Consumer complaint received 2017-03-08 00:00:00
Product: Mortgage — Conventional adjustable mortgage (ARM)
Issue: Loan modification,collection,foreclosure — 
Company: Specialized Loan Servicing Holdings LLC
State: HI

Complaint narrative:
I recently went through a very bad divorce that devastated me emotionally and financially. Due to the liquidation of assets and monies paid through the process I began struggling to keep up with my mortgage payment and ended up defaulting. I am contacting your organization because my lender SLS has refused to open an inquiry into my situation and has failed to provide me with any information that would allow any sort of reconciliation process to begin. 

I bought my property in XXXX and refinanced in XXXX into a very bad adjustable rate loan with a rate that starts at 6.97 % and can only adjust up that had a two year prepayment penalty. I have been told that these type of loans are no longer allowed because they are not " qualified mortgages '' and they are predatory and the lender issuing them is potentially liable. Even though I have this loan with a high interest rate and increasing payment I have paid as agreed on this loan for nearly 10 years. As I mentioned I went through a painful divorce which hit me hard, affecting my income and my ability to pay my bills. I had no option to refinance due to depreciation of the property and ended up falling behind on the loan. 

I reached out to SLS at that time in order to try and get reviewed for in house and government programs that would give me the opportunity to get back on track with the mortgage. I spoke with agents at SLS and was told that they would be willing to help me and that the forms I needed to fill out and complete would be sent to me. After several weeks went by, I reached out again to try and get these forms sent but still could make no progress. As I got back onto my feet financially I reached out and attempted to make my regular monthly mortgage payment but was told that SLS would not accept anything other than the full amount past due. 

Since that time I have been trying to get a conversation or process started with SLS that would allow me to get my rate and payment lowered and get into a more stable loan that does not constantly increase. However, I have been stonewalled and obstructed by the SLS staff and have not even had a review opened ( to my knowledge ). I am gainfully employed as a XXXX, and my live in girlfriend works as well and contributes financially. I believe that if SLS were to actually review my information they would see that I qualify for the retention programs that were funded by the government -- but the problem is I ca n't get their attention onto my case. 

I realize that this is my fault and that I am behind on the loan, but I am not in a position to repay all of the late payments in one payment, which is the only option SLS has given me. I believe there are other options available, unfortunately SLS has not even given me access to these options and that is why I am filing this complaint.

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