Date Received: 2024-02-01
Issue: Struggling to pay mortgage
Subissue: Trying to communicate with the company to fix an issue related to modification, forbe
Consumer Complaint: Issue of Bad Faith and Fair Dealing -- I believe timely notifications were not made on loan transfers. Borrower continued to negotiate modifications with SLS when they did not presumably own the loan. Proving this statement with the dates of transfers : XXXX XXXX to SLS XX/XX/XXXX ; XXXX XXXX to XXXX XX/XX/XXXX ; SLS to XXXX XX/XX/XXXX ; and dates of loss mitigation letters : XX/XX/XXXX [ Exhibit XXXX ]. Notifications of these assignments were not sent to Borrower as requires by RESPA -- 12 CFR Part 1024. As a matter of law, Bank was required to send these notice [ Exhibit 7 ] was untimely. Notifications were not sent within 30 day and resulted in violation of RESPA requirements. Also 12 CFR 1024.33 says transferee servicer shall provide the notice of transfer to the borrower not more than 15 days after the effective date of the transfer. No such notice from XXXX was received. Borrower was engaged in loss mitigation with Specialized Loan Servicing during the period that they were not the owners of the mortgage which is an indication of bad faith and unfair dealing. If the case were valid, notification of transfers was not given, and continued negotiation with an entity not party to the loan at that time, made it impossible for the borrower to negotiate a plan to keep home or other resolution in case. Therefore, the case must be dismissed. Specialized Loan Servicing made incorrect transfers to where XXXX Does Not Have the Right to Foreclose Because Their Transfer of the Note is Invalid. In XXXX versus XXXX -- " where a promissory note goes a deed of trust must follow, the deed and a note can not be separated '' so there is no clear chain of title. 83 U.S. 271. In Bank XXXX XXXX XXXX XXXX XXXX, XXXX, XXXX IL App ( XXXX ) XXXX, the court held that in challenging a Bank 's standing, a borrower can not attack the " sufficiency '' of an assignment but is limited to asserting that an assignment is void. Assignment to XXXX occurred after the mortgage was assigned to Specialized Loan Services. XXXX XXXX XXXX made invalid assignments to Specialized Loan Servicing as recorded at the XXXX XXXX XXXX XXXX XXXX on XX/XX/XXXX document number XXXX and later made assignment same assignment to XXXX XXXX XXXX XX/XX/XXXX document number XXXX. Also, no address was recorded. Specialized Loan Servicing then made same loan assignment to MCLP on XX/XX/XXXX document number XXXX also recorded at the XXXX XXXX XXXX XXXX XXXX. XXXX XXXX XXXX XXXX XXXXXXXX XXXX XXXXXXXX, XXXX XXXX XXXX ( XXXX XXXX. XXXX ), holds that under Illinois law only the holder of a note may foreclose on property. Transferring a mortgage is not enough by itself to confer the right to foreclose upon property. The XXXX XXXX could not prove it was a note holder, and therefore it was not entitled to foreclose. ( XXXX ILCS XXXX ) Sec. XXXX. This could also constitute an unlawful clouding of title. ( a ) Any person who intentionally records or files or causes to be recorded or filed any document in the office of the recorder or registrar of titles of any county of this State that is a cloud on the title of land in this State,. False Certificates are Punishable. Pursuant to XXXX ILCS XXXX If any officer, clerk, secretary, cashier, or other person authorized to certify copies of any papers, entries, records or ordinances, knowingly makes a false certificate, he or she is punishable in the same manner as if he or she were guilty of perjury. ( See alsoXXXX XXXX XXXX XXXX ( b ) ) This warns against presenting false information. Since the case was not filed according to law making it an invalid filing and the case has errors in the consistent use a vital word paramount to the interpretation of the case, then this case should not continue because the outcome of the case is flawed by these errors. As a result, the case should be dismissed. ( Information access error fact : Due to an error in the Recorders office website, these transfers were not displayed by the system under certain conditions so this issue could not be raised prior to recent proceedings. [ EXHIBIT 8 ] ) Bank may try to argue that XXXX XXXX ILCS XXXX ( a ). See also XXXX XXXX, XXXX XXXX XXXX XXXX XXXX XXXX XXXX. XXXX XXXX, XXXX ( XXXX Dist. XXXX ) ( The XXXX XXXX XXXX clearly provides for substitution of parties where there has been a transfer of interest or liability occurring after the commencement of a cause or proceeding. " However, the information concerning the invalid transfers was not privy to the court. There is also an error with the Recorders office website displaying this data. ( See Exhibit XXXX ) Cloud on the Title as mortgage assignments denote violation of Uniform Deceptive Trade Practices Act XXXX ILCS XXXX ( XXXX ) passes off goods or services as those of another ; ( XXXX ) causes likelihood of confusion or of misunderstanding as to the source, sponsorship, approval, or certification of goods or services ; ( XXXX ) causes likelihood of confusion or of misunderstanding as to affiliation, connection, or association with or certification by another ; Confusion on Who is the Bank -- Proof of this is in the filing of BANK 'S MOTION TO CONSOLIDATE AND SUBSTITUTE XXXX XXXX on XX/XX/XXXX. Bank continued to believe substitution was necessary although substitution was unknowingly granted XX/XX/XXXX. No Servicer or Presumed Mortgage Holder was responsible for loan as the home incurred a Tax Lien on XX/XX/XXXX. XXXX XXXX XXXX purchased the taxes amid the confusion. This also supports the theory that the title is clouded and the transfers of the loan are invalid. [ Exhibit J of Motion to Dismiss ]. Again, the homeowner was not notified of transfers amid the confusion and ran the risk of losing home to a third-party superior lien. The Bank may try to use a defense for this assertion by stating that the Borrower owes $ XXXX on the taxes which would be a reasonable assertion if the loan was valid. Borrower asserts that with the aforementioned facts and knowing the original lender, XXXX XXXX XXXX does not exist as a mortgage lender. [ XXXX XXXX Is Backing Out Of The Mortgage Market - What Does It Mean For Homebuyers? XXXX XXXX XXXXXXXX XXXXXXXX last accessed XX/XX/XXXX ] This leads one to believe the loan had been discharged, illegally transferred, or left in a state of confusion with the cloud on the title. Further discovery would be required to gather more specific information concerning this. Furthermore, to preclude the argument that the Borrower is supposed to be responsible for the taxes, the current taxes due XX/XX/XXXX has already been paid by XXXX on XX/XX/XXXX. The Bank knew that the Borrower was taking responsibility of paying the taxes and also disputing their claim on the property after a Motion to Quiet Title was filed XX/XX/XXXX. Their payment is an effort to circumvent the Borrower from paying the tax. This again is another example of their effort to make it impossible to perform. Again The Impossibility of Performance doctrine excuses a contractual performance. Therefore, this case should be dismissed with prejudice. A Cloud of Bad Faith also is denoted by the mortgage assignments Proof of this is in the filing of BANK 'S MOTION TO CONSOLIDATE AND SUBSTITUTE XXXX XXXX page XXXX footnote