Consumer complaint received 2017-09-08
Company: Fay Servicing, LLC
State: CA
Product: Mortgage
Sub-product: Conventional home mortgage
Issue: Struggling to pay mortgage

Complaint:
To Whom It May Concern, we have been fighting our previous loan servicer XXXX XXXX XXXX, XXXX, hereinafter referred to as XXXX, for several years. We had sent them numerous letters in an attempt to find out who the actual beneficiary is to our debt obligation. We disputed the information XXXX provided to us in regards to ownership. Now, XXXX has notified us that the servicing to our debt obligation has now been transferred to Fay Servicing. Fay Servicing has notified us that as of XXXX XXXX, XXXX, not only has our loan been transferred to them, but our debt obligation has allegedly been sold to a new entity. We adamantly dispute this information. This information does not match up with the records in the County Recorder 's Office. We are in the process of attempting to solve this matter. We have not done previously because the servicing rights were just acquired by Fay Servicing. Our biggest problem is that we know for certain Fay Servicing is a debt collector and not a creditor. When XXXX acquired the servicing to our loan back in XXXX, our debt obligation was in default and we have been in default since XXXX. Based on the fact that Fay Servicing has now acquired the servicing, they are debt collectors according to the Fair Debt Collection Practices Act, hereinafter referred to as FDCPA, without a legal right or authority to attempt to collect on the debt obligation or proceed with the enforcement of the security interest. We also have taken notice that our loan number has changed. 
We do not recognize the loan number they have assigned. In order to assign a loan number to an old debt, the old debt must be paid off. They can not create a new debt with an old debt obligation simply by giving it a new loan number. We understand that pursuant to the FDCPA, they are prohibited from threatening to take a non-judicial action to dispossess or disable us from our property when they do not have a legal right or authority to do so. To proceed with a non-judicial foreclosure against our home would be in violation of Section 1692f ( 6 ) of the FDCPA. We have been fighting this ordeal for nearly 10 years and every time we try to do something, our debt obligation gets transferred. Being in this position has forced us to learn about the law and what options and laws are available to us according to the U.S. Constitution. We presently are facing a foreclosure date set for Friday, XXXX XXXX, XXXX at XXXX p.m. We are bewildered as to how could they can proceed with a foreclosure sale when both the servicing and ownership has been allegedly transferred. We know for certain that this is a violation of California foreclosure laws. We are filing this complaint because we are beyond frustration, fear and anger. We are exercising any and all options available to us to avoid being victims of a wrongful foreclosure. We believe that if we do not file this Complaint, Fay Servicing will continue to disregard the law as their predecessors did and they will fraudulently and wrongfully foreclose on our home. 

Respectfully submitted, XXXX XXXX and XXXX XXXX

Company response to consumer: Closed with explanation