Consumer complaint received 2017-12-29
Company: SELECT PORTFOLIO SERVICING, INC.
State: NY
Product: Mortgage
Sub-product: Conventional home mortgage
Issue: Struggling to pay mortgage

Complaint:
Our mortgage was sold by XXXX to Select Portfolio Servicing in XX/XX/XXXX. We have been contacting SPS for several years requesting assistance options in an effort to sell our " underwater '' home. We were continuously told that our " loan holder had a note on our account stating that we were not eligible for any form of loan assistance. '' We asked multiple representatives on multiple occasions who the loan holder was and why we were being prohibited from mortgage assistance? We were repeatedly told, " I do n't have access to that information. '' In XX/XX/XXXX, we contacted SPS again requesting assistance and were told that with the changes in the HUD laws, we were eligible for several loan modification options. One option was a modification and the other option was a short pay. We were advised to open requests for BOTH the modification and the short pay so we could save money through the modification while we waited to see if we were approved for a short pay. We submitted all the required documentation for both the loan modification and the short pay. We received notification of a new mortgage amount reflecting a loan modification and that we were starting the " trial period '' for the modification in XX/XX/XXXX. We asked, How has the mortgage been modified? Was the interest rate lowered, or was the principal amount reduced? Will there be a balloon payment at the end of the mortgage? We were told, Im not a modification specialist. I dont have the terms of the modification in front of me. I cant tell you that. In XX/XX/XXXX ( the final month of the trial period for the modification ), we received a letter notifying us that our request to terminate our loan modification was received and the modification was cancelled. We immediately contacted SPS to find out why this was done because we had, at no time, requested to cancel our request for a modification. We were then told, " You ca n't have a request for a modification and a short pay open at the same time. '' We asked why we were advised to open both requests at the same time and why the SPS representative opened both requests on the phone if we were not permitted to do so? We were simply informed, " I do n't know. She never should have told you could do that. Clearly you do n't understand how this works. '' As of XX/XX/XXXX, we  continued to work with SPS on the short pay request. We repeatedly asked several questions regarding the terms of a short pay : " What happens to the remaining balance of the loan? Does a short pay negatively affect your credit score? Will we be held financially responsible for the difference of the old and new mortgage amount? Will we owe taxes on the remaining balance of the previous mortgage? '' Each time we were told, " I ca n't tell you that. I 'm not a loan assistance specialist. I 'm not a financial advisor. I ca n't answer that. I 'm not a credit specialist. I ca n't answer that. '' We asked to receive documentation of all of the terms and conditions and stipulations of the short pay and each time have been told, " We ca n't give you that. We do n't have any documentation. '' Over the course of eight months ( since we initially opened the short pay request ), we were repeatedly contacted by SPS and told that we needed to provide documents to move forward in our request. Each time, we sent the same documents several times ( documents were sent within 24-48 hours of each request ). We would call and follow-up to make sure that the documents were received. We were always given the same response, " I see they have been uploaded to the site, but I ca n't see the documents. They will be reviewed and someone will get back to you in 3-5 business days. '' Week after week, month after month, we would receive phone calls requesting further documentation. Despite our constant attempts to clarify with SPS, they would call asking for proof of transactions for bank accounts we did n't hold, last two months pay stubs from my place of employment ( they were told repeatedly I have n't worked in over 3 years and do not have pay stubs ), and would re-start the application process over every time they requested something within 10 days of our previous correspondence. 
We also began to receive repeated phone calls from realtors informing us that our mortgage company was requesting BPO inspections and that they had to come to the house to take pictures and provide appraisals. We had a total of six realtors come to our home as of XX/XX/XXXX. We contacted SPS multiple times requesting information as to why an excessive number of BPO inspections were being requested. We finally received some validation from a representative from SPS ( XXXX ) who said, " I have never seen this many BPO 's requested. Why was a drive-by inspected requested? We do n't even allow those. You should have only needed two of these and I see that you have more than enough. '' We were told that when you submit an offer to the loan holder to submit the lowest possible offer, and then the loan holder would go back and forth with offers until we eventually agree on a final amount. However, upon submitting our second short pay offer in XX/XX/XXXX, we received notification that SPS completely closed our application for a short pay because our offer was denied. After months of stress, exhaustion, submitting documentation, phone calls, BPO inspections, home repairs, etc., we were right back to " square one '' with no explanation as to why? We called SPS and asked why our request was closed and explained that we were told we could continue to submit offers until the loan holder agreed on an amount. We were told, " No, that 's not how this works. You only get one counter offer and then we close the request. '' We explained that if we were told that in the first place we would have come in higher with our initial offer. We received nothing more than a, " Sorry, but that 's how it works and there 's nothing we can do. '' We were then told that if we wanted to continue with the short pay process, we would have to start the application process completely from scratch, submit all the documentation again, and this time, we were responsible for getting our own XXXX because the mortgage company would no longer send realtors on their behalf to conduct the inspections. We complied and resubmitted all required documentation AND a BPO from XXXX on XX/XX/XXXX. Shortly after, my husband received a phone call AGAIN requesting my most recent pay stubs. ONCE AGAIN, my husband explained that I have not worked in over 3 years and that there were no stubs to provide. The next contact we received was that SPS required us to provide a HUD statement showing proof of funds for the short pay. We asked how we could possibly request a mortgage without knowing how much to request and if we are approved for a short pay? They said, " That 's how this works. You need to show where the money is coming from. '' Once again, we said, " We are willing to comply with your requirements, but you 're still not telling us how much we need to request from a mortgage company. We need an amount to apply for. '' We were told, " I 'm not a loan assistance specialist. I ca n't tell you that. '' As of XX/XX/XXXX, we asked again what the terms, conditions, and stipulations of the short pay were, how it would affect our credit, what the financial liabilities were, etc. Once again, we were denied answers. 
To date, we have no resolution or assistance from SPS regarding any form of mortgage assistance. SPS refuses to disclose any information to us regarding our request for a short pay. Each time we speak to someone, we receive different information and no one will commit to assist and/or advocate for us in any way. We have been assigned a relationship manager but have only spoken with him several times throughout the process ( despite our repeated requests to receive calls from him ). As it stands, we have been told that we are required to obtain a mortgage for an unknown amount and show proof of funds to SPS for an ambiguous short pay.

Our family has struggled and suffered tremendously throughout this process and our plans to move into a new home have been repeatedly delayed as a result of SPSs negligence. We fear that we have been ill advised and are being pressured into a very dangerous financial commitment that may significantly and negatively impact our family. We are desperately seeking assistance in this matter and would greatly appreciate any support in rectifying these issues and/or pursuing legal action again Select Portfolio Servicing.

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