Consumer complaint received 2019-03-29
Product: Mortgage — Other type of mortgage
Issue: Struggling to pay mortgage — 
Company: Fay Servicing, LLC (NJ)

I have notices from my Mortgage company which I do not understand and do not make much sense. I signed a home modification at 5.750 % with the agreement of a " Timely Payments Interest Rate Reduction. '' This was awarded to us in the beginning of XXXX with a 1 % reduction. Now, almost 2 years later, the company is taking that back and is forcing what they call a " Loan Deferment Arrearage. '' Which I do not fully even understand. They provide no choice but to agree, sign and notarize new agreements which will also add additional money to the back of the current loan, in addition to this " Modification Deferment '' of moneys that we currently do not owe, and an entirely new " Modification Agreement '' which will raise our monthly payments by XXXX dollars. This unforeseeable new payment is completely " NOT Affordable '' and agreeing to it will only set up my family for imminent failure. We have XXXX children all of which are very young in age. XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX 

These terms and provisions of these new agreements do not make sense and I have not consented nor have I freely or voluntarily executed any part of this agreement.. It has been exhaustively explained to another new account manager ( actually my 4th new account manager in just a few years time ) in addition to tonight 's conversation with this newly hired Vice President XXXX XXXX. This VP actually called me at XXXX - XXXX on XX/XX/XXXX of which I explained that this is a forced agreement. I explained that these are real human lives which will be negatively impacted just because his company decided that they can do what they wish, even ruin lives only to see their earnings increase. 

I recorded this conversation. It was unprofessional and if I didn't know better would have believed it to be a personal prank. Dates, numbers, facts and interest rates were not even correct. Again I stated that we do not have a comfort of a bank account, savings account, have no real possessions, investments or any additional means to satisfy such agreement. I asked how he could in good conscious force a family to accept a knowingly agreement of failure. Without even attempting to provide any affordable solutions. 

All he stated is that they " made a clerical mistake '' and this 1 % reduction was not agreed upon. I tried my best to explain that this is not a monopoly game. That there were indeed XXXX adults and XXXX children on the other end of this. I explained that the original agreement promised a interest rate reduction after 12 months of consecutive timely payments. This was ( much anticipated ) and discussed multiple times with the previous account manager. Unfortunately none of these previous account managers are there to attest to these facts. This was ( not ) a random stroke of luck. It was agreed upon and was no surprise to my family. I knew that I was not able to sustain a monthly payment of {$2800.00} and agreed to the terms of this loan mod. with the promise of a " mortgage rate reduction '' after 12 consecutive and timely payments.. 

Since this 1 % reduction was applied our family dynamics have changed. We had another baby and XXXX now worked part-time so she could be home more with the children. 

Now ( out of the blue ) Fay Servicing is claiming that this " Payments Reward Rate Reduction '' never existed and it was just a mistake and that it was never promised. They have done nothing but make demands and instill fear by bullying my family with documents which I have no or little recollection or understanding of and continue claiming that they made a mistake, we ( the homeowner ) are wrong and they are now going to add {$6.00} or XXXX to the principal loan in addition to raising the interest rate 1.0 % back to 5.750 %. This will increase our monthly mortgage payment to add an additional {$1000.00} to the amount that my family is accustomed to. This option is completely not affordable to my family. They offered no options, but to sign the new agreements today and apply for a loan modification afterwords. 

Knowing clear as day that a new modification would most likely increase the % rate even higher. This was a guaranteed failure for my family. 

They further instill fear by stating that " the foreclosure process has begun and will not be halted unless I accept these new terms on or before XX/XX/XXXX ''. This entire process has been nothing but terrifying. I honestly feel like this company is forcing me into the modern version of " walking the plank '' with my entire family. 

I explained over and over that this was untrue and it was NOT some random mistake. 
They are being unfair and I we are not responsible for their errors and they are bound by the terms of the prior modification ( which they conveniently have lost ) and neither of my previous account managers are employed there to confirm these facts. They simply do not care. Fay Servicing continues to change the rules and tell different stories. Everything changes so often that it is hard to remember who's who and all the different promises and agreements seem to fade away with each new account representative. 

I fear that they may have tricked me into signing my right and promise of this on-time rate reduction. I also fear that they are doing this exact same thing to other homeowners. 

Please .... I beg you to help my family in addition to any other family which this company may destroy. If I sign and notarize these new agreements then I am only setting my family up to fail.