Consumer complaint received 2021-07-23 00:00:00
Product: Mortgage — Conventional home mortgage
Issue: Struggling to pay mortgage — 
Company: Shellpoint Partners, LLC
State: DE

Complaint narrative:
We would like to File a complaint against Shellpoint Mortgage Loan Servicer. We have been in mediation for almost 2 years due to errors on Shellpoints part as well as their refusal to participate in the mediation process in good faith. Shellpoint representatives have given misinformation as well as outright lied during the 17 mediation conferences. The numerous times they sent representatives to our home, even though the delay in resolution was their fault, feels like harassment ( not to mention the risk to our family 's health! ) -During the very first mediation conference on XX/XX/XXXX, the lawyer for Shellpoint told us that her client said we were not eligible for a loan modification because we had already had two modifications and that was the maximum allowed. That was not correct and we requested proof of the modification they claimed was given on XX/XX/XXXX. 
-Shellpoint asked for an extension several times spanning several months to provide this proof. After several months of our Housing Counselor requesting an update from Shellpoints lawyer and then the lawyer reaching out to her client, Shellpoint eventually admitted that their system was incorrect as there was no modification in XXXX. We submitted a new loan modification application through our counselor. Shellpoint claimed documents that were included with the application were missing. We submitted documents several times. Our counselor even expressed her frustration as she could see the documents they were requesting were included. However, we submitted everything that was requested right away. We finally received a letter from Shellpoint stating our application package was complete. We expected an answer at our XXXX meeting. 
-Our XX/XX/XXXX Mediation meeting was cancelled due to the Pandemic. We had still not received an answer from Shellpoint about our modification application. 
-On XX/XX/XXXX, a Shellpoint representative came to our house and handed our son a 4506-T tax form and another package to complete for a loan modification application. We contacted our counselor and she confirmed that she had not received a request from Shellpoint for this tax form and had not received an update on the loan modification application that we had already submitted. I expressed my frustration that someone had come to our house and been in close proximity to my son during the pandemic and the Governors Emergency orders. She agreed that their behavior was not acceptable. 
-On XX/XX/XXXX, we reached out to our counselor to see if she had received any updates. She reached out to the Shellpoint lawyer and the lawyer reached out to Shellpoint. Shellpoint did not respond. 
-On XX/XX/XXXX, Shellpoint sent another representative to our home to give us another application for a loan modification even though they had not given an answer about the application we had already submitted. I was extremely frustrated by this harassment as well as the fact that they were putting my family at risk from the virus! I emailed the Attorney General for our state, explaining Shellpoints behavior and copied Shellpoints Loss mitigation email address. In XXXX, we received a letter from Shellpoint stating they received my email to the Attorney General, and that no error has occurred in the servicing of the loan. 
-On XX/XX/XXXX, We received a letter that the Mediation Meeting was scheduled for XX/XX/XXXX through XXXX. On XX/XX/XXXX, Shellpoint again sent a representative to our home to give us a modification application package. I sent an extremely angry email to Shellpoints Loss Mitigation Department as they knew we were in mediation and we had a mediation meeting scheduled in two weeks! I also made it clear that they were not to send anyone to our house. They did not respond. 
-At the XX/XX/XXXX Mediation Meeting, Shellpoint requested we submit a new loan modification application with more recent documents. We submitted all the requested information to our counselor on XX/XX/XXXX and she forwarded to Shellpoint. She followed up with Shellpoints Attorney on XX/XX/XXXX and nothing else was requested at that time.-On XX/XX/XXXX, Shellpoint requested a few documents and we submitted them to our counselor on XX/XX/XXXX. 
