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Specialized Loan Servicing


How the sls scam works

Complaint Rating:  99 % with 164 votes
99% 164
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United States
How the sls scam works

This is a letter we sent to our attorney to explain how the sls scam works. We are publishing it in the hope that others will better understand what’s happening to them and why its impossible to deal with this company as they have the mentality of looters.

May 31, 2010

Our rental house is about to go into foreclosure. We’ve been battling a company called s. L. S. Llc (Specialized loan servicing) for 10 months. At the beginning they pretended to be a legitimate company, with a special program designed to modify our mortgage interest from the 91 / 2% percent we were paying to a more reasonable rate, (In our case around 6%) , which we agreed to) . Then as the imaginary escrow was getting ready to close, sls personnel posing as professional finance officers who were actually call center workers, with no expertise in finance, working off a prepared script, began to feign the need for additional documents, which they already had in their possession. It finally came out, that they had never even submitted the paper work to the lender. The whole process was part of a scam to string along the homeowners, as long as possible, so as to be able to mount up tremendous charges to the underlying mortgage holder, that sls was supposed to be servicing the loan for. They did this by telling us the exact amount of the new payments and interest, and appraiser came out to look at the property, etc, etc, etc… each week sls would have their call center people call with another phony call and the need of “one more thing”. This is a very clever and subtle scam. The result is that the property holder’s credit is damaged by the lies of the phone center people and eventually they are left unable to refinance with a legitimate company, the property goes into foreclosure, the mortgage holder gets a property back at a loss of thousands of dollars, and in the end i suspect fha, freedie mac and fannie mae get stuck for millions of dollars of tax payers money. And sls continues to get richer one call at a time. At first, we thought it was just us, but we went on line and found that this was part of a system wide scam as we read what other people had to say it was the exact same story as ours. Even though we have letters and tapes documenting these events i’ve come to believe there’s nothing we can do to change the outcome and we are really getting tired of fighting these people.

Complaint comments Comments (52) Complaint country United States Complaint category Mortgage Companies


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D  10th of Aug, 2010 by    +2 Votes
I am in a similar situation only mine has been over property tax that they say the will help pay out like a corperate loan and add it to my mortgage but in reality they have led me to believe how easy it would be... since march this year iv'e been prepareing my self with all of my opptions, refi or modifi or use there opption which has now turned into a nitemare. sure will help... but only when you reach forcloser. the run around has to stop. I spoke to many employees I think in every department within sls even the good old team leaders that have said they would help. now it's 5 months later and they can't seem to find documents sinnce june and the executive deprt. has by mistake misinformed me, sorry i'll check into that bla bla bla so i've asked for the the president of sls. go figure, shes out too! so i'll be contacting my attorney in the mean time while I wait on the executives to call me back. very pissed about the matter, disagree is not even close
N  12th of Jul, 2017 by    0 Votes
@singlemomfromheaven Synopsis of what accrued with SLS and Bank of America
I bought the House in January 2007 with an interest only mortgage with the intension of refinancing after the two years to a 30 year mortgage. Due to the financial crises I was not able to do so I hired an attorney to modify the loan because at this time the house was worth half of what purchased it for ($515, 000).
The attorney advised me to stop making payments on the mortgage because that would be the only way to get a loan modification. I tried to modify the loan 3 times because it was impossible because the bank kept switching personnel and banks altogether.
In 2014 I was sent a certified request to appear in court so I did, the representative of the bank was very surprised to see me there. He said “oh you showed up” I said yes I am in the middle of a bank modification. He told me the Bank which had my loan was selling it to another bank and I had to agree. I asked the judge if I had a choice in the matter and he said no, so I agreed.
I told the judge that I was in the middle of a loan modification and by changing banks the process would have to start over again. Judge granted me two month and told the New Bank “Specialized loan Service” to modify my loan within the next two months. Note: Bank of America Transferred the loan to Specialized Loan Servicing (which is not a bank that can modify a loan).
Within those two month SLS requested an incredible amount of paper work including a tenant’s income tax return which I was renting the guest house to. I gave them every piece of paper they requested and more. Every time I called to confirm they received the faxes they would tell me No and to send them again in addition to tell me that it would take them up to four days to receive a fax because they needed to be sorted before the agent would receive it. SLS would not allow me to mail them certified turn receipt of the requested documents.
Several weeks and days prior to the expiration day the Courts had given I called them to ask what stage of the modification I was at. SLS stated my modification was with the underwriters and I really could not speak to any one there. I called again a couple of days before the due date because I had not received anything in writing. SLS stated that due to the work the modification was not completed but they asked the courts for an extension on my case. Two days later after the courts due date a realtor calls to ask me if I would accept $1000 for cash for keys. I told him I was not selling my house and he told me the house was foreclosed and it was purchased by the Bank of America for $180, 000 and he was the assigned by the bank.
Next call was to Christian Posada real estate attorney and contacted SLS, shortly after we were request to appear in court to give back the original documents and release the mortgage owed. This was in June 2014 and I had heard nothing back from them until now. They are requesting a sum of $259, 705.00 within 30 days or they will start foreclosure again and the loan still owes $360, 000.00. Again I retained Christian Posada as my attorney in this matter. I am joining wwww.tzlegal.com class action law suit against SLS
Elsa Cuellar Property address: 12988 61 St N. West Palm Beach, FL 33412 email: elsacuellar63@yahoo.com
A  14th of Feb, 2011 by    +2 Votes
Worst company in the history of mortgage banking. Where these clowns came from and why the Feds allow them to operate is beyond believe. They hold your checks so they can claim late fees, try to screw you every corner they can, you can't even get on line to register to view your payments. They will not even send a bill each month like normal companies will do. In other words, these guys are shitbirds of the highest order.
They deserve to be put out of operation.
A  20th of Apr, 2011 by    +4 Votes
There has to be a law that does not allow Banks and Loan Servicing Companies to act in this manner. My second was with GMAC who gave to SLS.
N  14th of Jun, 2012 by    +1 Votes
Neilanders vs. goliath
In suing rms residential properties llc and specialized loan servicing llc
See piggybankblog.com for full article and more

