Consumer complaint received 2019-05-20
Company: Fay Servicing, LLC
State: FL
Product: Mortgage
Sub-product: Conventional home mortgage
Issue: Trouble during payment process

Complaint:
I worked with XXXX to modify my loan with XXXX. 
From what I can recall, my loan was transferred to Fay Servicing and via the transfer process I was a month behind on payments and Fay had offered to put the payment toward the back of the loan. I had done this before with XXXX and there was no material changes to the modification agreement with XXXX when a payment was placed to the rear of the loan, other than the payment was now added to the end of the loan. 

When I received Fay 's paperwork, I inquired if this would alter the principle forgiveness modification I had made with XXXX and I was told no by the previous account manager who was handling my account at the time. In addition the paperwork from Fay states " Providing for Fixed Interest Rate. '' at the top and center of the first page and does not indicate any other changes. I already had a fixed interest rate. A review of the Fay documents showed the same interest rate as I already had and payments remaining the same, so I took their word that their document only shifted the payment to the end of the loan. 

When I was assigned a new account manager, after being with Fay Servicing for some time, I inquired with him about the modification I had done with XXXX including the principle forgiveness and he confirmed over the phone that it was all in place. 

Eventually I remembered that the time has come to began receiving the principle forgiveness and inquired with my Fay account manager, and he told me I didn't qualify because I had been late with payments. I told him I was never 3 months late on the last day of the 3rd month since getting the XXXX modification so I should still be eligible. I asked him to review the documents and my account and call me once he had better information. 

I worked hard over the period of many years since XXXX to finally get the modification terms I received under the XXXX modification and would never knowingly sign terms away which benefited me, for terms that do not benefit me, but benefits the loan provider and servicer. 

I believe I was intentionally misled and lied to. Never were the terms of the Fay Servicing modification explained other than it would place a payment to the end of the loan and I would be current with my loan once a normal monthly payment was made. 

This is predatory loan practices that Fay Servicing has engaged in against me. From what I can recall, I was a month behind on payments and Fay had offered to put the payment toward the back of the loan. I had done this before with XXXX and there was no material changes to the modification agreement with XXXX when a payment was placed to the rear of the loan, other than the payment was now added to the end of the loan. 

When I received Fay 's paperwork, I inquired if this would alter the principle forgiveness modification I had made with XXXX and I was told no by the previous account manager who was handling my account at the time. In addition the paperwork from Fay states " Providing for Fixed Interest Rate. '' at the top and center of the first page and does not indicate any other changes. I already had a fixed interest rate. A review of the Fay documents showed the same interest rate as I already had and payments remaining the same, so I took their word that their document only shifted the payment to the end of the loan. 

When I was assigned a new account manager, after being with Fay Servicing for some time, I inquired with him about the modification I had done with XXXX including the principle forgiveness and he confirmed over the phone that it was all in place. 

Eventually I remembered that the time has come to began receiving the principle forgiveness and inquired with my Fay account manager, XXXX, and he told me I didn't qualify because I had been late with payments. I told him I was never 3 months late on the last day of the 3rd month since getting the XXXX modification so I should still be eligible. I asked him to review the documents and my account and call me once he had better information. 

XXXX called me to tell me I signed a modification with Fay that nullifies and supersedes the XXXX modification. I told him if that was the case then I was mislead. 

I worked hard over the period of many years since XXXX to finally get the modification terms I received under the XXXX modification and would never knowingly sign those terms away which benefited me, for terms that do not benefit me, but benefits the loan provider and servicer. 

I believe I was intentionally misled and lied to. Never were the terms of the Fay Servicing modification explained other than it would place a payment to the end of the loan and I would be current with my loan once a normal monthly payment was made. 

I sold my home due to this issue in XX/XX/XXXX. I owned my home sine XXXX. 

I believe this is predatory loan practices that Fay Servicing has engaged in against me. Please help me make this right. The documents from XXXX and Fay are available and I will attempt to attach them. 

Thank you, please me make this right. 

Thank you.

Company response to consumer: Closed with explanation