Consumer complaint received 2015-10-01
Product: Mortgage — Other mortgage
Issue: Loan modification,collection,foreclosure — 
Company: Specialized Loan Servicing Holdings LLC (ID)

I got divorced in XXXX and then became XXXX and unable to work in the summer of XXXX and as a result began to have trouble making my mortgage payments. I was able to obtain a modification of the first mortgage on my home in approximately XXXX of XXXX. On XXXX XXXX, XXXX, I contacted XXXX XXXX XXXX to request a modification or a partial pay-off/settlement of my second mortgage to avoid foreclosure of my home. I never received a response to my request, instead, I received notice from XXXX XXXX XXXX that they had sold the loan to Specialized Loan Servicing , LLC and I was told that SLS would continue with the process of reviewing my file for a possible modification. On XXXX XXXX, XXXX, I contacted SLS to again request either a modification or a partial pay-off/settlement of the second mortgage. The second mortgage has a high interest rate of XXXX % and a balloon payment of over {$10000.00} that will become due in XXXX. I requested an interest rate reduction and removal of the balloon payment ; or that they allow me to pay a partial lump sum to pay off the loan in full. I received no response to my XXXX/XXXX/XXXX letter other than a payoff statement. I sent a follow up letter on XXXX XXXX, XXXX again requesting a modification or settlement of the debt for a lump sum. I also notified SLS in this letter that I felt the loan was predatory because a payment of only {$15.00} more per month would have resulted in no balloon payment. I offered to pay {$8000.00} to settle the approximately {$14000.00} second mortgage debt. On XXXX XXXX, XXXX, I submitted a Making Home Affordable application to SLS. On XXXX XXXX, XXXX, I submitted additional forms that their automated system claimed were missing. Over the course of the next six months, SLS continued to claim that they were missing documents or information, and I would re-submit, on multiple occasions, the same documents ( divorce decree, quit claim deed, and bank statements, IRS XXXX ) and same information they requested. Additionally, on XXXX XXXX, XXXX, I sent a letter requesting that SLS send me monthly statements for my loan, which they had stopped doing because of my bankruptcy. I still have not received a monthly statement from SLS to this date. Instead, they insist that I make payments over the phone, which incurs an additional {$10.00} charge each month. On XXXX XXXX, XXXX, I sent SLS a letter reiterating that I am divorced and again stating that I had previously submitted the quit claim deed and divorce decree on multiple occasions. On XXXX XXXX, XXXX, SLS requested that I submit the same documents yet again, and required that I submit banking information for a third party ( my brother ), including account balances to ensure that the {$8000.00} was there ; which I submitted only because I assumed such a request was due to an approval of my pay-off offer. On XXXX XXXX, XXXX, eight months after I first contacted SLS and fourteen months after first contacting XXXX XXXX XXXX to request a modification of my second loan, I finally received a reply from SLS. SLS denied my request for an {$8000.00} pay off, denied my request for a HAMP modification, stated that I was not evaluated for a standard ( in-house ) modification, and approved me only for a standard repayment plan. A standard repayment plan does not address my concerns about the predatory balloon payment and does not avoid the risk of foreclosure on my home. I feel that SLS was abusive in their multiple requests for the same information and documents, engaged in an undue delay by taking eight months to deny my request for modification or pay-off, and that their review of foreclosure alternatives was inadequate.