Specialized Loan Servicing Zombie Second Mortgage Defense

Specialized Loan Servicing (SLS) is a subsidiary of Computer Share Loan Services. Currently, the company has three locations in Ponte Vera Beach, Florida, Denver, Colorado, and Tempe, Arizona. Computer Share Loan was originally an Australian company and it was in 2011 when they purchased Specialized Loan Servicing. Computer Share Loan operates many different financial companies and is a publicly traded company.

Is Specialized Loan Servicing a Legitimate Company?

Specialized Loan Servicing is a legitimate company that services residential mortgages. Many consumers receive a notice from Specialized Loan Servicing when they have their original mortgage with Country Wide or Bank of America.

Is Specialized Loan Servicing a Debt Collector?

In May 2020, the Consumer Financial Protection Bureau ordered Specialized Loan Servicing to pay millions of dollars in financial relief to its customers. However, Specialized Loan Servicing is not a debt collection company. The company states that it is an asset management company. Many of the loans the company now owns once belonged to Bank of America.

While Specialized Loan Servicing does service delinquent debt and tries to collect it. Often when they try to collect on the debt, they charge customers much higher fees than what was originally owed on the debt. If they cannot collect on a first or second mortgage, they will start foreclosure proceedings against the borrower. Zoom Info approximates that Specialized Loan Servicing has made more than $800,000,000 annually relating to its business services.

Better Business Bureau Complaints Against Specialized Loan Servicing

Currently, Specialized Loan Servicing has a rating of 1.04 out of 5 on the Better Business Bureau. The company has a total of 799 complaints lodged against it, with 163 of those being closed in the last year. One of these complaints states that Specialized Loan Servicing charged a customer more than what was owed on a home loan. The company was using old tax returns to make it appear as though the customer owed more than they did.

Another customer stated that Better Business Bureau reported inaccurate information to all three credit bureaus. This negatively affected their credit score. These are just some of the deceptive tactics the company has used when trying to collect on debts.

Specialized Loan Servicing Mortgage Foreclosure

If Specialized Loan Servicing has been calling you or has notified you that they are going to initiate foreclosure proceedings, it is possible that they have purchased your first or second mortgage and that they have a legal right to the property. Still, you must remember that Specialized Loan Servicing must prove that they own your home loan.

Documentation often gets lost when first and second mortgages are purchased by one company from another. Because Specialized Loan Servicing purchased many of its home loans from Bank of America and Country Wide, it is not uncommon for Specialized Loan Servicing to be unable to prove that they are the owners of the loan.

Can Specialized Loan Servicing Foreclose on a Second Mortgage?

When a mortgage lender or servicer owns your second mortgage, they do have the right to foreclose on it. This is true even when the first home loan payments are current. When Specialized Loan Servicing wants to foreclose on a second mortgage, they must obtain the approval of the first mortgage holder before they can initiate proceedings. If the owner of a second mortgage does not receive approval to proceed with a foreclosure, they do still have a right to try and recover their losses. This is known as a deficiency judgment.

It is Important to Be Proactive with Second Mortgage Holders

Many borrowers of second mortgages are surprised to learn that the loan is in foreclosure because they took out the loan years ago. After defaulting, they do not hear from Specialized Loan Servicing or the original mortgage holder. However, after hearing from the company, it is important to be proactive. By acting early, you can identify and evaluate if there were servicing mistakes or other issues that place you in a good position to negotiate the amount of debt so it is reduced.

Customers who have not acted quickly in the past have found that Specialized Loan Servicing suddenly shows up and submits a payoff request. These requests often have inflated balances as well as charges, late fees, penalties, and interest that are unaccounted for. This can make it impossible to sell the property or refinance the first or second mortgage on it. Some ways to be proactive are as follows:

• Review initial correspondence promptly: It is important to watch for correspondence from Specialized Loan Servicing if they are assigned servicing rights of your current second mortgage. They must notify you in writing and many times, they fail to do this. They must also notify you within a certain period.
• Unexpected increases in the amount of the second mortgage: If you have tried to sell or refinance your property and have received payoff demand from Specialized Loan Servicing, you should examine it thoroughly to determine if there have been sudden and unexpected increases in the amount.
• Look for a Notice of Intent to Accelerate Debt and Foreclosure: Specialized Loan Servicing may mail you many different types of documents but among the most important are the Notice of Default and the Notice of Intent to Accelerate Debt and Foreclosure. These documents trigger the initiation of foreclosure proceedings, so it is important to take them seriously. At this point, it is important to speak to a Fort Lauderdale foreclosure defense lawyer.

Our Zombie Second Mortgage Foreclosure Defense Lawyers in Fort Lauderdale Can Assist with Your Case

At Loan Lawyers, our Fort Lauderdale zombie second mortgage foreclosure defense lawyers are very familiar with second-lien mortgages and will help you navigate the process and take action against Specialized Loan Servicing for the legal violations it commonly commits. We have seen instances when the company has not taken borrower requests seriously or has been unresponsive to borrowers until they have legal representation. Call us now at (954) 523-4357 or contact us online to schedule a free consultation.