Date Received: 2023-10-18
Issue: Trouble during payment process
Subissue: Trying to communicate with the company to fix an issue while managing or servicing yo
Consumer Complaint: In XX/XX/XXXX, I sought a payoff amount for my HELICO loan. Specialized Loan Servicing ( SLS ) provided a figure of {$52000.00}, which incorporated additional days of interest. I promptly transferred the specified funds on XX/XX/XXXX, in accordance with their directives to their designated lock box. SLS acknowledged this payment on the same day, resulting in an overpayment, as reflected in my account, amounting to {$470.00}. By XX/XX/XXXX, my statement indicated that there was no outstanding principal balance, a status that persisted into the XX/XX/XXXX statement. Subsequently, on XX/XX/XXXX, I formally reached out to SLS with a request to terminate my HELICO account. In compliance with their protocol, I furnished them with a signed letter, delivered via fax. However, upon their receipt of this closure request, SLS took the inexplicable step of nullifying the principal payment I had made on XX/XX/XXXX. Instead, they reprocessed the payment and imposed an interest of 11 % for the months of XXXX and XXXX on the previously cleared principal sum of {$51000.00}. This recalculated interest totaled {$920.00}. This adjustment not only meant that the company retained the aforementioned overpayment of {$470.00} but also culminated in an additional payment demand of {$450.00} for account closure. I have since paid the additional {$450.00} amount because they identified it as a requirement on my XX/XX/XXXX statement and identified it as past due. SLS 's rationale for this reversal remains unclear. Their justification rests on the premise that I did not initiate the account 's closure in XXXX. However, I was under no obligation to terminate the account in that month. It is my understanding that a XXXX principal balance negates the possibility of further interest charges. I have made four separate attempts to rectify this situation with SLS via phone. Each conversation concludes with an assurance of a follow-up investigation, yet no subsequent communication is ever initiated on their part. My subsequent calls invariably begin anew with a different representative. Furthermore, my efforts to elevate the matter to higher management have been thwarted, as I am consistently redirected to their initial point of contactthe help deskwhose personnel, I suspect, may lack a comprehensive grasp of banking and interest procedures. I have attached copies of my monthly statements starting in XXXX to XX/XX/XXXX for your review. The XXXX statement clearly shows the {$52000.00} payment being applied on XX/XX/XXXX. The XXXX statement clearly shows them reversing a {$51000.00} payment on XX/XX/XXXX and immediately reapplying this payment, but charging me interest for the prior two months.
Company Response: Company has responded to the consumer and the CFPB and chooses not to provide a public response
State: VA
Zip: 20136
Submitted Via: Web
Date Sent: 2023-10-18
Company Response to Consumer: Closed with explanation
Timely Response: Yes
Consumer Disputed: N/A
Date Received: 2023-10-18
Issue: Struggling to pay mortgage
Subissue: Foreclosure
Consumer Complaint: I had a HELOC in XXXX and and in XXXX when the housing market crashed I fell behind on those payments. That loan was sold to real time resolutions. I ended up filing bankruptcy and all my debt was XXXX. I spoke to real-time resolutions amd they told me I was not obligated to pay the debt. They sold the loan to select loan services last year and they aggressively tried to foreclose. I received seemingly hundreds of letter from lawyers and foreclosure documents. I took money from my 401k and paid about $ 26k to get it current but they are still saying I owe and threatening foreclosure again.
Company Response: Company has responded to the consumer and the CFPB and chooses not to provide a public response
State: CA
Zip: 90746
Submitted Via: Web
Date Sent: 2023-10-18
Company Response to Consumer: Closed with explanation
Timely Response: Yes
Consumer Disputed: N/A
Date Received: 2023-10-18
Issue: Trouble during payment process
Subissue: Escrow, taxes, or insurance
Consumer Complaint: Okay so on XX/XX/XXXX I called the company that Services my mortgage loan to ask why they are trying to charge me close {$1900.00} US dill in deficiency escrow account I advise them that I've been paying my bills on time taxes have not gone up more than {$70.00} in 2 years and my insurance probably went up {$100.00} in the past 2 years so this is not adding up. They kept giving me the runaround transfer me to XXXX different departments without giving me any real concise credit of what's Happening therefore I feel they are stealing from me and they are paying the taxes late and charging me the late fees and whatnot
Company Response: Company has responded to the consumer and the CFPB and chooses not to provide a public response
State: CA
Zip: 93905
Submitted Via: Web
Date Sent: 2023-10-18
Company Response to Consumer: Closed with explanation
Timely Response: Yes
Consumer Disputed: N/A
Date Received: 2023-10-19
Issue: Closing on a mortgage
Subissue: Trying to communicate with the company to fix an issue with the loan closing
Consumer Complaint: I applied for bankruptcy years ago ( around 2010 ) after the housing market. I was able to keep my house but under the impression all my debts had been cleared. Last year out of the blue, Specialized Loan Service started foreclosure processes on my home. My daughter was able to lend us the money, but this is putting my in a financial bind and I believe the statue of limitations had already passed.
