Their financial problems began in early 2020, when Mr. Maletick contracted COVID-19 4 times between February 2020 and March 2021, leading to major earnings loss. A foreclosure action followed in July 2022 in Allegheny County.
What followed, the filings declare, was a drawn-out cycle that will sound annoyingly familiar to numerous in home mortgage servicing. With the aid of a housing therapist from NeighborWorks Western Pennsylvania, the Maleticks submitted numerous loss mitigation applications starting in September 2023. The servicer repeatedly claimed files were missing out on– without defining which ones– asked for paperwork that had already been sent, and let applications stagnate before reacting.
In one instance, an updated application was sent on February 8, 2024. Forty-one days passed before the servicer flagged missing out on files– consisting of products currently supplied. Under Policy X, a complete application must be examined within thirty days, making that hold-up a possible compliance concern for any maintenance operation.
The most striking claims includes dual-tracking. On January 23, 2025, the Maleticks submitted another application. No acknowledgment or deficiency notification followed. Then, on February 24, 2025, the loan trust moved for default judgment in the foreclosure– while the application sat unevaluated. Policy X prohibits servicers from advancing foreclosure proceedings when a facially total loss mitigation application has actually not yet been reviewed.
The claim likewise challenges Shellpoint’s response to an official details request sent out by the Maleticks’ lawyers in April 2025. According to the filings, Shellpoint’s action omitted key items– including maintenance notes and loss mitigation correspondence– and dismissed the request as “extremely broad.” Two follow-up notices of error were sent out. The first, the filings state, went totally unanswered.