Consumer complaint received 2023-01-15
Company: SELECT PORTFOLIO SERVICING, INC.
State: NC
Product: Credit reporting, credit repair services, or other personal consumer reports
Sub-product: Credit reporting
Issue: Incorrect information on your report
Sub-issue: Account status incorrect

Complaint:
This is related to my personal residence. I have owned/lived in my home XXXX years. My home is worth {$900000.00}. I have a first mortgage with XXXX XXXX XXXX outstanding of approximately {$300000.00}. I took out a second mortgage in XXXX with XXXX XXXX for {$150000.00}. I made every payment on time, electronically through my bank account. In XX/XX/XXXX, I made my payment to XXXX XXXX and it was returned. When I inquired as to " why '' they returned my payment, I was informed " your loan was a XXXX year balloon has matured and you should have made arrangements to refinance. '' I asked " why did you not notify or inform me that it was about to mature so I could refinance? '' and they had no response. They offered to consider a " modification '' of my mortgage. That began a XXXX  day process where I sent them all income, credit info for them to " consider '' a modification. XXXX XXXX would not allow me to make a payment during this review period. I have all records and correspondence. I called them dozens of times for status and they kept putting me off. In XX/XX/XXXX they informed me that they were giving my mortgage over to Select Portfolio Services. 

Select Portfolio Services allowed me to start making payments in XX/XX/XXXX. I made the payments on time every month. In XX/XX/XXXX, they notified me that I could no longer make a payment. They told me that my loan had matured and that I needed to pay off my {$98000.00} balance. I explained that I did not have the ability to pay {$98000.00} but that I could make my normal monthly payment, which reflected on their portal as " due '' in the amount of $ XXXX. On XX/XX/XXXX, they notified me that if I did not payoff my loan by XX/XX/XXXX that I was subject to foreclosure. They offered to consider a " modification '' ( exactly like XXXX XXXX offered ) and so I sent them ALL W-2 's, tax returns, etc. to consider. I have called them dozens of times and have all correspondence. They have not given me an answer ( to date ) on the consideration of my modification. 

Fearing foreclosure, I began seeking a traditional refinance on my mortgage. I spoke with several mortgage companies. My home has a Loan to Value greater than 50 % ( $ XXXX value vs $ XXXX mortgages ). I have W-2 income of {$280000.00}. Every mortgage company said " you should have no problem refinancing '' ... but when they pulled my credit report ( unbeknownst to me ) XXXX XXXX had reported me XXXX days past due! This all transpired as they were " considering '' my modification and would NOT ALLOW me to make a payment on the loan during that " consideration ''. None of the mortgage companies could consider a refinance with a XXXX day past due. They told me " you have to wait until 1 year after the XXXX day notice ( XX/XX/XXXX ) before we can consider your request. 

Now SPS is doing the exact same thing. I have provided them ALL information to consider a modification. I explained to them that there is no way I can get a traditional refinance because of what XXXX XXXX did in reporting me delinquent. I told them to " please allow me to make the normal monthly payment '' on the loan while they considered the modification, because I don't want any further past due notices ''. I have never paid a mortgage late, I make all of my payments on time. SPS will not allow me to make a payment on the loan. 

Today, I received a notice from XXXX that SPS has reported me past due on my mortgage. How can mortgage companies do this? How can they hold me hostage, not allow me to make a payment that I am perfectly capable of making, a payment that shows due & payable on their portal, but they will not allow me to make the payment? I sent them numerous correspondences in XXXX explaining exactly that ... that " you won't let me make my payment, and you are going to report me past due '', and they said " yes, that is correct ''. I just do not understand how a mortgage company can do that. 

I have had more than ample income and credit to make my mortgage payments with both companies. I never dreamed this kind of nightmare scenario could occur. I took a XXXX  year balloon loan in XXXX and made every payment on time. XXXX XXXX never emailed, sent me a statement, called me... nothing, to tell me that my balloon was approaching and to make arrangements. I remember getting a paper statement every month in the mail... nothing. Then to make " no decision '' on my modification for XXXX  days and not allow me to make payments ... and then report me as a XXXX  day past due. That is just not right! 

Now SPS is doing the exact same thing! 

I share this because something needs to be done NOT to allow mortgage companies to treat borrowers this way. If a borrower has the means, the capability and WANTS to make a payment to keep their account current, how can they deny them that opportunity? They can just report a borrower past due, wreck their credit, make the borrower " incapable '' of getting the exact financing they need to 'cure ' the situation. It's wrong.

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