Shellpoint Mortgage Servicing is one of the five largest non-bank mortgage servicers in the country. The company has headquarters in Greenville, South Carolina but they have three other locations throughout the country. The company also services mortgages throughout the United States foreclosing on homeowners, including those right here in Florida. Many times, Shellpoint wrongfully forecloses on mortgage loans. If you have received notice that Shellpoint Mortgage Servicing is going to start foreclosure proceedings, it is important to remain calm. There are defenses available in these cases. Below, our Florida foreclosure defense lawyers outline what these are.
Complaints Filed Against Shellpoint Mortgage Servicing
If you have a complaint against Shellpoint Mortgage Servicing, you are not alone. The company has had many complaints filed against them with the Better Business Bureau (BBB) and many other private and public agencies. Some of the most common complaints on the BBB website are as follows:
- Placing accounts on payment stops, even when all balances have been paid
- Overcharging borrowers without reason or notice
- Claiming that borrowers were 30 days late when homeowners had documentation proving that was not true
- Claiming that they had not yet received a check before accepting a phone payment and then cashing the check for the same payment that was already made
- Claiming that they released funds for a loss draft claim but the borrower never received the funds
- Refusing loan assistance for a lack of paperwork even though the borrower had sent in all requested paperwork
- Withdrawing two months of payments for one month and stating they would return one payment but failed to
Shellpoint Mortgage Financing is accredited with the BBB and the agency has given them an A+ rating. Customers on the BBB website have also given the company an average rating of 1.05/5. There have been 1,465 complaints filed against them in the last three years, and 621 complaints have been closed against the company in the last year.
A Defense Against Mortgage Servicing Companies
As their name suggests, Shellpoint Mortgage Servicing is a mortgage servicer. This means that they do not actually own the home loan. Instead, they are responsible for administering the mortgage, which includes accepting payments and posting them to borrowers’ accounts. While Shellpoint may service your mortgage, they do not own it. Only the company that originally provided you with the original home owns your mortgage.
If Shellpoint Mortgage Servicing has notified you of foreclosure, they may or may not own your loan. If they do not own your loan, they do not have legal standing, or grounds, to file a foreclosure lawsuit. A Fort Lauderdale foreclosure defense lawyer can review the facts of your case to determine if Shellpoint owns your mortgage loan.
Respond to Any Notice of Default Right Away
Even if Shellpoint Mortgage Servicing does not own your mortgage loan, it is still critical that you respond to any notice of default or foreclosure. If you do not respond, Shellpoint will still go to court and will ask the judge for a default judgment. If you have not responded to the notice, they will likely be successful with this request and will automatically win their case without giving you the opportunity to defend yourself.
After receiving notice of any kind, you should first speak to a foreclosure defense lawyer. A lawyer can review your mortgage loan and other relevant documents to determine if Shellpoint owns your home loan. A lawyer can also help you prepare your response, which may include several defenses, such as if Shellpoint does not own your mortgage.
Forbearance as a Defense to Foreclosure
Shellpoint Mortgage Servicing does provide a forbearance option in some situations. If Shellpoint agrees to forbearance, it can stop or reduce your payments for a specific period of time. Forbearance can give you enough time to improve your financial situation and get back on your feet. It is also not as damaging as having a foreclosure appear on your credit report while also allowing you to stay in your home.
A Repayment Plan as a Defense to Foreclosure
If Shellpoint agrees to a repayment plan, it can make it more affordable for you to get current with your delinquent mortgage payments. With this type of plan, a portion of the past due payments are added to your current mortgage payments. The repayment plan extends for a specific period of time so you can bring your loan current. A repayment plan allows you to resolve your delinquency, catch up on payments that are past due, protect your credit score from foreclosure, and stay in your home.
A Loan Modification as a Defense to Foreclosure
One of the most common defenses to foreclosure with any mortgage lender or servicer is a loan modification. Through a loan modification, you can change any part of your mortgage including the interest rate, the life of the loan, or even the principal amount. You will have to submit an application with Shellpoint Mortgage Servicing and they will have to approve it. While your loan modification is under review, it is against the law for servicers and lenders to proceed with foreclosure.
A Short Sale as a Defense to Foreclosure
Another common defense to foreclosure is a short sale, although this will not allow you to stay in your home. A short sale occurs when Shellpoint allows you to sell your home for less than what is owed on the mortgage. Even though you cannot keep the home after a short sale, it is less damaging to your credit score than a foreclosure.
Our Foreclosure Defense Attorneys in Fort Lauderdale Can Help You Through the Process
It is true that there are many defenses to foreclosure, but you should not argue them on your own. At Loan Lawyers, our Fort Lauderdale foreclosure defense attorneys can advise on the best option for you and help you through the process so you obtain the best possible outcome. Call us today at (954) 523-4357 or fill out our online form to schedule a free consultation and to learn more about how we can help.
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Loan Lawyers is made up of experienced consumer rights attorneys who use every available resource to develop comprehensive debt solution strategies. Our goal is to take on those burdens, resolve those problems, and allow our clients to sleep soundly knowing they are on the path to a better future.