Consumer complaint received 2016-06-28
Company: Fay Servicing, LLC
State: NC
Product: Mortgage
Sub-product: Conventional fixed mortgage
Issue: Loan modification,collection,foreclosure

Complaint:
I currently have my first mortgage with Fay Serving. I fell behind on my mortgage payment originally when I went out on medical leave for XXXX XXXX XXXX. I was out of work for 8 weeks and only received 60 % of my pay while on short-term XXXX. During that time period, I was unable to make all of my monthly payments and fell behind. I have been trying to catch up ever since. I tried to make partial payments during this time period and they sent the check back to me. They stated they would not accept anything less than the full amount due. I finally went to my credit union on XXXX/XXXX/XXXX for help and my credit union helped me by consolidating my delinquent car loan and personal loan. I was able to save over {$300.00} per month. I was delinquent {$4500.00} on my mortgage at this point. I admit, after the XXXX, I felt overwhelmed and defeated. I did n't know how I would ever catch up. On XXXX/XXXX/XXXX, my credit union called Fay Servicing on my behalf and we filled out the paperwork for the " Borrower Assistance Form ''. I completed over XXXX pages of forms and faxed them around XXXX pages of supporting documents ( tax returns, paystubs, checking account statements ) to get help in modifying my mortgage. It took them 2 months to FINALLY get back to me with their decision. I faxed everything on XXXX and they sent me a letter on XXXX/XXXX/XXXX. After they reviewed the file, they denied my request for a loan modification. In the notice they sent me, they never sited the reason for the denial. They just stated " Thank you for contacting us about your mortgage. Based on a careful review of the information you provided to us, unfortunately you are not eligible for an alternative to foreclosure ''. I called on XXXX/XXXX/XXXX and spoke with XXXX XXXX and she sited the reason for denial was because " I did n't make enough money and my house was worth less than the amount I owed ''. Before they sent this notice of denial, they sent an appraiser ( drive-by ) and they valued my home at {$110000.00} ( suggested list price ) and {$100000.00} ( sales price ). I originally purchased my home XXXX XXXX for {$95000.00} and financed my home for 40 years. My current interest rate is 6.250 %. I currently owe {$89000.00} as of XXXX/XXXX/XXXX. 

They told me they were beginning proceedings to foreclose my home. I was panicked and contacted my mother for financial help. I did n't know what else to do. I was in fear of losing my home. My mortgage payments are {$640.00}. If it was n't for my being out of work, I would be able to meet my mortgage obligation. After I brought the loan current on XXXX/XXXX/XXXX, they STILL tried to charge me XXXX late payments. I had to call them and argue with them to remove those XXXX late charges. After paying {$4500.00} on XXXX/XXXX/XXXX, the principle on my loan went from {$89000.00} to {$89000.00}. So, basically, after paying close to {$5000.00} on my mortgage my principle balance was only reduced by {$540.00}. 

I 'm writing this official complaint because I feel that this company is very deceptive in their business practices. I do n't understand how after submitting all of my documentation, they could n't help modify my loan in any way. First, I feel that a 40 year mortgage is deceptive on it 's own and paying a high rate of interest 6.250 % is an unfair lending practice. I would like this company to reduce my interest rate and the term of my loan so I am not in debt for the rest of my life. I also would like to know exactly what I paid in late fees. When I look at my account online, I am unable to see this information. I am asking for your help to understand why only {$540.00} went to principle and if this company will modify my loan to provide some ( ANY ) financial relief. I am very upset about how they could not offer any assistance during the past two years. Thank you for your consideration. XXXX XXXX

Company response to consumer: Closed with explanation