Consumer complaint received 2021-04-01 00:00:00
Product: Mortgage — Conventional home mortgage
Issue: Struggling to pay mortgage — 
Company: Specialized Loan Servicing Holdings LLC
State: GA

Complaint narrative:
I have a second mortgage on my home with XXXX XXXX, which is being serviced by Specialized Loan Servicing. I have never been late on a payment. In XX/XX/XXXX, they put the account in forbearance as a result of Covid-19 and our national pandemic and have since misrepsented the truth, and lied. I have always paid as agreed, and followed their instructions exactly as directed. Despite these facts, Specialized Loan Servicing has mishandled my loan, and is threatening my credit rating. The details are below : My income was effected due to Covid-19, and I contacted Specialized Loan Servicing ( SLS ) at the end of XX/XX/XXXX to inquire about available options as prompted by their website. My telephone conversation, and all subsecquent others, were recorded with my consent. I was advised that my account would be placed in forbearance, and that option was available for up to one year, at which time the payments would be deferred to the end of the loan, and they stated my credit would not reflect any late payments. During this conversation I explained that I am very concerned about doing anything that would adversely effect my credit score, as I am required to have perfect credit to maintain my employment status, and was assured that my credit would not be adversely effected as the forbearance was available due to Covid-19.

I continued to receive statements showing the payments that were due once the loan was in forbearance. Due to my concerns about my credit, I contacted SLS. When I inquired as to why I was receiving these statements, the representative explained that although the account was showing it was in forbearance, they would continue to send those statements in the event that I wanted to make a partial or full payment, and to document the amount of payments that would be added at the end of the loan once the account came out of forbearance. Because my credit rating is crucial to my remaining employed, I called at least 6 more times during XXXX to ensure there wouldn't be a problem. These calls are all recorded. I was assured I was in compliance and not considered late on any payments, and my credit would not be effected. 

In XX/XX/XXXX, I contacted SLS and explained that I was ready to resume payments on my mortgage, and that I would like to attach the payments that were in forbearance to the end of my loan. The representative explained that she would be submiting an application to defer the payments and attach them to the end of the loan, and took my information over the phone. During this conversation, I reiterated that my credit rating is really important, and I would not want to do anything that would cause an adverse effect to my score. The representative assured me that as my income was in line with the loan, and I was following the correct steps I should have nothing to worry about, and that she had never seen a deferral be declined. I was told to wait for new loan information to come to the house. 

While I waited for the loan information to arrive, at the end of XXXX I received several notices from SLS stating my mortgage was severely delinquent, and I needed to either pay all of the payments that were in forbearance or contact them for options. I called and spoke with their representative and was told the documents I was waiting for were being processed, and the notice was automatically generated. I was told to disregard the notice. 

When I received an additional notice stating my mortgage was severely delinquent and all of the payments that were included in the forbearance were due, my wife called SLS. The representative she spoke with also assured her that the notices were automatically generated and we should disregard them. 

In early XXXX I received a 19-page document dated XX/XX/XXXX detailing the options that were approved for my loan. To my surprise, I was offered a loan modification that lowered the current interest rate from 8.69 % to 2.949 %. This changed the monthly payment from {$850.00} to {$500.00}. I did not ask for this modification, and was surprised the bank decided to offer a discounted interest rate. As the document was very large, and so many of the previous notices contained information that we were told to disregard, my wife contacted SLS on XX/XX/XXXX and spoke to XXXX. My wife wanted to make sure we understood how to accept the option available, and that it was not going to adversely effect my credit rating. She was assured that as long as she paid the first payment by XX/XX/XXXX via XXXX XXXX, as directed, and paid the payments due in XXXX and XXXX on time, that we were in compliance with the new loan modification, and would receive new paperwork to sign shortly after the XXXX payment was received. 

My wife made the first payment on XX/XX/XXXX, while on the phone with XXXX, who instructed her to send a copy of the XXXX XXXX receipt to a specific email address to ensure the payment would be acknowledged as sent and applied to my account in a timely manner. 

On XX/XX/XXXX, I received another letter stating my account was severely delinquent and I needed to pay all of the payments that were in forbearance, or contact SLS for options. My wife called and spoke with XXXX, who assured her this is standard and must have crossed in the mail with the new paperwork. She was advised to disregard the notice. 

