Consumer complaint received 2024-07-17 00:00:00
Product: Mortgage — FHA mortgage
Issue: Struggling to pay mortgage — Trying to communicate with the company to fix an issue related to modification, forbearance, short sale, deed-in-lieu, bankruptcy, or foreclosure
Company: Shellpoint Partners, LLC
State: FL

Complaint narrative:
I wanted to inform that Shellpoint responded to the XXXX after XX/XX/XXXX, which consequently forced me to sign the loan modification agreement. It appears that their response timing might have been intentionally delayed, as I had already signed the forms and then they responded. Despite this, they claimed I denied signing the form. I have since confirmed with them that all forms are indeed signed. Luckily, I made copies of the forms I supplied. Below is the response to what they sent to XXXX and I still feel it needs further review. 

Message sent : I am writing in response to your letter dated XX/XX/year>, regarding the proposed loan modification for my mortgage account. I appreciate Shellpoint Mortgage Servicing 's efforts to address my concerns and provide potential solutions to my financial difficulties. Despite the extension of the loan term, my monthly payments remain high, which contradicts my understanding of the intended outcome of such modifications. 
However, I have significant concerns regarding the proposed loan modification, particularly its compliance with XXXX XXXX guidelines. According to XXXX XXXX guidelines, a loan modification should aim to reduce the monthly mortgage payment by at least 20 %. The current proposal extends my loan term to 40 years but does not reduce my monthly payment significantly, which does not align with these guidelines. 
Background : As outlined in your correspondence dated XX/XX/year>, my loan was placed under a temporary forbearance due to the financial impact of COVID-19. Subsequently, I was offered a loan modification that extended the maturity date of my loan to XX/XX/year>. The intention, as communicated, was to reduce my monthly payments, making them more affordable. 
You mentioned that I received a trial period offer back in XX/XX/year>, which I did not receive. 
In XXXX, I asked XXXX if he received the information for mortgage assistance paperwork that showed in detail my hardship and he stated its not required. I was confused to that information, and he stated that I would be put on a trial period. 
When I saw a trial period on my portal in XXXX after reviewing a statement, I contacted XXXX for clarification. I then filed a XXXX complaint because I couldnt reach him. I then was able to reach him, and I explained to XXXX that I couldnt afford the payments, but he insisted they were mandatory for the trial period. It was explained that after the trial period, I would be reviewed for a loan modification that would reduce my payments. Thankfully, I was allowed to start the trial period in XXXX, although I had already made a payment in XXXX, thanks to assistance from our local hospital. 
Now, I am dealing with XXXX, who reiterated all this, but once again, I am not being given the promised reduction per the guidelines. 
Main Concern : Despite the extension of the loan term, my new monthly payment of {$1700.00} remains higher than anticipated. My understanding is that such modifications, especially under XXXX XXXX guidelines, are designed to make monthly payments more manageable for borrowers facing financial hardship. The increase in my payments appears contrary to this objective. 
1. High Monthly Payments : The proposed monthly payment of {$1700.00}, which includes {$840.00} for principal and interest, {$790.00} for escrow payment, and {$81.00} for escrow shortage payment, does not provide the necessary relief. This amount does not represent a significant reduction from my current payments and does not meet the XXXX XXXX guideline of at least a 20 % reduction. My homeowners insurance amount is incorrect. I have attached a copy for your record. 
2. Loan Term Extension : Extending the loan term to 40 years ( from XX/XX/year>, to XX/XX/year> ) without significantly lowering the monthly payments places a prolonged financial burden on me without the intended relief. 
XXXX. Capitalization of Arrears : The capitalization of {$33000.00} into the principal balance, increasing the unpaid principal balance from {$150000.00} to {$190000.00}, further increases my financial obligations without reducing my monthly payments effectively. 
Reference to XXXX XXXX Guidelines : According to XXXX XXXX guidelines, loan modifications should aim to reduce a borrowers monthly mortgage payment to an affordable level. This typically involves capitalizing past due amounts, reducing the interest rate, and/or extending the loan term. While my loan term was extended, the capitalization of a significant amount and the unchanged interest rate have resulted in higher payments. 
Request for further Review : It appears that I am being dismissed and pushed towards foreclosure. The options I see are deferment, loan modification, or selling my home, but none of these are being effectively provided to assist my hardship. 
You also stated that I denied the loan modification on XX/XX/XXXX, which is incorrect. I sent all the forms signed, including two letters. I have copies of my signatures. I even went to the bank to get the documents notarized again on XX/XX/year>, but they refused. The teller stated that the first notarization was done incorrectly, which is the only reason they allowed me the second time around and it was done correctly, but now they couldnt do it again as they do not notarize loans not issued by the bank. At this point, it sounds like the deferment process is being done again but with the intention of extending my terms without reducing my monthly cost. 
Given these concerns, I respectfully request a thorough review and reassessment of my loan modification options to ensure compliance with XXXX XXXX 's criteria. Specifically, I would like to explore alternatives that would provide a substantial reduction in my monthly payments, ideally in line with the guideline of at least a 20 % reduction. Additionally, I would appreciate a reconsideration of the terms to ensure they align with XXXX XXXX goal of reducing monthly payments for borrowers in financial distress. 
I am committed to maintaining my mortgage payments and securing my home, and I believe that a review of my case in light of XXXXXXXX XXXX  guidelines can help achieve this goal. 

