Consumer complaint received 2025-08-28 00:00:00
Product: Debt collection — Mortgage debt
Issue: Took or threatened to take negative or legal action — Seized or attempted to seize your property
Company: Selene Holdings LLC
State: TX

Complaint narrative:
My husband XXXX XXXX & I, XXXX XXXX XXXX purchased our home, XXXX XXXX XXXX XXXX XXXX XXXX TX in XX/XX/XXXX. Both of us named on the Warranty Deed & mortgage loan until refinance in XXXX  when I was removed as co borrower.Loan account was sold to XXXX XXXX Trust in XXXX. Selene XXXX  became servicer at that time. XXXX XXXX  : XXXX was appealing a loan modification denial, & sent doc to Selene on XX/XX/XXXX. On XX/XX/XXXX he called Selene & wanted to ask on status. He was told by Selene that they had moved our property to foreclosure with sale date of XXXX XXXX. We received no Notice of Foreclosure Sale, nor have we received Notice a Substitute Trustee was appointed. Both are required per the terms of the Deed of Trust, & procedure outlined in Texas Property Code & Case Law. Because a trustees power to sell the property is derived directly from the deed of trust & the statute ( Prop. Code Sec. 51.002 ), the notice & posting requirements of both must be strictly complied with in order for the foreclosure to be valid. XXXX XXXX XXXX, XXXX XXXX XXXX, XXXX ( XXXXXXXX XXXX XXXXXXXX, no pet. ). This includes the requirement that written notice be served upon the borrower by certified mail at least 21 days before the date of sale. Actual notice in some other form does not substitute for this statutory requirement. XXXXXXXX XXXX XXXXXXXX XXXX XXXX, XXXX XXXX XXXX, XXXX ( XXXX XXXX XXXX XXXX XXXX XXXXXXXX, no pet. ). XXXX XXXX XXXX XXXX XXXXXXXX We called Selene on XXXXXXXX XXXX  & spoke with 2 agents who did not believe it was their responsibility to notify a property owner & / or borrower of the Notice of Sale. They directed us to XXXX XXXX XXXX. We called XXXX XXXXXXXX XXXX XXXX & spoke with XXXX. We learned that XXXX XXXX also believes that they are under no obligation to notify homeowner/borrower or the County Official Public Record of the Notice of Foreclosure Sale or Assignment of Substitute Trustee. Case Law, ( cited above ) & Texas Property Code state otherwise " Sec 51.002 ( b ) Except as provided by Subsection ( b-1 ), notice of the sale, which must include a statement of the earliest time at which the sale will begin, must be given at least 21 days before the date of the sale by : ( 1 ) posting at the courthouse door of each county in which the property is located a written notice designating the county in which the property will be sold ; ( 2 ) filing in the office of the county clerk of each county in which the property is located a copy of the notice posted under Subdivision ( 1 ) ; & ( 3 ) serving written notice of the sale by certified mail on each debtor who, according to the records of the mortgage servicer of the debt, is obligated to pay the debt. XXXX XXXX rep could not confirm certified letter was sent out on XXXX & reiterated that they do not have to verify this. I spoke with the XXXXXXXX XXXX XXXX XXXX on XXXX XXXX & they confirmed that that Notice of Assignment of Substitute Trustee is required & is made permanent record to be recorded & published to the XXXX XXXX XXXX XXXX XXXX. It is an essential step in the foreclosure process in TX. As is a minimum of 21 days notice. XXXX XXXX  office advised that foreclosure sale notices are not permanent record, so they can be posted to a separate list ( separate from the Official Public Record ) but reiterated that a Notice of Assignment of a Substitute Trustee must be delivered to the County Clerk & be posted on Public Record. XXXX XXXX  office informed me that they do not check Lender/Servicers have followed proper procedure & adhered to protocols outlined in TX Property Code, & /or Federal laws. They told me that they trust the Lender/Servicers are doing what they are obligated to do, & following procedures. XXXX XXXX office told me verifying each Assignment of Sub Trustee , & Notice of Foreclosure would take too long. Effectively, there are no checks & balances. Should lenders/services wish to abuse their powers, cut corners, & shirk federal & state laws that make fair practices & specific procedures for actions that prevent fraudulent foreclosures, they may do so with little risk of consequences. I believe they know it and abuse this power. 
