. Their requested down payment numbers are random and with no explanation. Its so apparent they are not following the RESPA guidelines in explaining how they are coming up with their numbers. 

After a few emails back and forth with XXXX the account manager, SN Servicing Corp. informed me that they would not accept a settlement amount below {$48000.00} ( even though 7 months prior, they were willing to accept $ XXXX as a settlement offer. ) Again, they were not following RESPA guidelines in being transparent. 

As I continued to work with XXXX XXXX ( who was in the process of helping me receive a refinance ), the credit company that worked with XXXX XXXX contacted SN Servicing Corp. ( re : my 2nd mortgage ) to obtain payment history information. 
I was all set to close on my refinance, literally in a matter of days. The only thing XXXX XXXX was waiting for was information from SN Servicing re : my payment history. I recently was informed by a credit company who deals with 2nd mortgages, that because my 2nd mortgage was in a bankruptcy, all SN Servicing Corp. needed to do was fax a Verification of Mortgage stating that I was not obligated to make payments. 

Instead, SN Servicing wrote that they were not reporting on my credit reports, but meanwhile, submitted a written notification to the credit company working with XXXX XXXX, showing my past due history. In fact, they submitted financial history that included info from XXXX & XXXX ( when they didnt even own my mortgage. ) Needless to say : I did NOT receive my refinance, all because of how SN Servicing submitted my information. 

XX/XX/XXXX. At this point going forward, all I could do was ask SN Servicing for an extension. I also stated to XXXX that I did not have any upfront money to put as a down payment, but that I could pay the monthly amount. She recommended that I email her a Covid 19 Hardship Modification Packet asking SN Servicing for help with my loan. 

XX/XX/XXXX. XXXX the Account manager emailed me : The investors offer- We will accept a down payment of {$7000.00} on or before XXXX to defer current and extend term 12 months. All other terms remain the same. She can resume her contractual payment with the XXXX installment. 

I called and spoke with another representative at SN Servicing Corp. ( XXXX XXXX ) and explained that I wanted to work out a modification or extension with SN Servicing Corp. She recommended that I fill out a Modification Packet on line. 

XXXX, XXXX, XXXX I emailed both a Loss Mitigation Packet and a Loan Modification Packet. ( I wasnt sure which Packet to email, so I sent both, hoping SN Servicing would help me with something. ) I included my CA Unemployment in my Modification request, which literally made my Debt to Ratio close to 31 %, which is exactly where I needed to be in order to receive a Modification. 

XX/XX/XXXX. XXXX ( the account manager ) emailed me : The review to your modification came back that there is a monthly surplus of {$2500.00}. The account is 11 years delinquent. You will need a {$10000.00} down payment. 
So much for being at the perfect debt-to-income ratio to qualify for a Modification. 
EDD was only temporary. I did not actually have a surplus every month. I lowered my food amount and some bills, because otherwise SN Servicing Corp. would have declined my application. No matter what I submitted to the Lender, they asked for money. Again, violating RESPA guidelines by not being transparent in how they calculated their numbers. 

XX/XX/XXXX, I emailed XXXX asking for a 90-day extension from my loan due date, which would include a down payment of {$670.00} down ( This equals 3 months of payments. ) XX/XX/XXXX I called and spoke with XXXX re : the status of my Appeal. She stated my appeal was declined. I informed her that I had a change in income and that I was no longer collecting unemployment. She stated that she was no longer my Asset Manager and the new person handling my account was XXXX XXXX and the best thing to do was to fill out another Modification request and email it to XXXX. 

XX/XX/XXXX, Since I was no longer collecting Unemployment, ( which means I had a change in income. ) I applied for a Loan Modification one more time. I emailed XXXX XXXX info for a Modification/Extension. I ccd her and XXXX supervisor XXXX XXXX ( who Ive ccd on many of my emails and Modification requests. ) XX/XX/XXXX. I received a response from the Supervisor XXXX XXXX : A denial letter has been sent the investor has denied your request Thank you XX/XX/XXXX I received a mailed letter from SN Servicing Corporation re : the reason they were declining me a Modification : [ X ] Ineligible Borrower : We are unable to offer you a modification because your current monthly housing expenses, which include the monthly principal and interest payment on your first lien mortgage loan plus property taxes, hazard insurance and homeowners dues ( if any ) is not within the allowable debt to income ratio which would entitle you to be eligible for a modification. 

