Consumer complaint received 2016-02-23
Company: SELECT PORTFOLIO SERVICING, INC.
State: HI
Product: Mortgage
Sub-product: Conventional adjustable mortgage (ARM)
Issue: Loan modification,collection,foreclosure

Complaint:
XXXX XXXX, XXXX Sir or Madam : This is one of the multiple loans which XXXX XXXX XXXX XXXX packaged in large groups into a trust which is being managed by XXXX - XXXX XXXX. This loan has been serviced by XXXX XXXX XXXX and Select Portfolio Services, recently transferred to XXXX XXXX XXXX. 

We are a military family under SCRA protection and the banks have tried everything but assist us. 

UNETHICAL AND FRAUDELENT PRACTICE : Respond to XXXX/XXXX/SPS : Please see attached the letter received from XXXX ( XXXX XXXX XXXX ) on XXXX XXXX, XXXX from account specialist, XXXX XXXX ; who only offered a Cooperative Short Sale Program. XXXX XXXX did not request any documentation or offered other avenues to help me in retaining my property. In addition, at that time I was unaware of the programs available to home owners in retaining their properties. In writing I requested SCRA protection, I had recently arrived from a XXXX and was undergoing XXXX/assistance by the military. The loan was eventually transferred to SPS ( Select Portfolio Services ) while under SCRA protection status with XXXX XXXX XXXX. 

Once the loan was transferred to SPS, they responded to my letters for assistance, yet it took 3 more years to receive a modification which I could not afford. Please see letter attached, dated XXXX XXXX, XXXX, with an informational box in the middle of the letter with an example of mortgage savings. I did not received a reduction in interest rate, monthly payment, or principal reduction as stated in multiple letters that I qualified for ... etc. Interest rate was raised from 3.5 % to 4.2 ; monthly payment from {$2700.00} to {$3700.00} to {$3900.00} by XXXX XXXX and {$4100.00} by XXXX XXXX now by XXXX, new principal balanced was raised from {$660000.00} to {$750000.00}. 

I submitted every single document requested by XXXX and SPS ( including a copy of my son 's birth certificate ). As well, I have in my hands every piece of document received by all three organizations ; XXXX, XXXX XXXX XXXX, and Select Portfolio Services since the year XXXX when the property was purchased. 

Never received a letter of offer for a Trial Modification, never received contract of offer for Trial Modification, and never received a phone call offering a Trial Modification. 

Nonetheless, on XXXX XXXX, XXXX, I received a letter ( attached ) stating that I had not accepted a HAMP offer. This is the only letter I received regarding a Trial Modification offer. Prior to this letter I received 3 phone calls urging me to apply for a New Federal Government Modification Program qualifying me for a significant principal reduction and reduce monthly payments by an average of XXXX %. Please see letter dated XXXX XXXX, XXXX. 

When I contacted SPS regarding the letter dated XXXX/XXXX/XXXX, they stated that the New Federal Government Modification was a better for me and that I qualify based on the criteria met for that modification. The representative stated that it was a better modification because it would reduce the interest rate and the some of the principal. 

On XXXX XXXX, tired of receiving documentation after documentation with no assistance for a modification ; I met with the office of a modification expert who just took my money for a Hamp Tier 2 modification. It seemed that they were working hand in hand with SPS. I lost money trying to receive help outside the banking industry. 

I did not received an offer for and/or a modification for the next 3-4 years. In XXXX, I was offered a HAMP TIER 2 which I could not afford : it increased the interest rate, the monthly payment and principal. I refused to sign the agreement contract and made several phone calls to SPS requesting information. I was told that New Federal Government Modification Program had expired on XXXX XXXX, XXXX. I told them that my paper work had been placed fo

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