Consumer complaint received 2024-06-27 00:00:00
Product: Mortgage — Conventional home mortgage
Issue: Trouble during payment process — Escrow, taxes, or insurance
Company: Specialized Loan Servicing Holdings LLC
State: FL

Complaint narrative:
This complaint details a series of problems encountered during the servicing of my mortgage loan. The loan was originated by XXXX in XXXX [ XXXX ] and servicing was transferred to SLS on XX/XX/XXXX ( see all details in the email chain below ). Multiple Errors and Delays : Delinquent Property Tax : In XX/XX/XXXX, I received a notice from the county regarding unpaid property taxes which could result in a lien. Despite contacting both XXXX  and SLS, the payment was not processed by the deadline, even though XXXX confirmed sending the necessary funds to XXXX. Incorrect Payment and Excess Withdrawal : In XX/XX/XXXX, I discovered an unauthorized withdrawal from my escrow account by SLS for an amount exceeding the actual property tax. Missing Loan Documents : SLS requested insurance documents that should have been transferred from XXXX during the loan servicing handover. Unresolved Issues and Delays : My attempts to communicate with SLS regarding these issues resulted in delays and a lack of communication from a supervisor. Additionally, after I mentioned filing a CFPB complaint, SLS informed me I needed supplemental flood insurance, even though the existing insurance was previously deemed sufficient. Attempted Payoff and Compensation : Due to the significant stress and wasted time caused by these errors and delays, I requested a resolution from both SLS and XXXX, including : Reimbursement for penalties and fees. A clear solution to manage my loan going forward. The option to payoff the mortgage in full. Compensation for the emotional distress, time, and effort I expended resolving these issues. Unresolved Situation : Despite my attempts, the situation remains unresolved. I couldn't payoff the loan the escrow account still shows an incorrect negative balance of more than XXXX. I am filing this complaint with the CFPB to seek assistance in resolving these issues and ensuring my rights as a borrower are protected. See below ( from latest to first email chain with all the parties involved ), If you need more documentation I can also provide text messages related to this problem as well as a more detailed phone log. 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 XXXX XXXX XXXX XXXX  ) Delinquent taxes due XX/XX/XXXX Hello XXXX, I'm really sick and tired of this no sense. Now I think you are bulling me. As mentioned before I want to payoff the loan. The level of stress this situation has caused me is beyond repair. I'm sure what you are requesting now is wrong since the loan has less than XXXX year and insurance hasn't changed. Please show records that you paid the taxes and solve the problem with the escrow account. i'll pay the net sum tomorrow if you want. i'll hold your company responsible for the interest charged since the day I requested the payoff, more than a week ago, to the day you provide the requested payoff with all the money returned to the escrow account. Regards, XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX  wrote : Good afternoon XXXX, I received a response to the flood insurance policy provided by your homeowner 's association ( HOA ) which is below. The flood minimum required coverage amount is {$62000.00}. The HOA master policy coverage provided is {$48000.00}, so there is gap policy is to cover the difference and the gap policy can only be removed if the condo association increases their coverage amount per unit or the borrower purchases a preferred policy for the difference in that amount which is {$14000.00}. For additional assistance, please contact XXXX XXXX XXXX ( formerly Specialized Loan Servicing XXXX ) at XXXX. Customer Service is available XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX. Thank you for the opportunity to assist you, XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX  wrote : Dear XXXX, XXXX and To Whomever It May Concern at SLS, Thank you for your response. I appreciate your efforts to address the tax issue and your prompt communication. However, I must express my disagreement with the proposed solution for the escrow account. The purpose of requesting the payoff was to resolve these issues without further delay. The current situation, where the escrow account remains negative and unresolved, is causing me considerable stress and is highly inconvenient. As per my initial communications with XXXX and SLS, the issue is still not resolved. Your response indicates a continued delay without a clear and timely solution. This situation is unacceptable and has significantly impacted me both financially and emotionally. The negative balance in the escrow account is due to SLS 's mistake of paying the wrong parcel. Since this error is entirely the fault of SLS, I find it unreasonable and unfair that I am not being reimbursed the total amount immediately. The purpose of the escrow account is to ensure timely payment of taxes and insurance, and this mistake has directly led to additional problems and stress for me. Given the ongoing lack of resolution, I am left with no choice but to escalate this matter. I will be filing a complaint with the Consumer Financial Protection Bureau ( CFPB ) and will ensure that XXXX, and all