So once again, I was declined a modification due to SN Servicing stating that Im not at the debt-to-income ratio. ( Yet, when I was at the debt-to-income ratio, the only way they would accept a modification, was if I paid them {$10000.00} as a down payment. ) I realize that a lender does not have a legal obligation to provide a homeowner a Loan Modification. I also realize that as a homeowner ( especially in the State of California, ) I have legal rights. One thing that is crucial, is that mortgage lenders need to follow State and Federal laws. As a homeowner wanting to keep my home, I have done everything I can in good faith to attempt to work something out with SN Servicing Corporation and XXXX XXXX. My balloon payment was due XX/XX/XXXX. SN Servicing Corporations whole approach with me has been nothing but a dog & pony show, with no intent of actually helping me as a homeowner in distress, to actually keep my home. 

With all that said, this is my formal complaint letter against SN Servicing Corporation and XXXX XXXX. They have violated the guidelines of the CFPB Bulletin 2021-02 : Supervision and Enforcement Priorities Regarding Housing Insecurity and RESPA. 
SN Servicing Corporation has provided misleading information and false statements in their emails and on their website. 

SN Servicing Corporation has shown nothing but a pattern of unwillingness to work out a plan that would in any way help me keep my home. 

Their website claims : If you are experiencing difficulties making your monthly payment or if you believe you may have difficulty meeting your financial obligations in the near future, please contact your personal Asset Manager. 

Home Retention Solutions : Repayment Plans Modifications Settlements/Discounted Payoffs Again, the above information posted on the SN Servicing Corp. website , is nothing but marketing verbiage, filled with false advertisement and false promises of hope and inferences of intent to assist homeowners who want to save their home. Yet, in actuality, SN Servicing Corp. has consistently shown a pattern of unwillingness to provide assistance, unless they receive a financial down payment. Even their written comment to me on XX/XX/XXXX stating that she will need to attempt to refinance and if unsuccessful, apply for an extension is again an inference of intent to help me as the homeowner in saving my home. Yet, once I actually applied for an extension, SN Servicing Corporation once again provided an unwillingness to assist me, unless I paid them money. 

SN Servicing Corporations offers of false hope and inferences of intent to help assist homeowners who want to save and keep their home, are actually nothing more than false promises and lies. They are nothing but a scam in the guise of a mortgage lender. 

XX/XX/XXXX. I had been in correspondence with a Mortgage Lender stating that they could provide me a refinance. ( They can refinance loans based on liens and do not need to review payment history. ) They also stated that the refinance process could take up to 90 days and that if at any point in the process my 2nd mortgage went into a foreclosure, the refinance would be dead in the water. 

XX/XX/XXXX, I emailed my Appeal letter to XXXX XXXX, XXXX and XXXX. I informed them that I recently began corresponding with a Mortgage Lender who could provide me a refinance for my mortgage loan. I asked SN Servicing Corp. for a 90-day loan extension ( with no down payment contingency. ) During the 90-days, ( XXXX XXXX. XXXX. XXXX ) I would pay my current monthly payment of {$220.00} per month. 

XX/XX/XXXX, ( Later that day ) I received a letter in the mail from SN Servicing Corporation that they will no longer be the servicer of my 2nd mortgage. As of XX/XX/XXXX the new lender will be XXXX XXXX XXXX. The Investors ( XXXX XXXX ) will remain the same. 

XX/XX/XXXX to current date of XX/XX/XXXX. I have placed calls to SN Servicing Corp. re : the status of my request. There is no updated information to provide me. Apparently, since they will no longer be my Lender as of XX/XX/XXXX, they have completely dropped the ball in even responding to my requests. 

At this point, my balloon payment is due. As of XX/XX/XXXX I will have a new lender, who will inevitably send me a foreclosure letter. 

SN Servicing Corp. has violated the guidelines of RESPA and the CFPB Bulletin 2021-02 : Supervision and Enforcement Priorities Regarding Housing Insecurity, their actions have forced me to have to file Chapter XXXX Bankruptcy. 

Im writing to your agency asking that SN Servicing Corporation be investigated. Their actions have not been that of a Lender willing to work with a homeowner in financial distress, but instead SN Servicing Corporation is nothing but a scam in the guise of a lending company.