Consumer complaint received 2024-05-13
Product: Mortgage — Conventional home mortgage
Issue: Trouble during payment process — Escrow, taxes, or insurance
Company: SELECT PORTFOLIO SERVICING, INC. (CA)

Select Portfolio Services , Inc. grossly mishandled management of our mortgage account and escrow funds. On XX/XX/year>, we contacted Select Portfolio Services to address a significant issue concerning the mismanagement of our impounded taxes on our residential property. Despite repeated attempts to rectify the situation, we have encountered negligence and incompetence on the part of Select Portfolio Services , Inc., which has resulted in unpaid property taxes. 

The crux of the issue stems from Select Portfolio Services ' failure to properly update our impounded taxes to reflect the assessed taxes on our residential property. They have been paying our property taxes based on the pre-sale classification of our property as a vacant lot rather than basing it on the closing documentation provided to them as a residential property. This erroneous assessment persisted for XXXX months until an internal audit prompted a sudden reduction in the monthly amount due. However, despite biannual escrow analyses, Select Portfolio Services failed to correct the tax discrepancy, leading to an outstanding tax liability of {$36000.00}. 

Upon contacting Select Portfolio Services , Inc., by phone and subsequently via email on XX/XX/year>, we were assured by a representative that the matter would be promptly addressed and remedied. Specifically, we were informed that our escrow account would be credited {$40000.00}, the outstanding taxes would be paid, and the property tax records would be updated accordingly. However, no such action was taken. Furthermore, subsequent escrow analyses continued to reflect the incorrect property tax amount, exacerbating the situation. 

Despite multiple conversations with representatives, supervisors, and managers, it was only after an extended period of over an hour and a half that we were able to speak to a manager named " XXXX XXXX XXXX. '' While she acknowledged the errors and expressed a willingness to rectify the situation, no remedy has been achieved to date. Instead, we were requested to provide Select Portfolio Services with additional time to communicate with their escrow department and oversee the necessary actions. However, there has been no communication or progress since this assurance. 

As a result of Select Portfolio Services ' negligence and incompetence, we have unpaid property taxes, uncredited funds to our escrow account and a loss of confidence in their ability to manage our mortgage account competently. Therefore, we are requesting the Consumer Financial Protection Bureau to intervene and investigate this matter promptly. Specifically, we request that Select Portfolio Services, IncXXXX be compelled to : 1. Credit our escrow account with the {$45000.00} in Property taxes collected to date. 
2. Pay the outstanding property taxes amounting to {$36000.00}.

3. Ensure that our account is properly updated to reflect the accurate amount of property taxes moving forward.

We also request that Select Portfolio Services, Inc. be held accountable for their negligence and incompetence and implement measures to prevent similar issues from occurring in the future. 

Thank you for your attention to this matter. We look forward to a prompt resolution and your assistance in rectifying this egregious situation.