Consumer complaint received 2023-07-16 00:00:00
Product: Mortgage — VA mortgage
Issue: Struggling to pay mortgage — 
Company: Shellpoint Partners, LLC
State: FL

Complaint narrative:
I am a XXXX  XXXXXXXX XXXX XXXX XXXXXXXX veteran and I am in the beginning stages of foreclosure because the servicer of my VA loan Shellpoint mortgage has failed to provide options for me to recover from missed payments due to Covid. I bought my home on XXXX XXXX. in XXXX in XX/XX/XXXX. Now I may lose it because Shellpoint is demanding that I pay a lump sum of almost {$8000.00} in order to be put into a repayment plan. I don't understand how they came up with this figure. My delinquency was due to Covid and I have a government backed VA loan. The VA folks told me that Shellpoint is required to offer all available options to cure the default including deferment of the past due amount, loan modification, a recapitalization of the delinquent payments or a repayment plan. Instead they gave me a repayment plan with a condition that I pay {$7800.00} in a lump sum JUST TO QUALIFY for the repayment plan. 

Right now I am approximately $ XXXX behind on this loan because I was negatively impacted by Covid in early XXXX and lost hours then my job. After I got back on my feet and working I myself became ill with XXXX on XXXX different occasions. Shellpoint allowed me to defer a few payments in early XXXX when I lost my job and then I resumed paying. However, I personally was XXXX  and unable to work for several weeks which coincided with major auto repairs and separation from my husband. As a result I asked for and was granted a XXXX month forbearance for my loan. I had the ability to resume making regular payments in XXXX when the forbearance ended but was told I needed to send in paperwork to be reviewed for options to catch up on the missed payments. I was finally reviewed and approved for a 8 month repayment plan that required a lump sum down payment of {$7800.00}. I contacted Shellpoint and told them I could not come up with this and made a payment of {$3100.00} at that time ( basically a double mortgage payment ) as a show of good faith. The agents who processed the payment told me I needed to pay the lump sum balance of over {$4700.00} by XX/XX/XXXX otherwise I would lose the repayment plan offer and the foreclosure process would start. 

I could not afford to pay the balance and now Shellpoint has started the foreclosure process. Why was this the only option provided? Shellpoint is REQUIRED as a VA servicer to review all options to cure the default, including those that do not have a lump sum payment. VA loans offer deferment of arrearages, or partial claim, or the option to recapitalize the delinquent amount back into the balance of the loan as well as a loan modification. VA loans also allow repayment plans that do not require a {$7800.00} down payment to catch up on my forbearance that was approved and sponsored by the government. 

I served my country proudly for nearly 4 years and came out of it with a XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX by the VA. I was excited when I bought this home for our family. Everything was fine until XXXXXXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX First they cut hours, then they let us all go. XXXX months later the XXXX XXXX XXXX XXXX and I collected a few paychecks then I got XXXX myself. In that same time period my husband and I separated and I had to pay for a major car repair. That is why I needed the forbearance so myself and my XXXX daughters could get back on our feet. 

I am back to work full time and my hardship is resolved. My husband and I are still separated, but trying to work things out. I need to fix this problem because I do not have a lump sum to reinstate the loan and your company has not been fair or honest with me and has denied access to programs I should be considered for.

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