Consumer complaint received 2022-02-26
Product: Mortgage — Conventional home mortgage
Issue: Trouble during payment process — 
Company: SELECT PORTFOLIO SERVICING, INC. (FL)

I was on XXXX XXXX XXXX when I lost my job due to the pandemic. My mortgage company, XXXX XXXX offered a forbearance for 3 months. Since I was still unemployed, they reduced my mortgage payment from {$1000.00} to {$290.00} but in XX/XX/XXXX, they offered a modification and requested income verification as well as additional documentation. Unfortunately, the modification was denied because I was still unemployed due to my health condition. Ive had a lot of medical issues due to my XXXX treatments, which have caused additional health issues, plus I got covid last year. Fortunately, I have a Mortgage XXXX Policy with XXXX XXXX XXXX. I filed a XXXX claim with XXXX XXXX, and it was approved. XXXX XXXX issued a check to Select Portfolio for {$10000.00} on XX/XX/XXXX, to their Utah location. This was a retroactive payment to cover the months of XX/XX/XXXX thru XX/XX/XXXX. However, Select Portfolio claimed they never received the check. Another check was issued on XX/XX/XXXX, for the same amount, this was the XXXX check issued to them. Again, they claimed they never received that payment either. On XX/XX/XXXX, XXXX XXXX issued a XXXX check for {$10000.00} but Select Portfolio said that payment was never received. On XX/XX/XXXX, XXXX XXXX sent another replacement check but this time they sent it via Certified Mail, this was the XXXX sent to Select Portfolio. On XX/XX/XXXX, I contacted Select Portfolio and spoke with XXXX. She said a payment had been received and it was in the XXXX XXXX, but it would take XXXX hours to post to my account. A couple of days later, I checked my account online and the payment had been posted and backdated to XX/XX/XXXX. The account appeared current and up to date! 

On XX/XX/XXXX, I received a call from Select Portfolios Lost Draft Department in Ohio. They informed me that they received a check from XXXX XXXX in the amount of {$10000.00}, and they wanted to verify if the check was for damages to the property. I explained it was NOT for damages to the property, but it was a mortgage payment. At first, I thought it was one of the lost checks issued the previous month, but after verifying the check number with the representative, I realized it was the most recent replacement check that XXXX XXXX had reissued on XX/XX/XXXX. This entire time the check that was posted to my account in XXXX was not the most recent check, but it was the check from XX/XX/XXXX. The XX/XX/XXXX, payment was returned as a stop payment, which caused my account to become delinquent. Apparently, what happened was when Select Portfolio received the payment via Certified Mail at their Utah location, they assumed the check was to cover damages to the property. They then forward the check to their Lost Draft Department in Ohio without notifying me. Once the Lost Draft Department realized their error, the check was then mailed back to Utah and its now lost again! 

This situation has caused me so much emotional distress that I ended up hospitalized for 2 days with symptoms of a XXXX. In the meantime, Select Portfolio has sent me serval Notices of Default and Right to Cure by XX/XX/XXXX. I have made every effort to bring my account current, but I feel like Im running into a brick wall. I need your help and assistance in getting this situation resolved to avoid foreclosure.