Consumer complaint received 2021-02-17
Company: SELECT PORTFOLIO SERVICING, INC.
State: DC
Product: Mortgage
Sub-product: Conventional home mortgage
Issue: Closing on a mortgage

Complaint:
CONSUMER FINANCIAL PROTECTION BUREAU : Consumer Complaint- SELECT PORTFOLIO SERVICING, INC. ( SPS ) in ref : Failure to Accept Funds from Settlement on a Short Sale Contract I, XXXX XXXX XXXX and my daughter, XXXX XXXX XXXX are co-owners and co-mortgagors. We are writing due to our hardship and urgency, to ask you to demand of SELECTPORTFOLIO SERVICING, INC. ( SPS ) to honor their signed short sale agreement of XX/XX/XXXX, XXXX. 
SPS refusal to accept the buyers funds from XXXX XXXX XXXX XXXX XXXX XXXX see attached Closing Disclosure and Settlement Statement dated XX/XX/XXXX, abrogated the short sale agreement which is and will continue to bring extreme hardship for us ( sellers ) and the buyers, XXXX XXXX and his wife XXXX XXXX , who have also filed a complaint with your office. 
XXXX XXXX and XXXX XXXX submitted an offer to buy our home on XX/XX/XXXX. Their offer was ratified on XX/XX/XXXX, after six months of extremely poor and frustrating communication with SPS, on XX/XX/XXXX the short sale was signed for SPS by XXXX XXXX, Servicer Representative/Senior Vice President Mitigation, with the closing date of Friday, XX/XX/XXXX. 
On XX/XX/XXXX we closed per the contract at XXXX XXXX XXXX XXXX XXXX, conducted by XXXX XXXX XXXX, XXXX, owner of the title company. We gave the keys to the property to the buyers once they signed their closing documents later the same day. Mr. XXXX and Mrs. XXXX moved into the home the very next day. 
On XX/XX/XXXX XXXX XXXX XXXX XXXX Settlement Coordinator XXXX XXXX contacted us inquiring if we had heard from SPS as they were not responding back to sign and finalize the closing documents. As we also had not received any communication from them, we contacted them via a three-way call so Ms. XXXX could speak with a supervisor directly to inquire when the title company would receive back the approval of the signed Closing Disclosure & HUD-1 Settlement Statement. She emphasized to SPS its timely receipt was vital to adhere to Maryland State law. The SPS supervisor told Ms. XXXX to call back within 4 to 5 days, that there was not a problem, and the HUD-1 should be accepted. That never happened, and therefore the buyers funds were returned to their lender per Maryland law. 
Instead, with no SPS communication with the title company or us, the following sequence of events occurred 2 weeks after settlement. 
On XX/XX/XXXX SPS emailed a letter- attached, stating in para 2 : The short sale approval for XXXX XXXX and XXXX XXXX XXXX the above referenced account has expired. para 3 : This expiration is in reference to the purchase offer from XXXX XXXX and XXXX XXXX ( the Buyer ). If you have another offer, it XXXX still be eligible for review. 
On XX/XX/XXXX SPS emailed us a very confused letter- attached, stating in para 2 : SPS has reviewed your request for workout assistance. We are unable to approve your request for assistance involving a Short Sale for the reason marked below This denial is based on the criteria where your account did not pass the program eligibility requirements ; Denial Reason ( s ) : you requested that we not consider you for this option. 
This denial is very specific to the offer provided by XXXX XXXX XXXX XXXX XXXX ( The Buyer ). If you have another offer it may still be eligible for review. Please submit the required documents as soon as possible for consideration. 
We are mentally exhausted dealing with SPS. For the entire six months we were never able to speak to anyone in authority, always speaking to a different person in Customer Service who knew little or nothing about our previous contact ( s ). The assigned Relationship Manager, XXXX XXXX XXXX was never to be found. We ask for your help in dealing with this predatory mortgage servicing company who are planning to begin foreclosure on the property and evict the Buyers through no fault of their own. 
SPS contact : XXXX XXXX, Servicer Representative /Senior Vice President Mitigation. 
The only number we have for him after much effort to reach him is Customer Service : XXXX Sincerely, XXXX XXXX XXXX XXXX ) XXXX XXXX XXXX XXXX XXXX ) XXXX

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