Consumer complaint received 2018-03-23
Company: SELECT PORTFOLIO SERVICING, INC.
State: FL
Product: Mortgage
Sub-product: Conventional home mortgage
Issue: Closing on a mortgage

Complaint:
This complaint concerns a proposed short sale transaction involving a property, which when the process started was the primary residence of borrowers in XXXX county. This complaint is filed by the law firm representing the defendants/borrowers in the subject foreclosure action. On the year XXXX our office assisted borrowers with a loan modification, which was denied, the servicer was XXXX at the time. After the denial, borrowers decided to short sale the house, it was XX/XX/XXXX when we requested XXXX to initiate the file as a short sale. 
On XX/XX/XXXX the loan was service transferred from XXXX to XXXX XXXX XXXX ( SPS ). On XX/XX/XXXX our office received an offer, borrowers completed the forms for SPS and we submitted the short sale package to SPS on XX/XX/XXXX. 
On XX/XX/XXXX, our office spoke to SPS and confirmed that they had all the documents needed to initiate the review. On XX/XX/XXXX our office spoke to SPS for status update and they said the file was under review. On XX/XX/XXXX, SPS requested updated bank statements from borrowers, XX/XX/XXXX, our office sent SPS the requested bank statements. On XX/XX/XXXX, the file was under review again alleging it could take 30 days to review! 
XX/XX/XXXX file still under review! on XX/XX/XXXX, our office called SPS again, they now needed new documentation and adjustments to the HUD and listing agreement. We submitted the documents, on XX/XX/XXXX. We called SPS and were told they had all documents needed. On XX/XX/XXXX, we called SPS and were told file was under review, it could take 30 days. At this point borrower. On XX/XX/XXXX, filed was denied because of an open insurance claim for a roof leak back in XX/XX/XXXX. SPS closed the file, then reopen because they found out that the insurance claim had been closed ( it was the bank 's who placed the claim NOT the borrower ) for the following 2 weeks, there was no update when we called SPS. On XX/XX/XXXX SPS return our call and informed us that the file was under review again! " no documents needed '' on XX/XX/XXXX SPS informed our office that there were code violations in the property, we informed SPS buyer would take care of violations. On XX/XX/XXXX SPS requested the hardship letter to have the date handwritten, this is the same letter they had from the initiation of the short sale, we provided the requested to SPS the same date. On XX/XX/XXXX we spoke to SPS, the insurance claim issue ( which was closed ) showed up again as unresolved!!! 
On XX/XX/XXXX called SPS, now they needed an extension to the listing agreement!!! Received the extension the next day and we submitted to SPS. ( EVERY TIME WE SUBMIT A DOCUMENT SPS CAN TAKE UP TO 30 DAYS TO REVIEW ) On XX/XX/XXXX we were again, informed SPS has all documents needed!!! 
On XX/XX/XXXX, now SPS requested to remove HAFA from HUD, because it has been so long it expired!! ( NO  LONGER AVAILABLE ) XX/XX/XXXX file is still under review! 
XX/XX/XXXX SPS informed us they are waiting on the approval letter. 
XX/XX/XXXX our office received short sale approval letter, but the 2nd lien holder was not included, we had to go back to negotiating, SPS short sale approval expired. Filed was closed. The usual back and forth with SPS. On XX/XX/XXXX the 2nd lien was approved, submitted the approval to SPS, which has been reviewing the file. In XXXX, SPS requested Listing agreement, MLS and short sale addendum, again. We subimtted right  away. On XX/XX/XXXX we were told by SPS file went to underwriting. XX/XX/XXXX offer was rejected, no counteroffer made. Buyer agreed to increase their offer, XX/XX/XXXX submitted adjusted HUD to SPS. On XX/XX/XXXX SPS requested more documents, including third party authorization for the listing agent, which we had already submitted months before. On XX/XX/XXXX listing agent informed us that buyers were considering canceling, due to the uncertainty and the wait, we immediately called SPS to let them know, they said they needed another BPO, on XX/XX/XXXX our office received the short sale approval letter, but buyers were no longer interested and were in the process of buying another property, after waiting 2 years for this short sale. Property back on the market right away, lock box was changed by SPS since it was vacant, borrower moved out of property due to bad roof and mold. On XX/XX/XXXX we submitted new offer to SPS, informed them previous buyer walked, they said they would update their system and had to decline the previous approval to review new offer. XX/XX/XXXX new offer received, file went to underwriting. 
Called SPS on XX/XX/XXXX for status update, they said there was no short sale file open!!! the agent looked further to find that they have closed the file when declining the previous buyer. She said we had to start from ZERO, apologized for their mistake, file should have never been closed, but there was nothing they could do. 
Had borrowers complete updated short sale application and provide current pay stubs and bank statements. Submitted new updated documents on XX/XX/XXXX, our office has been told every time, file is under review, same pattern, one day they say they have all the documents they need, the following week they request another document and it takes 30 days for that document to be reviewed. On XX/XX/XXXX SPS told us underwriting was waiting on the assigned agent to send them the file for the 2nd lien, which they now have to make a decision. 
Today, XX/XX/XXXX we called SPS for update and were told, RMA for 2nd lien is needed. I told them we had already submitted it, so if we resubmit, it will be another 30 days for review until they ask for another document! 
SPS needs to accountable for the lack of good faith. Borrowers have been trying to get out of foreclosure for close to 3 years now, have provided every piece of information requested.

Company response to consumer: Closed with explanation