Company Response: Company has responded to the consumer and the CFPB and chooses not to provide a public response
State: CA
Zip: 90631
Submitted Via: Web
Date Sent: 2023-10-19
Company Response to Consumer: Closed with explanation
Timely Response: Yes
Consumer Disputed: N/A
Date Received: 2023-10-18
Issue: Took or threatened to take negative or legal action
Subissue: Seized or attempted to seize your property
Consumer Complaint: Specialized Loan Servicing LLC ( SLS ), is in violation of my HELOC Agreement ( see attached ). The company stayed dormant, for almost 10 years, while the house was upside down. Now, SLS threatens foreclosure on a " zombie mortgage, '' which is evidenced by not only my case, but also the cases recorded in the news, and in CFPB 's Consent Order, Settlement, and Guidance document, all attached to this complaint. Link here ( dated Monday, XX/XX/XXXXXXXX XXXX ) : " What is a zombie mortgage? Couple facing foreclosure because of XXXXzombie ' loan | What to know '' XXXX XXXX XXXXXXXXXXXXXXXXXXXX/ Link here ( dated XX/XX/XXXXXXXX ) : " Zombie Mortgages Could Force Some Homeowners Into Foreclosure '' XXXX XXXX XXXXXXXX Link here ( Filed XX/XX/XXXXXXXX ) : UNITED STATES OF AMERICA BUREAU OF CONSUMER FINANCIAL PROTECTION ADMINISTRATIVE PROCEEDING File No . XXXX XXXX XXXX XXXX XXXXXXXX Link here ( dated XX/XX/XXXXXXXX ) : " Consumer Financial Protection Bureau Settles with Specialized Loan Servicing , LLC '' XXXX XXXX XXXXXXXX Link here ( dated XX/XX/XXXXXXXX ) : " CFPB Issues Guidance to Protect Homeowners from Illegal Collection Tactics on Zombie Mortgages '' XXXX XXXX XXXXwww.consumerfinance.govXXXX Namely, the " CFPB Issues Guidance to Protect Homeowners from Illegal Collection Tactics on Zombie Mortgages, '' like SLS. Specifically, the CFPB specifically states, " Now, over a decade later, and often without any intervening communication with homeowners who were able to save their homes, some of these debt collectors are demanding the mortgage balance, interest, and fees, and threatening foreclosures on families who do not or can not pay '' ( see attached ). SLS is using this same tactic against me today. Link here ( dated XXXX XXXX, XXXX ) : XXXX XXXX XXXX/www.consumerfinance.gov/XXXXXXXX/cfpbXXXXXXXX/ Debt collectors now attempting to collect on these " zombie second mortgages '' may be in violation of the Fair Debt Collection Practices Act. For ~10 years, SLS failed to send me statements and updated balances on my mortgage account while there was no equity in my home. Now, however, that my house has accumulated equity, SLS shows up to FORECLOSE on my property. The FORECLOSURE DATE is XX/XX/XXXX. Through these patterns, it is clear that SLS demonstrates and operates on predatory and deceitful business practices that violate the law, as supported by the CFPB 's Consent Order, Settlement, and Guidance documents ( all attached ). Specifically, I would like to draw your attention to the recent XX/XX/XXXX Consent Order issued by the Consumer Financial Protection Bureau ( CFPB ) against SLS, which found that SLS violated the Real Estate Settlement Procedures Act ( RESPA ), its implementing regulation, Regulation X, and the Consumer Financial Protection Act of 2010 ( CFPA ). According to the consent order, SLS took prohibited foreclosure actions against mortgage borrowers who were entitled to protection from foreclosure, and failed to send or to timely send evaluation notices to mortgage borrowers who were entitled to them. This is exactly what happened in my case. Moreover, " The Bureau found that in some cases, SLS obtained foreclosure judgments and conducted foreclosure sales on borrowers ' homes when Regulation X would have entitled the borrowers to protection