Consumer complaint received 2021-02-13
Company: Fay Servicing, LLC
State: PA
Product: Debt collection
Sub-product: Mortgage debt
Issue: Attempts to collect debt not owed
Sub-issue: Debt was already discharged in bankruptcy and is no longer owed

Complaint:
In XXXX we took out a second, secured loan through XXXX of XXXX Pa. In XXXX due to my husband having to retire from XXXX XXXX because of XXXX, we had to file Chapter XXXX bankruptcy. At that time we were sure that everything was included in this bankruptcy, including the XXXX loan. We never received any more notices from XXXX, and there was never any postings to our credit reports about XXXX being in collection. We started to receive collection notices from Fay Servicing saying that they were now the owners of the XXXX debt, and now, we owed them almost {$40.00}, XXXX from the original XXXX loan made in XXXX, of {$8200.00}. The interest of 19.9 % has accrued for 20 years Now, Fay has come up with the grand total of {$40000.00} that they say we owe them. When we first started getting notices from Fay Servicing, we thought it was a scam because there was nothing on our credit reports and we had heard nothing for 19 years. When I XXXX Fay Servicing I come up with all the posts about how Fay has been in court for taking elderly people 's homes and not being up on the up and up with their customers. They lost, and were ordered to pay a pretty hefty fine for what they were doing. Back in XX/XX/XXXX, we were thought that the Fay Servicing was a scam, we received a contract in the mail, for a mortgage to pay back the then {$30000.00} loan, form Fay Servicing. We ignored the papers because, like I said we thought it was a scam. I then, contacted Fay Servicing, after trying to make some kind of payment arrangements or come to some kind of an agreement, thinking they would offer us the same mortgage contract as they did in XX/XX/XXXX,. They told us to reapply through Fay Servicing once again and we did. After a big run around and waiting forever we received a letter saying that we were turned down because of insufficient annuities, savings, etc. When I asked them why where we turned down this time, because nothing has changed since XXXX when they offered us the first mortgage. I called the office and spoke to a Fay Servicing rep, and she said we were turned down?????? So we have to be forced to sell our home if 20 years, because Fay DOES NOT WANT TO HELP US. Our current house 's first mortgage isthrough XXXX, has been put into foreclosure by Fay Servicing .We procured a lawyer from XXXX XXXX XXXX XXXX XXXX because we are both XXXX and over the age of XXXX. Right now we have a court date for XX/XX/XXXX with our attorneys Fay Servicing representatives and a judge to try to find a solution for this problem. Our lawyer is going to argue the statutes of limitation clause. Even though a similar court case has never been won in the state of Pennsylvania, hopefully the laws can be changed and make it illegal for the unscrupulous vulture attorneys to collect these years old debts. ESPECIALLY when they're not willing to make suitable payment arrangements for the person who has the debt. They're saying hey, we have this debt now, you owe us, but they are NOT willing to help you make a way to pay it so basically they're going to take our house. Of course they want a down payment to reactivate the loan of {$35000.00}. We do not have {$35000.00} as people living on a fixed income. Like I said we have tried countless times to make payment arrangements with Fay Servicing, but they refuse to come to any kind of agreement with them. We even called XXXX XXXX which is holds our first mortgage on this house, and they basically are giving us the runaround I have called them countless times and ask them in every person I talk to you have to tell them the same story they don't seem to know what's going on. We had three people on separate occasions from XXXX tell us that yes, don't worry we can stop this foreclosure. All we have to do ( XXXX ) is add Fay Servicing on to our loan. We waited two weeks called them back and then somebody else told us no we can't do that. So here we are, going to lose our home. We need your help big time. Please file a case against Fay Servicing and maybe it will help us, and, or even someone else who is being victimized by these types of companies. 
Thank you so much!

Company response to consumer: Closed with explanation