Consumer complaint received 2024-04-22 00:00:00
Product: Mortgage — Conventional home mortgage
Issue: Struggling to pay mortgage — Foreclosure
Company: Shellpoint Partners, LLC
State: CA

Complaint narrative:
New Rez serviced by Shellpoint has scheduled a trustee sale of my home of XXXX  years although I am not in default. They used deceit and concealment to induce non payment ( XXXX. Code XXXX ) .I was told I qualified for improved loan terms under a settlement and instructed to skip XXXX payments. I followed their instructions in justifiable reliance. After XXXX months I called in to make the skipped payments but they refused tender of the amount due ( which stopped the running of interest under Civil Code 1504 ). The next monthbe I received a notice of default and numerous bank agents told me it was just a technicality and to be patient during the long modification process. They concealed from me for XXXX years that they had placed me in a program that couldn't modify and then scheduled a sale demanding all the high interest rate payments and several thousands in charges and fees.

My duty to perform was constructively conditioned on their duty to allow the condition of my performance to occur. Actively undermining my performance with deception and concealment was a failure to perform and operated as the non occurrence of the condition. Frustrating my efforts to repay the debt defeated the object of the contract and made the breach material suspending my performance.

This wasn't negligence, they acted consciously and deliberately. Placing me in default would deprive me of my contract rights, prevent me from refinancing into affordable terms and keep me from making payments while they inflated my balance with high-interest rate payments, charges and fees while I was anticipating improved loan terms. This would almost certainly result in foreclosure from which they would benefit substantially.

If they had dealt fairly with me I would have refinanced into affordable terms and the total payments plus escrow would be less than the amount I've had to use to prevent them from foreclosing. The amount they claim is due is more than twice that and it can't be characterized as damages because it's a benefit.

I took them to State court and the judge ruled that foreclosure would be wrongful due to their misconduct. I took them to Federal Court last spring and stated a claim for breach of contract. Throughout this and despite the Court rulings they posted trustee sales, about XXXX XXXX times. 

Lacking the authority from the DOT to invoke the power of sale - because they were in breach and without the legal right under Civil Code to conduct a sale - because I was not in default, they used the sales to intimidate and weaken.

Knowing they are threatening me with the irreparable loss of my home of XXXX  years they wait until just minutes before the sale to cancel. 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 XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX. In 2019 in a CFPB complaint I told them they were causing damage that could become permanent but they continued. I have become a person with an impairment that substantially limits a major life activity under the ADA.

Now that their treatment has caused me to be XXXX and I am XXXX, when they continue to weaponize the power of sale to cause unjustifiable mental suffering, they are in criminal violation of Penal Code 368, as they are placing me in a condition likely to endanger my health. They arev also in violation of the FDCPA.

I have not been trying to avoid the debt. I would very much like to pay the debt but a neutral third party with a thorough understanding of contract law needs to make an assessment of the debt amount.

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