from foreclosure had SLS complied with that rule '' ( see attached ). " As a result of these violations, SLS was ordered to pay {$770000.00} in monetary relief to consumers, waive {$500000.00} in borrower deficiencies, pay a {$250000.00} civil money penalty, and implement procedures to ensure compliance with RESPA and Regulation X '' ( see attached ). To highlight, Specialized Loan Servicing ( SLS ) LLC failed to comply with the terms of my Home Equity Credit Line Agreement ( HELOC ), specifically Section 4.b., which requires the lender to send regular statements regarding my balance ( see attached ). Specialized Loan Servicing LLC not only failed to contact me, but failed to do so for a period of ~10 years, during which I received no such statements, leading to misinformation about my loan and significant financial stress today. Specifically, Regulation X requires that " servicers provide written notice to borrowers at certain times during the life of the loan, including at least once a month for borrowers with variable-rate mortgages with monthly adjustments or other loans with payments that can change. The notice must include a statement of the account that includes the amount due, the due date, and the breakdown of payments, including the amount applied to principal, interest, and escrow, if applicable '' ( see attached ). The lender 's disregard for the HELOC for over 10 years and their failure to contact me during a period when my house was " upside down, '' only to threaten foreclosure if a lofty down payment is not made towards an accrued interest balance of over {$230000.00} on an original loan balance of only {>= $1,000,000}, is unreasonable and has unethically, unfairly, and unjustly put my home at risk. Based on the available information, the CFPB 's Consent Order against SLS in XX/XX/XXXX is one of the most significant legal actions taken against SLS in recent years. This order provides a clear and documented case of RESPA violations and highlights SLS 's history of engaging in predatory and deceptive business practices, which is proven by the settlement SLS had to pay to the CFPB. In addition to the Consent Order, there have been several consumer complaints and legal actions against SLS in various states, including California. Based on these examples, it is clear that SLS has a history of engaging in unlawful and predatory practices ( words specifically used by the CFPB ), and it is not uncommon for consumers to experience difficulties when dealing with the company. Given the recent consent order issued by the CFPB, it is clear that SLS has a history of violating consumer protection laws. I urge you to take action to hold SLS accountable for its violations and ensure that consumers are protected from these types of abusive practices in the future. A postponement of the foreclosure sale date, which is currently set as Thursday, XX/XX/XXXXXXXX is necessary to provide an opportunity for both parties to negotiate feasible terms and for SLS continued RESPA and consumer protection violations to be addressed.
Company Response: Company has responded to the consumer and the CFPB and chooses not to provide a public response
State: CA
Zip: 91361
Submitted Via: Web
Date Sent: 2023-10-18
Company Response to Consumer: Closed with explanation
Timely Response: Yes
Consumer Disputed: N/A
Date Received: 2023-10-16
Issue: Incorrect information on your report
Subissue: Old information reappears or never goes away
Consumer Complaint: On XX/XX/XXXX through XX/XX/XXXX XXXX XXXX dropped my credit score by XXXX because a closed mortgage account account with Specialize Loan Service was removed from my Credit File. This account was paid in full & closed in good standard in XXXX.
