Consumer complaint received 2019-11-22
Company: SELECT PORTFOLIO SERVICING, INC.
State: MA
Product: Mortgage
Sub-product: Conventional home mortgage
Issue: Trouble during payment process

Complaint:
We are writing to explain to you the chain of events of the business dealings of our home at XXXX XXXX XXXX XXXX XXXX, MA XXXX. This will show the many injustices our family has endured at the hands of SPS and in turn XXXX XXXX, as they were Power of Attorney for XXXX XXXX. 
On XX/XX/XXXX XXXX XXXX entered into contract on the property at XXXX XXXX XXXX XXXX XXXX, MA XXXX. He put a {$150000.00} inheritance as a down payment and XXXX XXXX XXXX rendered a Mortgage in the amount of {$80000.00}. As you can see XXXX XXXX is majority shareholder on the property. We went about our business as homeowners for 5 years. 
We had a few times in winter months that we got behind a month or two when XXXX was laid off, but when we would receive our tax returns in the spring we would catch up, pay the late fees and interest. 
In XXXX early XXXX the mortgage was transferred to XXXX XXXX  when XXXX XXXX XXXX   went under and what is confusing is it appears accounting was transferred in XX/XX/XXXX, but the assignment wasnt complete until XX/XX/XXXX, which raises questions if it legally was transferred properly in the legally allotted timeframe to assign the mortgage. They are not providing Assignment information from XX/XX/XXXX-XX/XX/XXXX. 
As soon as XXXX XXXX  and SPS started servicing the account things went south. Accounting isnt even clear in what actually happened in this timeframe. There are even payments noted that we didnt even pay. The attorney for XXXX XXXX is refusing to provide any accounting for the first 5 years of the loan which would show a complete shift in billing practices from when XXXX was servicing the loan to when XXXX XXXX  and SPS took over. 
The fixed interest mortgage suddenly increased by several hundred dollars when SPS took over. We asked for clarification and were told for approximately 3 months they did not know, that was just the amount the computer said we needed to pay. We refused to pay the entire amount only paying the original fixed amount we were contracted to pay. The taxes and insurance hadnt gone up so there was ZERO reason for the increase. Finally, around the 4th month, SPS stated that they never received the escrow from XXXX XXXX XXXX. We had no dealings with the transfer of the loan at all and now it was XXXX job to figure out what happened to out our escrow. He called XXXX XXXX XXXX and they provided a letter to both SPS and us showing the transfer of funds. The account was now showing arrears of over a month because of the payment discrepancy adding up. Even after proving the escrow was transferred they still billed the same inflated amount the following month. When trying to call in our payment, SPS now refused payment stating we needed to pay the entire past due and current payment and that no partial payments would be accepted. This even though we had proven it was a false balance and we had paid the right amount. SPS still asserted they did not receive the escrow and when I said they should call over to XXXX XXXX XXXX to figure out what happened to the money, they stated to XXXX, That is not our job, sir. XXXX remembers this so vividly because he was flabbergasted because it literally is their job to make sure our money is safe. They told XXXX he could apply for a loan modification. They sent XXXX loan modification paperwork and he filled it out and sent it back. He waited a month and when calling to see what was happening they claimed they hadnt receive it. They sent him the paperwork again and sent it back, only for him to be told a full month later it wasnt filled out correctly. So they sent the paperwork yet again and he filled it out again the same way he did the first time and sent it to them. This entire time SPS was refusing our payments and we were slipping further behind and accruing fees and because of nothing we did wrong. A month later SPS called and said they had a loan modification offer in which she stated there would be a {$20000.00} balloon payment due up front and the monthly payments would be {$1000.00} a month. To which XXXX responded, How the XXXX XXXX XXXX XXXX  is that possible? My mortgage was for {$80000.00}. You are taking {$20000.00} and applying that to the principle and my payments still go up by {$200.00} a month? Where the did you learn to do Math? She said Thats what the numbers are, sir. he told her, I dont agree to that, I want the escrow removed from the account, and I will see you in court and we can resolve it there if this is the only way you are offering to resolve this. She said they couldnt and wouldnt remove the escrow and refused to send us full accounting so she could prove how this huge amount of money they claimed we owed was even populated. We requested the accounting time and time again to no avail. All the while they were reporting to the credit bureau so we couldnt even go elsewhere to refinance. 