parties are also included in this complaint. I have tried to resolve this matter amicably, but the continued delays and lack of a satisfactory resolution have left me with no other option. Furthermore, I reserve the right to escalate this matter further, including seeking resolution through legal action if necessary. I strongly urge you to reconsider my request and to provide a more immediate and effective resolution to this issue, including the reimbursement of the total amount paid to the incorrect parcel and a discount on the loan payoff amount to account for the time, effort, and stress caused by this mismanagement. Please be aware that the time and stress I am experiencing continues to accumulate as this issue remains unresolved. Please acknowledge receipt of this letter. Thank you for your attention to this matter. Best regards, XXXX On XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX wrote : Good afternoon XXXX, Thank you for letting me know about the tax certificate being issued. The Tax team has been working to get the total amount due for your taxes including interest and penalties. I was able to get the tax certificate from the tax collector 's website and I have forwarded it to Specialized Loan Servicing. I will order a payoff statement for you good through the end of XXXX. If your loan pays off before the tax payment is disbursed, then we will not be able to pay the delinquent taxes. Please be aware that your escrow balance is negative, so that will be included in the payoff calculation to bring the escrow balance to {$0.00}. When the tax refund is received for the tax payment made on the incorrect parcel, you will receive a refund check. Please allow me to apologize for any frustration or inconvenience you may have experienced while attempting to address these concerns. We are diligently working to resolve your concerns and escalated the matter upon receipt of your initial communication with our team. We will continue to monitor until a resolution is provided. As it relates to compensation, we are unable to accomodate your request. Thank you, XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX wrote : Dear XXXX, Thank you for your call on XX/XX/XXXX. I appreciate your efforts to understand and address the situation. While I acknowledge your recognition of the insurance issue, I must express my concern that the other problems remain unresolved. Despite your forwarding the information to SLS, as stated in my previous communications, SLS has been aware since XX/XX/XXXX that the taxes were not paid. On XX/XX/XXXX, they admitted to wrongfully paying a different parcel and committed to paying the correct parcel within XXXX business days. As per my earlier email, I requested resolution within XXXX hours, highlighting that more than XXXX days had already elapsed. They still have not paid the taxes that should have been paid XXXX months ago. Unfortunately, the attached images clearly show that the taxes remain unpaid and a tax certificate has been imposed on the property. Additionally, the amounts in the escrow account have not been corrected. At this point, I no longer wish to deal with these problems. Please prepare a payoff for the loan so I can resolve this matter entirely. Given the ongoing issues and the considerable inconvenience caused by SLS 's mismanagement, I am requesting a discount on the loan payoff amount. Based on my calculations, the time and effort, and the stress and inconvenience I have experienced total approximately {$8500.00}. Therefore, I am seeking a discount of {$8000.00} on the loan payoff amount to account for these impacts. Also, please ensure the escrow balance you reimburse me considers all the aspects I have previously mentioned to you. I hope you understand the severity of this situation and can accommodate this request. Best regards, XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX wrote : Good morning XXXX, Thakn you for taking the time to speak with me today. To summarize, I reviewed the insurance information on your account and it's all be updated, so the insurance information is current. Regarding the property taxes due in XX/XX/XXXX, the incorrect tax parcel was paid, Specialized Loan Servicing ( SLS ) is working to have the correct tax parcel paid and secure a refund for the incorrect tax parcel payment. I spoke with XXXX at the XXXX XXXX XXXX XXXX XXXX, phone number XXXX and she stated that the tax bills are sent out with the amount due in XXXX, so your tax bill was {$3100.00} and that if the customer makes the payment in XXXX, there is a 4 % discount, so {$120.00}, so if the taxes were paid in XXXX, the total due would've been {$3000.00}. I've forwarded this information to SLS. We acquired the servicing of your loan for the XX/XX/XXXX payment, so the previous lender, XXXX XXXX XXXX XXXX ( XXXX ) should have paid your taxes prior to the servicing transfer date. In your email to XXXX, you had asked for proof that they transferred funds to XXXX. Please see your final Closing XXXX with the XXXX XXXX XXXX XXXX XXXX which shows {$2700.00} was collected. Your first payment letter shows that the collection for property taxes and insurance is {$260.00} per month, so XXXX payments were made to XXXX, escrow payment collected was {$520.00}. Add the {$520.00} to the escrow deposit of {$2700.00} brings your escrow balance to {$3300.00} which is reflected on the