Mr. and mrs. neilander bought their three bedroom home in connecticut in 2006 for themselves and their three small children. aegis lending corporation originated their loan. it seemed that they were living the american dream, until the neilanders started reading various blogs and news articles that informed them that their “american dream” might have turned into an “american nightmare” because of what the commercial banks had done as a result of their greed. you see — the neilanders found out that american homeowner’s around the nation might be paying the wrong company for their mortgage payment. they learned that in most cases there are multiple trusts and multiple beneficiaries existing — which makes it virtually impossible for the correct owner of the debt to be accurately identified. the neilander’s thought they were simple questions — however — they thought wrong — because the neilanders have been asking those same questions for almost two years now without an answer. this is because the potentially irregular, fraudulent, illegal and simply abusive servicing company (specialized loan servicing) or (sls) simply told the neilanders that they did not have the right to know the answer to these questions. however, this is a very complex issue that judges and politicians are having a hard time wrapping their mind around. this is because the banks have done an excellent job in creating subsidiary – after subsidiary – after subsidiary — and affiliate - after affiliate – after affiliate – and corporate veil - after corporate veil – after corporate veil — just so they can hide behind all the companies they created or contracted to avoid ever being held accountable.

Therefore, unfortunately, I am guessing that the honorable judge janet hall watching darrell neilander and the bank attorney going back and forth in court — while darrell asks the bank attorney who owned his loan and when they owned it — simply might look a lot like something out of that abbot and costello standup. for example, let’s pretend that you are the judge watching darrell (abbott) ask the attorney (costello) who owns what – when – where – and how — and let’s see if you as the judge can follow the conversation in a way that you can wrap your mind around what company owned the loan at what time — and who owns it now. now the judge may wonder why the other investors are not making any claims to the loan if there are multiple investors and multiple beneficiaries – while not understanding that they are not making any claims because they have already been paid off by the insurance. that is why in the end we hope that the honorable judge janet hall and all judges will realize that it was basically one big insurance fraud scam from the beginning – to middle – to end — in which you the taxpayer were scammed out 16.6 trillion dollars and your homes.

Now remember mr. neilander — they are not too big to hit — but they are too big to miss.

They may also be too big to fail — but they are not too big for jail. (wink)

Their names are the neilanders and they are fighting back!

A  13th of Aug, 2012 by    -1 Votes
Sls seems to be a scam and not a well structure company, same run around I'm getting still today
N  29th of Oct, 2012 by    0 Votes
This is identical to what is happeningt to me now...I thought I had not sent in the right
paperwork they kept requestin g and i sent in three times and now gert letter that hey
are closing my file and charging me for som eappraisal they didn't do...surely some
government entity can do something about these crooks.