In early XXXX we started receiving notices of Foreclosure. Veterans Notices were filed in XX/XX/XXXX. In XX/XX/XXXX, someone that saw it posted in the paper notified us of a Foreclosure sale happening on our home only a few days later. We had received ZERO notice of the sale date. Upon having our attorney call XXXX XXXX  XXXX, representing your bank, she requested documents and accounting. He sent a few items including a notice of sale that was dated the actual date we were at the attorneys office XX/XX/XXXX and then told us he was postponing the sale to the end of XXXX, the notice ( copy available upon request ) had that XXXX date not the date that was reported in the paper. He then called back and said the sale was cancelled indefinitely. 
We refused to sell even though we wanted to move because it would have involved us giving up TENS OF THOUSANDS of dollars we knew must have been fraudulently charged to our account. Interest was accruing on the Escrow SPS illegally refused to separate along with only god knows what because at the time SPS refused to send us accounting. The numbers just never added up and we knew something had to be wrong. 
Fast-forward 6-7 years we started getting notices of foreclosure again. The Foreclosure sale date kept being postponed from XX/XX/XXXX every month or so. We were demanding to see the blue wet ink note, which was denied time and time again. They said we could come to Utah to view photocopies, which is completely against Massachusetts state law as outlined in the Affidavit of Clarification of Title. When asking them in legally recorded audio phone conversation they stated they only had photocopies. You cant foreclose with photocopies. Thats like going to the bank with a photocopy of a check and expecting the bank to cash it. 
We filed an Affidavit of Clarification of title in the early hours of XX/XX/XXXX that outlines the mortgage being obsolete under M.G.L. 
On XX/XX/XXXX at XXXX, even after being handed the Affidavit, an alleged foreclosure Auction was held. On this date no power of attorney was signed and XXXX XXXX, the representative, did not have authorization to even conduct the auction. The only time these do not need to be signed on or before the auction date, is if an attorney representing the bank is at the auction sale. There was no attorney present so the required documents needed to foreclose were not signed properly and were actually signed weeks later as seen in Discovery. Also, at this alleged auction, The Town of XXXX Police were present and would not let the Bank Representatives on our property because of our Affidavit of Clarification of Title and the fact that the bank representatives had no documents signed stating they had the right to be there. There was a protest with people yelling, holding signs, and yellow caution tape going around the premises. During the alleged auction XXXX XXXX representatives perjured notarized documents stating they made peaceable and unopposed entry onto the property. We have video evidence and police reports to back this claim. The XXXX County Assistant District Attorney is aware and we were advised to file criminal charges now that we have the identities and information for most all parties involved since receiving Discovery. The ADA  has stated to XXXX XXXX that when it comes across her desk she will prosecute for felony perjury if evidence is as we described, which it is exactly how we describe. 
We are currently in litigation in XXXX Massachusetts Housing Court. We just received incomplete Discovery from the current attorneys listed on the Discovery. We have a complaint filed with the Massachusetts Bar of Overseers for unethical behavior on several documented incidents. These attorneys have still not provided the Blue Wet Ink Note and copies received are undeniably extremely suspect in appearance. Some distortion occurs during scanning so we are attaching actual photographs of the supposed copies we received of the Wet Blue Ink Original Note. These photos show exactly what we find suspect. The only way to clear up whether the Note is a forgery or not is providing the blue wet ink note for us to have examined by a forensic signature analyst. SPS and the attorneys have both denied our requests to view it and even admitted as stated previously, that they only held photocopies. This leads us to believe there is possibly no Blue Wet Ink Note and that means there is no debt, which renders the mortgage invalid. This is on top of everything stated in the Affidavit of Clarification of Title that also obsoletes the mortgage.

