Homeowner alleges Shellpoint wrecked his credit while accepting his payments

By August 2025, even Newrez’s own communications allegedly contradicted each other. The filing says that on August 28, a Newrez representative instructed the borrower in writing to “continue to make your trial payments each month until the modification is completed.” That same day, the lawsuit alleges, Newrez’s website blocked his payment with the message “This loan has a payment stop.”

Three bureaus, three different versions of the same loan

What the credit bureaus were reporting was, according to the filing, even more contradictory. Consumer reports pulled in October 2026 allegedly showed Experian reporting the loan as 180 days past due for seven consecutive months (April through October 2025), TransUnion reporting 120 days past due for seven months over the same period, and Equifax reporting 120 days past due for six months (May through October 2025).

None of the reports show a preceding 30-, 60-, or 90-day late payment, the filing alleges. The account appears to jump from current to severely delinquent in a single month.

The internal contradictions were just as striking, according to the lawsuit. Equifax allegedly reported the loan’s status as “Pays account as agreed” while simultaneously showing six months of 120-day delinquency. Experian allegedly labeled the payment history “Exceptional” while showing seven months at 180 days past due. And the filing says Experian reported the loan at one point with the status “FORECLOSURE PROCEEDING STARTED,” a balance of $354,746, and a monthly payment of $3,511.

$36,000 to cure – and a statement that says three things at once

After the first modification was denied, the borrower reapplied. Newrez approved a new modification in December 2025, subject to a three-month trial plan, according to the filing. The borrower wired his first trial payment of $3,403.42 on December 31, 2025. Two days later, the filing says, he asked Newrez what it would take to cure the foreclosure and was told approximately “$32,000.” He wired $36,488.16, which Newrez applied to bring the loan current – including $1,113.75 in foreclosure costs, $607.50 in attorney’s costs, and various other charges, according to the lawsuit.