XXXX they admitted to an invalid mortgage transfer Out of an abundance of caution and in the interest of complete candor, XXXX XXXX made an invalid assignment to MCLP after it assigned its interest to Specialized Loan Servicing Also Attached Exhibits contain the Transfers in question. ; No payment of taxes. Errors exists in the transfer of the loan and note. Pursuant to 55 ILCS XXXX a fraud referral and review can be initiated. With the evidence presented one can conclude that there is no true owner of the transferred loan. This case should have been dismissed with prejudice. Invalid Calculations -The Principal Unpaid Balance is Invalid Principal Unpaid Balance changed from $ XXXX to {$210.00} k. Proof - XXXX XXXX XXXX SLS XXXX XXXX XXXX This also proves defense in previous pleadings that calculations were incorrect. If the case were valid, the loan would not be valid because of the discrepancy of the numbers. The invalid calculations have been the primary subject of dispute and it proves Borrowers claim that the calculations were invalid and have been invalid since the beginning of the case, thus making it impossible to know the true amount owed. As a result, the case should be dismissed with prejudice. Settlement Offers with no rights SLS did not engage in timely communication to evaluate options for a settlement or modification. Any questions concerning alternate mitigation methods were not given. They did not exhaust all mitigation methods to keep me in the home. I believe I was not properly considered for forgiving the loan due or any part of the loan due to the condition of the house. The house is full of mold and termites and should have been considered for further federal or local assitance for the Bank to recover their losses. Home value *House requires an estimated $ XXXX in repairs *Home has serious Termite/Carpenter ant damage and infestation *Home has Mold to unknown extent. *Home foundation has cracks and sloping issues. Doors are misaligned. *Kitchen has major sloping in the floor which seems to require a new metal beam to correct. The wall behind sink has to be replaced. *Previous court ordered real estate agent did not want to sell home in its condition which has gotten further degraded over time. ( approx. XXXX ) *Any sale of home would be short and not bring in proceeds to pay off proposed loan amount. Another issue is the case filing is invalid since XXXX XXXX did not wait the 120 days of delinquency before filing. Under federal mortgage servicing law, the servicer can not start the foreclosure process by making the first notice or filing until the loan is more than 120 days overdue on the payments. [ 12 CFR 1024.41 ( f ) ] The 120-day rule is part of Regulation X and is overseen by the Consumer Financial Protection Bureau ( CFPB ). The CFPBs authority was granted under the Dodd-Frank Act and the Real Estate Settlements Procedures Act ( RESPA ). The rule says the first notice or first filing under a state 's foreclosure law can not occur until the mortgage is more than 120 days delinquent. With the forgoing evidence, the borrower will prove that the Bank violated this rule. Payments by Borrower were made by automatic payments from the bank. To confirm this occurrence, EXHIBIT E shows some of the letters indicating the funds being returned and shown to have been returned XX/XX/XXXX and XX/XX/XXXX. Exhibit D shows continued online payment XX/XX/XXXX, XXXX precluded the possibility of preventing the Borrower from paying the loan, minimizing delinquency, and preventing default. The cause of any presumed default would have been by the actions of XXXX XXXX preventing the payments. In XXXX vs XXXX, the XXXX held that the XXXX XXXX 's findings of fact were supported by competent evidence and that as a matter of law, " A party to a contract may not complain of the nonperformance of the other party where that performance is prevented by his own actions. A party can not take advantage of a condition precedent the performance of which he has rendered impossible. A party who deliberately prevents the fulfillment of a condition on which his liability under a contract depends can not take advantage of his own conduct and claim that the failure of the fulfillment of the condition defeats his liability. Delays and nonperformance while they amount to a failure to perform are excused where performance is prevented by the other party to the contract. XXXX XXXX XXXX XXXX XXXX, XXXX XXXX XXXX. XXXX XXXX, XXXX XXXX XXXX ( XXXX XXXX. XXXX XXXX ). Based on these facts, this case should not have been allowed. Thus, this entire case was improper from its inception and should not move forward be dismissed with prejudice. The effect of the Banks actions resulted in preventing the Borrower from the ability to restore performance to the loan. Additionally, a defense of Impossibility of Performance is warranted. The Impossibility of Performance doctrine excuses a contractual performance when it is rendered objectively impossible to perform either by operation of law or subject matter of the contract has been destroyed. Thus, the Banks refusal to take payments destroyed the subject matter, to enable performance. See XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX, XXXX IL XXXX, XXXX doctrine can be also applied to a circumstance if there is an unanticipated circumstance that made the contract vitality different from what should reasonable have been a within the contemplation of the parties at the time of entering the contract. ( XXXX XXXX XXXX XXXX XXXX v. luxury XXXX XXXX XXXX XXXX, No. XXXX C XXXX, XXXX XXXX XXXX ( XXXX XXXX XX/XX/XXXX ). The Borrower believed that his employment and the economic conditions would improve or stay the same. No one expected the total devastation of the economy which resulted in millions of homeowners to default on their loans because of massive layoffs and elimination of whole job categories. Millions of jobs were sent overseas too. The borrower was among those affected. Accordingly, while an occurrence may render performance of contractual duties objectively impossible, this doctrine is not meant to be used in a claim for excused performance where the occurrence was foreseeable and/or could have been guarded against in a contract. The Borrower claims that he did everything in his power to continue paying as shown in exhibits stated in 1b above to avoid such an excuse. These proceedings have errors because the Bank confuses terms such as Default to gain advantage with court. In this case the word Default in note means Missed payment whereas Default in Law 120 days delinquent in payments ( 12 CFR 1024.41 ( f ) ). Also note : 203.556 Return of partial payments. ( a ) For the purpose of this section, a partial payment is a payment of any amount less than the full amount due under the terms of the mortgage at the time the payment is tendered, including late charges. ( b ) Except as provided in this section, the mortgagee shall accept any partial payment and either apply it to the mortgagor 's account or identify it with the mortgagor 's account and hold it in a trust account pending disposition. When partial payments held for disposition aggregate a full monthly installment they shall be applied to the mortgagor 's account, thus advancing the date of the oldest unpaid installment but not the date on which the account first became delinquent.
