Consumer complaint received 2026-05-27 00:00:00
Product: Mortgage — Conventional home mortgage
Issue: Struggling to pay mortgage — Applying for or obtaining a modification, forbearance plan, short sale, or deed-in-lieu
Company: Shellpoint Partners, LLC
State: NY

Complaint narrative:
b"FORMAL COMPLAINT LETTER FOR XXXX DEPARTMENT OF FINANCIAL SERVICES\nPHH Account Number: XXXX \nProperty Address: \XXXX XXXX XXXX XXXX XXXX XXXX XXXX \nAccountholder: XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX\nPhone: XXXX XXXX XXXX\nEmail: XXXXnDate: XXXX XXXX XXXX\nTo:\nNew York State Department of Financial Services (DFS)\nConsumer Assistance Unit\XXXX XXXX XXXX XXXX XXXX\nRe: Formal Complaint Against XXXX XXXX/NewRez and Former Bankruptcy Counsel Regarding Servicing Errors, Modification Mishandling, and Damages Relating to XXXX XXXX XXXX XXXX XXXX XXXX XXXX\n\n\n\n\nDear Sir or Madam:\nI am submitting this formal complaint regarding serious servicing errors, modification mishandling, and professional negligence affecting my home at XXXX XXXX XXXX XXXX XXXX XXXX beginning after the collapse of XXXX XXXX in XXXX and continuing through the present mortgage servicer, XXXX XXXX/NewRez.\nMy case involves:\n\tfailures by XXXX and its predecessors to properly process modification applications,\n\tnegligent handling of my XXXX XXXX XXXX by my former attorney,\n\tthe loss of multiple modification opportunities due to servicing errors,\n\tthe imposition of an unreasonable $XXXX balloon payment, and\n\ta recent denial of a modification based on what I believe is miscalculated income.\nI respectfully request that DFS investigate the conduct of XXXX XXXX/NewRez and order a full audit, correction, and reinstatement of modification options going back to XXXX.\nBelow is the complete timeline.\n________________________________________\nI. Background: XXXX XXXX Collapse and Bankruptcy (XXXX)\n1.\tMy mortgage was originally owned by XXXX XXXX, which collapsed due to predatory and defective lending practices.\n2.\tMy family and I filed XXXX XXXX XXXX in XXXX under attorney XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX.\n3.\tFrom XXXX through XXXX, whenever the bankruptcy court or trustees asked whether a modification could be done for my homes, my attorney repeatedly stated, no modifications are available.\n4.\tAt no time did my attorney inform me of:\n\tany class action lawsuits involving XXXX XXXX loans,\n\tany relief, settlements, or litigation that might have benefited me,\n\tany federal or state modification programs (HAMP, HARP, etc.).\nGiven the number of national actions involving Washington Mutual, this failure appears negligent.\n________________________________________\nII. Removal of My Homes from XXXX XXXX Causing Foreclosures (XXXX)\n5.\tAround XXXX, my attorney removed my second home from the bankruptcy, allegedly at the judges request. This caused that home to immediately enter foreclosure.\n6.\tAttorney XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX later helped resolve that foreclosure in XXXX.\n7.\tMy attorney then removed my primary home at XXXX XXXX XXXX from bankruptcy as well. I was still in XXXX XXXX yet the property was taken out, which immediately triggered foreclosure activity on my primary residence.\nI believe this action harmed me severely and constituted improper legal handling.\n________________________________________\nIII. Lost Modification Opportunity Due to Servicer Error (XXXX)\n8.\tIn XXXX, XXXX XXXX successfully negotiated a mortgage modification.\n9.\tHowever, I never received the offer letter. Instead, I later received a letter stating that I had failed to accept the offer, which was a favorable one I absolutely would have taken.\n10.\tThis occurred during the height of COVID-19 (2020), when mail delays were common.\n11.\XXXX never re-sent the offer, never confirmed delivery, and never attempted outreach.\nThis failure by XXXX cost me the opportunity to save my home under favorable terms.\n________________________________________\nIV. Second Modification Mishandled XXXX Cancelled It Due to a Minor Clerical Error (XXXX)\n12.