Consumer complaint received 2017-07-18 00:00:00
Product: Debt collection — Mortgage debt
Issue: Took or threatened to take negative or legal action — Collected or attempted to collect exempt funds
Company: Service Finance Holdings, LLC
State: AZ

Complaint narrative:
Hello CFPB, I am writing this letter to you today to explain my deep level of frustration regarding a terrible situation my client has found himself in. XXXX XXXX is a distinguished Veteran of the XXXX XXXX who now works for XXXX. XXXX, as he is known, went through a ravaging divorce and found himself in a situation where he ex-wife was living in the property and he was forced to reside elsewhere. XXXX tried to maintain the house and all of his obligation but simply could not because prior to the divorce he had two incomes to pay for one household and now he has one income to pay for two households.
Given the financial restraints, he was forced to sell the residence. XXXX XXXX XXXX services a loan taken out to replace the HVAC system in the house prior to the divorce. The 1st lien holder is a VA loan and the VA simply will not allow more than {$1500.00} to go to any junior lien holders to release their lien in a short sale situation.
Today I spoke with a XXXX XXXX XXXX on a recorded conversation ( I am happy to supply the .wav file of the conversations as I record all of my conversations ) where it was stated that the Realtors needed to get together to figure out how we were going to get more money for your lien position. In addition, it was pointed out on multiple conversations both with XXXX and the manager, XXXX, the commissions were somehow subject to collection efforts of a debt obtained by our client years prior to us listing the house for sale. First of all, the commissions being charged for our professional services are customary and standard and actually approved by the VA. Second, even if the commissions were lowered to pay for our client 's debt, the additional money would go towards the 1st lien because they simply will not allow any more than {$1500.00} to go to junior lien holders.
I found the tone from your company 's representative very offensive towards myself, especially when I mentioned that it was a recorded conversation. My attorney has assured me that I do not need permission to record phone conversations as long as one party to the conversation knows that it is being recorded.
I was told multiple times that {$1500.00} was not enough to settle the debt, which I am not asking for. I am asking that a simple lien release be done. There is a foreclosure sale date set for X/XX/2017 ( see attached Notice of Trustee 's Sale - already postponed once ) and at that time ALL junior liens will be extinguished without payment to any of them. I fail to understand how accepting {$1500.00} to release a lien compromises your company or your client 's ability to collect on the debt? If the refusal thereof is a form of punishment, then that is wholly another topic worthy of an investigation by the Florida Division of Consumer Finance. In fact, as the recordings seem to suggest, when it was explained to your company that the 1st lien holder ( the VA ) was the one that dictated any amounts given to junior liens that somehow us as Realtors were responsible for contributing to paying off our client 's debt extends beyond the scope of normal debt collecting and is predatory in nature.
In what universe does it make sense for a service provider to forfeit a part of their normal income to help satisfy the debt of their client? In fact, were it not for us presenting an offer of {$1500.00} your company would likely recover zero. For it to even be suggested, much less directly stated to me as it was, that we are not helping your company at all by presenting the offer is both offensive and unprofessional.
Regardless of the outcome of this situation, I am certain that a formal complaint and investigation into the debt collection practices of XXXX XXXX XXXX XXXX is both warranted and probably long overdue. The company 's representatives improperly stated that the Realtors needed to " get together '' and figure out how to pay for the debt owed by my client which is unfair debt collection practices.
In closing, I am hopeful that your company will respond in a more professional manner to resolve this situation in the next two business days. I am confident that the outcome of any investigation will show the true nature of what has transpired today.
Professionally,

Company public response: Company disputes the facts presented in the complaint
Company response to consumer: Closed with explanation