Consumer complaint received 2026-06-01 00:00:00
Product: Mortgage — FHA mortgage
Issue: Struggling to pay mortgage — Applying for or obtaining a modification, forbearance plan, short sale, or deed-in-lieu
Company: Shellpoint Partners, LLC
State: GA

Complaint narrative:
I am requesting CFPB intervention regarding my mortgage servicer, Newrez, LLC. My property is experiencing an active, severe structural emergency caused by municipal road runoff that has compromised the foundation and destroyed property fixtures. A major foundation repair contract failed and my construction loan expired because standard residential fixes can not stop the street water force. Both the City and my insurance company have issued formal denials. I am trapped in an institutional gridlock and have requested an Emergency FHA Hardship Forbearance from Newrez to pause my payments while federal ( XXXX ) and state ( XXXX Department XXXX XXXX Case assigned to Agent XXXX XXXX ) agencies investigate this threat to the bank 's collateral. I am filing this to ensure Newrez immediately approves the forbearance and does not initiate automated credit damage or foreclosure actions against this compromised asset. See attached letters that have been sent to Newrez and the U. S Department of XXXX HUD : Dear Newrez Loss Mitigation and Property Preservation Teams , Please find attached a critical Master legal Notice regarding a severe, active infrastructure-driven structural hazard at the collateral property securing loan XXXX. Due to continuous, seere municipal road runoff from the City of XXXX, the property is facing a foundation crisis, catastrophic mechanical failure ( burst water heater ), and extensive interior/exterior rot ( garage doors ). Residential remediation via XXXX Foundations has failed, and the associated repair loan has been expired by the lender due to the unmitigated external water force. Furthermore, we have hit an institutional gridlock : XXXX. The City of XXXX has issued a written denial claiming '' No Records Found '' despite their Public Works Superintendent physically installing a curb in XX/XX/year>2026 to try and stop the water. XXXX. Our current homeowners insurance carrier has formally denied the damage claim, which we are actively fighting via an open investigation with the XXXX Department XXXX XXXX ( XXXX XXXX XXXX ). XXXX. A formal complaint and report of FHA Minimum Property Standards ( MPS ) violations have been officially submitted to the U.S. Department of Housing and Urban Development ( HUD )/ FHA. Pursuant to FHA loss mitigation guidelines, I am officially requesting an immediate XXXX month Emergency Hardship Forbearance to pause my monthly mortgage payments while federal and state agencies intervene to evaluate the safety and preservation of this asset. Attached to this email, please find : My Comprehensive Master Request Letter ( pasted in full below as well ) the City of XXXXXXXX XXXX XXXX No Records '' response email dated XX/XX/scrub> 2026 The current homeowners insurance formal denial letter The lender notification confirming the expiration of the XXXX Foundations repair loan Please review the attached documents immediately, initiate the emergency forbearance protocol, and reply with the formal agreement paperwork. I can be reached immediately at XXXX. Sincerely, XXXX XXXX XXXX XXXX MASTER NOTICE OF MUNICIPAL LIABILITY, INSURANCE DISPUTE, SYSTEMIC PROPERTY DAMAGE, XXXX COMPLIANCE ESCALATION, AND REQUEST FOR IMMEDIATE HARDSHIP FORBERANCE Loan XXXX XXXXXXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXXXXXX XXXX Date : XX/XX/year> Newrez, LLC XXXX. XXXX XXXX XXXX, XXXX XXXXXXXX Dear Property Preservation Department , Loss Mitigation Department , Insurance/Claims Department . I am writing to formally notify you of an active, severe threat to the structural integrity of the property securing the above-referenced loan and to officially request an immediate Emergency FHA Hardship Forbearance to temporarily pause my monthly mortgage payments. The home is experiencing severe foundation damage and water intrusion caused directly by failed municipal road drainage and stormwater runoff from the City of XXXX. Because this external infrastructure failure continually diverts high-velocity water against the homes foundation , standard residential remediation has failed. Specifically, an extensive foundation repair project by XXXX Foundations was halted, and the associated repair loan was expired by the lender with XXXX payout released due to the ongoing infrastructure crisis rendering the repairs unsuccessful. Beyond the structural foundation failure, the unmitigated infrastructure flooding and resulting extreme humidity levels have caused catastrophic damage to other permanent components of the property, including : Catastrophic Water heater Failure : The water heather prematurely corroded from the exterior and burst due to the chronic, high-humidity flooding environment in the utility space. Total Garage Door Failure : The main garage door tracking and panels warped, rotted, and required total replacement due to direct contact with standing road runoff. Service Door Rot : The garage entrance service door rotted out and suffered severe mold and mildew contamination, requiring complete replacement to secure the property. Exhaustion of Remedies and Formal Institutional Denials : I have attempted to resolve this through all appropriate channels, resulting in a total gridlock that threatens your collateral : XXXX. City of XXXX Admission Through Action : Prior to issuing their formal denial letter, the city of XXXX XXXX XXXX XXXX ( XXXX ) responded to my initial complaint by physically installing a new street curb at XXXX XXXX XXXX in XX/XX/year>2026. This physical modification of the road drainage infrastructure serves as a direct admission by action that a municipal runoff problem existed, completely contradicting the Citys subsequent written claim of No Records Found. XXXX. City of XXXX Written Denial : I filed an Open Records Request and pushed the city regarding their infrastructure responsibility. The City issued a formal response letter on XX/XX/year>2026, claiming No Records Found of any drainage maintenance or complaints for the past XXXX years, trying to deny liability despite their recent physical work on the street. XXXX. Homeowners Insurance Denial : I filed a property damage claim with Georgia XXXX XXXX XXXX. Net Claim General Liability company. This claim was also denied, with the carrier wrongfully citing wear and tear and pre-existing conditions to avoid coverage. XXXX. State Insurance Commissioner Intervention : I have formally disputed the insurers denial and filed and active complaint with thXXXX XXXX Department XXXX XXXX ( assigned to XXXX XXXXXXXX XXXX ). Simultaneous XXXX Escalation for Minimum Property Standards ( MPS ) Violations : Please be advised that because this loan is backed by Federal Housing Administration , a formal report and letter have officially been sent to the FHA and the U.S. Department of Housing and Urban Development ( HUD ) regarding material violations of FHA Minimum Property Standards ( MPS ) at this location. The citys continuous road runoff has created an environmental and structural hazard ( active mold, structural rot, and mechanical equipment failure ) that directly threatens this FHA-backed asset. As the lienholder, your financial collateral is at immediate risk of severe devaluation. Because I am trapped between a city denying liability after attempting a structural street fix, an insurance company denying coverage, a failed foundation and a formal federal reporting process, I am requesting a XXXX FHA Hardship Forbearance on my mortgage payments. This will protect my household income and ensure my credit remains secure while federal and stated agencies evaluate this structural hazard. Please immediately send the formal Forbearance Agreement documents to my email or address below and contact me at XXXX or XXXX to expedite this request. Sincerely, XXXX XXXX XXXX

Company public response: Company has responded to the consumer and the CFPB and chooses not to provide a public response
Company response to consumer: Closed with explanation