Company Response: Company has responded to the consumer and the CFPB and chooses not to provide a public response
State: IL
Zip: 60175
Submitted Via: Web
Date Sent: 2024-02-04
Company Response to Consumer: Closed with explanation
Timely Response: Yes
Consumer Disputed: N/A
Date Received: 2024-02-01
Issue: Trouble during payment process
Subissue: Payment process
Consumer Complaint: Pursuant to Consumer Financial Protection Bureau Consent Order. Administration Proceeding File No. XXXX. Homeowners were solicited to participate in a preapproved HELOC loan in XXXX which was accepted by the homeowners for a ten year term.. Wells Fargo became the owner of the Note and Deed of Trust in XXXX. Wells Fargo and/or its agents/servicers ( " Wells Fargo '' ) then in XXXX, solicited the homeowners with an offer to extend the term of the HELOC for an additional five years based on the homeowners perfect payment history. As such, Wells Fargo provided the homeowners with a Home Equity Line of Credit Modification Agreement ( " Agreement '' ) in XXXX of XXXX with instructions to execute the Agreement before a notary and to return same with a Cashier 's Check in the amount of {$150.00} to " complete and record '' the Agreement. The homeowners complied with the request and timely returned the Agreement with the Cashier 's Check via XXXX Next Day Air. Wells Fargo confirmed receipt and acceptance of the Agreement and the Cashier 's Check which was deposited to a Wells Fargo account on the following day. Please note the Agreement did not reduce the principal nor interest rate. The Agreement capitalized one month 's interest payment in the amount of {$820.00}. During the transition to the new Agreement and a change of Wells Fargo 's servicers, the homeowners remitted an electronic payment on XX/XX/XXXX in the amount of {$850.00} to be applied to the HELOC which was received, accepted and acknowledged in writing, and was retained by Wells Fargo, but was never applied to the homeowner 's HELOC account. The first statement received from Wells Fargo 's new servicer ( dated XX/XX/XXXX ) did not reflect the terms of the Agreement, did not reflect the one month 's interest capitalized per the Agreement nor the {$850.00} payment and reflected the entire balance and more was due. Upon the receipt of the erroneous statement I made numerous phone calls and wrote a qualified dispute letter to both of Wells Fargo 's agent/servicers pointing out and documenting the numerous errors and requested that the letter be forwarded to Wells Fargo as Wells Fargo never advised the homeowners of its address, telephone number or that it had acquired the Note and Deed of Trust as required by federal statute. I received no response from Wells Fargo nor its agent/servicers. The next monthly statement that I received reflected the same erroneous information as the previous statement. I continued to reach out to Wells Fargo 's servicers, all to no avail. I responded to the erroneous statement by remitting a timely and sufficient payment in the amount of {$770.00} as reflected on the statement as current finance charges. The payment was returned to me with a letter stating the reason for the return was " not enough to cure default ''. Failing to process a sufficient and timely payment is another violation of federal statutes. By letter dated XX/XX/XXXX, I received notice that " as of today, your loan is 3 payments past due ''. This statement is totally false. Wells Fargo failed to account for : 1 ) {$820.00} monthly payment capitalized per the Modification Agreement ; 2 ) {$850.00} monthly payment of XX/XX/XXXX and 3 ) {$770.00} payment rejected and returned for " not enough to cure default ''. This letter goes on to threaten legal action and foreclosure of my property. I continued to contact the parties involved and continued to remit timely and sufficient payments which were continuously rejected and returned for " not enough to cure default ''. Wells Fargo never acknowledged my disputes, never applied previous payments, never completed or recorded the Modification Agreement nor attempted to resolve the obvious and blatant errors but rather, on XX/XX/XXXX, referred my account to its attorneys to begin foreclosure proceedings on my property citing false information of default, specifically, the XX/XX/XXXX payment of {$770.00} which they had rejected and returned to me. My property was foreclosed on by its attorneys, acting as Substitute Trustees, on XX/XX/XXXX resulting in horrendous damages to the homeowners. I lost my business, my home and my wife of 50 years. Less than one month after having to leave our home of 27 years due to the foreclosure, my wife passed away from XXXX, also known as " XXXX XXXXXXXX syndrome ''. For over a year now, beginning XX/XX/XXXX, I have been in contact with Wells Fargo concerning the CFPB/Wells Fargo Consent Order concerning damages for wrongful foreclosures but Wells Fargo has responded with only the most ridiculous excuses for excluding me from any relief : 1 ) they could not find my account number 2 ) they included my account in a trust so it was no longer a personal loan 3 ) they needed my signature, social security number and account number ( which I had previously provided to them ) 4 ) they didn't service the account so contact XXXX XXXX ( one of its agent/servicers ) 5 ) that they had investigated and that no errors occurred and the account was handled properly ( no documents or research results were provided to support this claim ) 6 ) that they located the Substitute Trustees Deed and it did not reflect Wells Fargo 's involvement ( shortly before the actual foreclosure Wells Fargo assigned the Deed of Trust to XXXX XXXX XXXX, a XXXX XXXX, to complete the foreclosure ) 7 ) they were only acting as trustee with little to no involvement in its servicing ( they were actually the owner of the Note and Deed of Trust from XXXX until XXXX when they assigned the Note and Deed of Trust to XXXX XXXX and XXXX XXXX XXXX ) 8 ) they referred me to contact XXXX XXXX, another one of their agent/servicers The only excuse and diversion from accepting liability that they didn't use was that the dog ate it! The documents provided to Wells Fargo previously, and included with this complaint, substantiates the events, facts and claims as has been presented herein.
Company Response: Company has responded to the consumer and the CFPB and chooses not to provide a public response
State: GA
Zip: 305XX
Submitted Via: Web
Date Sent: 2024-02-23
Company Response to Consumer: Closed with explanation
Timely Response: Yes
Consumer Disputed: N/A
Date Received: 2024-01-30
Issue: Trouble during payment process
Subissue: Payment process
Consumer Complaint: My wife and I recently purchased a new home in XX/XX/XXXX. We paid a large downpayment and closing costs. We then listed our old house for sale. Upon advisement from our relator and lending institution, the goal was to take the money we made from the sale of our old house and re-forecast the loan in order to get the payments lower. Our original loan was sold to Specialized Loan Servicing with our first payment due in XX/XX/XXXX. We made that payment on schedule and we sold our old house and closed on it a couple of weeks ago. We waited the five days that our bank required on the check and after it was ok, today, XXXX, I contacted SLS to see what we needed to do to re-forecast our loan and pay {$150000.00} today. After multiple attempts, cut offs and menu after menu, I finally got hold of a person, her name was XXXX. Possibly one of the rudest humans I've ever talked to. I explained to her what I was wanting to do and she transferred me to XXXX. I then explained to XXXX, what I wanted to do. He told me because they just recently bought our loan on XX/XX/XXXX, they could not do a re-forecast for 90 days, which put us in XXXX, according to him. That means we will have to make 2 or 3 months payments of {$2000.00}, before we can re-forecast. Why can't a person, who pays their bills and has a large amount of money, get their mortgage payments lowered in a timely manner? and, add to that, after talking with XXXX and XXXX, I don't have a lot of confidence that they will help me and my wife accomplish our goal of lowering our payments in XXXX and we defiantly do not want to go thru refinancing and additional closing cost.
Company Response: Company has responded to the consumer and the CFPB and chooses not to provide a public response
State: KY
Zip: 42001
Submitted Via: Web
Date Sent: 2024-01-30
Company Response to Consumer: Closed with explanation
Timely Response: Yes
Consumer Disputed: N/A
Date Received: 2024-01-27
Issue: Attempts to collect debt not owed
Subissue: Debt was paid
Consumer Complaint: Specialized Loan Servicing continues to attempt to collect an alleged debt from me. I do not lawfully or legally owe. Per the IRS publication I am entitled to the principal balance and interest from this account. Specialized Loan Servicing is required by law to pay the taxes on this and account accurately report this to the IRS. Specialized Loan Servicing has failed to comply. My promissory note is what is being used as the security in this credit transaction. Specialized Loan Servicing does NOT have possession of the note therefore there can not have a claim for performance. Furthermore I have the higher exclusive equitable claim in ALL of my financial assets and as the beneficiary owner of my estate I am demanding subrogation rights therefore I can not be held more liable than Specialized Loan Servicing nor harmed more than Specialized Loan Servicing. The Federal Reserve Act strictly prohibits banks or financial institutions to require anything other than commercial paper for security so pledging my family home as collateral violated the law and requirements in place by the Federal Reserve Bank who issues the Federal Reserve Notes.