monthly statement dated XX/XX/XXXX. Please find these documents in the attachment section of this message ( not the links displayed in the body of the email ). The documents password protected and the password is XXXX, the XXXX XXXX are the last XXXX digits of your Social Security number. Please note that if you are viewing this email on an XXXX or XXXX, you will not be able to access the document. You will need to sign onto a laptop or desktop to access the document. In order to remove your escrow account, please submit a letter that includes your loan number and property address which is dated and signed with your handwritten signature with your request to have your taxes, your insurance or that both items be removed from the escrow account collection. You may scan the letter and attach in pdf format in response to this email. If you have any questions, please feel free to contact me. Thank you for the opportunity to assist you, 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  The information contained in this message is proprietary and/or confidential. If you are not the intended recipient, please ( i ) delete the message and all copies, ( ii ) do not disclose, distribute or use the message in any manner, and ( iii ) notify the sender immediately. In addition, please be aware that any message addressed to our domain is subject to archiving and review by persons other than the intended recipient. XXXX XXXX XXXX XXXX XXXX XXXX ID XXXX. On XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX  wrote : Dear SLS and XXXX I am writing to formally address several critical issues related to the servicing of my mortgage loan ( # XXXX ). The loan was originated by XXXX on XX/XX/XXXX and servicing was transferred to SLS on XX/XX/XXXX. Delinquent Property Tax Payment : On XX/XX/XXXX, I received a concerning letter from the county stating that my property taxes were delinquent and could result in a lien if not paid by XX/XX/XXXX. I promptly contacted XXXX ( on XX/XX/XXXX ) to address this issue. During this communication, I also noticed a discrepancy in the property information and specifically requested verification of the parcel number. Despite contacting both XXXX and SLS ( XX/XX/XXXX and XXXX ), the payment was not processed by the deadline. XXXX confirmed they had sent the necessary funds to SLS for the tax payment. Additionally, on XX/XX/XXXX, I requested XXXX to contact their legal department and provide me with a copy of the documentation showing the transfer of funds to SLS, but this request was not fulfilled. Incorrect Payment and Excess Withdrawal : On XX/XX/XXXX, I accessed my SLS loan account online and discovered an unauthorized withdrawal of {$7100.00} on XX/XX/XXXX. This amount significantly exceeds the actual property tax amount of {$3600.00}. Furthermore, XXXXhe county records still indicate the property tax as unpaid. When I contacted SLS on XX/XX/XXXX, they acknowledged the error and stated it would take XXXX business days to rectify the situation. This delay is unacceptable, considering the previous mismanagement and the potential consequences of the outstanding tax payment. Missing Insurance Documents : SLS is currently requesting insurance documents for the property. These documents should have been transferred from XXXX during the loan servicing handover, as the loan is less than a year old. XXXX was originally responsible for maintaining these documents. Late Payment Interest on Property Tax : The late payment of the property tax in XX/XX/XXXX resulted in a penalty of 5 %. Since the responsibility of paying the taxes on time falls on the escrow account owner, I request reimbursement for this late payment penalty. Unresponsive XXXX : On XX/XX/XXXX, the SLS agent I spoke with informed me that a supervisor would contact me within XXXX hours. As of today 's date ( XX/XX/XXXX ), I have not received any communication from a supervisor. The agent also provided an email address for SLS claims ( XXXX ), which she verified was correct, I hope it is. Request for Resolution : The repeated errors and delays have caused significant stress and wasted time. To rectify this situation, I demand the following : Immediate payment of the correct property tax amount ( {$3600.00} ) to the county. Full refund of the excess amount withdrawn from my escrow account. Clear explanation for the initial delay, the incorrect payment, and the lack of communication from a supervisor. Confirmation that the outstanding property tax is now settled and will not result in any penalties or liens. Transfer of all necessary loan documents, including insurance documentation, from XXXX to SLS. Acknowledgement that SLS have the Insurance documentation. Reimbursement for the 5 % incurred due to the late payment of the XXXX property tax plus any other fines or fees or other things that were imposed or might be imposed due to the lack of payment in XXXX. Option to remove my escrow account and manage property tax payments myself. If I do not receive a satisfactory resolution within XXXX hours, I will be forced to file a complaint with the Consumer Financial Protection Bureau ( CFPB ). I will also consider pursuing legal action to recover any damages caused by this mismanagement. Thank you for your prompt attention to this urgent matter. Sincerely, 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 | Servicing Transfer Problem with Property