Consumer complaint received 2024-10-22
Product: Mortgage — Conventional home mortgage
Issue: Struggling to pay mortgage — Applying for or obtaining a modification, forbearance plan, short sale, or deed-in-lieu
Company: SELECT PORTFOLIO SERVICING, INC. (VA)

I timely submitted to SPS a Complete Loss Mitigation application to SPS ; SPS acknowledged the Complete Loss Mitigation Application on XX/XX/XXXX. 

Despite the fact that loss mitigation is pending, SPS has scheduled a sale of my home for XX/XX/XXXX. There mere fact that a sale has been scheduled while loss mitigation is ongoing is DUAL TRACKING which is prohibited. It clearly states in SPSs own communication to me that because a Complete Loss Mitigation Application has been submitted and is being reviewed Im entitled to foreclosure protections and SPS will instruct the foreclosing attorney to postpone the scheduled sale. Since SPS has filed a Non-Judicial Foreclosure sale for XX/XX/XXXX, and there are no courts involved, there is absolutely no reason they are not able to postpone the sale and abide by their own words sent in the letter dated XX/XX/XXXX and highlighted below. This is a blatant and obvious RESPA violation. 

SPS received your complete Assistance Review Application, including all required information and documentation necessary to evaluate your account for loss mitigation assistance on XX/XX/XXXX. We expect to complete our evaluation within XXXX ( XXXX ) days of the date we received the complete Assistance Review Application. All options are offered at no cost to our customers and may include structured repayment plans, loan modifications, payment deferrals, or loan settlement alternatives. If your property also secures other accounts, you should consider contacting the servicer ( s ) of those accounts to discuss available loss mitigation options.

You are entitled to certain foreclosure protections because we have received a complete Assistance Review Application. We will not proceed with filing of the first legal action, filing a motion for judgment, filing an order of sale or conduct a sale prior to evaluating your complete Assistance Review Application. If a foreclosure sale has already been scheduled, we will instruct our attorney to file a motion to postpone such sale. It is possible, however, that a court will deny the motion and the sale will proceed. If that happens, we will be unable to provide loss mitigation. 

I am also in receipt of SPSs mortgage statement dated XX/XX/XXXX, claiming {$11000.00} in charges/fees for Other Charges and Fees. I am assuming that there are other XXXX fees and costs assessed to my account in prior months. 
As Im sure SPS is aware, RESPA prohibits charging borrowers 3rd party fees if the work if not actually performed. Specifically, 12 C.F.R. 1024.35 ( b ) ( 5 ) requires that the servicer may only charge bona fide fees ; fees that the servicer determined it had a reasonable basis to impose. However, a servicer may not charge for a service that a service provider did not actually provide. Therefore, in order to prove these above noted fees are legitimate and all fees and costs assessed to my account, I demand a copy of all invoices, evidencing all fees and the work completed for all fees charged. If I am expected to pay these fees then SPS must prove that are bona fide fees within RESPA.