Consumer complaint received 2025-05-25 00:00:00
Product: Mortgage — VA mortgage
Issue: Struggling to pay mortgage — Foreclosure
Company: Shellpoint Partners, LLC
State: GA

Complaint narrative:
When a financial institution like XXXX XXXX XXXX ( or XXXX XXXX XXXX XXXX XXXX XXXX ) sells a property with a " clouded title, '' especially if they try to do so by representing it as " stock '' or " shares '' in some manner, several complex and potentially problematic issues arise. Here 's a our breakdown by XXXX XXXX of XXXX XXXX XXXXXXXX XXXX : What is a Clouded Title? 
A clouded title ( also known as a title defect or defective title ) means there's an unresolved issue, claim, or encumbrance that casts doubt on the clear ownership of the property. This can include : * Unreleased liens : Previous mortgages not properly discharged, unpaid tax liens, or judgments against prior owners. 
* Errors in public records : Misspellings, incorrect property descriptions, or improperly filed documents. 
* Conflicting ownership claims : Disputes among heirs, former owners, or other parties asserting rights to the property. 
* Foreclosure irregularities : Issues in the foreclosure process itself that could invalidate the bank 's claim to clear title. ( This was a significant issue during and after the XXXX financial crisis, particularly with mortgage-backed securities and entities like XXXX  ) .But our property never processed through XXXXWe have XXXX Different PSA sent to us. 
* Missing or improper assignments : In the context of securitized mortgages, if the promissory note and deed of trust were not properly transferred to the trust that holds the mortgage-backed securities, it can " cloud '' the chain of title, making it unclear who legally owns the mortgage and has the right to foreclose or sell the property. 
Selling a Property with a Clouded Title as " Stock/Shares '' : The concept of selling real property " as stock or shares '' is highly unusual and problematic for a standard real estate transaction. Typically, real estate is transferred via a deed, which conveys ownership of the physical property. If the property itself is held by a corporation, then selling shares in that corporation would indirectly transfer ownership of the property, but the underlying property 's title still needs to be clear for the corporation to have valid ownership. 
If XXXX XXXX XXXX XXXX XXXX XXXX is a corporate entity that holds real estate, and they are selling shares in that entity, then the legal implications would revolve around : * Corporate due diligence : Anyone acquiring shares in such an entity would need to perform extensive due diligence on the entity 's assets, including the real estate and its title. 
* Representations and warranties : The seller ( XXXX XXXX XXXX XXXX XXXX XXXX ) would likely make representations and warranties about the assets of the company, including the titles to any properties. If these representations are false due to a clouded title, the buyer could have legal recourse. 
* Legal structure : The specific legal structure of XXXX XXXX XXXX XXXX XXXX XXXX and how it holds property would be critical. Is it a XXXX XXXX XXXX XXXX ( XXXX ), a special purpose vehicle ( SPV ), or a general holding company? The implications vary depending on the structure. 
What Happens When a Bank Sells a Property with a Clouded Title ( Generally ) : Regardless of whether it's packaged as " stock, '' the fundamental problem is the clouded title. 
* Difficulty in Selling : Buyers ( especially institutional buyers or those needing financing ) are extremely reluctant to purchase properties with clouded titles. Lenders typically won't provide mortgages for such properties because their collateral is uncertain. 
* Reduced Value : A clouded title significantly diminishes the market value of a property, if it can be sold at all. 
* Legal Liability for the Seller : If a bank sells a property with a clouded title without disclosing it, or if they make false representations about the title, they could face legal action from the buyer. This could include : * Breach of contract : The buyer could claim the seller breached the sale agreement. 
* Fraud or misrepresentation : If the seller knowingly concealed the cloud.

* Quiet Title Action : The buyer may need to file a " quiet title '' lawsuit in court to resolve the title issues and establish clear ownership. This is a costly and time-consuming process. 
* Inability to Transfer Clear Title : The primary issue is that the bank can not legitimately transfer a " clear '' title. Any buyer would inherit the cloud, and their ownership could be challenged in the future. 
* Reputational Risk : For a major financial institution like XXXX XXXX XXXXXXXX, selling properties with unresolved title issues carries significant reputational risk. 
Specifics for XXXX XXXX XXXX XXXX XXXX XXXX and " Stock/Shares '' : If XXXX XXXX XXXX XXXX XXXX XXXX is selling " stock '' that represents an interest in a property with a clouded title, it suggests a more complex financial instrument or investment vehicle. In this scenario : * Disclosure is paramount : The offering documents for such " stock '' or " shares '' would need to clearly disclose any title defects or risks associated with the underlying properties. Failure to do so could lead to securities fraud claims. 
* Investor risk : Investors buying these " shares '' would be taking on the risk associated with the clouded title. They might have a claim against the issuer ( XXXX XXXX XXXX XXXX XXXX XXXX ) if the risks were not adequately disclosed. 
* Regulatory scrutiny : Such an offering could attract scrutiny from financial regulators ( like the SEC ) if it involves a public offering of securities where the underlying assets have significant undisclosed issues. 
In summary, a bank or any entity selling a property with a clouded title faces significant challenges and legal risks. If they attempt to package this as " stock '' or " shares, '' it adds layers of complexity related to securities law and investor protection, and the core problem of the underlying clouded title remains a major impediment to a legitimate and clear transfer of ownership. The responsible action for a bank would be to clear the title before attempting to sell the property, whether directly or Although Shell Point Mortgage Servicing Company did send a Lengthy notification it said nothing about XXXX XXXX and his staff and the role that his team played in this Security Exchange. 
In XXXX XXXX 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