Consumer complaint received 2016-08-26
Company: SELECT PORTFOLIO SERVICING, INC.
State: CA
Product: Mortgage
Sub-product: Conventional adjustable mortgage (ARM)
Issue: Loan modification,collection,foreclosure

Complaint:
In XXXX 2016 we lost out on a short sale buyer for our home due to Select Portfolio Servicing Companies customer service department not providing updates to the real estate agents for the buyer and seller in a timely manner. The poor communication caused the seller, myself, who has Select Portfolio as my loan servicer to lose the sale ; the buyers pulled out of the deal. A complaint was filed with CFPB by myself based on SPS loan servicing issues. I was contacted by theOmbudsman office who did not relive the complaint but stated that all we would need to do was obtain another buyers contract and we could submit all paperwork to their office to prevent the same issue happening again. Another contract was obtained and all of the paperwork was submitted on XXXX XXXX, 2016. I soon received communication from SPS that they did not have a HUD1 on file. After communication with Ombudsman it appeared that they had the correct paperwork the entire time, once again delaying the review process due to their negligence in reading the paperwork. Two weeks into a review SPS decided to do a second BPO which they did not inform us in the beginning they would need. Now that they have a fully signed contract with everything they need they have come back and said that they are counter offering for a higher amount, once again possibly causing our seller to back out of the deal. The offer was made by the seller due to SPS stating to the sellers real estate agent that they only wanted XXXX from the sale. With the newly submitted a contract they would be getting the amount they said they wanted. Now SPS is stating that the XXXX came back at XXXX and they are now requesting more money. It appears that each time Select Portfolio gets all the information they need, they either wait too long to update files causing the sellers to pull out or they find another loophole to prevent the short sale from happening. Each time the sellers provide everything SPS request SPS finds a way to compromise the short sale. The sellers are now at risk of being sued by the buyer due to breach of contract because the buyer make their offer and the XXXX that SPS initially approved. The buyers have completed all inspections and appraisals and select portfolio is now compromising the new contract. The home is not worth the XXXX BPO that was completed by XXXX XXXX. We would also request select portfolio provide to us as the counters all information that supports the XXXX XXXX along with approving and excepting the current contract for short sale. The current XXXX of XXXX SPS is choosing to use now does not accurately represent the worth of the home. When the home was initially listed 9 months ago it was listed in the XXXX range there were no offers the home has been on the market three months short of a year and did not get any offers until the price was lowered to the short sale price. There have been numerous showings on the home that resulted in no offers this information can be validated and obtained from the sellers real estate agent.

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