Company Response: Company has responded to the consumer and the CFPB and chooses not to provide a public response
State: GA
Zip: 30135
Submitted Via: Web
Date Sent: 2023-10-16
Company Response to Consumer: Closed with explanation
Timely Response: No
Consumer Disputed: N/A
Date Received: 2023-10-17
Issue: Took or threatened to take negative or legal action
Subissue: Seized or attempted to seize your property
Consumer Complaint: We purchased our home in XXXX and we had XXXX loans, a first and a second with XXXX XXXX. In XXXX our mortgage was transferred to XXXX XXXX XXXX as a result of a crash in the housing market. When we reached out to XXXX of XXXX about the loans, they indicated that they were only aware of the first loan and that we no longer need to worry about the second as it had been charged off. Since the second mortgage was still showing up on my credit, I reached out to the debt collector ( XXXX ) that was listed in XXXX. In XXXX, I sent them a letter to remove the debt from my credit report and they responded in XX/XX/XXXX. XXXX - XX/XX/XXXX, responded that account closed XXXX XXXX and we are no longer liable for debt and no balance due. reported to all credit bureaus and the tradeline was deleted. XXXX - XX/XX/XXXX, received another letter stating that servicing of our loan is being transferred to SLS effective XX/XX/XXXX and they will be collecting payments and they will stop effective XX/XX/XXXX. So I reached out to Specialized Loan Services stating that this loan had been charged off and that no balance was due. On XX/XX/XXXX, I received a letter stating that they are new loan servicer.On XX/XX/XXXX, I received another letter stating amount of debt and outstanding fees owed. For the next few years SLS continued to send statements stating that we owe them even though nothing was on our credit and no title had been on file with the county stating them as a lien holder. In XXXX we refinanced our house with XXXX XXXX XXXX ( XXXX ). The loan officer asked ( via email ) if we had a second since something came up and I told him about the situation with XXXX and asked him if that needed to be paid off since they were trying to collect a debt that had been closed. The loan XXXX stated that title and escrow couldnt find anything and we were cleared to proceed with the refinance. In XX/XX/XXXX, we started receiving multiple phone calls about our house being in pre foreclosure and XXXX had filed a Notice of Default on behalf of SLS and that we needed to pay or they would foreclose on our house. I went back and forth with them and XXXX and the title company to see who was liable and how is this possible. We also were recently served by XXXX listing us and the second lien holder in their suit to stop the foreclosure process and stating that we did not disclose the second at the time of refinance which is not true. We have filed a claim with the Title company ( XXXX XXXX ) and they decided they were not at fault. We do not know what to do but we want to keep our house but the timeline is short to save it and we can not afford to pay this nor a lawyer.
Company Response: Company has responded to the consumer and the CFPB and chooses not to provide a public response
State: CA
Zip: 90746
Submitted Via: Web
Date Sent: 2023-10-17
Company Response to Consumer: Closed with explanation
Timely Response: Yes
Consumer Disputed: N/A
Date Received: 2023-10-17
Issue: Trouble during payment process
Subissue: Payment process
Consumer Complaint: I have sent in my XXXX payment for the amount of {$13000.00}, after which I called and verified that they had received the payment as I use two payment processors- one is called XXXX which transfer the money automatically into their account and the second one uses check to send which is called XXXX. I received my payment for the month of XXXX back on XXXX XXXX XXXX with an explanation that SLS does not accept credit card checks as payment. I called XXXX and verified that their check are not credit card checks because I pay them with a 3 % fee and they pay your any bill with their own account that is not linked to any credit card.
Company Response: Company has responded to the consumer and the CFPB and chooses not to provide a public response
State: CA
Zip: 91202
Submitted Via: Web
Date Sent: 2023-10-17
Company Response to Consumer: Closed with explanation
Timely Response: Yes
Consumer Disputed: N/A
Date Received: 2023-10-16
Issue: Trouble during payment process
Subissue: Trying to communicate with the company to fix an issue while managing or servicing yo
Consumer Complaint: On XX/XX/, I requested a payment off amount for the Heloc account as was given an old balance amount from 11 months ago. All payments paid have not been applied and, therefore, still showing a balance from a year ago. Because this company has decided not to send out a monthly statement to keep the account holder abreast of balance, interest rate, and/or payments. I am left to no idea what is occuring with the account other than I am sending in payments.
Company Response: Company has responded to the consumer and the CFPB and chooses not to provide a public response
State: GA
Zip: 30135
Submitted Via: Web
Date Sent: 2023-10-16
Company Response to Consumer: Closed with explanation
Timely Response: Yes
Consumer Disputed: N/A
Date Received: 2023-10-16
Issue: Problem with a company's investigation into an existing problem
Subissue: Their investigation did not fix an error on your report
Consumer Complaint: Those payments were made on time. I am requesting that the late payment markings be updated to reflect my accurate payment history. If there is any confusion, I suggest you contact myself or the customer service representative of the said accounts. Despite the multiple previous written requests, the unverified item listed below still remains on my credit report in violation of Federal Law. You are required under the FCRA to have a copy of the original creditors documentation on file to verify that this information is 100 % true, accurate & correct. SPECIALIZED LOAN SERVI XXXX were reporting inaccurate information on my credit report in violation of Federal Law. This was frustratingly unacceptable, in accordance with FCRA you must provide accurate information accordingly.
Company Response: Company has responded to the consumer and the CFPB and chooses not to provide a public response
State: CA
Zip: 93021
Submitted Via: Web
Date Sent: 2023-10-16
Company Response to Consumer: Closed with explanation
Timely Response: Yes
Consumer Disputed: N/A