Consumer complaint received 2020-08-18
Company: SELECT PORTFOLIO SERVICING, INC.
State: MD
Product: Mortgage
Sub-product: Conventional home mortgage
Issue: Struggling to pay mortgage

Complaint:
XX/XX/XXXX Dear Complaint Reviewer : The company is SPS ( Select Portfolio Services ). My complaint involves SPSs lack of accountability, proper and honest handling of the short sale of my property, with SPS as the second mortgage holder. Both the primary mortgage holder and the investor XXXX XXXX have approved the short sale on or about XX/XX/XXXX. 
Both the primary mortgage holder and Fannie Mae have stated that SPSs approval of the short sale is necessary before the short sale can go to closing and be completed. 

Beginning in XX/XX/XXXX, my real estate agent and I initiated the short sale process with the first and second mortgage companies by submitting a good faith offer to purchase my property. Along with the offer we submitted all required documentation to each company. Using SPSs online file status and weekly phone calls to SPS, we proactively provided any requested revisions to documents already submitted or new documents as requested. If they did not request additional information, we were told we are still reviewing, could take 10-14 business days for a new status. Typically, we received outdated mailed letters or SPS phone calls after the fact, requesting information recently submitted. With each passing month, we submitted new bank statements in order to expedite process of SPS asking for this and waiting for a response. 

Here are some examples of our interaction with SPS : ( To keep this letter brief, every call and letter is not listed ) XX/XX/XXXX : Status call with assigned relationship manager who requested signature and date required for hardship letter and paystubs, expenses. Note : The XXXX XXXX XXXX did not request this. We complied and submitted same in a timely manner. 
XX/XX/XXXX : Status call with XXXX, ext. XXXX who was not our relationship manager. Requested minor change to RMA form ; advised my paystubs older than 90 days. The original documentation packet included a letter stating my employment terminated and that I had not found employment. SPS oversight regarding paystubs. 
XX/XX/XXXX : Received letter from SPS stating they were unable to gain access to property for appraisal. My realtor emailed on XX/XX/XXXX and XX/XX/XXXX requested status of appraisal set up, along with instructions and contacts to get access. SPS did not reply to either email prior to sending letter to us. We eventually were able to connect with SPS, appraisal completed within 30-day period from that point. 
XX/XX/XXXX : Status call with SPS customer service agents XXXX and XXXX who said RMA was solid, but that I needed to submit a Profit & Loss statement. This kind of documentation is for a business, of which I had none. 
XX/XX/XXXX : Status call with assigned relationship manager who  acknowledged request for Profit & Loss was an error. Not able to give any new status. 
XX/XX/XXXX : Status call with SPS customer service agent who was awaiting HUD-1 and updated sale contract, and status of pending approval from XXXX XXXX XXXX XX/XX/XXXX : Status call with SPS customer service agent who requested a property unit number be added to HUD-1, and middle initial of buyer and seller missing. Corrections made and submitted in timely manner. SPS claimed 30 days to review to escalate to Underwriter XX/XX/XXXX : SPS relationship manager requested another property inspection due to length of time since first inspection. File still not escalated to Underwriting. XX/XX/XXXX : Status call with relationship manager who  said middle initial on HUD-1 still not clear. HUD-1 corrected twice and resubmitted by XX/XX/XXXX. 
**Missed XX/XX/XXXX closing date requested by XXXX XXXX XXXX. We had to request extension** Week of XX/XX/XXXX : Status calls to SPS XXXX Requested Supervisor twice after being told by customer service that HUD-1 corrections solid, then following day told corrections needed. SupervisoXXXX XXXX XXXX ext. XXXX conceded no HUD-1 changes needed, and he also proactively corrected alleged error with initials on sale contract. He said file to be expedited to Underwriting. 
XX/XX/XXXX : Status call to SPS. Requested Supervisor escalation after customer service agent claimed HUD-1 still needed corrections. Spoke with Supervisor XXXX XXXX ext. XXXX who conceded no errors to HUD1, all information needed already on file as of XXXX. She again expedited. 
XX/XX/XXXX : Status call to SPS. Customer service agent said file has been escalated to final step Investor. 
XX/XX/XXXX : Status call to SPS. Requested Supervisor who told us file with Investor, but Underwriting asking for correction to buyer name on contract because one of the handwritten letters is unclear. My realtor made correction, I signed electronically. Document emailed/faxed back to SPS. 

These contact notes illustrate the wasteful processes of SPS and their lack of good faith to review and approve in a timely manner. We are now 60 days past the XXXX XXXX XXXX approval of the short sale. This has been both a financially and emotionally draining experience. In desperation, I am fling this complaint with your agency in the hopes of receiving the appropriate resolution from SPS by the new closing date of XX/XX/XXXX. 

I also attaching example of an SPS letter dated same day which was on/about when a SPS manager told us the documentation in question NEEDED NO corrections. 

Thank you for your assistance in this matter.

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