What happens when a mortgage company seems to make it harder—not easier—to pay off a loan? For one Georgia family, it meant fighting not just paperwork and red tape, but the very real threat of losing a home tied to generations of memories. Their story reveals how some loan servicing practices can push homeowners to the brink—and what you can do if you find yourself in a similar situation.
The Cost of Confusion: When a Payoff Isn’t Really a Payoff
Joe Williams, a proud Vietnam veteran, spent decades on the West Coast before returning home to Georgia to be near family. After the death of his mother, the modest family home she left behind became the responsibility of his nephew, Eugene Hill. With Joe fighting his second battle with cancer, Eugene was determined to make sure his uncle had a stable place to live.
That meant resolving the mortgage on the house—a loan managed by Colorado-based Specialized Loan Servicing (SLS). Eugene requested a simple payoff quote, expecting to wrap up the matter in a week or so. What he got instead was a six-month ordeal.
After multiple delays, the company finally quoted $1,750. Eugene sent a payment for $2,400 to cover any extra fees, but the check was returned. SLS claimed they needed more information. When he complied, the check came back again—this time with instructions to send a cashier’s check instead. That crucial detail had never been mentioned before.
When Eugene was asked if he got the feeling that SLS didn’t want this mortgage paid off, he replied:
“I’m confident they didn’t."
And it’s not just a hunch—mortgage experts say he’s probably right.
Why Some Lenders Make Paying Off a Loan So Difficult
According to Georgia attorney Rick Alembik, who represents homeowners in mortgage disputes, these tactics are all too familiar.
“It’s very common,” Alembik said. “People are abused by their mortgage servicers on a pretty regular basis.”
So why would a lender resist taking a payment? The answer lies in how mortgage servicing companies profit. If a loan isn’t “high-performing”—meaning the borrower may be behind or the balance is low—it can be more lucrative for the lender to foreclose. Here's how it works:
- A lender forecloses on a property with a $100,000 loan.
- They acquire the property and later sell it for $120,000.
- The $20,000 difference then goes back to the lender—not the homeowner.
“There’s less incentive to work with the borrower,” Alembik explained, “than to simply foreclose and pocket the difference.”
This creates a dynamic where loan servicers may drag their feet, deny paperwork, or impose new requirements seemingly at random—all of which can push homeowners to default, even when they’re trying to pay.
Fighting Back: Legal Help and a Last-Minute Victory
Frustrated and out of options, Eugene reached out to Inside Investigations, which connected him with legal support. With an attorney's help, he negotiated a settlement with SLS that allows Joe to stay in his home for the foreseeable future.
“I don’t even think I could put into words how much that means to me,” Eugene said. “Because ain’t nothing like a family home.”
Joe’s case isn’t isolated. In fact, the Consumer Financial Protection Bureau (CFPB) reached a $1.2 million settlement with SLS over similar conduct. According to the CFPB’s 2023 enforcement action, SLS must also pay a $250,000 civil penalty and forgive borrower deficiencies. You can read the full settlement here.
SLS did not admit or deny wrongdoing, but the message is clear: deceptive or obstructive mortgage servicing won’t go unchecked.
Key Takeaways: What You Can Do If You’re Facing Mortgage Servicing Issues
If this story sounds familiar, you're not alone—and you're not powerless. Here’s what to keep in mind:
- Document everything. Keep copies of every letter, email, and note from phone calls.
- Ask for help early. Reach out to a housing counselor approved by HUD or consult with a consumer protection attorney.
- File a complaint. The Consumer Financial Protection Bureau accepts mortgage-related complaints and investigates companies that show patterns of abuse.
- Know your rights. Under the Real Estate Settlement Procedures Act (RESPA), mortgage servicers must respond to borrower inquiries in a timely and accurate manner.
Have you experienced something similar—or do you know someone who has? It’s worth sharing your story and seeking legal guidance before it’s too late.
Final Thought: In a system that can feel rigged against the little guy, Joe and Eugene’s story is a powerful reminder that persistence—and the right support—can make all the difference.
For more trusted resources and help navigating homeownership challenges, visit TrustDALE.com, where vetted experts are committed to consumer advocacy.