Company Response: Company has responded to the consumer and the CFPB and chooses not to provide a public response
State: CA
Zip: 94513
Submitted Via: Web
Date Sent: 2024-01-27
Company Response to Consumer: Closed with explanation
Timely Response: Yes
Consumer Disputed: N/A
Date Received: 2024-01-27
Issue: Struggling to pay mortgage
Subissue: An existing modification, forbearance plan, short sale, or other loss mitigation reli
Consumer Complaint: ITS TOTALLY FALSE AND MISLEADING TO STATE I DID NOT WANTED TO CONTINUE LOAN MODIFICATION. SLS FAILED TO CORRECT AND SEND THE CORRECT AMOUNT OF TRIAL PAYMENT AS OF XX/XX/XXXX. ITS FRAUD AND DEFAMATORY TO STATE I DID NOT WANTED TO CONTINUE WITH REQUEST FOR MORTGAGE ASSISTANCE WITHOUT CORRECTING AND SENDING AMENDED TRIAL PAYMENT AND LOAN MODIFICATION DOCUMENTS. ATTACHED LETTER XXXX DELIVERY DATE ASKING SLS TO CORRECT PROPERTY TAX THAT WAS WRONG AS OF TODAY XX/XX/XXXX THEY HAVE FAILED ACKNOWLEDGED AND CORRECTED THEIR MESS. I HAVE NOT RECEIVED A CORRECT TRIAL PAYMENT AND AMENDED LOAN MODIFICATION DOCUMENT AS OF XX/XX/XXXX. RESPONSE TO MY COMPLAINT CFPB ALSO SLS DID NOT CORRECT AND PROVIDED AMENDED APPROVAL LOAN MODIFICATION DOCUMENTS. AS OF XX/XX/XXXX, SLS HAS NOT PROVIDED ME AMENDED LOAN MODIFICATION DOCUMENTS SO SLS SHOULD STOP BARKING LIKE XXXX WILD DOG I DID NOT TO CONTINUE WITH PRIOR RELIEF ASSISTANCE EITHER BEING XXXX, MENTALLY SICK, ABSENT MINDED OR UNDER DRUGS. ITS A BULL AND BALONEY I DID NOT WANTED TO CONTINUE BECAUSE SLS NEVER CORRECT AND PROVIDED ME AMENDED LOAN MODIFICATION DOCUMENTS. The last loan modification documents that was sent to CFPB XXXX WAS ONLY AND ONLY FOR LOAN MODIFICATION NOTHING ELSE. I I received notification additional information was needed in XX/XX/XXXX I called and spoke to XXXX in loss mitigation she told me I need to only submit application for loan modification no other documents were missing. I called on XX/XX/XXXX spoke to XXXX he told there were missing information and loan modification was terminated. He also stated business income and expenses of the business not included. This was included with my request with CFPB and I hope this was sent to SLS. After I spoke to XXXX on XX/XX/XXXX who confirmed the only missing information was in XX/XX/XXXX request was loan modification application. Based on that I provide loan modification application on XX/XX/XXXX that was the ONLY missing documents. I RECEIVED NO OTHER REQUEST AFTER XX/XX/XXXX ANY FURTHER INFORMATION THAT WAS MISSING FROM SLS. ANY MISSING INFORMATION DETERMINE AFTER XX/XX/XXXX I SHOULD MADE REQUEST IN EMAIL OR IN WRITING. SLS NEVER SEND ANY REQUEST FOR ADDITION INFORMATION AFTER XX/XX/XXXX THEREFORE TERMINATING LOAN MODIFICATION IS NOT FAIR AND VIOLATION OF LAW NOT TO REQUEST MISSING INFORMATION AFTER XX/XX/XXXX. SLS committed fraud and misrepresented me on XX/XX/XXXX from bunch of information that was requested only missing information was loan modification application.
Company Response: Company has responded to the consumer and the CFPB and chooses not to provide a public response
State: CA
Zip: XXXXX
Submitted Via: Web
Date Sent: 2024-01-27
Company Response to Consumer: Closed with explanation
Timely Response: Yes
Consumer Disputed: N/A
Date Received: 2024-01-28
Issue: Struggling to pay mortgage
Subissue: Trying to communicate with the company to fix an issue related to modification, forbe
Consumer Complaint: From : XXXX XXXX XXXX XXXX XXXX XXXX California XXXX Dear Consumer Financial Protection Bureau : I. Background and Initial Request for Forbearance : On XX/XX/XXXX, after consulting with XXXX XXXX, the investor of my home loan, I contacted Specialized Loan Servicing LLC ( SLS ) to request a six-month COVID-19 forbearance as stipulated by the CARES Act. Contrary to the automatic relief provisions outlined in the Act, SLS instructed me to await a response to my request. Upon follow-up, I was informed my account had been flagged, precluding further discussion. This led me to file a complaint with the Consumer Financial Protection Bureau ( CFPB ). ***** II. Subsequent CFPB Complaints and Forbearance Agreement Discrepancies : The initial CFPB complaint yielded a forbearance agreement from SLS commencing on XX/XX/XXXX, and concluding in XX/XX/XXXX, falling short of the requested six months. Persistence through additional CFPB complaints resulted in SLS backdating the agreement to XX/XX/XXXX, without my consent. Efforts to correct the forbearance period to reflect my request for a total of 12 months were met with resistance and unilateral alterations by SLS. ***** III. Discrepancies in Court Filings and Servicing Transfer : Despite providing me with a revised forbearance agreement reflecting the start date of XX/XX/XXXX, SLS filed a disparate agreement in my XXXX XXXX bankruptcy case, which neither conformed to the CARES Act provisions nor my direct requests. Complicating matters further, on XX/XX/XXXX, SLS transferred servicing to XXXX XXXX, failing to rectify the forbearance agreement discrepancies in court records prior to transfer. ***** IV. Misinformation and Denial of Extension : Subsequent to the servicing transfer, my request for an additional six-month forbearance extensionaligned with XXXX XXXX XXXX enhanced relief measureswas unjustly denied by XXXX XXXX . This denial was allegedly predicated on misinformation regarding the nature of my mortgage and the existence of a CARES Act-compliant forbearance. ***** V. Current Stance and Irreparable Harm : The current position of SLS alleges that they informed XXXX XXXX of the accurate forbearance dates. However, this assertion fails to reconcile with their official court filings, which remain unamended. The conflicting actions and information provided by SLS and XXXX XXXX have resulted in significant financial, mental, and physical distress, for which I seek redress. ***** VI. Evidence of Filing Discrepancies : On XX/XX/XXXX, SLS, via their authorized agent, filed a notice in my bankruptcy case that contradicted the terms previously agreed upon. This notice misrepresented the forbearance 's effective date, terms, and exit strategies, diverging from both the revised agreement sent to me and the CARES Act 's intended protections. ***** VII. Enclosed with this letter, please find the following documents for your review : 1. Original COVID-19 Forbearance Agreement ( XX/XX/XXXX ) : This document represents my initial forbearance agreement, which SLS should have automatically granted for six months under the CARES Act. 2. Revised Forbearance Agreement ( XX/XX/XXXX ) : This is the altered agreement provided by SLS after numerous complaints filed with the CFPB. It corrects the start date to XX/XX/XXXX but still does not accurately reflect my request for a total forbearance period of 12 months, as it ends in XX/XX/XXXX. 3. Court-Filed Forbearance Agreement ( XX/XX/XXXX ) : Filed by SLS 's authorized agent, this document contains terms inconsistent with the CARES Act requirements and the forbearance agreements provided to me. 4. Correspondence from XXXX XXXX ( Dated XX/XX/XXXX, and XX/XX/XXXX ) : These letters from the new servicer deny the extension of my forbearance and incorrectly state that my mortgage is not federally backed, thus claiming that I am not entitled to CARES Act protections. Each of these documents contributes to a narrative of mishandling, miscommunication, and a disregard for federal guidelines designed to protect consumers like myself during an unprecedented global pandemic. I seek the CFPB 's aid in rectifying this situation and ensuring that such practices do not continue to harm other borrowers. Thank you once again for your time and assistance. Sincerely,
