Consumer complaint received 2016-11-09
Company: SELECT PORTFOLIO SERVICING, INC.
State: NY
Product: Mortgage
Sub-product: Other mortgage
Issue: Loan modification,collection,foreclosure

Complaint:
Our home of 12 years is in foreclosure. We were part of the sub-prime lending back in the early XXXX 's. I 've managed to keep the home and payments going all these years. In XXXX, the new servicing company, Select Portfolio Servicing ( SPS ), imposed an escrow account without my prior knowledge -- which was perfectly fine with me -- except that they had to 'fill the gap ' and placed the prior year ( that I had n't yet paid on my own ) and the current year of escrow on my account all at once. This left me in arrears by over {$8000.00}, so they raised my monthly payment. My monthly payment went from {$550.00} to {$960.00} with the correct escrow amount, but because of the prior and current year 'gap ' they tacked that on and raised my payment to {$1400.00}. Just like that. 
In XXXX, I was laid off from my job. I was unable to find new employment for 11 months. I was a single mom and could n't find a new job to support my family. I kept the mortgage stable, albeit a month behind every month, but I was able to catch it back up when taxes came in. I did my best to keep up with that payment, but, I was trying to get caught back up from almost a year of unemployment, so, I did what I thought was best -- I called to ask for an assumption modification on the mortgage. 
I began this process in XXXX of XXXX. I followed all of their instructions, rules, uploaded every single document they required, called in every few weeks and made the single 'good faith payment ' they required to 'show I was willing to make payments with whatever modification comes through '. I was instructed to not make my regular monthly payments because 'once the modification goes through, my payments would be applied differently '. By XXXX XXXX, I was getting nervous, frustrated, and impatient! I finally got XXXX representative to advise me that all that was left before the modification could go through was the need for a quitclaim deed to be signed between my ex and I which would sign the property over to me. I complied with their request and paid the {$190.00} to file the quitclaim and sent the mortgage processor the copies required. 
I was informed it would take 30 days for the review to be completed. By the middle of XXXX, after weekly calls requesting updates ( with no communication from them at all ), I was verbally informed that the modification was denied and I was now to pay back all those months of payments they had me not make because they would have been applied incorrectly. 
I tried to work with them. I tried to get a repayment plan -- they requested a {$10000.00} 'security deposit ' which I did not have. They had me upload all of the same documents I had submitted for the modification, and this time, kept rejecting them for XXXX reason or another. I kept trying to get written notification of the denial, copies of the mortgage documents, and more. All requests went unanswered. I attempted to retain a lawyer, who, XXXX turned me away because without that hard copy denial of modification, he could do nothing to assist me. 
Fast forward to XXXX/XXXX/XXXX : I was served with foreclosure papers. Now, they refuse to work with me stating that the Pooling Service Agreement prohibits modification. I have jumped through hoops for them to save my home of 12 years. Had they been willing to work with me back in XXXX, my home would not be in foreclosure at this time. They have forced delays failed to provide documents and now there is no way I can clear the exorbitant arrears of payments, miscellaneous fees, and legal fees. It is my belief that this has been done with unclean hands on their behalf. My goal is not to cheat them out of money or default on this debt. My intention has always been to retain our home. The mortgage is in my ex husbands name, but the house and responsibility have been decreed to me via divorce.

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