Consumer complaint received 2015-03-19
Company: SELECT PORTFOLIO SERVICING, INC.
State: NJ
Product: Mortgage
Sub-product: Conventional fixed mortgage
Issue: Loan servicing, payments, escrow account

Complaint:
I am writing this letter because my mortgage account experienced an error when it was servicer transferred from XXXX XXXX XXXX to Select Portfolio Servicing on XXXX XXXX, XXXX. I was in the middle of a trial loan modification that began on XXXX XXXX, XXXX. 
I made all of my payments on time, which kept me locked into my trial modification agreement. I have attached a copy of my bank records, which show the payments being withdrawn from my bank account each month since the trial modification began. After the initial XXXX month trial period, I was informed by XXXX XXXX XXXX that my permanent loan modification documents were not ready to be produced yet. I was instructed by XXXX to keep making my payments each month in the same amount as the trial period payment. I ended up making payments for XXXX and XXXX in the trial amount of {$640.00}. I spoke to an XXXX representative named XXXX in XXXX XXXX. He informed me that I can begin to make my payments in the amount of the permanently modified payment, which came out to be {$850.00}, but the permanent documents are not ready yet. I made the payments for XXXX and XXXX XXXX in this amount. 
I spoke to XXXX from XXXX again on XXXX XXXX, XXXX. He was very apologetic about the errors on XXXX 's end. He explained that the XXXX and XXXX payments are short of the normally scheduled payment of {$850.00} because they had informed us to make payments of {$640.00} during these months. Each XXXX of these months is {$200.00} short from making a full modified payment. In order to credit the account for the full payments in XXXX and XXXX, he said the account is due for {$410.00}. He informed us to make the shortage payment along with the payment for XXXX and the account will be permanently modified and brought completely current. This would allow them to apply all of the funds properly through XXXX XXXX, XXXX. He said XXXX is working to rectify the issue prior to the transfer to Select Portfolio Servicing, but they will notify SPS of their error prior to the transfer so that there are no issues with the modification when the loan is transferred to SPS. 
As you can see in my bank records, which are attached, I made the payment to Select Portfolio Servicing on XXXX/XXXX/XXXX in the amount of {$1200.00}, which can be broken down into {$410.00} for the shortage in XXXX and XXXX plus {$850.00} for the XXXX payment plus an additional {$30.00}. I contacted SPS on XXXX/XXXX/XXXX to ensure that the payment had been received. I was informed that the payment was received, however they were still working on the transfer process. I called back and spoke to SPS on XXXX/XXXX/XXXX and I was informed that they were showing the account due for XXXX payments. I tried to explain that the account was current and I was advised to send in a dispute letter for the account. 
I ended up submitting a dispute letter on XXXX/XXXX/XXXX. I received a response on XXXX/XXXX/XXXX that SPS could not find any errors on their end and there is still a delinquency on the account. However, this is not correct information, as you can see in my bank statements that a payment has been withdrawn for each month since I began my trial modification in XXXX XXXX. I sent another dispute letter into SPS on XXXX/XXXX/XXXX. They responded with the same letter as their first response and claimed that there is not a payment issue on the file and they claim that I am XXXX payment behind on the mortgage, which is not the case. I ordered a payment history to prove that payments were made, but SPS conveniently began their payment history on XXXX/XXXX/XXXX, whereas the payment was made and accepted by them on XXXX/XXXX/XXXX, in which they claim they did not receive the payment of {$1200.00}.

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