Consumer complaint received 2025-12-30 00:00:00
Product: Mortgage — Conventional home mortgage
Issue: Struggling to pay mortgage — Foreclosure
Company: Atlanticus Services Corporation
State: CA

Complaint narrative:
I am submitting this formal complaint as the borrower on a second-position residential mortgage loan in the amount of {$330000.00}, secured by my primary residence at XXXX XXXX XXXX XXXX XXXX XXXX XXXX, CA XXXX. The loan is serviced by XXXX XXXX XXXX XXXX XXXX on behalf of XXXX, XXXX ( the lender/beneficiary ), with XXXX XXXX serving as the trustee. The trustee 's sale is wrongfully scheduled for XX/XX/XXXX, despite multiple violations of state and federal laws that render the foreclosure process invalid and unlawful. 
This complaint details systemic failures in loan servicing, foreclosure practices, and compliance with consumer protection statutes, including fraudulent manipulation of loan documents, refusal to postpone the sale under California law, non-compliance with certification requirements, and failure to respond to a Qualified Written Request ( QWR ). These actions have caused me significant financial harm, emotional distress, and the imminent threat of losing my family home. I request immediate investigation, intervention to halt the foreclosure, imposition of penalties, and restitution for violations. 
I am filing this complaint simultaneously with both the CFPB ( for federal violations under RESPA and other laws ) and DFPI ( for state violations under California XXXX XXXX and licensing requirements ). I authorize the sharing of information between agencies to facilitate a coordinated response. 
XXXX. Background and XXXX XXXX XXXX XXXX : In XXXX, XXXX, XXXX extended a {$330000.00} second-position loan secured by my primary residence. At origination, the lender directed the creation of fraudulent organizational minutes and a XXXX deed transferring ownership from my family trust to a corporation. These documents were prepared without my full understanding or authorization, solely to classify the loan as " business purpose '' and evade consumer protections. I dispute this classification : The property is my primary family home, and the transfer provided no benefit to me. XXXX, XXXX lacks a valid California Finance Lenders License or XXXX broker license, raising concerns of unlicensed lending, usury, and fraud. 
Default and Foreclosure Initiation : A Notice of Default ( NOD ) was recorded on XX/XX/XXXX. No loss mitigation options were offered, and the process has proceeded unlawfully. 
Servicer and Trustee Information : Servicer : XXXX XXXX XXXX XXXX XXXX XXXX : XXXX, XXXX Trustee : XXXX XXXX My Attempts to Resolve : On XX/XX/XXXX, I submitted a complete AB XXXX notice package to XXXX XXXX for a mandatory postponement. I also sent a detailed demand letter via email. outlining all issues. Despite confirmation of receipt, no responses have been provided, and emails appear unopened based on tracking. 

XXXX. Specific Violations and Supporting Evidence A. Violation of XXXX XXXX ( California XXXX XXXX XXXX ) Refusal to Postpone Trustee 's Sale Under XXXX XXXX ( effective XX/XX/XXXX ), a borrower may submit a notice at least XXXX business days before the sale date, including an active listing agreement with a licensed California real estate broker, to mandate a XXXX postponement for marketing and selling the property. 

On XX/XX/XXXX, I submitted a complete package to XXXX XXXX, including the required listing agreement ( attached as Exhibit B ). 
XXXX XXXX refused postponement, claiming the notice is " defective '' without explanation, violating the law 's requirement for specificity. 
This refusal exposes XXXX XXXX and the beneficiaries to liability for wrongful foreclosure. The sale must be halted immediately to prevent irreparable harm. 

Requested Action : DFPI to investigate and enforce postponement ; CFPB to coordinate on related federal protections. 
B. Violation of AB XXXX ( California XXXX XXXX XXXX, XXXX et seq. ) Failure to Record and XXXX XXXX XXXX XXXX XXXX XXXX ( effective XX/XX/XXXX ) requires servicers of subordinate residential mortgages to record a XXXX XXXX XXXX under penalty of perjury with the NOD, affirming compliance with laws ( e.g., offering loss mitigation, no unlawful revival of charged-off liens ). A copy must be sent to the borrower with the NOD. 

No certification was recorded or sent to me with the XX/XX/XXXX NOD. 
Despite demands, no copy or proof of mailing has been provided, rendering the foreclosure invalid. 
This indicates non-compliance with servicing standards, including failure to offer alternatives to foreclosure.

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