\tIn XXXX, XXXX issued a new modification offer.\n13.\tI accepted it while sitting in attorney XXXX office.\n14.\tI wrote the first payment check for $XXXX+, the correct numerical amount.\n15.\tHowever, in the written words I mistakenly wrote $XXXX (omitting ninety).\n16.\tNeither I nor my attorney noticed the clerical error.\n17.\XXXX accepted the check, kept the funds, and did not notify me that the written and numerical amounts differed.\n18.\tI learned of it only when sending the second payment. I immediately added the missing $XXXX into the second month's check.\n19.\XXXX then canceled the modification, stating the first payment was incomplete.\n20.\tServicers are required to notify borrowers of insufficient payments. XXXX did not notify me within 30 days, nor at any time before cancellation.\nThis was an avoidable, clerical issue, and XXXX acted unreasonably.\n________________________________________\nV. Replacement Modification Contained an Unreasonable Balloon Payment\n21.\XXXX then issued a second modification in which:\n\tAfter 22 years of payments,\n\tI would owe a balloon payment of $XXXX.\nThis term is predatory, punitive, and clearly a retaliatory structure after the previous modification was canceled.\n________________________________________\nVI. Loss of Income and New Modification Denial (XXXX)\n22.\tAfter losing my job with XXXX, I lost approximately $XXXX in annual income, impairing my ability to continue payments.\n23.\tI applied for another modification.\n24.\XXXX denied this application, citing the 25% rule, claiming the resulting mortgage payment would be more than 25% above the prior payment.\n25.\tI believe XXXX incorrectly used an inflated payment figure:\n\tMy last payment was partial (due to income loss).\n\XXXX appears to have treated that partial payment as the base payment, which artificially increased the comparison number to over $XXXX, causing the 25% rule to be triggered improperly.\nThis appears to be a misrepresentation of my financial position and violates fair servicing standards.\n________________________________________\nVII. Requested Action From XXXX DFS\nI request that DFS order or initiate the following:\n1.\tA full audit of XXXX/NewRez servicing of my loan from XXXX to present.\n2.\tReinstatement of the XXXX modification terms that were canceled due to the avoidable clerical $XXXX discrepancy.\n3.\tRemoval or recalculation of the $XXXX balloon, which is unreasonable, abusive, and not reflective of industry norms.\n4.\tReconsideration of the most recent modification, using accurate income and payment calculations.\n5.\tCopies of every modification offer, review record, letter, system note, and internal servicing log from XXXX to present.\n6.\tReview of attorney conduct relating to improper bankruptcy removal of both properties.\n7.\tIdentification of any XXXX XXXX class-action settlements that should have applied to my loan.\n________________________________________\nVIII. Documents Requested\nUnder DFS authority, I request the following from XXXX:\n\tAll modification offers from XXXX\n\tAll internal notes/logs related to my loan\n\tPayment application histories\n\tEscrow analyses\n\tCopies of all letters sent (including the missing XXXX offer letter)\n\tAll denial letters and calculations\n\tAll recorded foreclosure documents\n\tAll file servicing transfers from XXXX XXXX onward\n________________________________________\nIX. Conclusion\nI have attempted in good faith, for more than 14 years, to resolve this matter, maintain my home, and comply with all modification terms, even sending payments from inside attorneys offices to avoid mistakes. XXXX inconsistent service, lack of notice, and punitive modification terms have placed me at risk of losing my home unfairly.\nI respectfully request DFSs intervention to correct these issues and prevent further harm.\nThank you for your attention.\nSincerely,\n\XXXX XXXX XXXX XXXX XXXX XXXX XXXX"

Company response to consumer: Untimely response