Consumer complaint received 2025-07-14 00:00:00
Product: Mortgage — Conventional home mortgage
Issue: Struggling to pay mortgage — Trying to communicate with the company to fix an issue related to modification, forbearance, short sale, deed-in-lieu, bankruptcy, or foreclosure
Company: Shellpoint Partners, LLC
State: TX

Complaint narrative:
Around XXXX, while going through financial hardship, our mortgage servicer at the time ( XXXX ) added approximately {$25000.00} in legal fees to our loan after we attempted and then withdrew a bankruptcy filing. These fees were added directly to the principal and began compounding interest. We were told the fees would be adjusted at the end of each year, and in the first year, they were. 

However, the following year ( s ), the loan was transferred to a new servicer ( XXXX ), and when we inquired about the promised adjustment, we were told they had no record of it. When we requested documentation, the paperwork we were given had been altered and no longer showed the fee adjustments that had previously been made. 

The loan has since transferred multiple times to multiple finance companies, in the past we have requested A full history of servicing transfers An itemized breakdown of the {$25000.00} in legal fees An explanation for the interest charged on those fees Documentation of the agreed-upon yearly adjustments No company has provided accurate records or justification. We believe we are still paying interest on fees that were excessive, potentially unlawful, and never approved by any court. This has resulted in our mortgage being inflated well beyond what is reasonable, despite paying on the loan for over 30 years. 

We are requesting an investigation, correction of the loan balance, and return of any overcharged interest based on fees that were never properly documented or authorized. 

Additionally, every time the loan has been sold or transferred, we have never been properly notified in advance. We only find out the loan has been sold when we receive a warning or demand letter from a new mortgage company claiming we are late or behind on payments. This has caused confusion, missed payments, and a loss of trust in the accuracy and legality of the loan servicing process. We believe these repeated transfers have been used to obscure prior servicer misconduct and make it harder for us to track the growing loan balance. 

When we asked why the loan payoff continued to increase over time, we were told it was due to " lawyer fees '' and " inflation. '' These explanations make no sense. We were never given itemized records of these so-called legal fees, and the idea that inflation increases a fixed mortgage balance is not valid under the terms of our original agreement. We believe these are stall tactics used to hide the improper addition of fees, interest on those fees, and possible mismanagement of the loan. 

Most recently, we reviewed the current loan payoff amount and it now shows {$130000.00} even after over 30 years of payments. This amount is almost the same then what was owed 10 years agodespite our consistent payments and no new borrowing ( The house was originally {$80000.00} in the late XXXX ) This strongly suggests our payments have been eaten up by interest on improperly added fees, rather than applied to the true principal. We believe this situation is the result of compounding interest on fraudulent fees, misapplied payments, or intentional balance inflation We were promised adjustments yearly and only have received one years ago. 
XXXX, to XXXX  up to 5 mortgage companies for this same loan without our knowledge until they ask for payment. 

We have documentation from every servicer going back over a decade, including statements, payoff letters, and fee breakdowns.overall timeline is clear and supported by available records. The paperwork we have confirms repeated loan balance increases, unitemized fee additions, and altered or missing information after servicing transfers. 

At various points over the years, we were told we had to sign documents or agreements under time pressure in order to avoid foreclosure or continue making payments. Some of these documents included terms or balances we did not fully understand at the time. We believe we were misled or pressured into signing forms that locked in inflated balances or unverified fees, simply to avoid losing the home. We request that these documents also be reviewed as part of the audit, and that no coercive agreements be used to justify improper loan balance increases. 

We have supporting documents available, including past payoff statements, servicer letters, and transaction records showing the rising balance and fee history. However, due to current technical limitations, we are unable to upload them at this time. We are fully prepared to provide these documents upon request or once we are able to access the upload function. Please consider this a formal notice that documentation exists to support the details provided above.

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