Consumer complaint received 2017-12-12
Company: SELECT PORTFOLIO SERVICING, INC.
State: CA
Product: Mortgage
Sub-product: Other type of mortgage
Issue: Trouble during payment process

Complaint:
FACTS PLEASE NOTE THE FOLLOWING STATEMENTS ARE SUPPORTED BY DOCUMENTATION THAT CAN BE PROVIDED TO THE CFPB UPON REQUEST:What is the complaint about? Mortgage PaymentWhat type of problems are you having? Alleged DeficiencyWhat Company is involved?  XXXX XXXX/Select Portfolio ServicingWhat Happened?Bankruptcy Discharge:On XX/XX/XXXX, we received a letter from our trustee that XXXX XXXX Chapter XXXX bankruptcy was nearing completion and effective XX/XX/XXXX to pay XXXX directly, mortgage payments $XXXX  XXXX was cc’d and did not raise objections. From XX/XX/XXXX to present, mortgage payments in the amount of XX/XX/XXXX have been made.On XX/XX/XXXXXXXX called stating the account was delinquent and XXXX was due immediately to prevent foreclosure.   When I called XXXX I was advised since XXXX through XX/XX/XXXXthe monthly payment has been XXXX, and beginning XX/XX/XXXX, it would be XXXX.  On XX/XX/XXXX, I sent a letter to XXXX XXXX, XXXX regarding the payment discrepancies and alleged delinquency.  XXXX respondedXX/XX/XXXX, stating:“We have conducted an investigation and did not find any error in the application of payments based upon the information provided.  In a review of the account, we confirmed that all payments have been applied in accordance with the bankruptcy order, as shown on the enclosed breakdown”.InXX/XX/XXXX, our Bankruptcy Attorney, XXXX XXXX, filed a motion to deem the mortgage current and the motion was granted inXX/XX/XXXX. On XX/XX/XXXX, we received a letter from XX/XX/XXXX admitting they misapplied the funds during the bankruptcy and they updated the account in accordance to the Bankruptcy Courts Ruling. The following month, they made the account delinquent again. Mortgage Payment:After the Courts JuXX/XX/XXXXruling, the XX/XX/XXXX, XXXX stated the mortgage payment was XXXX.  The XXXX statement stated the mortgage payment was XXXX.  We continue to send the payment we were directed to send, XXXX when the bankruptcy was completed in XX/XX/XXXX.  Currently, the account is again delinquent.  Since 2016, XXXX has changed the payment four times, XXXX; XXXX; XXXX and XXXX. Also, as of today, when I accessed our online account, XXXXr now states, “Congratulations, your loan is fully paid off.” My issue with XXXX is per their XX/XX/XXXX, letter referenced above, they stated, “In reviewing the escrow account, we confirmed that the increase in the property taxes and purchase of lender placed flood insurance coverage, effective from XX/XX/XXXX to XX/XX/XXXX, has contributed to the increase in the monthly payment.  You may also purchase insurance and provide proof of the policy to cancel the lender placed insurance as a policy you purchase would likely be less expense.  Once we receive proof of the insurance, we will cancel the lender placed insurance and refund the paid premiums to the escrow account.XXXX purchased this insurance while we were in active bankruptcy.  Additionally, the property is not located in a flood zone.  We have insurance on this property through XXXX XXXX so it’s not clear why this insurance was purchased on our behalf.  The proof of insurance has been sent no less than 3 times.  On XX/XX/XXXX, XXXX finally cancelled the lender placed insurance yet they are still charging insurance in the mortgage payment and they have yet to complete a new escrow analysis to adjust the monthly payment accordingly as outlined by their XX/XX/XXXX, letter.  In addition to the insurance fees, they are also charging late fees, property inspection fees, and legal fees.  To complicate matters even more, effective XX/XX/XXXX, the mortgage was sold to Select Portfolio Servicing and they have been calling and harassing non-stop alleging the account is delinquent.   This entire ordeal has been a nightmare.  I have POA for my Mom who is XXXX.  If I were not taking care of her finances and paying close attention to these discrepancies, and if our attorney had not intervened, the property would have been foreclosed.  Their past, and current activities border on FRAUD and ELDER ABUSE.

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