Consumer complaint received 2017-07-03
Company: SELECT PORTFOLIO SERVICING, INC.
State: CA
Product: Mortgage
Sub-product: Conventional home mortgage
Issue: Struggling to pay mortgage

Complaint:
We are filing this complaint against SPS Servicing for the following reasons and actions : Dual tracking Failure to comply with CFPB regulations regarding : o Appeal rights and processing o Offering all available options for which the homeowner was eligible My husband and I requested a loan modification. We promptly complied with all requests for information including repeated requests for the same information. XXXX XXXX, 2017 We received an offer for a loan modification described as HAMP Tier 1 Trial Modification. The letter describing the modification offer said we were not considered for some other options because SPS found that qualified for that option. I believe we qualify for the loan modification option that includes forgiveness of part of the principle and extending the life of the loan which was referred to as HAMP Tier 2 Trial Modification. What caused us additional concern that we not offered all the options that we are entitled to is there was an option that we did not qualify for and the loan modification offer letter clearly states that. So if we were considered for the HAMP Tier 2 Trial Modification and found to not be eligible for it, why did they not state that instead of stating we werent offered that option because we were eligible for a different option? It also appeared to us that they were attempting to force us to buy insurance from their insurer as we believed the cost of the insurance was more than what normally pay. Included in the offer letter was notification of our right to appeal. ( Copy of loan modification offer letter attached ) XXXX XXXX, 2017 We XXXX a written appeal to them XX/XX/XXXX and it was received by SPS XX/XX/XXXX. The appeal listed and requested among other things proof that we were evaluated for all the modification options for which we are eligible at entitled by law, clarification on the costs of insurance included in the escrow and asking for confirmation that the insurer prices were those of our insurer, disputing their valuation price and method and other items which we were outlined in a letter with was attached to a copy of the loan modification offer documentation. Please note that we indicated that we did want a loan modification but requested all the information entitled to us by law. ( Complete appeal letter with proof of delivery attached ) XXXX XXXX, 2017 We received a letter from SPS dated XX/XX/XXXX stating they had received our inquiry but not referencing it as an appeal, they did not respond definitively to any of the requests outlined in the letter most specifically our question about whether we were eligible for the loan option that included principle forgiveness called the HAMP Tier 2 Trial Modification stating they considered all options but we unable to provide any details on that process which we believe means they did not seriously evaluate us for that option or providing details would have been the best response and may have allowed the trial modification they offered to commence. Further, the letter stated that they offered us the best option but their responsibility by law is to inform of the options we are eligible for. And makes the determination best option? And who is it best for who us or them? Arent they supposed to inform us and/or explain all the options that we are eligible for? That did not happen. Further, they then stated that in order for them to consider our appeal, we had to make the trial modification payments. That is a contradiction in terms. If I am appealing the terms and amount of contract, I cant honor it by making payments because that very act signifies acceptance of the terms and conditions. That letter also included notification of our right to appeal this information which we did. Please note that the XX/XX/XXXXletter did not mention our appeal but instead referenced an inquiry, did not state that the letter was any form of response or decision in regards to the appeal. Additionally, please note that to date, we have not received a decision in regards to our appeal. ( Copy of letter attached ) XXXX XXXX, 2017 We XXXX a 2nd appeal, reiterating our original requests and grounds for appeal which SPS had not responded to. The package was received XXXX XXXX 2017. ( 2nd appeal and proof of delivery attached ) XXXX XXXX 2017 We received a letter from SPS saying our loan modification offer had been withdrawn. That is in violation of the law which says that we are entitled access to all of the loss mitigation options for which we eligible including loan modification under the best program we were eligible and the right to appeal which we were currently engaged in. Please note that to date, we have not received an answer to our question as to whether we were eligible for options other than the one we were offered. XXXX 2017 We found a notice on our door that our property was up for Trustees sale.
To date : We have not received a response our appeal, no notice of denial or no correspondence addressing any of the grounds for appeal. XXXX XXXX, 2017 at XXXX XXXX I spoke on the telephone with XXXX XXXX where we discussed the situation with our property. I informed him that to date we were never informed about the decision regarding appeal, had never receive any information in writing from SPS referencing our appeal most specifically we had never been informed that our appeal had been denied before beginning foreclosure activities which I believe is directly against CFPB regulations regarding fair and honest dealing with homeowners. His response was that the appeal had been denied and when I asked him on what grounds, he informed me that our appeal was not received with the 30 days permitted for response. While on the telephone he confirmed that we had not been mailed an appeal denial letter and offered to mail it that day. I informed him that the grounds of the appeal were not correct as I had proof that we our appeal was submitted in a timely manner and well within the 30 days allowed. The loan modification offer letter was dated XX/XX/XXXX and our appeal was received by SPS XX/XX/XXXX, proof of receipt is attached. The terms of the appeal state that foreclosure activities are suspended pending the appeal and since the appeal was still pending, the listing of home for sale is not allowed. By failing to inform us of an appeal decision, we were denied us the ability to pursue other options in timely basis which leads us to believe were being dual tracked.

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