Company Response: Company has responded to the consumer and the CFPB and chooses not to provide a public response
State: CA
Zip: 945XX
Submitted Via: Web
Date Sent: 2024-01-28
Company Response to Consumer: Closed with explanation
Timely Response: Yes
Consumer Disputed: N/A
Date Received: 2024-01-27
Issue: Struggling to pay mortgage
Subissue: An existing modification, forbearance plan, short sale, or other loss mitigation reli
Consumer Complaint: XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXXXX/XX/XXXX Specialized Loan Servicing OFFER IN COMPROMISE SETTLEMENT XXXX XXXX XXXXXXXX Based on the property tax bill I was provided by SLS in XXXX my property tax bill from XX/XX/XXXX to XX/XX/XXXX so far {$1400.00} have been over collected by SLS. There was a negative {$13000.00} for property tax bill provided by SLS its {$11000.00}. I have been over billed here too. PUBLIC NUISANCE WHICH SLS HAS NO RECORDS WAS PAID {$6200.00} IS NOT ESCROW ACCOUNT XXXX XXXX XXXX WITH THIS ON XX/XX/XXXX. ON XXXX PROPERTY TAX BILL {$3600.00} AND XXXX {$2600.00} WAS PUBLIC NUISANCE. TO MAKE IT WORST NO ONE HAS RECORDS FOR THIS. In XXXX payment of {$60000.00} was made by the state of which {$17000.00} was collected statement date XX/XX/XXXX. XXXX. Mortgage interest form XXXX reported to IRS shows {$3200.00}. XXXX. On CFPB response XX/XX/XXXX SLS stated they only collected {$1400.00} property tax. XXXX XXXX XXXX took out {$73000.00} for principal interest and escrow. Property tax bill from XX/XX/XXXX to XX/XX/XXXX was {$11000.00} and should been all paid from {$99000.00} payment. Misapplied payment of {$29.00}, XXXX Based on my records, the total amount of money loss of {$60000.00} for which I am now considering state auditor to audit entire payment. With this above unresolved I do not {$60000.00} but {$29000.00} or nothing account should have XXXX balance. As a comprise I am offering {$30000.00} to pay off this loan and full in lieu of not filing new complaint for public corruption, fraud, financial mismanagement and requesting stated auditor to audit this account which states paid. Entire records of property tax bills, CFPB response and so on I was provided by SLS and XXXX XXXX XXXX to provide. ALSO PLEASE PROVIDE ME ATTACHED BILLED ITEM INVOICE FOR THE SERVICE PROVIDED COPY TO VERIFY WHO PROVIDED THE SERVICE. EXAMPLE OF THE SERVICE PROPERTY INSPECTION COULD BE ONE OF THOSE. IN THE SAME PAYMENT HISTORIES BILLED ITEM TO ME XX/XX/XXXX PROVIDE ME COPY OF INVOICE THAT WAS BILLED FOR {$590.00}, {$510.00} WHAT WAS THIS FOR, XX/XX/XXXX, XX/XX/XXXX, XX/XX/XXXX {$25.00} EACH WHAT WAS THIS FOR, XX/XX/XXXX FOR {$25.00} XX/XX/XXXX FOR {$88.00}, XX/XX/XXXX FOR XXXX AND {$75.00} EACH BILLED TWICE AND XX/XX/XXXX FOR {$360.00}. Please have this offer of settlement no later than XX/XX/XXXX so I have time to decide about this pay off. I am also requesting you to remove {$25.00} and {$30.00} fee charged. XX/XX/XXXX
Company Response: Company has responded to the consumer and the CFPB and chooses not to provide a public response
State: CA
Zip: XXXXX
Submitted Via: Web
Date Sent: 2024-01-31
Company Response to Consumer: Closed with explanation
Timely Response: Yes
Consumer Disputed: N/A
Date Received: 2024-01-21
Issue: Trouble during payment process
Subissue: Loan sold or transferred to another company
Consumer Complaint: I request the production of the promissory note associated with the financial agreement between us. It is crucial for both parties involved to have access to the original promissory note, as it serves as a key document outlining the terms and conditions of our agreement. To ensure transparency and clarity in our financial dealings, I kindly request that you provide the original promissory note for my records. This request is made in accordance with my rights as a party to the agreement. Please provide the requested document. In order to ensure transparency and compliance with applicable laws, I kindly request that you provide the following documents : A copy of the original debt agreement or contract. Proof of the assignment or transfer of the debt to your entity. Any legal documentation demonstrating your right to collect on this debt.
Company Response: Company has responded to the consumer and the CFPB and chooses not to provide a public response
State: CA
Zip: 94513
Submitted Via: Web
Date Sent: 2024-01-21
Company Response to Consumer: Closed with explanation
Timely Response: Yes
Consumer Disputed: N/A
Date Received: 2024-01-15
Issue: Struggling to pay mortgage
Subissue: Foreclosure
Consumer Complaint: Starting around the end of XXXX XXXX continuing through the present (almost 4 months), we have been gathering ALL the information and documents, combing through literally thousands of papers and files, needed to show what has transpired over the last 19 YEARS. Thats right, I said 19 YEARS! We NEVER throw anything away, no receipts, check stubs, bank statements, etc., and have ALL the documents that were sent to us that pertain to this Time-Barred Debt in question. Due to this being OVER 19 YEARS AGO, with 13 YEARS OF DORMANT, ZERO ACTIVITY, it has been, and still is, a VERY DIFFICULT, EXTREMELY SLOW, TIME CONSUMING, and DAUNTING TASK, at best. *******We will show that we have undoubtedly suffered IRREPARABLE HARM and DAMAGE, resulting from the UNQUESTIONABLE, UNREASONABLE, and UNORTHODOX 13 YEAR DELAY, which caused us to forego TIMELY OPTIONS to address the TIME-BARRED DEBT in question, such as through loss mitigation!!!******* *******We received, delivered by a XXXX XXXX XXXX XXXX a Notice Of Hearing On Foreclosure Of Deed Of Trust on XXXX XXXX XXXX. It states that the hearing will be on XXXX XXXX XXXX Also, in this notice, it WRONGLY STATES that the date of the Deed Of Trust is XXXX XXXX XXXX IT IS MOST DEFINITELY NOT!!! Why does it state that???******* *******We ask, FIRST, that the agencies/persons that will be reviewing this MASSIVE number of documents, files, and information, put a STAY on the foreclosure precedings until they can thoroughly examine the documents that show, and PROVES our defense. Once examined, we ask that the Deed of Trust be CANCELLED/SATISFIED, and/or that the respective agencies, take ALL ACTIONS WARRANTED against Specialized Loan Servicing, the servicer, LOGS Legal Group LLP, the attorney and/or debt collector, and Nationwide, the insurance company!!!******* Our story is as follows: My wife and I took out a second mortgage (and refinanced our first mortgage) on XXXX XXXX XXXX, almost 19 YEARS AGO, for $XXXX. Both the refinance and second mortgage were with Dream House Mortgage Corporation. The second mortgage was serviced by Specialized Loan Servicing. We have all the documents, EXCEPT FOR the 13 YEARS they sent NOTHING, pertaining to the Time-Barred Debt in question, also known as zombie debt, that was sent to us by the servicer. On XXXX XXXX XXXX, we made our first payment to the Time-Barred Debt in question, and the last payment was made on XXXX XXXX XXXX. On XXXX XXXX XXXX, we did a loan modification. On XXXX XXXX XXXX, we filed for XXXX XXXX Bankruptcy. We were discharged on XXXX XXXX XXXX. Keeping our home, of now over 24 years, where we raised 3 children, now helping raise 2 grandchildren, was, and STILL IS, of the UPMOST IMPORTANCE, as we continued making payments on BOTH the first mortgage and the Time-Barred Debt in question. On XXXX XXXX XXXX, we got a loan modification on our first mortgage, as we were told we were getting the Federal Government program Hope for Homeowners Loan Modification, in which the Time-Barred Debt in question was written off, or forgiven. We completed the required trial payments, finalizing the loan modification for the first mortgage, thus solidifying