Mortgage -- Struggling to pay mortgage -- Complaint #8906699

Homeowner Struggles with Mortgage Payments, Seeks Help from Global Lending Services

Complaint Overview

Complaint ID: 8906699

Company: Global Lending Services LLC

Product: Mortgage

Sub-Product: Other type of mortgage

Sub-Issue: Trying to communicate with the company to fix an issue related to modification, forbearance, short sale, deed-in-lieu, bankruptcy, or foreclosure

State: New Jersey

ZIP Code: 08844

Date Received: 2024-04-30T12:00:00-05:00

Date Sent to Company: 2024-05-01T12:00:00-05:00

Company Response: Closed with explanation

Timely Response: Yes

Consumer Disputed: N/A

Submitted Via: Referral

Risk Assessment

Risk Level: medium

The consumer is struggling to pay their mortgage, which carries a high risk of foreclosure. The attempt to communicate for modification or other loss mitigation options suggests a potential breakdown in communication or a lack of satisfactory solutions being offered by the company.

Consumer Sentiment: frustrated

Topics: mortgage-servicing, loan-modification, foreclosure-prevention, hardship-assistance, consumer-communication, global-lending-services

AI Analysis

This complaint indicates a homeowner is facing difficulties making their mortgage payments and has attempted to communicate with Global Lending Services LLC (GLS) to find a solution. The specific issue revolves around seeking a loan modification, forbearance, short sale, deed-in-lieu, or other loss mitigation options, which are crucial when a borrower struggles financially. The fact that the consumer is reaching out suggests they are proactively trying to avoid foreclosure, a serious consequence of missed payments. This situation is unfortunately common in the mortgage industry, especially during economic downturns or when individuals experience unexpected financial hardship. The CFPB complaint was closed with an explanation, meaning GLS provided a response, but it doesn't necessarily mean the consumer's issue was fully resolved to their satisfaction. The 'Other type of mortgage' sub-product is vague, but the core problem is a borrower in distress trying to work with their servicer. For others in similar situations, this highlights the importance of documenting all communication with the mortgage company and understanding their rights under federal law. The 'Closed with explanation' status means the company responded, but the consumer's narrative is missing, so we don't know if the explanation was satisfactory or if the underlying problem was fixed. It underscores the need for clear communication and accessible loss mitigation options from servicers.

What You Should Do -- Consumer Action Plan

1. **Document Everything:** Keep detailed records of all calls, emails, and letters exchanged with Global Lending Services. Note dates, times, names of representatives, and what was discussed or agreed upon. 2. **Understand Your Rights:** Familiarize yourself with federal laws like the CARES Act (if applicable for COVID-19 related hardship) and the Real Estate Settlement Procedures Act (RESPA). These laws outline borrower rights regarding loan servicing and loss mitigation. 3. **Formalize Your Request:** If you haven't already, submit a formal written request for a loan modification or other loss mitigation option. Send it via certified mail with return receipt requested to ensure proof of delivery. 4. **Contact a Housing Counselor:** Reach out to a HUD-approved housing counseling agency. They offer free or low-cost assistance to homeowners facing foreclosure and can help negotiate with your lender. 5. **File a Complaint (If Necessary):** If GLS is unresponsive or not offering viable solutions, consider filing a complaint with the CFPB and your state's Attorney General's office. This complaint was closed with an explanation, but if the issue persists, a new complaint might be warranted.

Legal Context & Consumer Protection Laws

The Real Estate Settlement Procedures Act (RESPA) is highly relevant, as it governs mortgage servicers' obligations regarding loan servicing, including handling inquiries about loss mitigation options and providing timely responses. A violation could occur if GLS failed to properly consider or respond to the consumer's attempts to modify their loan. The Consumer Financial Protection Act (CFPA) also prohibits Unfair, Deceptive, or Abusive Acts or Practices (UDAAP), which could apply if GLS's actions or inactions caused substantial consumer injury or were deceptive.

Regulatory Insight

Complaints about struggling to communicate with mortgage servicers regarding loss mitigation are common. This pattern often suggests that servicers may not have adequate staffing, training, or processes to handle distressed borrowers effectively, especially during periods of economic stress. The CFPB frequently addresses issues related to loan servicing and loss mitigation in its enforcement actions and supervisory guidance, aiming to ensure servicers are treating consumers fairly and providing access to available relief options.

Resolution Likelihood

40%. The complaint was closed with an explanation, suggesting the company did respond. However, the lack of a consumer narrative means we don't know if the explanation was satisfactory or if the underlying issue of struggling to pay was resolved. The likelihood of a favorable resolution depends heavily on GLS's willingness and ability to offer a sustainable modification or alternative, and the consumer's ability to meet the terms.

