Consumer complaint received 2022-04-08
Company: SELECT PORTFOLIO SERVICING, INC.
State: CA
Product: Mortgage
Sub-product: Conventional home mortgage
Issue: Struggling to pay mortgage

Complaint:
The reason for doing this complaint is to see if I can get your help in finding out why I am not getting the same opportunity as others that have been delinquent on their mortgage. My mortgage company ( SPS ) has been giving me conflicting information about my loan and they are not trying to work with me so that we can remain in our home. Time is lapsing and I am running out of options in trying to keep my home. I am aware that there are many programs and opportunities here in California for people like us who have been impacted by Covid. Ive tried getting a valid reason of why I am not offered any of the programs that are available to be able to stay in our home. After speaking to my mortgage company on various occasions all I get from them is that my investor ( XXXX ) is not willing or allowing me to have access to those programs. We have been trying to establish a plan or program with my mortgage company ( SPS ) so that my house does not go into foreclosure. In the meantime, time is lapsing, and we feel that we are not getting the opportunity we deserve to stay in our home. This began in XXXX when I lost my job and I reached out to my mortgage ( SPS ) to get help in possibly modifying my home loan. In XXXX of XXXX I was laid off from my job unexpectedly. This was something we didnt anticipate happening and certainly took a toll on our financial situation. I applied for unemployment and was granted a percentage of what I was making but it wasnt enough to be able to sustain our household expenses. I immediately began looking for work and reviewing all of our options to be able to have a place to live. Because of our circumstances we had no other choice but to reach out to you ( SPS ) and ask for consideration of a loan modification. I was told that because I was receiving unemployment, we would not be able to do a loan modification. Both my husband and I would have to be working to be able to apply for a loan modification. I was then offered the Unemployment Forbearance Plan. I applied for the plan and qualified. Our mortgage payment was reduced to {$170.00} a month and it was going to be effective for the next 6 months. We accepted the offer and started making our new monthly mortgage payment according to the plan. I continued looking for a job but unfortunately, I was not successful in finding anything. In the beginning of XXXX Covid hit, and my unemployment installments automatically renewed. I began receiving unemployment again. I reached out to SPS to make them aware of the situation and they required me to send a copy of the letter from unemployment where it stated that they were going to renew my unemployment benefits. After SPS reviewed the letter, our monthly mortgage payment was revised to {$310.00}, and our Unemployment Forbearance Plan was extended for an additional 6 months. My unemployment benefits continued being renewed so SPS continued extending our Unemployment Forbearance Plan. In XX/XX/XXXX I received a call from SPS and was told that the Unemployment Forbearance Plan had taken its course and that they could no longer keep me on that plan. I conversated with the person who called to see what other options we had to be able to stay in our home, the person questioned if I felt that we were affected by Covid 19, I answered yes because due to the pandemic it was impossible for me to find a job. We filled out a Covid-19 relief application and in XXXX of XXXX we were put on a Covid Forbearance plan for 6 months. This time they did not require us to make any monthly payments, but we continued making the {$310.00} payment anyways. I was in constant communication with SPS throughout this whole time trying to find out what options we had so we would not lose our home. My Covid Forbearance Plan was ending in XXXX of XXXX. In XXXX of XXXX I reached out to SPS because I had started a new job and wanted to see if we were ablet to now apply for a loan modification. SPS didnt want to work with me or talk to me about any possible options until my forbearance plan ran its course. SPS suggested I call back 2 weeks prior to the plan ending to find out what my options were. When I called back, I was told that I would receive a letter in the mail indicating the final decision. On XX/XX/XXXX I received a letter indicating that I had been granted the opportunity to stay in my home with the condition that I would pay {$1600.00} ( monthly mortgage payment ) + {$1500.00} ( towards the delinquent amount ), totaling {$3200.00} every month for the next year. The new payment plan was not possible for us to make so I called and tried working out something with SPS, but they indicated that it was the only offer they would be able to give to us. I asked the person what would happen if I didnt accept the offer. She said it would be a matter of time before my house would go into foreclosure and we end up losing it. I mentioned to her that if that was the case then it would probably be best to consider selling it so I wouldnt lose getting the equity I had. The person then said that if I wanted to let go of the house, SPS would offer us {$3000.00} - {$10000.00} to leave the house and SPS would just take over it. I told the person that my house had more than that amount in equity and if we decide to sell it, it would be done on our own terms. She stated that she was going to add those notes to our account, and she asked that we look into other outside options such as HUD or maybe finding someone that could help us maybe refinance. I then called HUD and started the process to speak with a counselor. On XX/XX/XXXX my financial counselor ( XXXX XXXX ) and myself got on a three-way call with SPS the mortgage company and tried to figure out what our options were in moving forward and being able to remain in our home. According to the manager XXXX XXXX XXXX she stated that my Covid forbearance had ran out and that the investor ( XXXX ) did not want to offer me any other options other than paying back all the money back that I owed being delinquent. I have family members in similar situations and their mortgage companies have worked with them in providing them with different program that are available here in California to remain in their home. We have not been given the same opportunity and we feel we have done everything in our capacity to work with our mortgage company and I feel that they are not doing their part in helping with the situation. I don't understand how they supposedly offer these programs for people that are in need like myself and then expect for us to pay all the money back. I was and continue to be in a financial hardship because I do not make what I was making before I lost my job, but I am willing and able to make my regular monthly mortgage. But I simply can not afford to pay the additional {$1500.00} on top of my regular monthly mortgage of ( {$1600.00} ) like SPS is requesting if we want to remain in our home. According to XXXX XXXX SPS manager ) that is the only option we have to remain in our home. On XX/XX/XXXX I called SPS and spoke to XXXX in customer service and he told me that my account was in fact still protected by the Covid forbearance. He mentioned that even though it had an end date of XX/XX/XXXX, because the program is still active in the state of California my mortgage account is still protected by it. He said it did not have an end date because as long as the state still offers Covid forbearance then I would be protected by it. XXXX also stated that there were programs out there for me since I do reside in the state ( California ) that has the most programs available for people like myself. He mentioned about California Relief Program that was implemented in XXXX of XXXX, he also provided me with a number for state assistance ( XXXX ) XXXX for XXXX XXXX XXXX. At this point I was left very confused because the day prior XXXX the manager had stated to my HUD counselor and myself that I was no longer in the Covid forbearance program and that there were no programs or other options available for us. I am extremely stressed at this point and don't know what to do. My husband and I have been trying to get back on our feet from how we were impacted by Covid. But trying to get something in place with my mortgage company has been the most difficult. I tried working with SPS since XXXX before I became delinquent. All I was requesting at that time was to possibly do a home modification. I understand that my income at that time was not stable because I was on unemployment, but I did ask if we would be able to do something with my husbands income and they shut me down. Prior to this delinquency I had a great payment history with SPS. I was never late with any of my mortgage payments. Since XX/XX/XXXX I have started making our monthly payments of {$1600.00} and also have sent a bit extra to clear some of our delinquent balance. On XX/XX/XXXX when I spoke to XXXX at SPS he stated that all the payments that I was sending was being reserved until the forbearance runs out then the money would be distributed. I would kindly ask if you can please help me with my situation.

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