Consumer complaint received 2018-07-14
Company: Fay Servicing, LLC
State: NY
Product: Mortgage
Sub-product: Other type of mortgage
Issue: Trouble during payment process

Complaint:
I have been experiencing financial hardship for several years, but always paid my mortgage within the month due. In XX/XX/XXXX I received an invitation from the mortgage servicing company to apply for loan refinance, modification of loan terms, Making Home Affordable Program, Payment Forebearance, and other less desirable options such as selling, short sale, deed-in-lieu of foreclosure. In XX/XX/XXXX I received an escrow 'overage ' check for $ 2000+, which I used to pay bills. In XXXX I was notified that this refund caused a shortage in my escrow fund and this would cause my mortgage payment to increase to over $ XXXX/month. It was not a huge increase from the mortgage amount, but enough to break the camel 's back, as it is said. In fact, many things peaked at that time. Since then, I have not been able to pay the mortgage, but was active in seeking help via the company 's Loss Mitigation Application Service. In XX/XX/XXXX I received a list of required documentation in order for them to conduct an evaluation. I immediately complied with all requests. In XX/XX/XXXX I received another letter requesting all or most of the same documentation. I immediately complied. This happened again in XX/XX/XXXX. Again I complied. This time there were requests for imaginary documentation such as a business statement, etc., as I had used Schedule C in my taxes because of travel and other expenses for a brief sales job I had. I made sure to document every item and where necessary, provided a signed statement explaining each item that could not be provided. All of application items sent were by email and I have scanned every item they received, as well as some communications without attached documents. In XXXX I received a letter stating that I was in default and on behalf of the creditor, the servicer was formally notifying me of same. I was informed in this notice that they may garnish my social security and death benefit annuity, unemployment, and wages if I happen to have any. I also received a list of government approved housing counseling agencies in my area in a separate letter, and that after 90 days they may commence legal action against me.

I returned to school through the Department of Labor and became in 4 months a XXXX and XXXX XXXX, and returned to work at $ XXXX/hour. I still am unable to make the mortgage payment of $ 1300+. I have  continually sent this mortgage servicing company every detail possible about my financial situation. I also utilized a Debt Relief company to take over payments of my debt. ( Over the years XXXX I depleted a retirement fund of {$40000.00}. ) On XX/XX/XXXX of this year I received another letter from the servicing company again requesting all of the same documentation that has been responded to provided over the past months, each time updated in the past. 

My complaint is that my original step-rate modification, which has plateaued out in XX/XX/XXXX to 4.875 % ( for the life of the loan ) was due to reach maturity in another 30 years ( XXXX ). I am asking this company to remortgage the property for a 30-year loan to lower the monthly payments. The property is valued at $ XXXX {$200000.00} since the real estate crash in XXXX. The principle remaining on my mortgage is {$210000.00}, perhaps less at this time.

Company response to consumer: Closed with explanation