Consumer complaint received 2025-08-15 00:00:00
Product: Mortgage — Conventional home mortgage
Issue: Struggling to pay mortgage — An existing modification, forbearance plan, short sale, or other loss mitigation relief
Company: Shellpoint Partners, LLC
State: CA

Complaint narrative:
I respectfully submit this complaint against Shellpoint Mortgage Servicing regarding the mishandling, excessive delays, and inconsistent communication in the processing of my FHA short sale application. My experience demonstrates multiple servicing deficiencies, including potential violations of Real Estate Settlement Procedures Act ( RESPA ) provisions, CFPB Mortgage Servicing Rules under Regulation X ( 12 C.F.R. 1024.41 ), and FHA short sale guidelines. 

Despite my cooperation, timely responses, and the existence of a strong {$520000.00} all-cash offer from a qualified buyer, Shellpoint has failed to close my short sale after more than four months from the date of offer acceptance. I allege that Shellpoints conduct has caused : In XX/XX/XXXX, facing financial hardship, I initiated an FHA short sale request with Shellpoint by submitting a completed hardship application. Shortly thereafter, Shellpoint provided written confirmation that I had been approved for the short sale program and advised me to hire a licensed realtor to list my property. 

Following Shellpoints instruction, my property located at XXXX XXXX XXXX XXXX, XXXX, CA XXXX was listed, and within two weeks, I accepted a {$520000.00} all-cash offer from a qualified buyer. This offer presented an unusually strong transaction scenario with no financing contingencies, minimal risk, and an ability to close swiftly, making Shellpoints subsequent delays especially unreasonable. 
XX/XX/XXXX Application and Approval Submitted complete hardship application for FHA short sale. 
Received written confirmation of approval for short sale program. 
Instructed by Shellpoint to engage a licensed realtor. 


XX/XX/XXXX XXXX and Offer XXXX XXXX listed as instructed. 
Within two weeks, received and accepted a {$520000.00} all-cash offer. 
Realtor promptly provided Shellpoint with the signed purchase agreement and supporting documentation. 

XX/XX/XXXX Initial Valuation Shellpoint arranged for a realtor to perform a desktop valuation via photographs. 
This valuation process consumed valuable time despite the presence of a clear all-cash buyer willing to meet FHAs net requirements. 

XX/XX/XXXX Delayed Full XXXX XXXX 30 days later, Shellpoint dispatched a XXXX XXXX for a full appraisal, which increased the valuation by approximately {$20000.00}. 
As a direct result, the buyer had to adjust their original {$520000.00} all-cash offer despite having submitted it months earlier to meet Shellpoints revised net expectations. 

XXXX XX/XX/XXXX Piecemeal Documentation Requests Instead of providing a comprehensive, upfront list of all conditions and documents needed to close escrow, XXXX XXXX XXXX Department issued weekly, piecemeal requests for additional items. 
This fragmented process unnecessarily delayed approval, jeopardizing buyer interest and undermining the efficient resolution of my hardship. 

XX/XX/XXXX Potential Dual Tracking and Credit Reporting Issues During the pending short sale, I discovered that Shellpoint reported XXXX, XXXX, and XXXX late payments to credit bureaus all on the same day rather than monthly ( Exhibit XXXX ). 
This reporting practice severely impacted my XXXX XXXX and raised concerns about dual tracking pursuing foreclosure-related actions while simultaneously processing a loss mitigation application. 
When I raised this in writing, XXXX response was aggressive in tone and claimed I had not been approved for any loss mitigation program directly contradicting prior written approval. 

XX/XX/XXXX Representative Unavailability My assigned Shellpoint representative took a one-week vacation without ensuring a functional single point of contact in their absence. 
During this period, my realtor was unable to reach anyone with knowledge of my file, causing the process to stall significantly. 

XX/XX/XXXX XXXX XXXX months after accepting the {$520000.00} all-cash offer and going into month XXXX very shortly, my short sale remains unclosed. 
All delays have occurred despite my and y realtor 's prompt cooperation, timely responses, and the presence of a strong buyer willing to meet all requirements without financing contingencies.

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