Randy Murray
Clarkesville, Ga
N  28th of Mar, 2013 by    0 Votes
My loan is also with SLS. I have sent information three times for a modification. My husband and I lost over $30000 in income and they told us that we had not had a significant amount of loss of income to qualify for a modification. Since then we have separated and I asked for another modification based on my income. One person there told me that I had sent the necessary information ( just my info due to the separation). I got another phone call saying that I didn't have all the info, that my ex husbands info also needed to be included. I don't understand why, as his income is no longer brought into the household. I don't understand their tactics, or how they can say that $30000 is not a significant loss of income. I think all who have their loans with them should either file a class action lawsuit or all send complaints to the federal government about them. What they are doing is not right.
N  15th of Apr, 2013 by    0 Votes
Has anyone tried to sue this company SLS?
A  24th of Apr, 2013 by    +1 Votes
We too have been victims of the scams of SLS Specialized Loan Servicing. It feels like this company is ran by former convicts. We filed a modification in 2009 and they took us for a ride for 15 months, requesting us every time to send new paperwork. We depleted our savings and had to stop making payments then they took us to foreclosure. Now we applied for modification again after we came down to one income that is also under threat. They refused it cause we pay on time. Now they call us literally everyday to verify our info cause they know we want to shortsale. A class action sounds great against those criminals. Our life became a mess because of their abuse. Their daily calls stress us big time.
N  20th of Aug, 2013 by    +2 Votes
I have been getting calls from 800 306 6059 and they say they are Specialized Loan Servicing. Even when I answer the phone I get the same message. I've tried to call this number several times, but you can never reach a person. I am not giving them my S/S number and I don't have a loan number as I don't have a mortgage. I just want them to stop calling me and can't find a way to do so.
N  4th of Nov, 2013 by    0 Votes
I am in the same situation with these people! Divorce, death of X, I contacted them in Jan for a modification. every week I called, they would say they did not get something! I would, emai, fax... call every week, the response was it's still in review... Now I get a letter saying that another company is managing the mortgage. Oh and would take a partial payment!
N  4th of Nov, 2013 by    0 Votes
This is so sad. I paid off my mortgage with a HELOC so I have no reason for these folks to call me. It is impossible to get a live person, if you can find a phone number. It is also impossible to find an address, but I did. Never got a returned call, I even copied the Better Business Bureau of CO as that is where their corporate location is. They still call me twice a day 8:04 AM and 5:08 PM every day, even after my written complaint.
A  14th of Nov, 2013 by    0 Votes
I seem to have been a victim of SLS as well but for my student loans. I was called being informed I was eligible for consolidation since I am an RN. They had all the appropriate information about me and told me they would be combining my loans and lowering the payments. It wasn't until I had my first checking transaction that I realized it may be fraud. The check was for 303.00$ for 15 years which came out to about $50, 000. When I know my student loans were only about $30, 000. I called all my loans separately and they were all Deferred. Meaning someone called them to tell them I cannot pay them at this time with a phony address and phone number. I am so distraught I did not know what to know. I closed my checking account and notified Life Lock right away. I am hoping this will not bite me in the butt. I'm still trying to figure it all out.
N  29th of Dec, 2013 by    +2 Votes
My husband and I got behind in our mortgage payment's after hurricane Ike. We both lost our job's and our home was damaged to the point we could not live in it. When we did send a payment they applied it to an escrow account and not to our payment. Then we would get a letter saying we had and I have been trying to get a loan modification for a several years now. We have applied four times. Each time we have been told either we didn't send in all the forms (which we did) or we don't qualify and have even been told we had to be on welfare to qualify for the Obama modification program. We have filed bankruptcy twice now to avoid foreclosure. But with what SLS say's we owe in payments, late fees and attorney fees the bankruptcy payment has been way more then we could afford. We have tried to send SLS out mortgage payment's and they will not accept them. What SLS say's we owe in all the fee's plus the original loan amount the total is three time's what our home is valued at. We have tried everything possible to work with this company. All we want to do is keep our home and make our mortgage payments. Every person you speak with at SLS tell's you something different. Once agin we are in foreclosure and live in fear every day that we will lose our home. SLS does not care about the homeowner nor will they work with you to save your home. If a homeowner is wanting to work something out and pay there mortgage payment's they should want to work with you. Instead all they want to do is foreclose on your home. I can't believe they continue to treat people the way they do and are still in business!!! Maybe those of us complaining need to get together and file a civil case against SLS. I for one am fed up with SLS and can't believe the attorney general has not step in and done something about this company before more families lose their homes!!
N  24th of Jan, 2014 by    -1 Votes
You should request copy of #PSA Pooling and Servicing Agreement for your loan. Find out what fees are being paid to #SpecialServicer to "service" your loan. That is available on #SEC Web site. Every action, most at least, has #motivation You need to understand what is in it for others. #rmbs #cmbs @WesFewSC
