Consumer complaint received 2025-11-18 00:00:00
Product: Mortgage — FHA mortgage
Issue: Trouble during payment process — Escrow, taxes, or insurance
Company: Shellpoint Partners, LLC
State: OH

Complaint narrative:
Subject : Urgent Request for FHA Escalation Escrow Deficiency Hardship Due to Delayed County Tax Assessment Loan Number : XXXX Borrower : XXXX XXXX Property Address : XXXX XXXX XXXX, XXXXXXXX XXXX XXXXXXXX FHA Case Number- XXXX To Whom It May Concern, I am writing to urgently request an FHA escalation and formal review of my escrow deficiency under the applicable HUD guidelines. My name is XXXX XXXX, borrower of the above-referenced FHA-insured loan XXXX serviced by NewRez. 

My escrow account recently incurred a deficiency of {$19000.00}, which was paid to XXXX XXXX as a result of a delayed and retroactive reassessment of four years of property taxes ( XXXX ) on my newly built home. The county failed to apply the correct tax valuation for several years, and the correction was only made this year. As a result, a large lump-sum tax bill was drawn from my escrow account. 

This unexpected deficiency caused my monthly mortgage payment to increase from approximately {$1200.00} to {$2900.00}, creating an immediate and severe financial hardship. I am current on my mortgage and have a strong payment history, but the new payment amount is not sustainable. 

FHA/HUD GUIDELINE SUPPORT To support my request, below are the exact FHA/HUD provisions that apply to my situation : 1. HUD Handbook 4000.1 II.A.1.k.iii ( E ) Escrow Shortages HUD states that when a servicer identifies an escrow shortage : The Mortgagee may require the Borrower to repay the shortage amount in equal monthly payments over a period of up to 12 months or a longer period if necessary to avoid borrower hardship or if the shortage is unusually large or the result of a non-recurring or extraordinary event. 
This applies directly to my situation since : The shortage is unusually large, It resulted from an extraordinary, non-recurring county reassessment, and Immediate repayment over 12 months clearly imposes hardship. 

My Wife lost her job due her position not needed anymore and caused a burden month in month out to stay on top of my bills and my XXXX beautiful children XXXX And XXXX Which are Waiting For XXXXs. ( I may not have one if this does not get situated ) 2. HUD Handbook 4000.1 II.A.2.a.iv ( C ) Servicer Responsibility for Hardship Review This section requires servicers to : Evaluate the Borrowers circumstances and provide payment solutions consistent with FHA requirements when the Borrower experiences a financial hardship outside of their control that threatens their ability to sustain mortgage payments. 

My hardship is directly tied to a government administrative delay and not borrower behavior. 

3. HUD National Servicing Center Guidance Escrow Related Loss Mitigation HUD servicing policy notes that servicers must : Offer an affordable repayment arrangement for escrow shortages when the shortage was created by unforeseen circumstances not caused by the borrower. 

This is exactly my situation. 

MY REQUEST UNDER FHA GUIDELINES Based on the above HUD provisions, I respectfully request : 1. FHA acknowledgment that this escrow deficiency resulted from a county error and qualifies as a non-recurring, extraordinary event under HUD 4000.1 II.A.1.k.iii ( E ).

2. Authorization or instruction to my servicer ( NewRez ) to offer a repayment plan of 3660 months, consistent with HUDs allowance for extended repayment periods in hardship or extraordinary circumstances. 
This extended timeline is the only way for me to remain current and maintain sustainable homeownership. I am fully committed to paying what is owed, but the 12-month repayment period is not feasible.

REQUEST FOR NEXT STEPS Please advise what documentation or additional information is needed to complete this escalation. I appreciate your urgent attention to this matter, as the current payment amount is not sustainable and timely support is essential. 

Thank you for your assistance. 

SincerelyXXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX

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