Consumer complaint received 2018-08-05
Company: SELECT PORTFOLIO SERVICING, INC.
State: CA
Product: Mortgage
Sub-product: Conventional home mortgage
Issue: Trouble during payment process

Complaint:
It was recommended by my foreclosure prevention counselor at XXXX XXXX XXXX XXXX, a HUD approved Counseling Agency to file this official complaint to protect myself and my home. I would like to file a formal complaint against XXXX XXXX and Select Portfolio Services for not providing me with a detail cost breakdown of the cost associated with the balloon payment they say I owe and is due on XX/XX/XXXX. I would also like to file a formal complaint against Select Portfolio Services for not providing Keep Your Home California with any information about my balloon payment and therefore not allowing me to receive the full assistance available to me. 

I have asked in writing twice for this breakdown and have not been providing sufficient documentation which details how they arrived at the total sum. XXXX XXXX XXXX XXXX has recently stepped in to try to secure the information I have been requesting. The information I have received is attached. 

My loan was abruptly transferred from XXXX to XXXX in XX/XX/XXXX in the midst of a loan modification I had recently finalized with XXXX. XXXX officially became the servicer of my loan in XX/XX/XXXX. XXXX then transferred my loan to Select Portfolio Services in XX/XX/XXXX Since the modification, I was never late on my loan payment. In XX/XX/XXXX, I was abruptly laid off from my job. I was receiving unemployment and seeking employment. In XX/XX/XXXX my husband secured a job. In XX/XX/XXXX my husband had XXXX  and spent 10 days in XXXX. In XX/XX/XXXX we all of a sudden had NO income. Through help with XXXX XXXX  XXXX, we applied to Keep Your Home California as was approved in XX/XX/XXXX for 18 months of payment of payments due to our unemployment. At that time I was two months back payment on my loan. Although Select Portfolio kept trying to tell me to come through them for a modification. This time I knew better. In XX/XX/XXXX, after checking with Select Portfolio to make sure everything was fine. I asked my Select Portfolio Services about the balloon payment, I was told that I did not have a balloon payment. I told him to please check, because I did not want any surprises. After about an hour on the phone, he came back and said that I did have a balloon payment, but it was buried and he did not see it. I asked if Keep Your Home California was notified and he said that he did not know because it was buried. 

I called Keep Your Home California and told them what happened, they said they have no records from Select Portfolio Services that there is a balloon payment. I was told that if they had know, they would have been able to provide me with greater assistance, because it is only 18 months away and a large sum of money. I was also told that since my file was closed, there was nothing else to do, but wait until XX/XX/XXXX. As of XX/XX/XXXX, Keep Your Home California is closed and no longer providing financial assistance to California residents. 

Below is a detailed breakdown of that has taken place. If you have any question, please contact me at anytime. 

I refinanced my home through a XXXX Community Reinvestment Act loan in XX/XX/XXXX with for a 15 year mortgage at 4.625 % interest, My maturity date was XX/XX/XXXX. 

In mid XX/XX/XXXX, due to a dramatic reduction in business, I was two months late with my mortgage payment. I was working with a XXXX Home Retention Specialist and also with XXXX   XXXX XXXX. I applied and successfully received a modification for my home loan around XX/XX/XXXX. I made my first modification payment in XX/XX/XXXX Although I had made my first modification payment with XXXX ( attached ). I was informed by XXXX through a letter that my loan was being transferred to XXXX, but the modification will still be in effect. Everything went down hill from this point on. 

XXXX refused to honor the modification and refused to accept any modification payments from me. They told me I had to reapply again. I applied for a HAMP loan through XXXX in XX/XX/XXXX and Keep Your Home California. Keep Your Home California denied me because I have a modification withXXXX. Although XXXX knew, I did not know that if I accepted a modification with XXXX that I could not receive assistance from KYHC. I have not received any other written documentation about the terms of the modification. When I ask, they told me they would send it when I finish my trial plan. The only thing they did tell me was that at the end of 6 years I would owe {$52000.00} balloon payment. 

XXXXdenied me for the HAMP and have offered me an internal modification. They said unless I accepted there new modification, They were going to foreclose on my home. Under duress and the threat of losing my home, I signed the paperwork which included a balloon pyament. 

They did not extend my terms. My interest rate is still 4.625 and it is still due on XX/XX/XXXX, but they say I have a balloon payment. They have not told me the amount yet. But, a counselor said it will probably be around {$52000.00}. They won't know for sure until I complete my trial payment. They will then send me paperwork and I can choose to sign it or not. 


XXXX approved me for a loan, but it has a balloon payment f {$52000.00} in six years. I asked them for an amortization sheet and they said because it is a modification, they don't have to do it. I was also told that I was not allowed to make payments on it or pay it off early. 
The said my loan is not a negative amortization loan, but I could not understand where all of my payments went. In the new loan payment, they reduce my mortgage payment by {$300.00}. 

My issues is the original modification with XXXX was only 2 months behind. When I left XXXX XXXX, I would have been finished paying my home off in XX/XX/XXXX. I don't understand how at the end of this time, I will still owe {$52000.00}. I was in a CRA loan and they put me in this type of loan ... .very bad ... and great possibility to lose my home in six years or enter sometype of new loan withXXXX. I think that is what they are planning. It will then again be a desperate situation they have caught me in. I don't expect to have {$52000.00} in XX/XX/XXXX. 

I don't know how XXXX or Select Portfolio has arrived at this number, since the balloon payment notification I signed does not state a specific amount. Again, I have asked for this information since the beginning of the modification in XX/XX/XXXX until now and I have never received the information I am requesting. 

My home is currently worth over {$500000.00} and I only owe the balloon payment. I feel that XXXX XXXX XXXX and Select Portfolio Services understand the value of my home and are actively not providing me with verification of the total amount owed, so that there is a great chance my home will be foreclosed on. I have no place to go, so I am going to fight to keep my home. 

Select Portfolio Services continues to insist that I make arrangements with them for a modification, even though I have told them that per Keep Your Home California, if I make any arrangements with them my assistance will be revoked. I am two months behind in my payments, although I have the money to pay it, the way that Select Portfolio Services is listing it, it will seem like I have no need for the Keep Your Home California assistance and my assistance will be revoked. Again, I truly feel these two financial institutions are doing everything in their power to have Keep Your Home California revoke my assistance and therefore I will be unable to make my payments and therefore my home will be foreclosed upon. 

If it had not been for my basic knowledge as a former nonprofit XXXX XXXX XXXX to bring XXXX XXXX XXXX XXXX into the loop for assistance, XXXX would have stolen my home like they did many of the homeowners during the XXXX-XXXX. I also fault XXXX for dumping my loan into a company that would not honor the modification and then refusing to provide me with any assistance to clear up the manner. I understand that I my situation is not unique and XXXX, Select Portfolio and other financial institutions and servicers are preying on low income homeowners who are desperate to save their homes and themselves from homelessness.

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