Consumer complaint received 2022-06-22
Company: SELECT PORTFOLIO SERVICING, INC.
State: CA
Product: Mortgage
Sub-product: Conventional home mortgage
Issue: Trouble during payment process

Complaint:
I was behind on my mortgage, and it became intensified by covid. I was a XXXX XXXX, and I lost my job. I heard about the government program for families struggling to pay their mortgages. I had done the forbearance option, but it was time to pay it back and I couldnt. I applied for and was granted the grant that covered all the arrears on my mortgage. I am so grateful. Just as I prepared to make my first payment my servicer started calling saying I had a payment due for XXXX. The paperwork I received said I was due in XXXX. I called my servicer to confirm. They told me the grant only covered up to XXXX because they had made a mistake somewhere, but they did not include it. 
The grant total was completed in XXXX of XXXX. I made a principal payment in XXXX and XXXX. I asked the servicer what they did with that money since they had already given the government program the total amount to cover me until the end of XX/XX/XXXX? The servicer told me that they applied it to XX/XX/XXXX. I asked how was that possible when they had already been included in the government grant payoff? I told them that they were double-dipping collecting from both the government and me for the same period and that because they had already been paid for XX/XX/XXXX, the money I paid after the grant amount was submitted should have applied to whatever they were asking for the month of XX/XX/XXXX. 
I am writing because they are trying to cheat me. I was prepared to pay in XXXX, they are threatening me with now damaging my credit report by showing 30 days late. I feel I am being strong-armed here and am at their mercy. They want to get paid twice for the same month of XX/XX/XXXX. 

I believe they are trying to set me up for failure as a punishment for receiving the grant. I am angry and afraid because I am just getting my credit back together after a long journey of arrears left from my divorce and trying to live on credit cards because of losing my job. 

The servicer is talking to me as if I am ignorant of the financial part of this. While the servicer acknowledged they tried to go back to the grant program to fix their error, they were unable to do so. I have no problem with them getting paid for XXXX, but I know that I have given them at least two payments of {$930.00} to equal $ XXXX that can be applied for XXXX because they have not refunded it back to me. 
To recap : XXXX requested the total of everything owed to my servicer. XXXX of XXXX XXXX settled on the amount of {$54000.00} to clear and bring current my account. My servicer agreed. I was not notified right away so I made ( 2 ) principal payments after that date. I received a letter stating I was paid up and my first payment would be due XX/XX/XXXX. My service came back and said I owed $ XXXX for the month of XX/XX/XXXX. I asked what was done with the money I paid after the settlement was made and I was told it was applied to XX/XX/XXXX which was also included in the settlement amount for XXXX and if I did not give it to them, they would report to the credit bureaus that I am 30 days late. 
Can you please help me? This isnt fair.

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