XXXX XXXX XXXX sells information of foreclosure listings to national investors. Upcoming previews of foreclosure listings are also made available via auction websites like auction.com. Buyers/subscribers of these lists look up contact information & reach out to distressed homeowners. Some are looking for a quick sale agreement, others have intentions to scam distressed homeowners. Though they may be within their right to sell this information, it does make XXXX XXXX XXXX XXXX XXXX XXXX fiduciaries & so disqualifies them for a substitute trustee role described in TX Property Code 51.0074. Though I appreciate the investors subscribed to the Foreclosure XXXX XXXX XXXX XXXX sells, as this was how we became aware that our property was on the XXXX XXXX Foreclosure Sale list, I wish to add that these national foreclosure sale lists amount to profits earned at a property owners emotional expense. Investors from well beyond a County Court door gain access to information they use to look up personal contact details of an already distressed homeowner. They descend on the owners of properties they are interested in. This includes emails, phone calls, text messages at all hours of day & night, & from spam phone numbers. Others may drive by, take photos of a home, & others will door knock. I have found a RE investor in my back yard with his handyman, getting a quote! Large neon notices have been taped to my door, causing me embarrassment, & we have even been solicited by scammers too. These lists cam make already distressed people vulnerable & easy to pressure into making uninformed financial decisions they might otherwise learn are fraudulent actions in the state of TX. who promise to sue for quiet title and/or t is so invasive threatened my sense of safety for myself & my children. This is overwhelming & can be deeply distressing to an already distressed homeowner.As today we have not received proper service of the Notice of Sale & Assignment of Substitute Trustee. Nor is this essential permanent record been furnished to XXXX XXXX XXXX XXXX. As of today, no notice of Assignment of Substitute Trustee has been furnished to XXXX XXXX or us the deeded property owners. At the end of my XXXX XXXX call with XXXX XXXX XXXX XXXX XXXX, I asked for copies of the foreclosure package she claimed XXXX XXXX sent to XXXX XXXX  on XXXX took my email address, & emailed this package to me-I noticed the following : XXXX XXXX purports they sent this info to XXXX on XXXX XXXX  ; XXXX XXXX XXXX names Substitute Trustees : XXXX XXXXXXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX or either one of them, as Substitute Trustee, to act, either singly or jointly, under & by virtue of said Deed of Trust & hereby request said Substitute Trustees, or any one of them to sell the property in said Deed of Trust described & as provided therein. The address for the Substitute Trustee as required by Texas Property Code, Section 51.0075 ( e ) is XXXX  I XXXX XXXXXXXX, CA XXXX. This statement cites TX Prop Code, Section 51.0075 ( e ) but is in direct violation of it. " Sec. 51.0075. AUTHORITY OF TRUSTEE OR SUBSTITUTE TRUSTEE. ( a ) A trustee or substitute trustee may set reasonable conditions for conducting the public sale if the conditions are announced before bidding is opened for the first sale of the day held by the trustee or substitute trustee. ( b ) A trustee or substitute trustee is not a debt collector. ( c ) Notwithstanding any agreement to the contrary, a mortgagee may appoint or may authorize a mortgage servicer to appoint a substitute trustee or substitute trustees to succeed to all title, powers, & duties of the original trustee. A mortgagee or mortgage servicer may make an appointment or authorization under this subsection by power of attorney, corporate resolution, or other written instrument. ( d ) A mortgage servicer may authorize an attorney to appoint a substitute trustee or substitute trustees on behalf of a mortgagee under Subsection ( c ). ( e ) The name & a street address for a trustee or substitute trustees shall be disclosed on the notice required by Section 51.002 ( b ). I believe that at least 2 of the substitute trustees named also violate TX Property Code Sec. 51.0074 Duties of a Trustee, as well. " Sec. 51.0074. DUTIES OF TRUSTEE. ( a ) One or more persons may be authorized to exercise the power of sale under a security instrument. ( b ) A trustee may not be : ( 1 ) assigned a duty under a security instrument other than to exercise the power of sale in accordance with the terms of the security instrument ; or ( 2 ) held to the obligations of a fiduciary of the mortgagor or mortgagee. 