-On XX/XX/XXXX, we received a letter from Shellpoint stating our modification application had been denied because we had already had too many modifications. So here we were almost exactly a year later, with Shellpoint still giving the same incorrect response, even though they had stated at the beginning of the year that the problem was fixed. In addition to this frustrating letter, they sent someone to our house again. My husband asked why they were coming to our house, and the representative said because they have not been able to get in touch with us. Im not even sure what to do with that statement as we had been very involved with the mediation process and responded to everything that came through our counselor. In addition, the people Shellpoint sent to our house were not wearing masks. At this point, the Governors Emergency orders included a mask mandate. Our counselor reached out to Shellpoints Attorney. She also requested the mediator sit in on the next mediation meeting scheduled for XX/XX/XXXX. The mediator stated that Shellpoint was to have their system fixed by the next mediation scheduled for XX/XX/XXXX XXXXOn XX/XX/XXXX, Shellpoints lawyer suggested the meeting be cancelled because they did not have a response from Shellpoint regarding the alleged modification from XXXX. We chose to continue with the meeting to express our frustration to Shellpoints representative. During the meeting, the mediator expressed to the Shellpoint representative that if they did not have their system fixed with regards to the phantom modification by the next mediation meeting in XXXX, he would recommend to the courts that the Foreclosure action be dismissed with Prejudice. 
-On XX/XX/XXXX, we received a letter from Shellpoint stating we had been approved for a loan modification and the payments were {$2000.00}. That was much higher than we were expecting but we wanted to get this resolved. At the XX/XX/XXXX meeting, we asked how these numbers were calculated and the Shellpoint representative, Mr. XXXX, wasn't particularly helpful. The mediator stressed to Mr. XXXX, that the fees and interest being charged were to be adjusted because it was Shellpoints error that created this delay. Mr. XXXX agreed and he also stated that Shellpoint could do a 40 year term to lower the payment. We left this meeting thinking our actual mortgage payment would be lower once we completed the trial payments. We started making our trial payments with the first one due on XX/XX/XXXX. The next mediation meeting was scheduled for XX/XX/XXXX. We continued to make the trial payments on time. 
-On XX/XX/XXXX, our counselor forwarded an email to us from Shellpoints lawyer stating My client is proposing to defer the principal amount of {$25000.00}, which is the principal which was due during the year XXXX. That amount would be due as a balloon payment at the end of the loan. By structuring the loan in such a way, the interest would be waived in the future. We werent clear on how this affected the payments, fees, or the actual interest. Shellpoints lawyers response was for us to contact Shellpoint directly. We called Shellpoint customer Service and were directed to Loss mitigation. The Loss mitigation person, XXXX XXXX didnt know what we were talking about. When we explained that we were in mediation, they said they couldnt talk to us and said that we should reach out to Shellpoints lawyer. We never got that information clarified. 
-On XX/XX/XXXX, we received a permanent modification offer from Shellpoint with a monthly payment of {$2000.00} for 172 months and a balloon payment of {$260000.00}. No fees or interest had been adjusted and it was a XXXX year term. The date the signed modification was due back to XXXX was XX/XX/XXXX. A mediation meeting was scheduled for XX/XX/XXXX so we could address our concerns with XXXX XXXX before the due date. At that meeting, Mr. XXXX stated that this modification was a standard one but that they would send us a modification that they had manually put together. The mediator repeated to Mr. XXXX that fees and interest were to be adjusted and XXXX XXXX agreed. Mr. VXXXX was to have the new modification ready by the next mediation meeting which was still scheduled for XX/XX/XXXX. 
-On XX/XX/XXXX, Shellpoints lawyer cancelled the meeting for the next day because she had not heard back from her client regarding the permanent modification. The meeting was rescheduled for XX/XX/XXXX. On XX/XX/XXXX, Shellpoints lawyer again requested to reschedule the meeting because she still had no response from Shellpoint. The meeting was rescheduled to XX/XX/XXXX. A modification had not been received before this meeting. The mediator stated that if a permanent modification was not received by XX/XX/XXXX, he would recommend to the courts that the action be dismissed with Prejudice. At XXXX XXXX on XX/XX/XXXX, Shellpoints lawyer forwarded the permanent modification to our housing counselor. Unfortunately, the payment amount for this modification was {$2800.00}, an increase of {$740.00} above the trial payment. Fees and interest had not been adjusted. There were discrepancies about the length of the term ( one spot said 186 months, another stated 168 months ). The payments were to begin on XX/XX/XXXX which was more than a year prior. We emailed our concerns but did not receive a response. On XX/XX/XXXX, We sent the following email : Good morning everyone, On Friday ( XX/XX/XXXX ) we did not receive any explanations from Shellpoint regarding the modification and we obviously did not receive any on Monday ( XX/XX/XXXX ). I am quite perplexed and dismayed as to how we move forward from here. 

