Consumer complaint received 2016-10-31 00:00:00
Product: Mortgage — Home equity loan or line of credit
Issue: Loan servicing, payments, escrow account — 
Company: Specialized Loan Servicing Holdings LLC
State: CA

Complaint narrative:
In 2015 my balloon payment became mature with SLS. My story below will tell how difficult of a company they are to deal with, and how they do not follow the law and ruined my credit. I am meeting with a lawyer this week to go over this because what they did to me and my credit is NOT legal. 

To start, I have had this particular loan for 10 years and was never late. I have no problems making the payments. I received a letter from SLS 4 months prior to my loan being due ( Balloon payment ) stating that my loan would automatically convert from Interest only to Principle and Interest. Great news to me! Then about 6 weeks later they send me a 60-day letter stating the opposite, that my loan was due in full. By law, the letter should have been sent 90 days before, however, they send me a letter stating the opposite at 90 days. 

Immediately I called SLS and was told that it was no problem, I just had to modify my loan. I immediately started the paperwork for the modification ( which was basically the same as applying for a new loan ). What a mess! I went back and forth with them countless times! They would tell me it looks like I had everything correct, and then get back to me stating that I had to resubmit something. I made a point to call twice a week to follow up because I was told that would help speed up the process. It got really close to the date that my loan was due and I was really getting worried. 

I called and called and resubmitted paperwork and the loan due date finally passed. About a week later I received my check I had sent them back in the mail, and I received a letter stating that my loan was delinquent! I immediately called and my contact told me they were not reporting me as being late to the credit bureau because I was modifying my loan .... forward ahead to several emails, calls, and more paperwork because at this point now the paperwork I submitted, in the beginning, was now expired and I had to redo it, I was finally approved for a modification after a few months. This is just crazy to me. I was never late and they sent back my payments. 

I was finally in the modification status, yeah! I had to now send certified funds ( because apparently, all my other funds were no good? ) for three months in a row, and if I was not late they would approve me for a forever loan. In the meantime, I was trying to buy another house and was told by my mortgage broker that husband and I show that we are 120 days delinquent on a mortgage payment!!!! What, I thought they told me they were not reporting me late, so I called and was told that on the fine print of one of the pages that it says they could report me late. I send them my payments, they sent them all back, and they are reporting me late! This is just plain mean at this point. 

My mortgage broker told me that I can not qualify for any loans and my credit dropped over XXXX points. She said she was sorry and to come back in a year or so and my credit might be good enough to buy a house. I was in tears and felt so victimized. I followed every rule and got totally screwed! I to that point always had great credit and this ruined it. 

After my three months or paying on time, of course, I now have my forever loan with SLS. I also have terrible credit that I wish they would take off my credit as late, as I attempted to pay each month and I tried to modify the loan persistently for months. I was misled and if I knew this was going to be the outcome I would have had a plan B. I wish they would just do what is right and help get me credit and life back on track! I am just asking to PLEASE remove the late reporting on my credit. Thank you for your consideration on this important matter.

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