tax payment Hello XXXX XXXX XXXX XXXXSLS has advised yesterday that they are correcting the issues with your property taxes and an email was sent to you as well. You confirmed your communication with the servicer today via text message. In addition, you stated in your text message that XXXXSLS is requesting proof of your insurance. On your behalf, we provided XXXX/SLS with the attached insurance policy. If your insurance has changed, please let us know so we can help get this information to XXXX/SLS. Further, we attempted to call you on the phone numbers of record to no avail. If you have any questions, please contact me at XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX  WIRE FRAUD WARNING : Never trust wiring instructions sent by unsecure email. Cyber criminals are known to hack email accounts and send emails with fake wiring instructions. These emails are convincing and sophisticated. ALWAYS confirm wiring instructions in person or by telephone using a trusted and verified phone number. NEVER wire money without confirming that the wiring instructions are correct and are from the title/closing agent. If you are in doubt, call your loan XXXX or real estate agent immediately. From : XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX Servicing Transfer Problem with Property tax payment Good afternoon, XXXX XXXX, XXXX has communicated your concern to XXXX and requested immediate outreach to you regarding the property tax issue. XXXX will continue to monitor the situation through resolution. Thank you! From : XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX  ; Servicing XXXX Cc : Servicing XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX Transfer Problem with Property tax payment This email originated from outside XXXX Hello XXXX, I've sent a couple of messages today, I'm sending them also via email, just in case you are not getting them. Please see the attached images. Can you understand what is going on? In my account it seems like they have paid ( see first image ) XXXX that is almost double what they should have paid. The other problem is the site is not showing that they have paid a XXXX ( see second image above ). Since I don't have the information about the person you talked to, please contact him/her you talked to to see what is going on and let me know. I'm considering reporting this gross mismanagement to the CFPB. I still don't understand why this wasn't paid directly when the closing agent disbursed the funds. Also, I don't understand why it wasn't paid as soon as SLS received the money from you. Please solve the problem and make sure they credited my account with the appropriate amount to also shown the discount that I should have been granted if taxes were paid on time as it is they duty of the escrow account owner. I appreciate a prompt response and if you can't, please forward this message and CC me to an email on SLS that can be shared with a customer. Thank you, XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX wrote : Hello XXXX : As per our recent call and text messages exchanges, I'd like to formally request the following : XXXX. I'd like to know why the property tax payment was not made by XXXX on the month of XXXX as you have the money directly from escrow to make the payment. XXXX. I understand you transfer the money when you transfer the loan on XXXX to Specialized loan servicing. Please confirm. XXXX. I understand you spoke to someone in specialized loan Servicing that confirm that they have received your money to pay and that they will be paying this. Please provide a name, email and phone number in case I'd like to contact him. XXXX. I understand this person told you that Specialized loan servicing will make the payment. Please confirm. XXXX. I made clear to you that i want to be reimbursed on my escrow account for the money we have to overpay due to the fact that the property tax payment was not made in XXXX as it should have. Having said all this I'd like to thank you for your help on this matter so far. I understand it is very difficult to get in contact with specialized loan servicing since they have a horrible customer service. Please send me the requested information ASAP so I can have that for my records and to show to the appropriate authorities to avoid any further complications. Thank you, XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX The information contained in this message is proprietary and/or confidential. If you are not the intended recipient, please ( i ) delete the message and all copies, ( ii ) do not disclose, distribute or use the message in any manner, and ( iii ) notify the sender immediately. In addition, please be aware that any message addressed to our domain is subject to archiving and review by persons other than the intended recipient. 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 The information contained in this message is proprietary and/or confidential. If you are not the intended recipient, please ( i ) delete the message and all copies, ( ii ) do not disclose, distribute or use the message in any manner, and ( iii ) notify the sender immediately. In addition, please be aware that any message addressed to our domain is subject to archiving and review by persons other than the intended recipient. XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX

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