Consumer complaint received 2023-07-16
Company: SELECT PORTFOLIO SERVICING, INC.
State: CO
Product: Mortgage
Sub-product: Conventional home mortgage
Issue: Struggling to pay mortgage

Complaint:
I bought my home almost 20 years ago with a purchase mortgage through XXXX. This mortgage is now being serviced by SPS and I feel that their actions and decisions are unethical and now we are in foreclosure. SPS denied me access to homeowner assistance programs that I should be considered for. Our family went through a difficult time due to XXXX and reached out to SPS for help. We were offered a " temporary hardship forbearance plan '' for a period of XXXX months with a requirement that we would have to make a balloon payment in the XXXX month to catch up. ( paperwork attached ) I am now aware that there was a government sponsored program called CARES that was designed to help homeowners impacted by XXXX ( my family ) and would allow a XXXX month forbearance with no demand for balloon payment at the end of the term, offering instead a review of reasonable options to resolve the payments from the plan. I don't understand why we were not offered the CARES forbearance because the decision that SPS made to put us in the other plan with no options to fix this has led to foreclosure. I have tried repeatedly to get SPS to consider us for programs such as deferment or loan modification but instead get told the only option is a short term repayment plan that raises my payment over {$1000.00} a month and is equal to about 75 % of my fixed income. This is wrong and I want my case escalated and I want a full review of the handling of my loan and situation. 

I worked XXXX XXXX XXXX XXXX XXXX XXXX  years and after divorce in XXXX I worked more and made sure the mortgage was paid. In XXXX when I was dXXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX I made sure the mortgage was paid. In XXXX I was able to draw money out of my pension so that I could remodel, add on and upgrade my house so that my daughter and son in law and grandkids could all move in with me. As the construction proceeded we started having some problems and come to find out that the contractors lied to me and were not licensed. Not long after they walked off the job when it was only halfway done. I took them to court but the damage was done and now myself and my daughter and son in law were all scraping to pay to finish the construction out of our pocket, but we still were able to pay the mortgage on time. 

When XXXX hit in XXXX we were in trouble. My daughters family was living in the home and contributing to the bills but both had loss of income and hours due to the pandemic. Due to the unfinished construction there were no savings because of the scam. When I called SPS to ask for help in XX/XX/XXXX I was glad to hear that they had a program to help us, the temporary hardship forbearance, but based on the impact of Covid and the loss of income in our household a three month forbearance with a balloon payment to get caught up in month 4 does not seem like very much help, especially considering that the CARES act forbearance allowed a much longer term and did not require a balloon payment at the end of the forbearance.

Because of the plan that was offered we have been struggling financially ever since. I was able to resume making payments but were just scraping by and could not get caught up. SPS offered us a repayment plan with a first payment due in XX/XX/XXXX and we made the payment, but later found that our bank account had been hacked and the payment was returned. After that SPS refused to accept payments and filed foreclosure papers. I continued trying to talk to SPS to get them to work with us and consider us for a deferment or recapitalization of the delinquent payments or a loan modification and I have been told no, the repayment plan is the only option, you need to pay us {$2500.00} a month. I did not have the money and called in begging SPS to help and work with me and their agents said no, and that if I did not find a way to make the repayment plan payment they were going to take my house.

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