Consumer complaint received 2019-12-06
Product: Mortgage — Conventional home mortgage
Issue: Struggling to pay mortgage — 
Company: Fay Servicing, LLC (IL)

On XX/XX/2019, I faxed an application to Fay Servicing for a loan modification to lower my current interest rate to the current rates.  I received an acknowledgment letter from Fay Servicing dated XX/XX/2019, stating they received my complete Loss Mitigation Application on XX/XX/2019, and within 30 days of receiving my complete Loss Mitigation Application an evaluation would be conducted to determine my loss mitigation options, if any, on behalf of the owner of the loan (the "Evaluation Letter").  I would be required to accept or reject any offered loss mitigation options no earlier than fourteen (14) days from the date of the Evaluation Letter.  I received an Evaluation Letter in the mail on XX/XX/2019, dated XX/XX/2019, with the only option offered a Deed-in-Lieu of Foreclosure.  I rejected the option of a Deed-in-Lieu of Foreclosure and sent a next day letter (FedEx) to Fay Servicing dated XX/XX/2019, stating my option to reject the offer of a Deed-in-Lieu of Foreclosure.  I also called Fay Servicing on XX/XX/2019, the day I received the Evaluation Letter to speak with someone in relation to the Evaluation Letter and to reject the Deed-in-Lieu of Foreclosure offer.  I'm currently in a Chapter XXXX  Bankruptcy and was told by a Fay Servicing employee that they need approval from their Bankruptcy Dept. to discuss my loan with me.  I told the employee the Evaluation Letter states that time is of the essence.  I was told to call back by Friday, XX/XX/2019, to see if approval from the Bankruptcy Dept. has been received.  My attorney sent my account manager an Authorization Letter on XX/XX/2019, and I also emailed the Authorization Letter from my attorney to my account manager so that Fay Servicing can discuss my loan with me.  I'm not understanding why my loan could not be discussed with me on XX/XX/2019, the day I received the Evaluation Letter in the mail.  I'm very concerned with the threatening language in the Evaluation Letter that if I fail to accept this offer by XX/XX/2019, this offer will be revoked and Fay Servicing may refer my loan to foreclosure, or if your loan has been referred to foreclosure, foreclosure proceedings may continue and a foreclosure sale may occur.  I responded to the offer on XX/XX/2019, by calling Fay Servicing and sending a letter overnight dated XX/XX/2019.  I'm current on my mortgage and under an active/open Bankruptcy.  Fay Servicing is not complying with the Dodd-Frank Act, the Consumer Financial Protection Bureau (CFPB) enforcement requirements that consist of the following:⦁  Offer borrowers opportunities to pursue foreclosure relief:  Fay Servicing must also solicit consumers who were the subject of illegal actions to offer them the opportunity to pursue options to avoid foreclosure, to the extent possible. During the outreach and solicitation process, Fay Servicing must not take any foreclosure actions against the consumers. If the consumer responds to Fay Servicing’s solicitation within 60 days, Fay must not take any foreclosure actions against the consumer.⦁  Stop illegal practices and comply with mortgage servicing rules: Fay Servicing must stop illegal practices and respond with timely and accurate acknowledgment and evaluation notices required under federal regulations. Fay Servicing must also create policies and procedures that bring Fay Servicing’s operations into full compliance with the law, and make system changes to ensure Fay records data and tracks information that evidences compliance with federal law.Why was a Deed-in-Lieu of Foreclosure my only option?  I applied for a loan modification to lower my current interest rate not loss my property.  Fay Servicing should be assisting consumers avoid foreclosure and foreclosure relief in accordance with the Dodd-Frank Act, the CFPB is authorized to take action against institutions engaged in unfair, deceptive, or abusive acts or practices, or that otherwise violate federal consumer financial laws.