State-Specific Consumer Protections

New Jersey has its own Department of Banking and Insurance (NJ DOBI) which oversees mortgage lenders and servicers. Homeowners in New Jersey can file complaints with NJ DOBI in addition to the CFPB. New Jersey also has laws that may offer additional protections to homeowners facing foreclosure.

Industry Comparison

Global Lending Services' handling of this complaint, being closed with an explanation, is somewhat standard for the industry. Many mortgage servicers receive a high volume of such complaints and often provide explanations. However, the effectiveness of these explanations and the actual resolution of the borrower's hardship varies significantly across servicers.

Related Issues

Frequently Asked Questions

What should I do if I can't afford my mortgage payment and my lender won't help?

If you're struggling to make mortgage payments and your lender isn't providing adequate assistance, it's crucial to act quickly. First, document all communication with your lender, noting dates, times, and who you spoke with. Next, formally request loss mitigation options like a loan modification or forbearance in writing, sending it via certified mail. Simultaneously, contact a HUD-approved housing counselor; they offer free expert advice and can help negotiate with your lender. If your lender remains uncooperative, consider filing a complaint with the Consumer Financial Protection Bureau (CFPB) and your state's Attorney General or banking regulator. Explore options like a short sale or deed-in-lieu if modification isn't feasible, but understand the implications of each.

What are my legal rights when trying to modify my mortgage?

Under federal law, specifically the Real Estate Settlement Procedures Act (RESPA), mortgage servicers have obligations when you request assistance. They must provide you with accurate information about loss mitigation options and cannot move to foreclose while evaluating your application for certain options. You have the right to apply for loan modifications, forbearance, short sales, or deeds-in-lieu if you are experiencing financial hardship. Servicers must also acknowledge your request for loss mitigation within a specific timeframe and review your application. If you believe your rights are being violated, you can file a complaint with the CFPB or consult with an attorney specializing in consumer protection law.

Should I file a complaint with the CFPB if my mortgage company is difficult to work with?

Yes, filing a complaint with the CFPB is a valuable step if your mortgage company is difficult to work with, especially if you're struggling with payments and they are unresponsive or unhelpful. The CFPB acts as a central repository for consumer complaints and uses this data to identify patterns of misconduct and take enforcement actions. To file, visit the CFPB website, provide details about your situation, including dates, names, and specific issues. While the CFPB will forward your complaint to the company for a response (which may be 'closed with explanation'), the aggregated data helps regulators understand systemic problems. If the issue isn't resolved or persists, you can follow up or escalate your complaint.

What is Global Lending Services' track record with mortgage complaints?

Global Lending Services, like many large mortgage servicers, receives a significant number of complaints filed with the CFPB. These complaints often relate to issues such as communication problems, difficulties with loan modifications or other loss mitigation options, and errors in loan servicing. While the CFPB complaint data shows that GLS does respond to complaints (often closing them with an explanation), the nature of these explanations and the ultimate resolution for consumers can vary widely. It's advisable to review recent complaint trends on the CFPB's website for a more current picture of their performance.

What are my options if my mortgage modification is denied?

If your mortgage modification is denied, don't despair. First, understand the reason for the denial; the servicer is required to provide you with a written explanation. Review this explanation carefully. If you believe the denial was in error or based on incorrect information, you can appeal the decision or request reconsideration, often within a specific timeframe. Gather any additional documentation that might support your case. If you've exhausted internal appeals, consider contacting a HUD-approved housing counselor for assistance in negotiating with your servicer or exploring alternative loss mitigation options like a short sale or deed-in-lieu. You can also file a complaint with the CFPB if you suspect unfair practices.

How does struggling with my mortgage affect my credit score?

Struggling with your mortgage payments can significantly harm your credit score. When you miss a payment, your mortgage servicer will likely report this delinquency to the credit bureaus (Equifax, Experian, TransUnion). Even a single missed payment can lower your score. As payments become more delinquent (30, 60, 90 days late), the negative impact on your credit score increases substantially. Foreclosure, short sale, or deed-in-lieu will also have a severe and long-lasting negative impact on your credit report, making it difficult to obtain credit in the future. Proactively seeking loss mitigation options and making payments, even if partial, can help mitigate some of the damage compared to simply ignoring the problem.

Can I join a class action lawsuit if my mortgage company mishandled my case?

It is possible to join a class action lawsuit if your mortgage company has engaged in widespread misconduct that has affected numerous consumers similarly. Class actions are typically initiated when a group of individuals has suffered the same type of harm due to a company's actions. To determine if a class action is viable for your situation, you would need to consult with an attorney specializing in consumer protection or class action litigation. They can assess whether your case, and potentially others, meets the legal requirements for a class action. Keep records of all communications and issues, as this documentation is crucial for any legal proceedings.

Disclaimer

This analysis is generated by an AI and is for informational purposes only. It does not constitute legal advice. Consult with a qualified legal professional for advice specific to your situation.