more that the Time-Barred Debt in question had been written off/forgiven. We also made our regular payments to the Time-Barred Debt in question, during the required trial payments on the first mortgage loan modification. The reason we continued making payments was, as per our understanding, the Time-Barred Debt in question would not be written off/forgiven until the trial payments of the first mortgage were completed, and the first mortgage loan modification became effective. The last statement (at the time) we received from Specialized Loan Servicing was on XXXX XXXX XXXX. Then, almost 13 YEARS LATER, we received a statement from them on XXXX XXXX XXXX. The last letter (at the time) we received from Specialized Loan Servicing was on XXXX XXXX XXXX. Then, almost 12 YEARS LATER, we received a letter from them on XXXX XXXX XXXX, which happened to be just a GENERIC PRIVACY NOTICE, that just came out of nowhere. *******AFTER XXXX XXXX, WE NEVER HEARD FROM SPECIALIZED LOAN SERVICING AGAIN...UNTIL...XXXX XXXX XXXX THE DAY THEY SENT A GENERIC PRIVACY NOTICE. WE HAD NO EARTHLY IDEA WHY THEY SENT THAT BECAUSE AGAIN, WE THOUGHT THAT IT HAD BEEN WRITTEN OFF/FORGIVEN IN THE LOAN MODIFICATION OF THE FIRST MORTGAGE. WE ALSO THOUGHT THAT WAS VERY STRANGE TO SEND A PRIVACY NOTICE, TO SAY IT MILDLY, BECAUSE IT HAD BEEN OVER 13 YEARS SINCE THEY HAD SENT THE LAST STATEMENT, SO NATURALLY, AGAIN, WE THOUGHT IT WAS WRITTEN OFF/FORGIVEN!!!******* *******The first statement they sent since XXXX XXXX XXXX, was on XXXX XXXX XXXX, 13 YEARS LATER!!! AGAIN, we honestly had NO IDEA why they sent that statement, as we first thought it was sent by MISTAKE. That TOO was VERY STRANGE to us, to say it mildly, because it had been over 13 YEARS since they had sent the last statement, and WE THOUGHT IT WAS WRITTEN OFF/FORGIVEN!!!******* Fast forward to NOW, ALMOST 19 YEARS LATER, thats right, ALMOST 19 YEARS LATER, in which we get a letter (sometime around the end of XXXX first of XXXX XXXX), NOT DATED, from XXXX XXXX XXXX XXXX acting as a debt collector, stating that we owe $XXXX (again, we are disputing the validity of the Time-Barred Debt in question, in its entirety). The original loan amount was $XXXX What??? Are you kidding me??? How on earth did they come up with that figure??? In the UNDATED letter, there are ZERO DETAILS, just a number, and a copy of the XXXX XXXX XXXX statement. That included statement (and the statements we have), shows they ILLEGALLY add $XXXX (the original interest and principal payment in XXXX), to the Time-Barred Debt in question, EVERY SINGLE MONTH, RESULTING IN ADDITIONAL PRINCIPLE ADDED TO THE LOAN. I think that is worth repeating. Specialized Loan Servicing ILLEGALLY ADDS PRINCIPLE to the Time-Barred Debt in question, EVERY SINGLE MONTH, THUS creating a LOAN that can NEVER BE PAID OFF!!! In all the loans that I have taken out over the last 35 years, I have NEVER had, OR heard of a loan, that ADDS PRINCIPLE to the BALANCE EVERY SINGLE MONTH, THUS creating a loan that can NEVER BE PAID OFF!!! I have also NEVER heard of a lender that waits ALMOST 19 YEARS to try and collect on a Time-Barred Debt, that the customer thought was WRITTEN OFF/FORGIVEN!!! Thats just plain INSANITY, but more importantly, its ILLEGAL!!! It states in the letter that we Call or write to us by XXXX XXXX XXXX, to dispute all or part of the debt. If you do not, we will assume that our information is correct. It also states that If you write to us by XXXX XXXX XXXX, we must stop collection on any amount you dispute until we send you information that shows you owe the debt. You may use the form below or write to us without the form. You may also include supporting documents. We are DISPUTING ALL the Time-Barred Debt in question!!! On XXXX XXXX XXXX, my wife and I sent Specialized Loan Servicing, and XXXX XXXX XXXX XXXX a Dispute Letter to that UNDATED letter. We sent it VIA CERTIFIED MAIL. Then, I receive two separate letters from Specialized Loan Servicing, both dated XXXX XXXX XXXX, one stating that they had received the XXXX XXXX XXXX, Dispute Letter we sent them, and the other stating that they had received our cease-and-desist letter. Next, I receive another letter from them (SLS), dated XXXX XXXX XXXX, stating that they needed more time to review the case. Then, on XXXX XXXX XXXX, I receive 100 pages (32 pages are duplicate statements...hmmm...thats strange), of mostly statements and loan activity reports, from Specialized Loan Servicing. I think thats worth repeating...It took them almost 2 months to respond to our XXXX XXXX XXXX, letter, and they come up with 32 PAGES OF DUPLICATE STATEMENTS? Do you think that was done on purpose? Absolutely, of course it was! They wanted to INFLATE the documents to make it look like they really have some big case. Next, we receive a 28-page document, dated XXXX XXXX XXXX, from XXXX XXXX XXXX XXXX, that mirrors the same information that was sent in the previous letter by Specialized Loan Servicing. Lastly, to date, we receive a letter from XXXX XXXX XXXX XXXX, dated XXXX XXXX XXXX, of the supposedly updated amount from the Time-Barred Debt in question. Taken from part of the Consumer Financial Protection Breau (Regulation F), it states that Regulation F prohibits a debt collector from suing or threatening to sue to collect a time-barred debt.14 As the CFPB explained in finalizing this prohibition, a debt collector who sues or threatens to sue a consumer to collect a time-barred debt explicitly or implicitly misrepresents to the consumer that the debt is legally enforceable, and that misrepresentation is material to consumers because it may affect their conduct with regard to the collection of that debt, including whether to pay it. 15 Regulation Fs prohibition on suits and threats of suit on time-barred debt is subject to a strict liability standard.16 That is, a debt collector who sues or threatens to sue to collect a time barred debt violates the prohibition even if the debt collector neither knew nor should have known that a debt was time barred. 17 Accordingly, a debt collector who brings or threatens to bring a State court foreclosure action with respect to a time-barred mortgage debt may violate the FDCPA and Regulation F. This is true even if the debt collector neither knew nor should have known that the debt was time barred. We have been current on our first mortgage ever since I built our house, and we moved in on XXXX XXXX XXXX. Yes, like most people, we have been affected by several life situations that hit us very hard, like the Great Recession in XXXX, AND the XXXX XXXX in early XXXX, and we STILL havent fully recovered from the latter. I say that because there has been some equity in the house over the last several years, BUT after our county JUST FINISHED property tax re-evaluations, starting with the XXXX XXXX tax bill, EVERYONES property values INCREASED to between 25 and 50 percent. Our property values increased almost 35 percent, which created 35 percent additional positive equity. Now with that increased positive equity, and the first mortgage still CURRENT, they are ready to try to CASH IN, BIG TIME!!! ALSO, which is VERY UNUSUAL, UNCOMMON, UNCHARACTERISTIC, and ILLEGAL, is that on XXXX XXXX XXXX, I received a call from a representative from XXXX, our homeowners insurance company. He stated that they received information from Specialized Loan Servicing, INSTRUCTING them to CANCEL OUR INSURANCE POLICY, effective on the renewal date of XXXX XXXX XXXX, because they were going to foreclose on our house. What??? Are you kidding me??? First, that is ILLEGAL, as NO ONE has the power to cancel my homeowners insurance policy, EXCEPT ME, unless for non-payment