I do believe a brief recap is in order at this point. Maybe this will bring some clarity to the issues at hand. 

In early XXXX my wife reached out to Shellpoint to see about getting a loan modification. Due to unforeseen issues we had fallen behind in our mortgage. We filled out the application as best we could and sent it in. We shortly received a letter saying that the application was incomplete and that we needed to complete it. There was never any mention of what was missing from the application. This became a recurring theme with this process. We would send in what we thought was a complete application and we would receive a letter stating it was incomplete. We attempted to call our Point of Contact and would leave a message. My wife was never able to speak directly with someone. We would either get a voice message from them ( sometimes ) or a letter. At this point my wife and I weren't sure what to do, so we had an attorney review and advise us what they felt might be missing. We sent that completed application in and again received a letter stating the application was incomplete. Also at this time, the attorney suggested we reach out to * Our housing counselor* and begin the mediation process, which we did. This was in XXXX of XXXX. When we received the last letter about the incomplete application, I tried calling our new Single Point of Contact and spoke with Mr.XXXX. He began to provide me with the items that were missing or incomplete. I asked him to send that to me in an email to avoid any additional misunderstandings, which he did. We provided him with that information and I followed up with him to verify that all was in order. He informed me they now had a complete application. It was at this point that I asked him for an explanation of the modification process ( since I was not familiar with it ) and he explained it to me. He told me that you could have 3 modifications in a 5 year timeframe ( with cause obviously ). But, you had to wait 1 year between the 1st and 2nd and at least 2 years between the 2nd and 3rd. I asked him if he could see any issues with ours and he indicated he did not. This is an important point. At that time, in XXXX of XXXX, there was NO 2nd modification on our record/file. 

On to mediation. The first meeting was scheduled for early XXXX of XXXX. It was at this first meeting that Shellpoint indicated we did not qualify for a modification since we had already had 2 previous modifications. Please recall that in XXXX of XXXX, I was told that there was only 1 modification indicated on our account. So, somewhere between XXXX of XXXX and XXXX of XXXX, Shellpoint had either misread or had corrupted our account. This inability of Shellpoint to first acknowledge their mistake and to then correct it led to a string of meditation meetings where nothing was accomplished other than for them to request more time, which was granted. I believe sometime around XXXX of XXXX *The Mediator* joined our mediation meetings. My impression is that he was a bit surprised as to the amount of time this had been taken. He indicated that this needed to be corrected and done sooner rather than later. This was the first time that mention of Dismissal had been raised. Shellpoint asked and was given additional time and again failed to meet that date, which I believe was in XX/XX/XXXX. At this point Shellpoint was given 1 additional extension to correct the account. But it was with the understanding that if that date was missed, then there was a high likelihood of this being recommended to the courts for Dismissal with Prejudice. Shellpoint succeeded. Hurrah! No more second modification. 

In this XX/XX/XXXX meeting, we were given a trial payment of {$2000.00} due on the first of each month beginning on XX/XX/XXXX. We have been making those payments since that date in anticipation of a final modification. We asked some questions during that meeting about the proposed modification and was told the interest rate was 5.625 % and it was for 40 years. A quick calculation with that term, interest rate and the principle that was outstanding did not indicate a payment of {$2000.00}. I believe it was Mr. XXXX ( I apologize for the spelling ) indicated that the principle also included all interest that was due from the time the first payment was missed and all legal/other fees that were incurred during that same time. That was when some disagreement occurred. I felt, as did the mediator, that we should not be held accountable for the interest and fees that accrued during the time the delay in getting a modification together was Shellpoint 's mishandling of the account. Shellpoint 's representative indicated he would look into this.

