Consumer complaint received 2022-03-25
Company: SELECT PORTFOLIO SERVICING, INC.
State: CA
Product: Mortgage
Sub-product: Conventional home mortgage
Issue: Trouble during payment process

Complaint:
I received a letter from Select Portfolio Servicing, Inc ( SPS hereafter ) dated XX/XX/XXXX stating that, effective XX/XX/XXXX, SPS will be servicing my mortgage loan number XXXX. Since SPS is managing my escrow account, SPS is responsible for paying my real estate property tax and the insurance premium when they are due. 

On XX/XX/XXXX, I called the SPS customer service number, XXXX, and talked to XXXX at extension XXXX. I asked whether SPS had already paid the property tax. I told XXXX that the property tax was about to become delinquent on XX/XX/XXXX and any payment received by the XXXX XXXX XXXX after XX/XX/XXXX will be assessed an additional 10 % penalty. I was told by XXXX that SPS had not paid it yet and SPS had until XX/XX/XXXX to pay the property tax. 

On XX/XX/XXXX, I called SPS customer service XXXX and talked to XXXX at extension XXXX. I was told that SPS had still not paid and that they had until XX/XX/XXXX to pay for it. 

On XX/XX/XXXX, I called SPS customer service XXXX and talked to XXXX at extension XXXX. XXXX told me that SPS had not paid the property tax yet, and if I want the property tax to be paid by XX/XX/XXXX, I can pay it directly to XXXX XXXX. I told XXXX that SPS had my tax payment money withheld in the escrow account and SPS should pay for it and I did not have additional money to pay the property tax directly to the County.

On XX/XX/XXXX, I called SPS customer service XXXX and talked to XXXX at extension XXXX. XXXX said he was a relationship XXXX at SPS. He said SPS could not verify XXXX XXXX XXXX ( hereafter XXXX ) of my property and therefore they could not pay the property tax. I told XXXX that 1 ) SPS could easily search the XXXX on XXXX XXXX XXXX XXXX website; and 2 ) my XXXX is XXXX. XXXX said that SPS has XXXX plus employees working in the escrow department and they are professionals at handling property taxes issues. He said that if 10 % penalty is levied on my account, I will not be responsible for the penalty and that SPS will be responsible for the penalty. 

I wanted some assurance of that promise so I was transferred by XXXX to his supervisor, XXXX at XXXX XXXX, who reaffirmed that SPS will be responsible for the 10 % penalty if levied by XXXX XXXX. 

On XX/XX/XXXX, I checked with XXXX XXXX XXXX XXXX XXXX and found that SPS did not pay my property tax. A 10 % penalty was levied on my account. Over the next few months, I periodically checked with XXXX XXXX XXXX XXXX and found that the tax payment was still unpaid by SPS. On XX/XX/XXXX, I received a letter from XXXX XXXX XXXX Collector Office stating that the XXXX installment of tax was delinquent and {$580.00} penalty was levied on my account and the XXXX installment of the property tax was overdue and will be imminently delinquent on XX/XX/XXXX. See attached letter. 

I am wondering why SPS chose not to pay my property tax. If they could not verify the XXXX on XX/XX/XXXX, they should have been able to verify the XXXX by now since XXXX months have passed. Besides, I had already informed SPS of the XXXX on XX/XX/XXXX. My bigger concern is that the 2nd installment will be delinquent 18 days from now, and another 10 % penalty will be levied against me if SPS does not pay the 2nd installment on time. 

To further complicate the matter, the interest will start accruing on the penalty and XXXX XXXX XXXX XXXX will put a tax lien on my property. I have been paying the property tax in a timely matter since I owned the property in XXXX. This is the first time that a mortgage loan servicer such as SPS is paying for the property tax on my behalf out of the escrow account. I believe that SPS has the fiduciary duty to ensure the property tax be paid on time to protect the owners interest in the property.

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