Consumer complaint received 2022-02-15
Product: Mortgage — Conventional home mortgage
Issue: Trouble during payment process — 
Company: SELECT PORTFOLIO SERVICING, INC. (CA)

HomeOwnership XXXX is a HUD approved Housing Counseling agency helping our clients XXXX and XXXX XXXX, who contacted our office on XX/XX/XXXX. This will be their second time filing a complaint against Select Portfolio Servicing , Inc. ( SPS ). ( Complaint file XX/XX/XXXX Ref : XXXX ). XXXX and XXXX XXXX and our agency are extremely frustrated with the services and response received from SPS. After filing the first complaint against SPS, we have continued to assist the XXXX to resolve their mortgage delinquency. We were referred on XX/XX/XXXX to the Ombudsman Department where we spoke to XXXX at extension # XXXX. We were able to reason with him and manage to get the XXXX on a 3-month trial payment principal and interest plan to get the XXXX loan current. The original agreement was that the XXXX make their first payment of {$5500.00} for the months of XXXX, XXXX and XXXX. The XXXX made their payment on XXXX XXXX. When XXXX XXXX called XX/XX/XXXX, to make their 2nd payment for XXXX and XX/XX/XXXX in the amount of {$3600.00}, SPS informed XXXX XXXX that XXXX payment was still pending. She informed them that was incorrect and that they were not applying the payments as agreed with XXXX at the Ombudsmans Department. She then called our agency, and we placed a call and spoke to XXXX who took the payment for XXXX and XXXX and gave us confirmation # XXXX for that payment. XXXX XXXX made another call on XX/XX/XXXX to make her last payment as agreed of {$2500.00}, and again was told she was still one payment behind. 
On XX/XX/XXXX, our agency called SPS and spoke to XXXX and requested that he check to see if payment was submitted correctly. He checked and claimed that it was not and stated that the payment would be re-submitted and corrected, assuring us it would be applied to the right department. While on the phone with XXXX XXXX, XXXX assisted us with the escrow shortage account, claimed the new analysis amount could be spread on a 36-month plan and that her XXXX payment would be {$2600.00}. XXXX XXXX made the XXXX mortgage payment in the amount of {$1100.00} and should be current. On XX/XX/XXXX, XXXX XXXX was told via a mailed letter, that she was still behind a payment and now there were additional fees being applied. At this point, XXXX XXXX was so annoyed and frustrated that could not understand why SPS continues to refuse to work with her. She does not understand why in a total of 5-6 months SPS could not apply the agreed payments correctly even after pointing out to them every month while on this trial payment agreement. 
On XX/XX/XXXX, our agency called SPS and requested that they correct the payments and apply the payments in the right department. This time we spoke to XXXX who stated to us that this account was being referred to an attorney for legal action. When questioned why this loan was being referred to an attorney when the client was put on a trial payment agreement. He then said that it may be referred to legal attorney. Again, he was questioned to explain why? We explained that the agreed payments were not being applied in the right department. And just yesterday XX/XX/XXXX, XXXX XXXX was told via phone that they would escalate this matter to do the correction. She was offered a forbearance plan of 3 months by XXXX until this matter gets resolved. XXXX asked to be allowed to check on the notes on the account, claiming that they could be working on that. He then asked if there was a specific payment that was not applied correctly because according to him everything seems to be applied as it should. He did not see the error in the account. When we told him we had spoken to XXXX, XXXX, XXXX, XXXX and others about SPS not correcting or applying the payments correctly. He claims that what he sees in the account that payments are being applied to the most recent months, there is a portion for principal, a portion for interest and a portion for escrow. For example, the last XXXX payments were applied to the behind payments, because it looks like she was 2 months behind. So the payments she was submitting were being applied at the behinds payments. I asked to explain why, if she has not been behind her trial payment agreement and why were they were not applying the payments correctly? She was not the problem, it was them not applying the payment correctly making her look like she was behind 2 payments. We have been calling repeatedly asking for them to correct this and they have not done it. He verified the notes and was not sure as to why it had not been corrected, he did see that XXXX did make some notes for this correction to the payment. He claims that he sent out a message to follow up on it. We asked if he understood how frustrating it was for her client to receive a statement with an amount not owed with additional fees and being threatened that her account would be referred to legal and foreclosure at no fault of hers and when the mistake was on SPSs side. He claims that is why he had sent out a follow up message to his supervisor. He stated he was trying to straighten things out. He does see the message that XXXX sent out to the cashiers department for correction. However, he claims that at that time they were not able to complete the correction and did not explain why. I stated to him that it is frustrating having her client call us to call them to resolve this matter and yet they still do not get it done. I told him, XXXX and XXXX XXXX would get assistance by our agency in filing a complaint against them for failing to work with them. I stated to him that we have spoken to a total of 5 people to get this matter resolve. I requested a confirmation via email that this got resolved. He agreed that this email would be sent once resolved. I provided him with our agencys email. As of XX/XX/XXXX no email has been received and this matter has not yet been resolved. XXXX claimed that the current balance reflecting for 2 monthly payments of {$5100.00} of XXXX and XXXX but with the correction because the last XXXX payments should have been applied to principal and interest and the extra that went to the escrow should cover of XXXX for just principal and interest. So, at which point she would be due for the month of XXXX.