Consumer complaint received 2026-02-05 00:00:00
Product: Mortgage — Conventional home mortgage
Issue: Struggling to pay mortgage — Foreclosure
Company: Selene Holdings LLC
State: FL

Complaint narrative:
I am filing this complaint regarding imminent foreclosure activity by my mortgage servicer while my federal homeowner rights are actively invoked and unresolved. 
Foreclosure sale is scheduled for XX/XX/year>. 
On XX/XX/year>, I submitted to my servicer a formal Invocation of Homeowner Rights, including : A Notice of Error A Request for Information A request for review of all available loss mitigation options These requests remain pending and unresolved. 
Despite this, the servicer reinstated foreclosure proceedings on XX/XX/year> and is continuing toward a foreclosure sale scheduled for XX/XX/year>. 
Proceeding with foreclosure under these circumstances constitutes unlawful dual tracking and violations of : RESPA Regulation X ( 12 C.F.R. 1024.35, 1024.36, and 1024.41 ) A servicer may not advance foreclosure activity while a borrowers loss mitigation request or Notice of Error is pending. I have not received : A written determination on loss mitigation A complete response to my Notice of Error Any confirmation that foreclosure has been placed on hold I am requesting the CFPBs immediate assistance to require the servicer to : Immediately suspend all foreclosure activity Vacate or cancel the XX/XX/year> foreclosure sale Comply with all RESPA and Regulation X obligations Provide written confirmation that foreclosure is on hold Given the imminent sale date, this matter is urgent and requires immediate escalation. 

Selene Finance has committed a material servicing error by improperly using my deferred principal balance as part of debt-to-income XXXX XXXX  ) and affordability calculations in connection with loss-mitigation and loan-modification determinations. 

The deferred principal balance was created through a prior loan modification and, by definition : is not part of my current monthly payment obligation ; is not due monthly ; and is not payable unless and until maturity, refinance, or sale of the property. 

Despite this, Selene Finance has repeatedly denied my loss-mitigation requests citing XXXX or investor guidelines while treating the deferred principal as a current debt obligation, which distorts affordability calculations and results in an inaccurate determination of eligibility. 

This constitutes an error in the evaluation of loss-mitigation options and the application of loan terms. 

REQUEST FOR INFORMATION Please provide the following within the time required by Regulation X : A written explanation of whether the deferred principal balance was included in any XXXX, affordability, or eligibility calculations used to deny my loss-mitigation applications. 

A full itemization of all figures used in each loss-mitigation review, including : gross monthly income used, monthly debt obligations used, mortgage payment used, and whether deferred principal was included or excluded. 

Copies of any investor or servicing guidelines relied upon that allegedly require inclusion of deferred principal as a current debt obligation. 

A corrected loss-mitigation evaluation, excluding deferred principal from XXXX calculations XXXX and a written determination based on accurate inputs. 

PRIOR NOTICE AND PENDING DISPUTE This issue was previously raised in my Notice of Error dated XX/XX/year>, and I have not received a substantive response. I further followed up by telephone on [ date ] and was advised that no investigation was reflected in your system. 

This error remains unresolved while foreclosure activity continues.

Company response to consumer: Closed with explanation