I spoke with the Compliance Dept at the Dept of Savings and Mortgage Lending. They advised we send a Notice of Error letter to Selene XXXX, & file a complaint with them. We did so on XXXX ( tracking # XXXX ) & an NOE to the Dept of Savings and Mortgage Lending ; ( tracking # XXXX ) Sent Registered Mail. 
We sent a more specific NOE citing TX Prop Code procedural and statute violations to Selene XXXX  on XXXX ( tracking # XXXX ) to XXXX XXXX XXXX ( tracking # XXXX ) & to Dept Of Savings and Mortgage Lending ( tracking # XXXX ). All sent via XXXX Mail. 
As of XXXX XXXX, Selene XXXX  claims they have not received XXXX ( XXXX ) ; that XXXX loan modification appeal sent XXXX XXXX is not being considered, & that our property is still active on the XXXX Foreclosure List for sale date of XXXX. 
XXXX spoke with Selene XXXX  ( XXXX ) XXXX XXXX  XXXX reviewed XXXX XXXX XXXX XXXX with him & sent it to their dept for review. XXXX told XXXX they would review and be in touch with him. Today XXXX XXXX called XXXX to ask if they have pulled the Foreclosure Listing from active list. He spoke with XXXXXXXX XXXX. She confirmed that XXXX sent the loan mod app to loss mitigation dept for review, but advised it wont be considered. Its too close, & the sale of the property is still XXXX. It is still on the list, even though it is being considered. Isnt this dual tracking? 
Another ERROR we noted is that all Selene XXXX  reps read that this loan is XXXX payments past due. This is incorrect. I have to ask XXXX to check his credit bureau but if this is being reported it is wrong. On that matter, I attempted to make additional payments last year, via XXXX XXXX XXXX. All of my attempted payments were rejected and returned with no explanation. This also violates the very DOT terms they are trying to hold us to. I will be submitting XXXX  to you re this in my larger complaint. but wanted to mention it to you today. We now are attempting to retain another attorney to file a XXXX  to stop this foreclosure sale because Selene skipped corners, & gave us 0 notice of sale.This will cost us another ~ $ XXXX today. And this is not the first time we have had to do this. I have had many issues with Selene XXXX since XXXX XXXX transferred servicing to them in XXXX, when their client XXXX XXXXXXXX XXXX purchased this loan from XXXX on XXXX XXXX. I have concerns about this loans status as a secured debt as per UCC9 criteria, & so concerns about the validity of XXXX XXXX XXXX XXXX XXXX have a security interest in our property. I wish to file a complaint and inform about the background/larger matter but for today, I wish to report Selene XXXX XXXX nd XXXX they are made to pull our property from Foreclosure Sale List slated for XXXX in XXXX XXXX XXXX Texas XXXX I pray you investigate Selene XXXX, XXXX XXXX for violations of the TX Property Code, and Foreclosure Protocols as per TX Prop Code sec.51, and for violating the terms of the Deed of Trust-the very security instrument Selene is trying exercise in foreclosure. I wish for Selene and XXXX XXXX to be investigated for their RESPA violations regarding Notice of Error Protocols, and duel tracking as well. I have recorded all calls with Selene XXXX XXXX XXXX, and XXXX XXXX XXXX XXXX XXXX, and can furnish you with original recordings as well as any/any other doc you may need to inform you in your investigation. I have tried to load as many relevant items here but exceed capacity for all I wish to share with you. Please let me know what I can do to assist you, should you choose to investigate this matter. And if you can stop the foreclosure, please do let me know this too, & allow me to review terms of my next attorney instead of signing under time pressure today/tomorrow. Thank you so much. 
* All calls were recorded and transcribed XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX

Company response to consumer: Closed with explanation