The accounting starting on Page 225 of Discovery is also extremely suspect. XXXX XXXX  attorneys are asserting your bank did not accelerate in XX/XX/XXXX-XX/XX/XXXX and refuse to provide any documents from the law firm that initiated foreclosure and we unfortunately had water in the basement at one time and lost boxes of documents. XXXX XXXX  XXXX charged approximately {$11000.00} in foreclosure attorney fees during those years. So either it was accelerated in XX/XX/XXXX-XX/XX/XXXXor the account was fraudulently charged. You cant have it both ways. That was the approximate cost of foreclosure proceedings start to finish during that time frame so how they think they can assert it wasnt accelerated is beyond comprehension. The attorneys know because it was accelerated it is no doubt past the statute of limitations in Massachusetts, but in asserting it wasnt they are implicating that SPS, appointed power of attorney committed fraud on our account. On page 244 of Discovery there is a charge on XX/XX/XXXX for {$7900.00} with no Payee listed that appears to be attorney fees, that was not even included in the aforementioned {$11000.00}. In fact there are charges on several pages without a payee listed. Inspections are shown being charged several times a month sometimes within a day or two of each other when they are contracted for every 1-3 month inspections and Inspectors only left approximately 6- 8 of the required door notices over the years. $ 1+ escrow charges constantly, loan protector charges in no discernible pattern. You can clearly see that the accounting is not to professional accounting standards AT ALL. The accounting doesnt even show a running balance. There are charges listed from companies and attorneys we have never done businesses with or received a notice from, like XXXX XXXX for {$660.00} when an account has never been held by that company for this address. We are talking TENS of THOUSANDS of DOLLARS in unexplainable or suspect charges, just as we have suspected all these years. 
So a loan XXXX XXXX  received in XX/XX/XXXX-XX/XX/XXXX for approximately {$73000.00} is now up to approximately {$170000.00} less than 10 years later? Does that sound remotely close to being right, moral, or ethical? This is a home that fair market value is {$260000.00} and they think the bought it at the alleged auction for Approximately {$170000.00}. That is laughable. Everything listed in the Affidavit of Clarification of Title clearly states the laws in Massachusetts and why XXXX XXXX  has no claim to the property. Since that was filed we have described the many issues with the case XXXX XXXX   attorneys are now putting before the court. There are also issues with the Securitized Trust which is not signed or notarized. 
This is equity that my family could have used to help during the years XXXX XXXX became XXXX   XXXX and needed XXXX after XXXX. XXXX could not work for 2 years due to a medical condition that was disabling, but not on the list of covered medical diagnosis. During the OBAMA recession when XXXX was on unemployment for years because the XXXX XXXX crashed we literally lived in poverty, all while sitting here on the {$150000.00} down payment plus the earned equity because the homes value increased. This was all because XXXX XXXX and their appointed representative SPS held us hostage with illegal acts over many years time. If we had sold the home we would have lost so much of our life savings in what we believed must have been fraudulent charges. No attorney would touch our case for less than a {$50000.00} retainer and the advice given by those we contacted was sit and wait for them to bring this to court. They all said we had a solid case and would win when it did happen but the case would be time consuming and expensive. 
This whole thing has been like living in a movie. Never in our life would we think things like this would happen in America. We are honestly appalled and since researching foreclosures realize this is a huge problem in America. We have been reading case after case and honestly none are as clear-cut as ours and none involve cases that the homeowner was primary shareholder. 
Thank you for taking the time to read and review our files. Attached is the Incomplete Discovery provided by XXXX XXXX  and some of our evidence. If you would like any other documents or video and audio recordings please let us know. 

Sincerely, XXXX and XXXX XXXX

Company public response: Company has responded to the consumer and the CFPB and chooses not to provide a public response
Company response to consumer: Closed with explanation