Consumer complaint received 2021-11-10
Product: Mortgage — Conventional home mortgage
Issue: Struggling to pay mortgage — 
Company: Fay Servicing, LLC (NC)

Fay Servicing LLC and XXXX XXXX  XXXX XXXX XXXX is running a fake modification to foreclosure scam in violation of the Cares Act, American Rescue Plan Act, and Dodd Frank Act. XXXX XXXX XXXX XXXX XXXX has bought loans, including our loan, that were in Cares Act forbearance from XXXX XXXX and has their servicer Fay Servicing LLC faking the modification process so they can foreclose and steal homes. Fay Servicing denied our modification stating that we did not have enough income to qualify for the modification. This is false. Our stated income was {$3500.00} per month and after our current loan amount of {$2000.00} plus bills we had a surplus of {$300.00}. If we were making the {$2000.00} payment prior to XXXX and Hurricane Matthew, which put us behind on our payments due to our flood insurance policy not paying the total for our repairs, then we would certainly be able to make a smaller payment. This is what alerted us to the fact Fay Servicing was running another illegal fake modification to foreclosure scam on us to steal our home. Additionally, before XXXX XXXX  XXXX XXXX XXXX bought our loan for the purpose of taking our home XXXX XXXX had approved us for a Flex modification putting the missed Hurricane Matthew payments on the back of the loan and reducing the payments to {$1500.00}. We were approved in XXXX XXXX and made all XXXX trial period payments on time XXXX XXXX XXXX of XXXX. In XX/XX/XXXX we signed the modification papers and mailed them to the then servicer XXXX XXXX XXXX but they did not act on the modification. XXXX continued to apply the premodification amounts to the account and did not forbear the missed Hurricane Matthew payments as the modification directed them to do. In XX/XX/XXXX with no one to address the problem at XXXX we applied for Cares Act forbearance and were granted that per the Cares Act. But those missed payments were not put on the back of the loan as the law dictates and our account continued to balloon at the premodification payment. In XXXX XXXX XXXX XXXX  XXXX XXXX XXXX bought the loan from XXXX XXXX. Fay Servicing took over the servicing of the loan in XXXX XXXX and refused to honor the previous modification or the Cares Act forbearance already in place from XXXX XXXX XXXX  They refused to fix the account so they could foreclose demanding a fraudulent amount of past due payments. And they are now stating it was because the modification was not notarized in XXXX of XXXX. In XX/XX/XXXX the country was in lock down and notaries were not available so the XXXX XXXX XXXX  made an order that notaries for legal documents would not be necessary and a statement of the truthfulness of the signatures was all that was needed. Fay Servicing is refusing to abide by the XXXX XXXX XXXX XXXX  and is using this to try and deny us the previous modification which is against XXXX XXXXXXXX and an additional fraud. Fay Servicing is using the fact XXXX XXXX sold the loan and they are a private bank to end the Cares Act forbearance, without telling the customers who are unaware the forbearance no longer applies, then using the missed payments to put the loans in foreclosure. The Cares Act forbearance should continue if the loan is bought by private banks because homeowners do not have the ability to change their financial situation just because the loan was sold-this issue needs to be dealt with by the CFPB. When we received our foreclosure notice we contacted Fay Servicing and correctly submitted all loss mitigation modification application documents at their request, XXXX XXXX, and instantly received a denial based on an erroneous reason of not enough stated income. This is when we knew they were running a modification to foreclosure scam.We have offered to bring the loan current and begin making the payments of the previous modification amount of {$1500.00} if Fay Servicing will correct the account and honor the already agreed upon modification but Fay Servicing is more interested in running a foreclosure scam on innocent home owners who had XXXX loans then their private bank decided to steal some distressed property. We have a justifiable hardship first Hurricane Matthew then XXXX we are entitled by law to the modification we made payments on from XX/XX/XXXX, we are entitled by law to have the automatic Cares Act forbearance, and we have no control over the XXXX XXXX XXXX selling our loan. It should have been made illegal for the GSEs to sell the loans to private banks while the loans were in the Cares Act protections. This in itself is another government violation of the law. You pass a law so that people with GSEs could miss the payments and be granted forbearance which identified them as the most distressed properties, then you sell the loans you coaxed into getting behind with a law that was supposed to protect the properties, so that private banks could profit off taking the homes with foreclosure. And again like in XXXX unsuspecting homeowners following the rules lose their properties and life 's savings due to the US Government and it's GSEs running a scam on them. All of which is illegal and fraud.