Consumer complaint received 2016-07-18
Company: Fay Servicing, LLC
State: WA
Product: Mortgage
Sub-product: FHA mortgage
Issue: Loan modification,collection,foreclosure

Complaint:
I purchased my home XX/XX/XXXX in the amount of {$360000.00}, with monthly payments of {$2200.00} at a 30yr fixed interest rate of 3.25 % ( FHA ) In XXXX XXXX I had an accident that left me XXXX and I fell behind on my mortgage for 18 months. In turn that put me roughly {$41000.00} behind. 

Due to this my home was facing foreclosure and I got in contact with XXXX XXXX XXXX who was at the time, servicing my loan. They walked me through the process to start the HAMP modification. 

In XXXX XXXX I was approved for HAMP, which increased my monthly payments to {$2300.00} and was placed on the trial period for three months, which ended XXXX XXXX. 

I was informed over the phone by XXXX XXXX that my new payoff amount was going to be {$390000.00} and with that new information I decided to put my home on the market. 

After my home being on the market for close to 90 days I received potential buyer and we all decided to agree on the sale of {$470000.00}. I agreed to these terms based off of all the information that I had ... .. 

Home loan amount of {$390000.00} Lien on property {$20000.00} {$65000.00} to cover closing and moving expenses for me and my wife, which we are separating. 

The home was going to be closing on XXXX XXXX XXXX and My wife and I would be able to walk away with roughly XXXX to separate. 

On XXXX XXXX we received a letter from our new mortgage holders Fay Servicing informing us that our new payoff amount had increased to {$440000.00}. 

To my surprise, I was concerned about the sale of my home and how I would not have enough money to cover all of my expenses and I would be walking away still owing large amounts of money, I contacted XXXX. 

XXXX informed me that they could not give me any information regarding my account as it was closed when they transferred my loan to the new holder, Fay Servicing, on XXXX XXXX, XXXX XXXX then stated that I could go ahead and try to get into my online account and see if any information on there would be helpful, so I did. On my online account I found that XXXX XXXX had released my loan to Fay Servicing in the amount of {$340000.00}. 

At that point I started to do some quick math in my head and was starting to see that the numbers were not adding up. 

I contacted Fay Servicing with my concerns and XXXX XXXX informed me that they did not have any of my modification paperwork, with that I asked for a breakdown of fees, principle amount and payoff amount. XXXX then told me that it would take up to 7 days for them to get that information to me, All I had to do was submit in writing that I needed this information. So I did. 

In the meantime while waiting for the paper to come in from Fay Servicing I am realizing that I do n't have the money to move and so I stayed in contact with my realtor XXXX XXXX so that he would be updated on the status of selling my home. The potential buyers sold their home and were waiting for any updates on my end. I was in contact with a few HUD counselors and trying to weigh out all my options. 

On the XXXX day I got a single page email from Fay Servicing which only indicated the new payoff amount of {$480000.00}. I was taken back when I seen that not only did I owe a large amount of money but I had " XXXX '' equity left in my home. 

I have yet to understand why {$90000.00} extra was added onto my loan, with an original principle balance of {$340000.00} and {$41000.00} in late payments. I still have not received any final documentation stating the terms of my HAMP loan and I am not getting any help from either party. I do n't feel like I should be paying {$480000.00} for a home that was only appraised for {$470000.00}. 

At XXXX I consulted with an attorney and he requested that I contact the state and federal authorities regarding a potential case of home equity fraud. To the best of his knowledge the numbers do not add up and something is wrong XXXX

Company response to consumer: Closed with explanation