Shortly after making the 3rd trial payment, we received a loan modification in the mail XXXX XX/XX/XXXX ) with a due date that was before our next scheduled mediation. This modification was not what had been discussed nor was it acceptable. We moved up the mediation and during that call Shellpoint 's representative indicated that we should ignore that one because they were manually generating one for us. As a side note, I am still receiving emails from Shellpoint asking us to send in that modification signed and notarized. Shellpoint again asked for additional time, which we agreed to since we thought this was finally coming to a conclusion. The day before the next mediation, Shellpoint again asked for additional time, and we again agreed. But this time *the mediator* indicated that a modification had to be presented by that day ( XX/XX/XXXX ) or they risked again having this case recommended to be Dismissed with Prejudice. Shellpoint submitted a modification at XXXX XXXX on XX/XX/XXXX. After reviewing it, this again does not agree with what had been discussed on previous occasions. There are just inaccuracies in this modification. The amounts are inaccurate and the dates make no sense. I firmly believe that XXXX put this modification together to meet that XX/XX/XXXX deadline. I do not think they put any real time into trying to create an acceptable modification. 

Questions were asked about this modification and vague answers were supplied by another of Shellpoint 's attorneys. But when additional questions were raised because of those answers, he deferred to someone else. 

So that is a very abbreviated recap of this nightmare that my wife and I have been living over the last 2 years. Some of the dates may be slightly off as well as some of my recollections, but this a fairly good recap of what has transpired. I would like to point out the negative toll this has taken on our personal lives, our health and our financial future. I'm not sure where we go from here,, I just know that it needs to somehow end. So along those lines I put together the framework of a modification that I believe should be acceptable to everyone. It's a little crude and is based on numbers that Shellpoint provided a few months ago, so they may need to be tweaked. I also reduced the interest rate by one point. I felt this was fair, because if Shellpoint had not mishandled our account from the beginning ( 2+ years ) ago, we would have or would be in a position to refinance and take advantage of the historically low interest rates now available. But because of Shellpoint 's mishandlings, lack of willingness to work with us and not in keeping with the goals behind the mediation program I felt this was fair. 

I look forward to any and all comments. I would hope that we can look forward to completing this by the end of the week. Again I apologize for any ramblings, misspellings or if I inadvertently offended anyone. That is never my intent, I would like to just get this done. 

