Consumer complaint received 2023-09-14
Company: SELECT PORTFOLIO SERVICING, INC.
State: NC
Product: Mortgage
Sub-product: Conventional home mortgage
Issue: Struggling to pay mortgage
Sub-issue: Trying to communicate with the company to fix an issue related to modification, forbearance, short sale, deed-in-lieu, bankruptcy, or foreclosure

Complaint:
My family lost our home of 17 years to foreclosure auction due to lies and misrepresentations made by the relationship XXXX at Select Portfolio Servicing. I am retired on a fixed income and live with my daughter and son in law and their XXXX children. I worked hard for my home and was a XXXX XXXX XXXX in Virginia XXXX for 35 years. We began struggling with our mortgage payment during Covid as my son in law had his hours reduced due to the pandemic. We reached out to our lender many times to see if they had any programs to help homeowners who were negatively impacted by Covid hoping they would offer a forbearance or modification review but they told us there was nothing they could do. We filed a XXXX  XXXX bankruptcy so that we could stay in our home but the trustee payment was {$3500.00} per month and then my son in law lost his job due to Covid and we could not keep up and the bankruptcy was dismissed. We then spent the last year trying to get SPS to review us for options to catch up on the past due payments but were shut down at every turn. Several months later SPS started the foreclosure process again. We were aware that a Notice of Default had been filed back in XXXX, but we did not receive any notice regarding the sale posted on the door or sent to us via certified mail as required by North Carolina law. I was in constant contact with their foreclosure department and realized that we needed to resolve the late payments, so I had a meeting with a bankruptcy attorney who told me he could help us file XXXX XXXX and only include the mortgage so that we would pass the eligibility test and the trustee payment would be affordable. I spoke with my SPS relationship manager XXXX XXXX on XX/XX/XXXX and explained this to her. She told me that because of this new development that she would be able to get us 10 extra days ( the sale had been scheduled for XX/XX/XXXX ) so that we would have time to get all of the paperwork together. I contacted my BK Attorney and told him the good news and we worked on putting together the petition. 

We then found out that the relationship manager had LIED to me ( we want SPS to check the recording 's of my call 's on XX/XX/XXXX -- we will be requesting those records ) and led me and my Attorney to believe that they had given us an extension so we could properly file the bankruptcy. If XXXX XXXX had not misrepresented this material fact we would have done a rush skeleton bankruptcy filing so that the sale would be postponed and then submit the rest of the paperwork later. Instead my relationship manager served as jury, judge and executioner and now our house has been sold at auction. I believe this is a wrongful foreclosure. There are 11 people in this home and this is the last thing we wanted. We had a plan to solve this and get the bank paid but their agent misled us with the promise that SPS would give us more time and we trusted her. Why would XXXX XXXX tell us this? Did she have the authority to make this type of promise? Or was she just trying to help SPS steal our equity in a tough economic market!!! 

We are not disputing that we are delinquent, we tried to fix this and had figured out a solution to pay SPS back through a restructured bankruptcy. But due to their relationship managers falsehoods we have lost our family home. This is also due to the negligence and the obstruction by their loss mitigation department when we asked for help due to Covid related income loss and they said there were no programs to help, when we are certain that these types of programs are available.

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