of such said insurance, in which the right to cancel at that point would fall in the hands of the insurance company!!! That said insurance bill is paid yearly, out of the escrow account, that is set up within our first mortgage, which is included in our monthly payment (principal, interest, insurance, and property taxes), adjusted annually. Second, why would they do that, UNLESS they were trying to UNLAWFULLY inflict MORE IRREPARABLE HARM and DAMAGE on us!!! Lastly (for now), we will MOST DEFINITELY investigate this more thoroughly with NOT ONLY the servicer, BUT the INSURANCE COMPANY (XXXX) as well. We ask that the Consumer Financial Protection Bureau, and their respective agencies, mirror the same. As of XXXX XXXX XXXX, we NOW HAVE homeowners insurance coverage, that will go into effect at XXXX XXXX on XXXX XXXX XXXX, the date that it was supposed to renew on with XXXX. I spent several days getting quotes and talking to several different insurance companies. It HAS BEEN PAID IN FULL, BY US, as of XXXX XXXX XXXX. We DEMAND that with the EVIDENCE presented here, the Consumer Financial Protection Bureau, and their respective agencies, take ALL ACTIONS WARRANTED against Specialized Loan Servicing, the servicer, and XXXX XXXX XXXX XXXX the attorney and/or debt collector, as FIRST in aiding the stoppage of the planned foreclosure proceedings. We also DEMAND that the Consumer Financial Protection Bureau, and their respective agencies, take ALL ACTIONS WARRANTED against XXXX, the insurance company, as they have forced us into wasting more valuable time, scrambling around, adding ADDITIONAL COSTS not warranted, to SIMPLY provide insurance to cover OUR PROPERTY starting on XXXX XXXX XXXX the date in which it is supposed to renew. We STRONGLY feel that with ALL OF THE EVIDENCE SHOWN, the Consumer Financial Protection Bureau, and their respective agencies, will ACT PROMPTLY and FORCEFULLY, STOPPING THE FORECLOSURE, AS TIME IS OF THE ESSENCE!!! Specialized Loan Servicing and/or the debt collector should be aware of, and are in violation of, the rules and procedures outlined in, BUT not limited to, the XXXX XXXX XXXX XXXX XXXX XXXX XXXX......CONSUMER FINANCIAL PROTECTION BUREAU 12 CFR Part 1006 Fair Debt Collection Practices Act (Regulation F); Time-Barred Debt.......CONSUMER FINANCIAL PROTECTION ACT OF 2010.......12 CFR Part 1024 - Real Estate Settlement Procedures Act (Regulation X).......and there are SEVERAL Truth in Lending Act (TILA) and/or Real Estate Settlement Procedures Act (RESPA) violations, as well. Explained in the Consumer Financial Protection Bureau 12 CFR Part 1006 Fair Debt Collection Practices Act (Regulation F); Time-Barred Debt: time-barred debts are debts for which the applicable statute of limitations has expired. Along with private plaintiffs, the Consumer Financial Protection Bureau and state attorneys general have the authority in appropriate circumstances to take action against institutions and individuals violating The Fair Debt Practices Act and Regulation F. The Consumer Financial Protection Bureau will be monitoring the debt collection market for violations related to time-barred mortgages as well as to time-barred non-mortgage debt. In XXXX XXXX, the statute of limitations for collecting on mortgage debt is 10 years. It has been almost 19 YEARS, YES, 19 YEARS, consequently, the statute of limitations has EXPIRED, deeming it NOT COLLECTIBLE OR REDEEMABLE. XXXX XXXX XXXX XXXX XXXX, which states that: Within ten years, an action - 3) For the foreclosure of a mortgage, or deed in trust for creditors with a power of sale, of real property, where the mortgagor or grantor has been in possession of the property, within ten years after the forfeiture of the mortgage, or after the power of sale became absolute, or within ten years after the last payment on the same. 4) For the redemption of a mortgage, where the mortgagee has been in possession, or for a residuary interest under a deed in trust for creditors, where the trustee or those holding under him has been in possession, within ten years after the right of action accrued. Also, the CFPB also notes: If you were contacted by a debt collector for a mortgage that you havent heard about in years, then you might have a zombie mortgage. The Consumer Financial Protection Bureau has received a concerning number of consumer complaints and has heard from advocates about what are sometimes referred to as zombie second mortgages. Homeowners may think that a mortgage debt was forgiven or was satisfied long ago by loan modifications or bankruptcy proceedings. Then years later, debt collectors reach out threatening foreclosure and demanding the homeowner pay the outstanding balance of the mortgage, along with years of interest and fees. Here is one consumers story: We obtained a second mortgage with [company] when we purchased our home in XXXX. Two years later in XXXX property values started to decline and mortgage companies started to go out of business which led to losing my job of 10 years. They were extremely difficult times for my family financially and emotionally. We started to fall behind with our bills and our mortgages. I was able to modify my first mortgage lender. I continued to fall deeply behind with our second mortgage with [company]. We tried to modify the second mortgage several times after we fell behind but [company] would not work with us and gave us the run around. Through the years I tried again to modify not knowing who can assist us. We did not receive phone calls from [company] for a few years. Not until a year ago or so when property values started to increase, we have aggressively been receiving letters requesting large amounts of money to bring the loan current, money that we do not have. Entities selling or collecting on these second mortgages who are mortgage servicers may also be subject to certain requirements under the Real Estate Settlement Procedures Act, the Truth in Lending Act, and the CFPBs mortgage servicing regulations. For example, unless an exemption applies, the CFPBs mortgage servicing regulations require servicers to provide periodic statements to consumers. It is illegal for debt collectors to sue or threaten to sue to collect debts past the statute of limitations. Some debt collectors, who sat silent for a decade, are now pursuing homeowners on zombie mortgages inflated with interest and fees, said CFPB Director XXXX XXXX. We are making clear that threatening to sue to collect on expired zombie mortgage debt is illegal. The National Consumer Law Center states that: Claims under TILA and RESPA can be raised against the owners and servicers of zombie second mortgages. Junior mortgages are not exempt from most of the important TILA and RESPA provisions, although some requirements do not apply to HELOC loans. Both TILA and RESPA allow claims for statutory penalties, compensatory damages, and attorney fees. These laws also establish an important industry standardthat owners and servicers of mortgage loans must keep borrowers regularly informed about the status of their loans. Claims under TILA and RESPA can include: TILA transfer of loan ownership notices. Effective in XXXX, provisions of Regulation Z require that new owners or assignees of mortgage loans inform borrowers of a transfer of loan ownership within thirty days after a loan is sold. 12 C.F.R. 1026.39(b), implementing 15 U.S.C. 1641(g). Transfer of ownership notices must provide specific information that borrowers need to understand their current payment obligations. The failure to inform borrowers of sales of their loans contributes to the expectation that there is no need take action regarding an ongoing payment obligation. RESPA notice of transfer of mortgage servicing rights. A transfer of servicing rights for a second mortgage triggers obligations under RESPA for both the transferor servicer and the transferee servicer to provide a timely notice to the borrower. 