Consumer complaint received 2019-09-17
Company: SELECT PORTFOLIO SERVICING, INC.
State: GA
Product: Mortgage
Sub-product: FHA mortgage
Issue: Struggling to pay mortgage

Complaint:
In XX/XX/XXXX I lost my husband to XXXX and then subsequently my husband 's Mother fell ill and passed away on XX/XX/XXXX. As a result of both of these sudden losses and due to the medical expenses associated with his treatment, my mother-in-law 's care and funeral costs coupled with the loss of his retirement income I was unable to meet my day to day living expenses and the Mortgage payments on the First and Second Mortgage I have with SPS. 

I made application to SPS XX/XX/XXXX advising them of this hardship and seeking first a modification of the loan terms which SPS denied because they said during my husband 's lifetime we were already approved for one so application was made for a reverse mortgage with a new lender and a short pay approval for the 1st and 2nd loans with SPS in XX/XX/XXXX. The Reverse Mortgage criterion was that I would only be afforded up to 50 % of the home value to payoff all liens ( Appraised value then and now was $ XXXX ). With the help of my daughter I submitted my request for a combined short payoff for 1st and 2nd lien of $ XXXX based on the Reverse Mortgage Conditional Approval ; which would leave funds to pay the outstanding HOA fees, back State Taxes and any recording and closing fees. The 2nd lien approval came in for the $ XXXX short pay in XX/XX/XXXX with an expiration date of XX/XX/XXXX and a counter was sent in against the short pay approval of $ XXXX for the 1st mortgage of $ XXXX so I can stay qualified for my reverse mortgage terms on XX/XX/XXXX. On XX/XX/XXXX both my daughter and I were told that the 1st lien payoff was approved for the $ XXXX short pay and that the letter was being processed and I would receive it in the mail within 7-10 business days. On XX/XX/XXXX we both reached out to lender and they advised it was still in processing and we were told that all the way up to the point of the 2nd lien short pay of $ XXXX expiring on XX/XX/XXXX ; which when a request was made to extend the 2nd lien payoff was then being told I had to start the process all over again with a new RMA for 1st and 2nd and an Appraisal - which came back with the same upside down value of $ XXXX. I called to get the 2nd lien short pay updated after the appraisal was reviewed with a new expiration date and was told that they could not provide it as they were awaiting the review of the short pay approval for the $ XXXX. As of XX/XX/XXXX I was told that SPS wanted the appraised value as a short pay amount?!!! I am now diagnosed with XXXX my family is distressed I am overwhelmed and am not sure what the Investor on the 1st mortgage is seeking beyond the $ XXXX offer and subsequent $ XXXX counter to their $ XXXX they are looking for the 1st lien. I have a verifiable HARDSHIP. I have no hidden funds and would be paying them using my Reverse Mortgage which at this point I hope I can still qualify for. I need help. Please.

Company public response: Company believes it acted appropriately as authorized by contract or law
Company response to consumer: Closed with explanation