Consumer complaint received 2023-07-26
Company: SELECT PORTFOLIO SERVICING, INC.
State: CA
Product: Mortgage
Sub-product: Conventional home mortgage
Issue: Struggling to pay mortgage

Complaint:
On XX/XX/XXXX, we were forced to file an emergency XXXX  XXXX Bankruptcy petition because our Home was scheduled for foreclosure sale the next day, XX/XX/XXXX, as the result of Select Portfolio Services ( SPS ) illegally filing a home foreclosure action to recover, IN FULL, THE LUMP SUM PAYMENT OF {$35000.00}, in skipped payments, after the CAREs Act forbearance period reportedly ended. 

Attached are copies of : XX/XX/XXXX Mortgage statement demanding the full payment of {$35000.00} Foreclosure Sale Notice Emergency XXXX  XXXX Bankruptcy Order On XX/XX/XXXX, we formally submitted a CARE 's Act Request for Mortgage Assistance. On XX/XX/XXXX, SPS illegally denied our loss mitigation assistance request. SPS refused to offer us any one of the following modification support/assistance : 1. Deferral or partial claim : Part or all of our past-due balance would be put aside to pay off later. It would be due when we pay off your mortgage, sell our home or refinance. We won't be charged any additional interest on the deferred balance. 
2. Repayment plan : Our past-due balance would be added to our regular monthly payments for a specified amount of time, typically 3 6 months, until our loan is current.

3. Loan modification : The terms of our existing loan will be updated in order to include past-due payments. These terms could include changing our rate, term and principal balance. 
Our expressed preference, if it had been properly offered to us by SPS, would have been to add the amount due, {$35000.00}, as an extension of the term of our existing loan and we would resume our monthly mortgage payments of $ XXXX. 
Its clear that SPSs desire and intent were for us to cure the arrears by surrendering our Home ownership. The only mitigation options that SPS approved and highlighted were : Short Sale : If we were interested in selling our home. 
Deed in Lieu of Foreclosure : With a deed in lieu, we would agree to transfer the title or ownership of our Home. 
Both options presented to us by SPS were back-door attempts to pressure us to surrender ownership of our home. According to SPSs valuation, the value of our Home is only {$530000.00}, 30 days repaired ( see attached Property Valuation Notice ). However, we have received offers as high as {$600000.00}. 
SPS also failed to properly consider the fact that a co-owner is unemployed and can not walk without assistance. This refusal/failure to recognize his disability as unemployment is a form of discrimination. 
On XX/XX/XXXX, SPS denied our written request for a mortgage modification. We were notified that ( a ) fter careful review of your account, we find that there are no home retention loss mitigation options for which you are approved. 
Even assuming that SPS properly, and with good cause, denied our request for mortgage assistance, SPS failed to give us a written deadline by which the balance of {$35000.00} had to be paid to avoid receiving a legal notice of foreclosure action. We received the notice of foreclosure without warning. {$35000.00} is a lot on cash for most families to pay in full. SPS should have given us a written deadline and final written warning that foreclosure would be filed against us if we did not pay by a specific deadline. The only language, one sentence, regarding the threat of foreclosure was in the XX/XX/XXXX billing statement. SPS mentioned that it had completed the first notice or filing required to start a foreclosure, with not deadline by which to pay the {$35000.00}, in full, for us to avoid foreclosure. 
Warnings of possible legal action from SPS should be sent both electronically, if that is the default selected communication of the borrower, and sent by mail. The later is the most effective and sure way of issuing important/legal communications. SPS is not bound to ONLY send electronic communications. SPSs electronic opt in process does not state that the user waives his/her right to receive communications that should be delivered by mail. 
ABOUT US : We purchased our home 16 years ago. We have a family of XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX During the COVID pandemic, my oldest daughter, XXXX XXXX XXXX XXXX moved out. A couple of years ago, a spouse had a XXXX  XXXX and currently is XXXX XXXX XXXX The other spouse is a works from home and is a care provider. 
CONCLUSION : This wrongful foreclosure action has be an extremely stressful and financially damaging event for our family. 
NOTE : In XXXX, there is was a {$25000.00} loan from the XXXX XXXX XXXX XXXX.

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