Consumer complaint received 2023-08-30
Company: SELECT PORTFOLIO SERVICING, INC.
State: FL
Product: Mortgage
Sub-product: Conventional home mortgage
Issue: Struggling to pay mortgage
Sub-issue: Applying for or obtaining a modification, forbearance plan, short sale, or deed-in-lieu

Complaint:
Our family is facing foreclosure because we went through financial hardship due to XXXX. Our mortgage company Select Portfolio Servicing helped us at first, but now has turned their back on us and is refusing to give us options to resolve the missed payments from XXXX. They are demanding we pay them back in full and are starting the foreclosure process. Our loan is backed by Fannie Mae and this qualified us for help through CARES act. When our state shut down we reached out to XXXX XXXX who was our servicer at the time and they offered the first forbearance for six months and the missed payments were resolved through modification. We resumed making our regular payments for several months but were still in trouble as my husband 's business was slow to come back and the cost of living and inflation hurt us. We applied for and were approved for a second forbearance with SPS as we were still negatively impacted by XXXX and were approved. However, when we asked for an extension ( forbearance term to be 3,6,9,12 or 18 months depending upon hardship per CARES guidelines ) we were given the runaround and told we need to apply for a loan modification. As I understand it, XXXX servicers who offer CARES act forbearance are required to offer solutions to resolve the delinquent payments outside of full reinstatement like loan modifications, deferments, recapitalization or as a last resort a repayment plan. That is not what happened with our loan and SPS servicing. SPS dragged out the process for six months and we feel they conducted a shoddy review and did not properly calculate income or review the requested documents and issued a denial and has started the foreclosure process. Our hardship is resolved, my husband and I are both back working full time and we are able to make our regular payment, the issue is the past due payments that are continuing to accrue. We have made repeated efforts to work things out with SPS and even wired a lump sum to pay towards our arrearages recently which SPS rejected. We bought our home nearly 30 years ago and refinanced with XXXX in XXXX. We never had problems with the mortgage payment until the pandemic led to business shutdown in our area. 
SPS approved us for the second forbearance due to XXXX impacting our finances and at the end of the six month period we were still struggling and asked for an extension but SPS said at that point that they needed to review our financial information to provide any additional help. We began the process of submitting documents over and over to SPS in XX/XX/XXXX. We were given conflicting answers by SPS agents as to what paperwork was received and what paperwork was missing. I submitted all of the paperwork 3-4 times and it became apparent to us that SPS was purposely delaying the review. We submitted a profit and loss based on the information SPS provided but were told that it was not sufficient. We had been told during this review process to NOT make mortgage payments, although we continued to make the escrow payments so we could remain in good standing. In XXXX we were told that we were denied for all options because of insufficient income and that you would no longer accept single mortgage payments and that we needed to reinstate the full past due amount. 

We have tried repeatedly to resolve this matter with SPS and were told the only option was reinstatement of the delinquent amount which is currently about $ XXXX. I contacted my XXXX to withdraw money to try and settle up but was told the most I could get out at XXXX time was {$8700.00}. I called SPS and spoke with a customer service agent and told them I could make a payment towards the delinquency to show good faith and the agent told me that was fine, to go ahead and wire the money to SPS. After I wired the money I was notified that SPS had rejected the wire.

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