Consumer complaint received 2022-01-03
Product: Mortgage — Conventional home mortgage
Issue: Struggling to pay mortgage — 
Company: Fay Servicing, LLC (NJ)

I am writing because Fay Servicing violated several provisions of RESPA, enumerated below, and then filed a foreclosure complaint, in further violation of RESPA. I am requesting the following relief : ( A ) That Fay Servicing immediately send me a written copy of the loan modification, including any Temporary Payment Plan ( TPP ), that was apparently offered to me but never sent to me in writing ; ( B ) That the date to accept and make first payment under that loan modification or TPP be extended to at least 14 days after the date I receive the written offer ( C ) That Fay Servicing immediately dismiss the pending foreclosure case ; and ( D ) That Fay Servicing immediately remove any attorneys fees, court costs, or other charges to my account related to the erroneously filed foreclosure case. 

I am requesting the above relief based on the following facts and the RESPA regulations listed below : I suffered a significant loss of income in XXXX due to the Covid-19 pandemic, but continued making mortgage payments through XX/XX/XXXX. In the XXXX of XXXX, I submitted an application for a loan modification. I received a letter dated XX/XX/XXXX, requesting that I submit additional documents by XX/XX/XXXX. I submitted the documents XX/XX/XXXX. 
In the third week of XX/XX/XXXX, I received a call from a representative at Fay Servicing asking whether I had received an offer package from them. I told her that I had not received anything yet. She informed me that I was approved, they sent an offer, and that my new mortgage payments would be {$2600.00} per month. She did not tell me when that payment was due. I assumed since she was telling me this in late XXXX, and I had not received the offer in writing yet, that my first payment under the loan modification was due in XX/XX/XXXX. 
In the first week of XXXX, I believe on XX/XX/XXXX, I called Fay Servicing and advised that I would send in my payment by Friday, XX/XX/XXXX. The customer service representative told me that it was too late because my first payment was due XX/XX/XXXX, that they would not accept my payment now, and they had already sent my case to foreclosure. 
I never received any Temporary Payment Plan, Loan Modification Agreement, or even a letter from Fay Servicing, telling me in writing that I was approved and when my first payment was due. To this date, I still have not received any such documents from Fay. I also have not been given any documents that my loan modification was withdrawn or terminated, let alone how I can appeal that decision. 
On XX/XX/XXXX, I was served with a court summons and foreclosure complaint. According to the papers, Fay servicings attorneys prepared the foreclosure papers at least as early as XX/XX/XXXX. 
Fay Servicing violated several RESPA provision including but not limited to : 12 C.F.R. 1024.40 ( b ) ( 1 ), by failing to provide me with accurate information about... ( iii ) the status of any loss mitigation application that the borrower has submitted, and ( v ) applicable loss mitigation deadlines ; and 12 C.F.R. 1024.41 ( c ) ( 1 ) ( ii ) by failing to provide me with a notice in writing stating the servicer 's determination of which loss mitigation options, if any, it will offer to the borrower... The servicer shall include in this notice the amount of time the borrower has to accept or reject an offer of a loss mitigation program as provided for in paragraph ( e ) of this section, if applicable, and a notification, if applicable, that the borrower has the right to appeal the denial of any loan modification option as well as the amount of time the borrower has to file such an appeal and any requirements for making an appeal, as provided for in paragraph ( h ) of this section ; and 12 C.F.R.1024 ( d ), by failing to provide me with specific reasons for their determination for each trial or permanent loan modification ; and 12 C.F.R. 1024.41 ( e ), by failing to provide me with at least 14 days to accept or reject a loss mitigation option ; and 12 C.F.R. 1024.41 ( e ) ( 2 ) ( ii ), by not allowing me to submit payment within 14 days of an offer of a trial period plan ( which still has yet to be received ) ; and 12 C.F.R. 1024.41 ( f ) ( 2 ), by referring this matter to foreclosure and filing a foreclosure complaint in court without having satisfied any of the three required conditions ; and 12 C.F.R. 1024.41 ( f ) ( 3 ), by referring this matter for foreclosure and filing a foreclosure complaint in court prior to XXXX XXXX XXXX, in violation of the Temporary Special Covid-19 Loss Mitigation Procedural Safeguards and without having satisfied any of the three required conditions ; and 12 C.F.R. 1024.41 ( h ), by failing to provide me with any information about the appeal process for their apparent denial or termination of my loan modification, thereby denying me the opportunity to appeal the decision. 

The above is not intended as an exclusive list of all violations and legal claims and defenses. I reserve the right to assert additional claims and defenses if the foreclosure case is not withdrawn and the loan modification reinstated, including as counterclaims against the mortgagee and third-party claims against Fay Serving . Please let me know immediately whether the foreclosure complaint will be voluntarily withdrawn without the need for further litigation.