Thank you ( Below are the amounts we used to make our offer to Shellpoint ) Principal due {$260000.00} Interest and other fees : Interest due {$21000.00} ( 17 payments x {$1200.00} in interest due : {$21000.00} ) Escrow {$8700.00} ( Advanced escrow ) Legal Fees {$1800.00} ( Legal fees until XX/XX/XXXX ( mediation, etc ) ) Other fees {$310.00} ( Other fees until XX/XX/XXXX ( Appraisals, mail, etc ) ) Total {$31000.00} Less all ready paid {$6200.00} ( Interest from 5 trial payments = 5 x {$1200.00} ) Total {$25000.00} Total Principal {$290000.00} loan amount {$290000.00} interest rate 4.625 loan term ( years ) 40 Taxes and Insurance {$410.00} Total Monthly Payment ( PITI ) {$1700.00} actual monthly payment total interest paid {$310000.00} -On XX/XX/XXXX Our counselor reached out to Shellpoints lawyer to see if she had received a response and to make sure that Shellpoint would have a decision maker available for the XX/XX/XXXX mediation. Shellpoints lawyer replied I have been advised by my client that the total amount due cited by your client is incorrect. Also, I have been advised that the maturity date can not be extended, due to investor restrictions, so that a balloon or deferment is required.. The mediator responded to Shellpoints lawyer thanking her for the response and asking her to make sure her client is aware that someone who has actual decision making ability for Shellpoint be available at the next meeting. He also expressed concern that the offer presented on the last day of the deadline was not presented in good faith. 
-On XX/XX/XXXX, we had another mediation meeting. The first statement from the Shellpoint representative was that they would not be adjusting any interest charges. Apparently Shellpoint wanted to pass the loss to the investor and the investor refused. Since the investor was not willing to absorb the loss, Shellpoint was not willing to adjust the interest even though they had agreed to that stipulation several times. He did say that they would adjust the fees. We asked him clearly if he was a decision maker for Shellpoint or just a representative. The Shellpoint rep stated he was a rep AND a decision maker. After some discussion, we stated that we would be willing to pay the interest if we could come to an agreement about the payment amount. Our counselor asked him specifically if the term could be extended to 40 years and the interest rate reduced. He said yes to both. I asked him just to clarify that the term could actually be extended because we had received the email from Shellpoints lawyer the day before stating that the term couldnt be extended due to investor restrictions. He again stated that the term could be extended. The mediator gave him a deadline XX/XX/XXXX for the new permanent modification. The XXXX representative asked for the deadline to be moved to XX/XX/XXXX and the mediator agreed. 
-On Sunday XX/XX/XXXX, a representative from Shellpoint came to our house again and taped a copy of the XX/XX/XXXX Modification Offer to our door. ( I have no words.. ) -On XX/XX/XXXX, we received the following email from Shellpoints lawyer Please see below for my clients answers to the questions posed at mediation : Can the interest rate be reduced from its current rate of 5.625 %? No interest rate reduction as of this moment. 
Can the term of the loan be extended to 40 years? Maturity date extension was denied. 
Can the interest that has accrued from XX/XX/XXXX to the present be waived, as this delay can not be attributed to the Borrowers? I previously advise the interest would not be waived. 





At this point we are beyond frustrated. We have made 6 on time trial payments with no reasonable modification in sight. We have a meeting scheduled for XXXX XXXX XX/XX/XXXX and believe this matter will be heading to court. Shellpoint has not participated in Good Faith in the Mediation Process. 

Just to clarify, we had 1 prior modification in XXXX but did not have a modification in XXXX. If Shellpoint had given us a reasonable modification back in XXXX, we would not be in this position today. Although this mediation process has been going on for almost 2 years, we have been attempting to work with Shellpoint for over 3 years. In XXXX we were behind in our Mortgage payments and we applied for a loan modification with Shellpoint. They gave us a trial payment that was higher than our original payment but since the trial payment letter stated that by making the trial payments, our term could be extended and possibly our interest rate could be lowered. We made the trial payments on time. We received the loan modification offer but the term was not extended and the interest rate was not adjusted. The payment amount was the same as the trial payments. We contacted Shellpoint and were told that the Modification offer was the only thing available. We signed the offer because we didnt know what else to do even though the payments were much higher than our original payment. 

At the end of XXXX, we just couldnt afford the higher payment and again fell behind on our payments. My husband had been laid off from his job at the beginning of XXXX and although he did find a new job, it paid significantly less than his old job. In addition, his medical benefits did not cover our daughters needed prescriptions, one of which was over {$1500.00} a month. At the time, I was a stay at home mom. In XX/XX/XXXX, my husband took a third shift position so he could take on the things our daughters needed during the day and I accepted a full time position. We were trying to get back on our feet financially and I reached out to Shellpoint to again try and get our payment lowered. After several months of completing the loan packet they would send us letters stating the packet was not complete but the letters didnt say what was actually needed. While we were submitting the information to them and waiting for their response, they began the foreclosure action. Thats how we ended up in this mediation process. We are very grateful for our housing counselors help as we could not have navigated this nightmare with Shellpoint without her guidance.

Company response to consumer: Closed with explanation