N  7th of Feb, 2014 by    +1 Votes
On march 25, 2009, aurora loan service, the first lien holder foreclosed on a property I owned. after the foreclosure was completed gmac mortgage the second lien hold sold my second mortgage (original loan amount $14000) to specialized loan service.in july 2010 after several monthly billing statement from specialized loan ser. I contacted aurora loan services to request a copy of the 1099-a that I had received for 2009 & inquire about the second loan. I was inform by aurora loan services to forward a copy of the 1099-a to specialized loan servicing llc as I should no longer be liable for the debit base on the 1099-a because box 4 "fair market value of property" is much more than the box 3 "balance of principal outstanding".in july of 2010 I contacted specialized loan servicing llc customer service department and was told to fax over a copy of my 1099a from aurora loan services and they will look into it. a couple months later I called back and was told that they were unable to reach aurora loan services.
On 02/06/14 I receive a 1098-c from specialized loan servicing for $25462.28. when has purchasing bundle subprime second loan on foreclosure property with outrageous interest rate such as mine (14.250%) became sound responsible loan practice. specialized loan servicing llc should focus less on corporate gain and exercise due diligence prior to purchasing bundle bad loans.
I'm requesting that the 1098-c be reverse and a complete copy of my original loan docs as I will be seeking legal action.
A  22nd of Feb, 2014 by     Best Advice +5 Votes
My loan was originated with countrywide bank in 2007.in 2009, bank of america became servicer.in 2010 we attempted three times to refinance the loan to a 30 yr fixed, even paying off the 27, 000 dollar 2nd loan. each time, bofa denied the refinance. completely frustrated by their excuses, I began researching my loan... which was securitized. I obtained copies (on-line) of the psa & supplemental prospectus and discovered the chain of sales which were to have been documented (endorsed on my original note) and began demanding in sept 2011 that bofa identify the lender/investor of my loan. they failed to do so and I refused to make another payment until they did. they never did. instead they transferred servicing of my loan to sls in nov 2012. I have not made one payment to sls and initiated my own law suit in aug 2013 against them, bofa and deutsche bank for fruad and negkigent misrepresentation. I am still waiting for a decision from the court as to whether we move forward with discovery or the case is dismissed. regardless, I do know that they are all liars. I will not let them intimidate me into paying them another dime. they do not possess the documentation necessary to foreclose on my property. the note/dot was never transferred to the trust, per ny state trust law, therefore the trust lacks standing to foreclose... and that is fact.
N  8th of Dec, 2016 by    0 Votes
@Ihatebigbanks Mine is almost exactly the same sequence. I stopped paying in November of 2011. Foreclosure was initiated in 2012. SLS has to date done nothing to sell the property. They are merely racking up finance charges and late payment fees, and to date, they have the $82, 000 balance mortgage up to $129, 000 with more charges every month and credit bureau reports. Yep, they have been sitting on the property with foreclosure finalized for almost five years. This is Florida where corporations rate and consumers don't. I just want it over with, but I suspect they intend to keep on piling on until hell freezes over, and then hit me with a 1099 in the $200, 000 range which I won't be able to pay taxes on, and then guess who will pay when I go bankrupt? You guessed it. I and all other taxpayers will pay more because a criminal enterprise like SLS has no rules, no morals, no regulation, and not a lick of sympathy for the recession's victims. Nothing to do but wait for nothing.
N  25th of Aug, 2014 by    +1 Votes
I am receiving calls from sls managers regarding consolidating my student loans and they even offered 'debt forgiveness' being someone who does not trust anyone, ever... I told them I would like to look them up and do my research before talking any further about my situation. when they originally called me they rambled off some greeting that included the us department of education. when I asked if they are affiliated with the us department of education they said no. I asked how they got my information or knew about my student loan and they could not provide me with that info. I did ask how the program works and they basically told me I need to provide my bank account information so they can start 'direct debit of my loan payments' they gave my this website to 'research' their company www.slsmanagers.com and I went to the bbb website and they have 2 positive reviews and 2 negative reviews. both negative reviews are in line with what everyone is saying here... they are a scam and they ruined their credit. I will not touch this company with a ten foot pole, I just want to know how they got my information? anyone know? I thought there are privacy laws when it comes to student loans...

The number they called me from is 925-203-3831
A  21st of Nov, 2014 by    0 Votes
Sls has force placed an escrow account on my mortgage without any notification. so as I am making my monthly payment, they are applying it to a holding account until I make my next payment (next month) then applying. so far they have reported on my credit for the past 5 months being past due for 60-120 days. I called the "executive" number spoke to another customer service person who says that they cannot help me. I was told I needed to speak to the escrow department but they do not have a contact number. I was told to fax a letter of dispute and someone will contact me. does anyone know a good attorney in the houston area?
A  17th of Dec, 2014 by    0 Votes
They're ###ing ###s.

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