Consumer complaint received 2022-10-10
Product: Mortgage — FHA mortgage
Issue: Struggling to pay mortgage — 
Company: Selene Holdings LLC (NY)

Dear Consumer Financial Protection Bureau, My name is XXXX XXXX XXXX I live at XXXX XXXX XXXX XXXX XXXX NY XXXX in XXXX of XXXX my FHA Mortgage loan was transferred from XXXX aka XXXX to Selene Finance loan # XXXX. 

In XX/XX/XXXX I closed on my property and XXXX XXXX  serviced my FHA mortgage loan # XXXX at purchase. 

In XX/XX/XXXX due to XXXX related shutdowns I had a Forbearance Agreement with my mortgage servicer XXXX from XX/XX/XXXX - XX/XX/XXXX. My Forbearance Agreement was extended by XXXX to XX/XX/XXXX due to continued XXXX related job shutdowns. 

XXXX informed me that at the end of my Forbearance Agreement, in XX/XX/XXXX, to prevent foreclosure they offered me the option of a Payment Deferral Plan, explaining that my mortgage payments that were paused/suspended during my Forbearance Agreement period of XX/XX/XXXX - XX/XX/XXXX would be put on the backend of my already existing mortgage with no changes to my loan and I would resume my regular mortgage payments in XX/XX/XXXX. I agreed to this option for repaying my loan. 

In XX/XX/XXXX after my Forbearance Agreement period ended I resumed making my mortgage payments to XXXX until XX/XX/XXXX when my loan was transferred to Selene Finance. I made my mortgage payments over the phone to XXXX and they were deducted from my bank account by XXXX. Selene Finance is stating I did not make my mortgage payments after my forbearance ended. 

I received my Forbearance Agreement letters, but still have not received my Payment Deferral Plan Agreement letter from XXXX. 

In XXXX of XXXX after my mortgage was transferred from XXXX to Selene Finance I immediately received notices from Selene Finance stating I must pay a lump sum of $ XXXX, the total of all my mortgage payments during the period of my Forbearance Agreement from XX/XX/XXXX - XX/XX/XXXX or they will foreclose on my home. 

My Payment Deferral Plan Agreement with XXXX should have applied when my mortgage loan was transferred over to Selene Finance and it hasnt. Selene Finance refuses to take my monthly mortgage payments since my loan was transferred to them in XX/XX/XXXX, causing my account to be delinquent since than until now. Selene Finance stated over the phone before they can accept mortgage payments from me I would have to pay the lump sum first. 

Im receiving foreclosure letters from Selene Finance stating if I dont pay the lump sum of now $ XXXX, theyre going to take my home where my grandkids and kids live with me. 

Selene Finance also sent me a letter stating I filed for bankruptcy, please note I did not and have not filed for bankruptcy. Selene Finance is stating they can foreclose on my house over this too. Im confused how this is happening to me and my family. 

Ive repeatedly called XXXX to get a copy of my Payment Deferral Plan Agreement to submit to Selene Finance to correct this erroneous error. Ive only received letters from XXXX stating theyll get back to me in 30 days. Thirty days has turned into 5 months. 

Im contacting the Consumer Financial Protection Bureau for help with getting to stop Selene Finance from wrongfully foreclosing on my home. Selene Finance is stating that I dont have a Deferral Payment Plan Agreement with XXXX XXXX 

I dont understand why or how Selene Finance can make that statement, when that was the offered and agreed to option with XXXX XXXX XXXX for repaying my loan well before my mortgage loan was transferred to them. 

Please note I resumed making my mortgage loan payments as agreed with XXXX consistently for seven months after my Forbearance Agreement ended ( until my mortgage was transferred to Selene Finance XXXX, without any notices from XXXX of lump sum payments due, foreclosure or otherwise. I wouldnt have to deal with threats of losing my home to foreclosure and demands of lump sum payment if XXXX remained as my mortgage servicer and not transferred my mortgage loan to Selene Finance. 

I found the following information below from the Consumer Financial Protection Bureau website section : Exit from Your Forbearance and from the HUD.Gov website Cares Act Forbearance Fact Sheet for Borrowers with FHA, VA and USDA loans. 
I believe this information applies to me, my XXXX related Forbearance, my federally backed FHA mortgage loan and what my initial mortgage servicer XXXX followed and did when they offered the payment deferral plan agreement that I accepted, and proceeded to make my mortgage payments after my forbearance ended. However, it is not being applied by my now mortgage servicer Selene Finance. 

" XXXX Mortgage Servicing COVID-19 Rule - Under the new rule, most mortgage servicers are required to take certain steps to help homeowners in forbearance find options for repaying their loan. '' HUD/FHA does not require lump sum repayment at the end of the forbearance for an FHA mortgage loan. Homeowners on special COVID-19 Forbearance will be assessed by their servicer first for eligibility for FHAs COVID-19 Recovery Standalone Partial Claim home retention option no later than at the end of the forbearance period. If you were current or less than 30 days delinquent as of XX/XX/XXXX, you may be entitled to this option. 

The COVID-19 Recovery Standalone Partial Claim is for homeowners who can resume making their current monthly mortgage payments in the future. The COVID-19 Recovery Standalone Partial Claim places amounts you owe into a subordinate lien that is repaid only when you refinance your mortgage, sell your home, or your mortgage otherwise terminates. This lien does not accrue interest.

If you can not resume making your existing monthly mortgage payment, servicers of FHA-insured mortgages will assess you for the COVID-19 Recovery Modification. The COVID-19 Recovery Modification extends the term of the mortgage to 360 months at a fixed rate and targets reducing the monthly principal and interest portion of your monthly mortgage payment. 

With respect to the XXXX Mortgage Servicing COVID-19 Rule and the COVID-19 Recovery Stand-alone Partial Claim mentioned above, this is exactly what was offered and done by XXXX with my covid-19 forbearance and federally backed mortgage loan. I dont understand why XXXX is not directly responding to my request for a copy of my payment deferral agreement and why Selene Finance is saying it was rejected.

Although, HUD/FHA does not require a lump sum repayment at the end of the forbearance for an FHA mortgage loan, Im confused why Selene Finance is stating that they are going to foreclose on my home if I don't make the lump sum payment of my paused/suspended mortgage payments during my covid-19 forbearance that is not required and was already put on the back end of my mortgage. 

XXXX followed the new CFPB XXXX Mortgage Servicing COVID-19 Rule, The COVID-19 Recovery Standalone Partial Claim and HUD/FHA for my FHA loan that was in Forbearance and followed through with actionable steps by offering me the payment deferral plan that I accepted and resumed my loan payments although they did not send me my payment deferral agreement that provides me with proof that follows the actions of XXXX and a fighting chance against foreclosure on my home. Since XXXX transferred my loan to Selene Finance my loan is not being appropriately handled based on my agreed to payment deferral plan option offered by XXXX for repaying my loan to avoid/prevent foreclosure on our home.