Consumer complaint received 2018-10-10
Company: SELECT PORTFOLIO SERVICING, INC.
State: NC
Product: Mortgage
Sub-product: FHA mortgage
Issue: Struggling to pay mortgage

Complaint:
Because I have been struggling with my mortgage payments for several years and applied for and was denied a mortgage modification in XX/XX/XXXX by my mortgage company Select Portfolio Servicing ( " SPS ), I applied for and was approved to participate in a short sale program with SPS by letter dated XX/XX/XXXX, giving me until XX/XX/XXXX to sell my property. The letter also stated that "... as part of the short sale process, we will accept... a XXXX  payment.... '' It was also stated in a letter from SPS dated XX/XX/XXXX, responding to my inquiry regarding a short sale, " Under the Short Sale Agreement, you will not be required to make monthly payments. '' On or about XX/XX/XXXX, I entered into a Contract of Sale, principal amount of {$140000.00}, closing date scheduled for XX/XX/XXXX. 

Then in XX/XX/XXXX the delay tactics began. SPS stated to my broker 's attorney that the " numbers [ {$8000.00} ] on the RMA form '' needed to be placed in a different section of the form ; and continued to, unbeknownst to me, delay the closing for the next 50+ days. 

During this time, I was inundated with notices/demands for payments, threats of foreclosure, etc. from the mortgage company. I was assured ( by XXXX of SPS, XX/XX/XXXX, XXXX ) that these notices were " automated communications '' and to disregard them. 

I obtained affordable housing in the form of an apartment for myself, cleaned and moved out of my home of 26+ years on XX/XX/XXXX, assured that the closing would take place soon thereafter. 

On or about XX/XX/XXXX, I received an email from my broker 's attorney 's office that " as per my conversation with Ms. XXXX at SPS the above captioned short sale is still pending a decision. There are no documents being requested as of my call, and no foreclosure sale date has been set. '' On or about XX/XX/XXXX, I received an email from my broker 's attorney 's office that " as per my conversation with Mr. XXXX at SPS the above captioned short sale is showing as the offer for the second not being accepted however, I would like to resubmit the offer asking them to reconsider. Please advise if the Buyer would be willing to wait a little longer while we make another attempt. '' I was informed that the mortgage company was now demanding that the buyer pay the full amount of the second mortgage of approximately {$39000.00}, rather than the {$8000.00} that was agreed upon. 

Needless to say, the buyer withdrew his offer. 

My broker, the attorney, the buyer and I were shocked by SPS ' decision. We were lead to believe by SPS that this was a done deal, and just the necessary modifications to the RMA had to be made, etc. Before this short sale process, though I was struggling on a fixed income, I was up to date on ALL my expenses pertaining to the upkeep of my house -- mortgage payments ( 2 ), property taxes, quarterly expenses ( water, sewer, trash ), homeowners  insurance, even the gas and electric. Before I started this process I was NOT facing foreclosure. Now, because of the delay tactics of the mortgage company in what I feel was an attempt to extract more money from the buyer, I am a XXXX year-old XXXX XXXX XXXX female facing at this time of my life foreclosure and XXXX in debt. 

This to me is an outrageous abuse of power. I feel as if they took my stressful situation and under the guise of being helpful and giving assistance, with delay tactics, prolonged and then denied the sale of my home and at my age made the remainder of my life even more stressful and thus detrimental to my health.

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