Consumer complaint received 2023-12-04
Company: SELECT PORTFOLIO SERVICING, INC.
State: AZ
Product: Mortgage
Sub-product: Conventional home mortgage
Issue: Struggling to pay mortgage
Sub-issue: Foreclosure

Complaint:
My mortgage servicer recently became sps, previously XXXX XXXX.. Fell into a bit of financial trouble, during covid 19, received a forbearance which helped me get back on my feet. At the end of my forbearance, I proceeded to attempt to make my monthly mortgage payment online, process didn't work. Called SPS, was informed " ALL '' monies deferred were payable in full, no partial payments. Did not have those funds. Company started foreclosure proceedings. I applied for HAF in the state of Arizona, was approved for HAF monies, SPS had received i request from HAF, knew about the approval, foreclosed on my house anyways.. Spoke with them on the phone the day of the sale, and they informed me the sale had not taken place, and was on hold and they requested copies of my bank statements for proof of funds for the difference. I provided this to the ombudsman department, and later find out the home was purchased at around XXXX in the XXXX. I was speaking with the ombudsman department well into that same afternoon. What are the laws regarding HAF funding, for a XXXX XXXX  mortgage? I read on the FHFA website and I quote " XXXX XXXX and XXXX XXXX servicers will be required to delay foreclosure actions for up to 60 days if the servicer has been told that a borrower has requested help from the Treasury Departments Homeowner Assistance Fund ( HAF ), according to the Federal Housing Finance Agency ( FHFA ). '' Are they not required to halt foreclosure procedures for 60 days? I mean I had been approved for HAF monies, why did SPS disregard this and take everything away from me? 

Some other information regarding the trustee sale of my home. The legal statutes in the state of arizona, 33-808 A. 4. states 4. Publication of the notice of sale in a newspaper of general circulation in each county in which the trust property to be sold is situated. The notice of sale shall be published at least once a week for four consecutive weeks. The last date of publication shall not be less than ten days prior to the date of sale. Publication is deemed completed on the date of the first of the four publications of the notice of sale pursuant to this paragraph. 

In regards to number 4, this never happened. I contacted the local publications in my county and they determined their was no posting online and nothing ever printed regarding the trustee sale, anywhere in their records. The house sold for literally {$130.00} dollars more than what I owed on the note. The home was sold to some well known local investors in XXXX XXXX, in fact this family is known to have founded local townships throughout XXXX XXXX, including the town where the sale took place. The home, located in one of the most, if not the most desired neighborhoods, with so much equity, and numerous upgrades and improvements their surely would have been a bidding war on the sale date driving the sale price up more than just XXXX dollars, if anyone else knew about the sale that is. I think the lender must have hand fed my home to these investors. The sale price is truly damaging. 

I believe SPS servicing has been unethical and unlawful in the foreclosure of my home. I did everything I was supposed to, in order to get my mortgage back reinstated and my efforts were just ignored, the state housing departments efforts were just disregarded, and SPS just made up their own rules and followed their own agenda, with no fear of any sort of recourse, or any checks and balances on their unprofessional business conduct. My family is just devastated. My home had over XXXX XXXX dollars in equity.

Company response to consumer: In progress