Consumer complaint received 2024-09-24 00:00:00
Product: Mortgage — Conventional home mortgage
Issue: Closing on a mortgage — Delays with the closing process
Company: Shellpoint Partners, LLC
State: CA

Complaint narrative:
We are owners of a rental property in XXXX XXXX, CA ( XXXX XXXX ). Our lender/servicer is Shellpoint Mortgage. 

In XXXX of this year as a result of winter storms, we had a tree fall on our property. We are insured by XXXX XXXX. We got a quote from a local contractor to repair the very consequential damage for about {$56000.00}. After several months back and forth with emails and the contractors bid, XXXX XXXX finally settled on this amount. 

XXXX XXXX sent us a two-party check on XX/XX/year> naming Shellpoint as the mortgagee and ourselves as the mortgagor. In talking with the Shellpoint claims adjuster, in order for them to sign over that two party check, they literally insisted on putting us through hoops. We were told Shellpoint would deposit that check, and then when every one of Shellpoints conditions were met, they would then release some of the funds to us. They said that after inspections, they would only release {$40000.00} when 95 % of the repair work was done, etc. So, we were to be out the repair costs until Shellpoint people deemed the work was done to their satisfaction, and then Shellpoint would finally sign the two-party check so we could pay our contractor. 

I came to the conclusion that I could not trust Shellpoint to sign over that check in any reasonable time, or whatever other conditions they might impose on us. I decided to just pay off that loan so I didnt have to deal with Shellpoint anymore. On XX/XX/XXXX I called to get a payoff, but was put on hold for so long I gave up and decided to just send them {$190000.00}. At that time our statement showed a balance of around {$190000.00} so I felt the $ XXXX should more than cover the payoff costs. I felt I had overpaid by quite a bit, but I trusted that Shellpoint would send me whatever balance there might be. 

I called Shellpoint and also went online at XXXX many times after XX/XX/XXXX. Always the sameyour next payment is due in XXXX. What did Shellpoint do with my {$190000.00}? I believe it was around XX/XX/XXXX when I was kept on hold before I was finally able to talk to a real person. Unfortunately, I did not get her name. She told me that their computer system showed the {$190000.00} in payments, but Shellpoint didnt apply them correctly. She would fix that. She said it would take a few days, and by XX/XX/XXXX it should be fixed. 

On XX/XX/XXXX, I once again was held on the phone ( XXXX XXXX ) trying to talk with someone. Finally, I reached XXXX XXXX. She informed me that whomever I talked with on XX/XX/XXXX did not update the computer or some such. But she would do this ; and after many holds, she researched things and said she had taken care of things. The payoff would show on their system in XXXX hours. 

Both of these gals made mention that I had done something wrong in having XXXXXXXX XXXX send in the payment ; not wiring the funds. It was all my fault. I didnt realize I had to pay off a mortgage electronically. Nothing in the mortgage documents state that. Forgive me, but if you owe someone {$100.00} and you pay them {$100.00}, isnt that debt paid off? OK, a little interest is owed, so thats why I sent in more than what was the principal balance. If I could have talked to a real person, this would not have ever been such an issue. 

So, after more than two months, Shellpoint has been the recipient of our {$190000.00} funds, for which I am sure they have received the benefit of interest, and we still have no documentation that our loan is paid off. We can not authorize our contractor to complete the work. And our tenants after all these months have just given us notice to vacate the premises. I can not blame them. 

The gal on XX/XX/XXXX, XXXX, had a different payoff amount. So, is Shellpoint collecting interest from us daily, while using our {$190000.00} funds for all these weeks to collect interest in their behalf, but charging us daily for interest until the loan is officially paid off by your system? Something is very unfair and wrong here. 

Once again, on XX/XX/XXXX, I went online at XXXX and STILL the payoff had not been processed. Back to the phone tree ; I was finally able to talk with XXXX XXXX. After her lengthy research, she came back on the phone to tell me They were reviewing the payoff. I asked who they were ; she replied the back office. So, I am supposed to just sit and wait for this review process? She could give me no estimated time this review might take. She said she would file a formal complaint and hopefully that might light a fire under somebody to actually do their job. 

On XX/XX/XXXX, I received a bill stating that I have a principal balance of {$100.00}. Once again, I called and waded through the phone tree forever and finally talked to a XXXX. I explained the whole situation again, she put me on hold while she found a supervisor. She never came back to the phone, but another customer service person, XXXX XXXX, came on the phone. I went through the whole thing again with XXXX. After maybe 30 minutes of hold, she came back, again saying she would take care of this and the loan would be paid off by XX/XX/XXXX. And it would take until about XX/XX/XXXX for an email to be sent out to us verifying that the loan has been paid off. I sent a letter to Shellpoint on XX/XX/XXXX outlining all these problems. 

On XX/XX/XXXX I talked to XXXX who heard the whole story and said that she would process the payoff and it would be completed by XX/XX/XXXX. I asked to talk with her supervisor whose name is XXXX. XXXX said she would have XXXX call me. That never happened. 

Today, XX/XX/XXXX, I have been on the phone for over XXXX hours. First to a XXXX, then to her supervisor, XXXX XXXX. He said I needed to wire funds in the amount of {$210.00} to pay off the loan, plus a per diem of {$12.00} if they did not receive the funds today. He emailed me wiring instructions and I wired {$250.00} to cover any other costs that they might charge. XXXX said it would take 30 days after receiving the payoff and processing it to send us a loan paid in full letter. 

There is something wrong with Shellpoint Mortgage. Their system, their employees, I'm not sure what. They have done a huge disservice to me. This incompetence needs to be answered for.

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