ORIGINAL MESSAGE SENT VIA PORTAL TO SHELLPOINT I am writing to formally file a complaint regarding my mortgage loan modification process. I have experienced several issues with the loss mitigation process handled by Shellpoint Mortgage Servicing ( NEWREZ ), particularly regarding the handling and communication related to loan modification options. 
o During the COVID-19 pandemic, I experienced financial hardship and was advised by my loss mitigator to not move forward for loan modification but instead to defer my payments. I followed that only because XXXX stated that it would be best to keep loan modification option available in the event it doesnt get better or still face hardship in the future. 
o I was facing hardship due to loss of income, and I went out on XXXX XXXX XXXX XXXX XXXX XXXX and despite that all I still completed my trial period payments because I do not want to lose my home. But it was hard and now that I am back at work and finished my trial period, I am being given different reasonings to why my monthly payment is going to remain high. I was never given a review like I was told and received the trial period in the mail. I explain how I could not afford to make those payments but was threaten with foreclosure if I didnt pay that amount. My original monthly payment was {$1600.00} went up to {$1600.00} and for the trial period up to {$1700.00} and after my trial period its going to be {$1700.00}. 
o XXXX informed me that a loan modification could be an option, which would significantly reduce my monthly payments by extending the loan term to 40 years. 
o Despite completing a trial period and paying more than required to prevent foreclosure, my balance has increased from {$150.00}, XXXX  to {$190.00}, XXXX. I am being told that I can not pay less because I have not had my home loan for at least 10 years. 
o Promises made regarding loan modification were not fulfilled, and my attempts to resolve this issue have been unsuccessful. 
I was educated via phone by XXXX that a loan modification is a change made to the terms of the existing mortgage loan, often to make the loan more affordable for me. But he advised for me to move forward with a deferment instead after my forbearance period ended, which he also called loan modification via text message. But the process was not the same I am doing now. He explained that I should stay away from the loan modification at that moment and utilize it if my hardship continued. He proceeded to educate me by letting me know that a loan modification can include reducing the interest rate, extending loan term, or even forgiving a portion of the principal balance. The goal is to lower the monthly payment and help me to avoid foreclosure. 
I am requesting a thorough review of my case and a proper loan modification that aligns with the initial promises made. I believe the terms initially discussed would provide the financial relief needed to avoid foreclosure and stabilize my financial situation. 
I appreciate your prompt attention to this matter and look forward to a resolution that aligns with both my needs and the purpose of the loan modification. 

** XXXX XXXX or XXXX XXXX, loan modification which can reduce your monthly payments by XXXX percent, extend the loan term up to 40 years and potentially lower the interest rate. XXXX XXXX, 2024 As stated above I have seen so many options on XXXX XXXX and XXXX XXXX. Reduction of at least 20 % off my monthly payment that would bring me close to what I was paying in beginning of my loan {$1300.00} and would be feasible.

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