On XX/XX/XXXX, I went to the SLS website to confirm my payment was credited to my account. The account was showing as severely delinquent, with the payment sent via XXXX XXXX posted as unapplied funds. My wife called and spoke to XXXX who advised her that the account hasn't been updated yet, and she should not worry. My wife told him that we have received the same answer everytime we call in, but everything in writing is very different. She wanted something in writing stating what has been agreed to and discussed over the phone. XXXX said the representative in charge over my loan is XXXX, and he would transfer her to that department. Then she was disconnected. 

My wife called back three times that day until she was able to connect to XXXX 's department. She spoke to a representative named XXXX, who initialy explained that the statements are automatically generated and as long as we paid the first payment of the modification, that we didn't need to worry. My wife told her she would like something in writing to state what had been discussed verbally, as she continued to get the same answers on the phone, but the notices that came in the mail were very different and quite concerning. That's when XXXX placed her on hold, and came back stating the notices I received were actually correct, as the modification wasn't completed yet. She also stated that the investor declined a deferral for the payments in forbearance and offered a modification instead. XXXX stated my credit would reflect several months of being delinquent while the new loan was in process. My wife explained that this is not in any way what I wanted or agreed to. When she reiterated that my employment is dependent on my credit rating, XXXX asked if she was then declining the loan modification. My wife responded that what she wanted was to ensure I remain in good standing, and that my credit report stays in tact as was agreed during the numerous calls prior to talking with XXXX. XXXX stated that I should contest the negative entry on my credit rating. XXXX asked again if we were declining the modification. XXXX stated that I needed to use the letter contained in the 19-page packet sent on XX/XX/XXXX to ask for a reconsideration of the deferral if I was refusing the modification, or pay the entire past-due amount. My wife went through the packet while XXXX was on the phone and explained there was no such letter in the packet. XXXX was hostile, agressive, and not helpful in any way, so my wife asked to speak with a supervisor and explained that she would be filing a formal federal complaint. XXXX offered my wife the option of paying the remaining payments due for the trial modification, XXXX and XXXX, at that time to expedite the loan modification paperwork, but advised it would take approximately 30 days to get that paperwork generated as they had to ensure the escrow amounts are correct. My wife explained there is no escrow account associated with this loan as its a second mortgage. My wife paid the payments for XXXX ( confirmation # XXXX ) and XXXX ( confirmation # XXXX ), therefore fulfiling the payment requirements for a trial modification in an effort to preserve my credit rating until we could get everything straightened out, and the terms I agreed to executed. My wife again stated that she wanted to speak with a supervisor. XXXX stated that she was unable to transfer her to a supervisor, and one would be calling within 24 to 48 hours of their conversation. My wife canceled appointments for the next two days to ensure she did not miss that call. That phone call never came. 

Today, I went to the SLS website to check on the status of my account. The account still shows as severely delinquent, the next payment is listed as due XX/XX/XXXX despite my wife having made the XXXX payment on the phone with XXXX, and the payments my wife made are either showing as having been applied to another payment or listed as, " unapplied funds forbearance. '' We made the XXXX trial modification payments for a total of {$1500.00}, however, the total shown as unapplied is {$660.00}. The payment showing due for XX/XX/XXXX is for the original amount of {$850.00}, with a total amount due of {$9700.00}. 

Nothing is what was ever discussed or agreed to. I am deeply concerned about my credit rating and my ability to ensure the terms I agreed to are put into writing and executed without the supervision of the Consumer Financial Protection Bureau. 

I would like XXXX XXXX to do what Specialized Loan Servicing originally said they would do, and what I agreed to do ; to attach the payments that were in forbearance to the end of my loan and to continue to report my account as current and paid as agreed, as I have done absolutely everything I agreed to do. If that means forfeiting the lower interest rate, I am willing to do so. I question if the investor was ever even contacted regarding the deferral, as the other option substantially cuts the return on their investment. My credit rating is vital for my employment, and my continued ability to pay my bills. I would never have agreed to anything that would put that in jeopardy. I have a large family who depends on me and there is no way I would do anything that would prevent me from being able to provide for them.

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