Consumer complaint received 2023-09-03
Company: SELECT PORTFOLIO SERVICING, INC.
State: NJ
Product: Mortgage
Sub-product: FHA mortgage
Issue: Struggling to pay mortgage
Sub-issue: Foreclosure

Complaint:
XX/XX/XXXX Dear Sir or Maam On XX/XX/XXXX, I received a letter from Select Portfolio Servicing ( SPS ), stating Beginning with XX/XX/XXXX, monthly mortgage payment, the new mortgage will be payment {$1300.00}. Please note : SPS changed the effective date from XX/XX/XXXX, to XX/XX/XXXX for new payment. The change of effective date was due to ongoing problem with escrow payments since XX/XX/XXXX ( See Attachment A ). 

SPS Transaction History dated XXXX XXXX show on XX/XX/XXXX, SPS paid the second quarter taxes to XXXX XXXX, NJ ( See Attachment B ). During the month of XX/XX/XXXX, I made two payments toward the mortgage to SPS in the amount of {$2600.00}. The first payment was on XX/XX/XXXX, SPS received a payment of {$2000.00}. Second payment was on XX/XX/XXXX, for a payment of XXXX. SPS subtracted out principal {$400.00} and insurance of {$920.00} from {$2000.00} which left a remain balance of {$660.00}. The remain escrow balance amount of {$660.00} + {$600.00} = {$1200.00}. SPS letter dated XX/XX/XXXX XXXX, Please note ; if there is an escrow balance in your account these funds will be refunded to in 30 days. However, I did not receive the refunded of {$1200.00} ( See Attachment B & E ). On XX/XX/XXXX, I stop making escrow payments due to the ongoing problems and total confusion with escrow payments. The SPS Transaction History date XX/XX/XXXX, and the Escrow Disbursement History dated XX/XX/XXXX, show a payout of {$1200.00}. I did not receive the money and I do not show what happen to the {$1200.00} ( See Attachment B & E ). 

SPS letter dated XX/XX/XXXX XXXX, Page 1, para 1 : Stated NOTIFICATION OF ESCROW ACCOUNT CLOSEING stated the follow : Accordingly, the payment element for the taxes or insurance or both on your monthly statement will be closed and effective with the XXXX, XXXX payment, your new payment amount well be {$1500.00}. SPS letter dated XX/XX/XXXX XXXX, did not provide any detail and/or cost break down on the payment was {$1500.00} ( See Attachment C ). 

SPS letter dated XX/XX/XXXX, Page 1, paragraph 2 : Stated the following A negative escrow balance of {$2200.00}. Once this amount is paid to {$00.00} the shortage element of your monthly payment will remove and you will continue payment to just principal and interest ( See Attachment D ). I received a demand letter from SPS for {$2200.00}. On XX/XX/XXXX, SPS paid the second quarter taxes to XXXX XXXX in the amount of {$2700.00}. I stop paying escrow on XX/XX/XXXX, three months after SPS taxes payment on XX/XX/XXXX. However, I am not sure how the {$2200.00} was calculated. Based on what taxes quarter? Based on SPS Transaction History date XX/XX/XXXX, and the Escrow Disbursement History dated XX/XX/XXXX, do not show any missed escrow payments ( See Attachment B & E ). I went back and forth trying to resolve the taxes payment problems. I paid the {$2200.00} escrow shortage on XX/XX/XXXX, trying to resolve the escrow problem ; however, escrow shortage problems only became worse. I never received any detail documentation support and/or explaining the {$2200.00} escrow shortage. The SPS Transaction History date XX/XX/XXXX, and the Escrow Disbursement History dated XX/XX/XXXX, do not show any shortage in escrow. What happen to the money? 

On XX/XX/XXXX, I spoke with a SPS supervisor, and the supervisor stated all escrow money was used to pay the third quarter taxes for XX/XX/XXXX escrow payments to XXXX XXXX. On XX/XX/XXXX, I called, and I spoke with a representative at XXXX XXXX. The XXXX XXXX representative stated there was no taxes payment to XXXX XXXX for the third quarter taxes for XX/XX/XXXX to XXXX XXXX. XXXX XXXX do not receive the tax bill for XXXX XXXX NJ until the end of XX/XX/XXXX and the taxes bill was just mail out to homeowners. I received my taxes bill on XX/XX/XXXX, from XXXX XXXX and the payment is due XX/XX/XXXX. Therefore, the SPS supervisor is lying, and there were no third quarter taxes payment for XX/XX/XXXX made by SPS to XXXX XXXX. I will be paying the XX/XX/XXXX taxes. The third billing cycle for taxes payment to XXXX XXXX is for the months of XXXX, XXXX, XXXX and XXXX and payment is due on XX/XX/XXXX ( See Attachment B & E ). The last taxes payment was made by SPS on XX/XX/XXXX, by SPS and I stop payment of escrow in XX/XX/XXXX. How did SPS calculate the escrow shortage since on taxes payment is due until XX/XX/XXXX? I paid the Homeowner Insurance in full. I have been harassed and sent demand letters since XX/XX/XXXX this an ongoing problem. SPS is holding {$2200.00} hostage and I want the {$2200.00} return immediately. 

This is an ongoing problem of mismanagement of money which has had a direct impact on finances problem which has become worse. I am a senior citizen trying to make end meet and SPS have kept the {$3400.00}, please help. I have lost all trust and confidence in SPS. If you have any questions concerning this matter, please free to call me at ( XXXX ) XXXX. 

Sincerely, XXXX XXXX XXXX Account Number : XXXX

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