Consumer complaint received 2024-05-22
Product: Mortgage — Conventional home mortgage
Issue: Trouble during payment process — