Consumer complaint received 2018-09-28
Company: SELECT PORTFOLIO SERVICING, INC.
State: UT
Product: Mortgage
Sub-product: Conventional home mortgage
Issue: Struggling to pay mortgage

Complaint:
XX/XX/2018 my mortgage was transferred from a conventional bank to Select Portfolio Servicing. Since my loan was originally with XXXX XXXX and also HARP eligible it had been transferred a few time, however this time I had no reason to believe the loan was NOT being transferred to an actual bank. I have come to find our my loan is now owned by an " investor '' who has targeted me based on the type of my loan. SPS and the investor has done a " bait and switch ''. They lied to me and lead me to believe that a reduced unemployment payment plan would not be reported to the credit bureau and if I paid on time would lead to a loan modification. Every single agent I spoke with indicated this was the process for a loan modification and it would not affect my credit because we were in an agreement. I asked this a few times to a few different agents who all implied that this process would help lower my payment and any balance in excess to the new payment plan would be added to the backend of the loan. They also were clear that this would not be reported to the collection bureau because I was this special " unemployment plan ''. It turns out that they have not only fully reported it to the collection agency as delinquent and my credit, but now my loan is also not HARP eligible. My credit went from being good enough to refinance to quickly in the XXXX. It is terrible to lie and do this to someone's credit because I had been in good credit standing with the conventional bank and had looked into refinancing before SPS offered their unemployment and said modification plan. They even thanked me for reaching out and said that I was smart to reach out to them to notify them of my decrease in compensation. 

I just received a letter from SPS that my loan is NOT eligible for a loan modification for " business reasons '' which is not acceptable to me as a consumer. Instead they are forcing me to sign a document for a re-payment plan which also says " short sale ''. When I called to ask about it, they told me my home was technically 8 months into foreclosure and suggested I " hurry up and sell my house before they do ''. I have tried to reach the " relationship manager '' by email twice and by phone twice with no resolve. Now that they messed up my credit, I am not even able to refinance even with income and a previous positive mortgage payment credit standing and equity. SPS now has completely changed their tone, to the investor does not offer loan modifications on your loan and we are sorry we gave you the wrong information, unacceptable and intentional! It is obvious the investor and XXXX  targeted me and my loan and has intentionally put me in this situation. Please know that they have given me less than 30 days to sign the short sale agreement and also have told me that the " unemployment plan '' that I was on began the foreclosure process! There was no warning of this and in fact thought I was in good standing with XXXX. Please know that I had an isolated situation that required me to go on FMLA and unemployment. I am terribly afraid to give this investor and XXXX serves any of my money out of fear of not being protected and certainly do not trust signing anything, especially it saying short sale. I hope that that Consumer Financial Protection Bureau can assist me in getting my credit back to where it was before they lied to me in effort for me to apply for a refinance and save my home with a REAL financial institution. I was told that during this process they would not report any delinquency as long as I paid the agreement, which I did. Now they are telling me something completely different. I am hopeful that you can also help in some way and please get my loan transferred to a conventional bank please that offers me protection in helping to save my home and a modification or refinance. It is impossible for me to refinance now that I trusted they were trying to help. Instead it was a bait and switch. The relationship manager has even failed to even respond to me and they also did not email back regarding the credit reporting issue. I emailed twice regarding the credit reporting issue and twice the relationship manager. No response to any emails. I had to call them and speak to a supervisor who offered to write a letter on my behalf to a loan company that I had paid their agreement, which is not going to help my credit. I want my credit fixed immediately please. They threaten to sell my home as soon as I do not make the payment on XXXX XXXX and have not given me time to rectify this. The re-payment plan is for a short sale, so this is overall not fair to me when they were aware I was trying to save my home. I also hope that you can please protect future folk in my situation and not allow this investor to XXXX people out of their homes. My home is worth over {$100000.00} of the loan value and it feels terrible to be targeted. I am sure that is why they do not offer a modification and it was " business decision ''. I just did't think this was allowed? They lie and tell you they are trying to help you in effort to ruin your credit and force you into a short sale because you and your house fit the criteria for the investor to profit from forcing foreclosure, when the entire time you actual think they are trying to help you safe your home. Thank you for your help and understanding and protecting consumers and their credit.

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