Consumer complaint received 2016-07-23
Product: Mortgage — Conventional adjustable mortgage (ARM)
Issue: Loan servicing, payments, escrow account — 
Company: SELECT PORTFOLIO SERVICING, INC. (CA)

I was approved for the principal interest reduction program through an outside source called Keep Your Home California. The program is designed to lower your mortgage payment. They paid SPS over XXXX and initially the amount was put only on the principal and interest and then corrected and put towards taxes/insurance/and anything else to bring my account to a XXXX balance. I had my mortgage payment reduced to XXXX and the letter was sent out to me with an additional document showing I was at a XXXX balance in XX/XX/XXXX ( which was the month that my escrow account is reanalyzed ). Every month I got a statement that showed that was my mortgage payment all the way through my XX/XX/XXXX payment of XXXX. I called back and changed my home owners insurance from the insurance company that is used through SPS to XXXX XXXX. It went from XXXX to XXXX. In XXXX I changed my Homeowners insurance from My mortgage companies Ins to my own and some how they increased my mortgage payment back to XXXX. I called and they said that they would look into and then later told me that I was short in my escrow account. They said that my escrow account should always be positive and I had to explain to them that is what an escrow account is for. They did an escrow analysis 5 times and changed my mortg payment 5 times in the last 4 months. They finally agreed to make my mortgage XXXX but since I was past due on my mortgage they wanted to backdate the XXXX all the way back to XX/XX/XXXX. I agreed to only pay what I got on my statement every month until XXXX XXXX which was XXXX. I was told by an attorney I should send a notice of error since they charged a state funded program that gave them XXXX XXXX for Homeowners Insurance I never had from XXXX XXXX through XXXX XXXX, which is when they got the funds for Insurance I never even had. This guy from SPS called me on XXXX XXXX XXXX and the call is recorded and offered me a program w/ mortgage payment of XXXX. I refused and told him that was silly and my mortgage payment would never even get that high. I got a letter on XXXX XXXX that said congrats on taking the next steps on this program I never agreed to and they took my regular mortgage payment of XXXX and put that aside and now asking for the remaining XXXX on my forbearance loan I never agreed to. So I am forced to not make a payment, even though I need to get caught up on ..in fear that they will hold me to some agreement of a unrealistic mortgage payment of XXXX instead of my contracted and legal amount of a 3 % interest rate and a mortgage of XXXX. I can not get SPS to get this right and they have continued to be uneducated on what they can and can not do legally. They are only allowed to charge me XXXX year of projected taxes and insurance and they are trying to hold me accountable for 2 years when I was paid in full as of XXXX. I have sent XXXX pages to the advocacy department and she was going to make a call without even looking at all the evidence to show her that my mortgage was wrong and they did charge in incorrectly and actually owe me crdt of XXXX. Sps has made a total mess out of this very simple situation of changing my homeowners insurance and now I had to take a look at the entire picture and have seen that they took too much from Keep Your Home California and they have overcharged me of my taxes insurance since my previous mortgage company had all ready paid XXXX {$2100.00} in taxes and then Sps charged me the same amount plus another XXXX which is why in XXXX they took XXXX in Taxes and Insurance from the XXXX that was distributed to them. I have tried to work with them but they have continued to do some very unethical things that have caused me much stress.