Consumer complaint received 2021-09-22
Company: Fay Servicing, LLC
State: MD
Product: Mortgage
Sub-product: Other type of mortgage
Issue: Trouble during payment process

Complaint:
In XX/XX/XXXX, my husband and I obtained a second mortgage for {$21000.00} from XXXX in Pennsylvania. The term of the mortgage was for ten or fifteen years ( we can not find the loan origination documents and the servicer refuses to send us a copy ). We subscribed to an additional mortgage insurance for approximately {$15.00} per month to protect us in the event either of us became unemployed.

I became unemployed that same year and the insurance we subscribed to provided coverage for our mortgage payments for a few months while I was between jobs. Once I went back to work, we resumed making the payments. I became unemployed again in XXXX and attempted to use the mortgage insurance again but we were told we no longer had it. We were quite confused because we did not ask to terminate the coverage and we believed we were still paying for it. 

Frantic because we wrongly thought we had the peace of mind of the mortgage insurance and facing foreclosure, XXXX told us that our only option was to modify our loan to avoid losing our home. They enticed us with a 6 % rate and a payment of just {$130.00} per month. Neither of us remember being told that the term of the loan would change or that there would be any changes to how the interest would accrue. 

XXXX has been found guilty of mortgage malpractice multiple times and no longer services mortgages like ours. We have changed servicers multiple times over the years and for at least two years, I have been requesting our loan origination documents as well as a detailed payment history from our current servicer Fay Servicing. My point in asking for these documents is because we have no proof of what we signed, the terms of the loan, etc. Our balance after fourteen years of payment is still {$16000.00}. To date, I believe we have paid over {$23000.00} towards this mortgage.

Due to the Covid-19 global pandemic, I had to close my small business in XX/XX/XXXX and my husband was let go from his role with XXXX XXXX XXXX XX/XX/XXXX. When we started experiencing financial hardship as a result of the pandemic, I reached out to Fay Servicing and explained that we were having trouble making the monthly payments. For our primary mortgage as well as credit cards, it was a simple form or phone call to attest to our hardship so we could receive accommodations. However, Fay Servicing said they do not have any Covid-19 protection programs and our only option to prevent foreclosure is to modify the term of the mortgage. I found this very odd. 

I would like to file a formal complaint against Fay Servicing as well as XXXX. I sincerely believe we are victims of predatory lending. Fay Servicing has failed to provide us with options to protect us against foreclosure, they claim the only way to assist us in the midst of a global pandemic is to modify and lengthen the term of the loan, and they refuse to provide requested documentation so we can understand why the loan is not paid off yet and despite paying at least {$130.00} for over 150 months, we have only reduced our balance by {$4500.00}.

Company response to consumer: Closed with explanation