Consumer complaint received 2025-11-17 00:00:00
Product: Mortgage — Conventional home mortgage
Issue: Struggling to pay mortgage — Foreclosure
Company: Shellpoint Partners, LLC
State: DC

Complaint narrative:
I am filing a complaint against Shellpoint Mortgage Servicing regarding improper lossmitigation handling, dual tracking, and unreasonable demands during my request for a deed in lieu of foreclosure. 

I am the former borrower on a mortgage for the property at XXXX XXXX XXXX XXXX, Washington, DC XXXX. My personal liability on this mortgage was discharged in Chapter 7 bankruptcy on XX/XX/year>. I do not want to keep the property and I submitted a complete loss mitigation package to Shellpoint requesting a deed in lieu of foreclosure. 

Despite submitting all documents requested, Shellpoint continues to move forward with judicial foreclosure at the same time they are processing my deed in lieu request. This appears to be a violation of the federal servicing rules under Regulation X, which prohibit a servicer from moving forward with foreclosure while a complete loss mitigation application is pending.

Shellpoint has now informed me that they need a free and clear deed in order to move forward with the deed in lieu. This requirement is impossible for me to meet because I am not the current titleholder of the property under normal circumstances until the deed in lieu is executed. A deed in lieu is the mechanism that returns title to the lender. I can not produce a free and clear deed before loss mitigation is completed, and Shellpoint knows this. This appears to be an unreasonable and abusive servicing requirement.

Shellpoint is effectively forcing the foreclosure to continue by imposing a condition that a borrower can not meet. This prevents my deed in lieu request from being processed, while foreclosure activity continues in violation of the nodualtracking rule ( 12 C.F.R. 1024.41 ( g ) ).

I want to make clear that I do not want the property and am trying to surrender it. I submitted the requested forms, including Form 710 and additional documentation. Shellpoint has told me the file is incomplete unless I sign a Loss Mitigation OptOut Form, even though I have already requested a deed in lieu. The optout form is typically used to decline loss mitigation, but they are requiring it as a condition of reviewing a deed in lieu. This is confusing, misleading, and appears designed to both move foreclosure forward and avoid offering the deed in lieu option that I am requesting.

I am asking the CFPB to require Shellpoint to : 1. Stop all foreclosure activity immediately while my deed in lieu request is reviewed.

2. Process my deed in lieu without requiring an impossible free and clear deed from me.

3. Confirm in writing whether they will approve or deny the deed in lieu.

4. Stop using forms or requirements that appear to conflict with bankruptcy discharge protections and federal servicing rules.

I am providing copies of communications, my complete loss mitigation application, bankruptcy discharge, and Shellpoints statements regarding the need for a free and clear deed.

Thank you

Company public response: Company believes it acted appropriately as authorized by contract or law
Company response to consumer: Closed with explanation