12 U.S.C. 2605(b); Reg. X 12 C.F.R. 1024.33(b). Failure to give timely notice deprives a borrower of another important tool for ascertaining the status of an account. The TILA periodic statement requirements. Amendments to the TILA periodic statement rule were designed to prevent the surprise appearance of a long-dormant second mortgage together with unexpected claims for years of accrued interest and fees. See Reg. Z, 12 C.F.R. 1026.41, implementing 15 U.S.C. 1638(f). Under the rule, servicers must keep borrowers informed about the status of a second mortgage, including whether it has been charged-off or re-activated for collection, as well as who currently owns the loan and how to contact appropriate parties for up-to-date information. The rule requires heightened periodic statement disclosures when the loan is in arrears. The initial version of this periodic statement rule went into effect in XXXX XXXX. Amendments effective in XXXX XXXX added requirements for disclosing the charged-off status of a loan and for giving notice before collection on a charged-off loan resumed. 12 C.F.R. 1026.41(e)(6). The amended rule bars collection of interest and fees that a lender alleges accrued after the lender gave notice of charge-off and before it gave notice of resumption of payments. 12 C.F.R. 1026.41(e)(6)(ii)(B). TILA rescission. A successful TILA rescission voids a lenders security interest in the borrowers real property, effectively barring a foreclosure. Equitable defenses to foreclosure may be available when the owner of a zombie mortgage seeks to foreclose after the account has remained inactive for many years. The foreclosure may be barred under the doctrines of unclean hands or laches. The elements of laches under a typical state law are: (1) the creditors knowledge of the cause of action, (2) an unreasonable delay in commencing the action, and (3) damage resulting from the unreasonable delay. Borrowers who believed their loans had been written off or modified and could not communicate with anyone about the loan for years may have foregone timely options to address the loan default, such as through loss mitigation. As we are disputing the validity of the TIME-BARRED DEBT in question, in its entirety, this document will serve to as that, and as a complaint to several agencies, attaching the relevant files when possible. In no way should this document and complaint be construed as our complete and final defense, as it is not. *******The mortgage company is Specialized Loan Servicing, whom the Consumer Financial Protection Bureau issued a 32-page consent order against them on XXXX XXXX XXXX (File No. 2020-BCFP-0002), for these SAME ACTIONS******* The Bureaus investigation found that since XXXX XXXX, Specialized Loan Servicing violated RESPA and Regulation X by taking prohibited foreclosure actions against mortgage borrowers who were entitled to protection from foreclosure, and by failing to send or to timely send evaluation notices to mortgage borrowers who were entitled to them. These violations also constitute violations of the Consumer Financial Protection Act of 2010. In some cases, Specialized Loan Serving violations of Regulation X short-circuited the protections against foreclosure for consumers whose homes were ultimately foreclosed upon. *******On XXXX XXXX XXXX, XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX, did an investigation titled What is a zombie mortgage? Couple facing foreclosure because of 'zombie' loan | What to know. It was about a XXXX XXXX couple facing foreclosure because of what's known as a "zombie loan, as it refers to a second mortgage that seemed to have been forgiven or written off - until years later when a collector reaches out about the unknown, but supposedly unpaid, debt. It was very similar to our case, and of course, Specialized Loan Servicing was the servicer. At the end of the story, they stated that XXXX XXXX XXXX XXXX XXXX tried to contact Specialized Loan Servicing for a statement but no one responded to an email or could be reached by phone.******* *******There are MANY stories and reviews by people across the United States that Specialized Loan Servicing and its Debt Collectors have treated them exactly the way we have been treated. Its hard to imagine that after almost 19 years, a Time-Barred Debt, zombie loan, that WE THOUGHT WAS WRITTEN OFF, could DESTROY a family, possibly making them LOSE YEARS worth of hundreds of thousands of dollars in built up equity, and even WORSE, possibly LOSING THEIR HOME. *******Due to the seriousness of this matter, it is time, AGAIN, for the Consumer Financial Protection Bureau, the State of XXXX XXXX, and their respective agencies to take ACTION, NOW, IMMEDIATELY!!!******* *******We have undoubtedly suffered IRREPARABLE HARM and DAMAGE, resulting from the UNQUESTIONABLE, UNREASONABLE, and UNORTHODOX 19-YEAR DELAY, which caused us to forego TIMELY OPTIONS to address the TIME-BARRED DEBT in question, such as through loss mitigation!!!******* *******We are DISPUTING the validity of the TIME-BARRED DEBT in question, in its ENTIRETY, conforming to the RULES and LAWS set forth by the Consumer Financial Protection Bureau, the XXXX XXXX XXXX XXXX, and their respective agencies. Based on those RULES and LAWS, the FACTS presented show that WE DO NOT OWE the TIME-BARRED DEBT in question, as it is not COLLECTIBLE OR REDEEMABLE!!!******* *******We are stating, as one of our defense claims, that the debt in question is TIME-BARRED by the applicable statute of limitations listed below, and that TIME-BARRED DEBT, in which the statute of limitations has expired, is no longer COLLECTIBLE OR REDEEMABLE!!!******* *******We are also stating, as another defense claim, that we have undoubtedly suffered IRREPARABLE HARM and DAMAGE, resulting from the UNQUESTIONABLE, UNREASONABLE, and UNORTHODOX 19-YEAR DELAY, which caused us to forego TIMELY OPTIONS to address the TIME-BARRED DEBT in question, such as through loss mitigation!!!*******
Company Response: Company has responded to the consumer and the CFPB and chooses not to provide a public response
State: NC
Zip: 270XX
Submitted Via: Web
Date Sent: 2024-01-15
Company Response to Consumer: Closed with explanation
Timely Response: Yes
Consumer Disputed: N/A
Date Received: 2024-01-18
Issue: Trouble during payment process
Subissue: Payment process
Consumer Complaint: this company SPECIALIZED LOAN SERVICING took over my loan & from day one been nothing but headache!! i've called customer service & get transferred to 5 different people & they all say " not my department "!!. here 's lastest problem!! on my XXXX payment due statement they say i am {$710.00} late. here 's sequence : i sent check on XX/XX/XXXX ', they cashed it on XX/XX/XXXX ' & they posted on XX/XX/XXXX ' that payment late!! they had the money!! they held the payment of {$710.00} & the payment due notice i got for XX/XX/XXXX XXXX ', show 's {$710.00} portion of payment is late & charge me late fees!!!! they had the money, i went to credit union & got a copy of the cashed check!!!!!!!! they are really crooked & i can't get a straight answer out them!!!!!!!! i need help!!!!!!!!!!! thank you!!!!!
Company Response: Company has responded to the consumer and the CFPB and chooses not to provide a public response
State: WA
Zip: 98373
Submitted Via: Web
Date Sent: 2024-01-18
Company Response to Consumer: Closed with explanation
Timely Response: Yes
Consumer Disputed: N/A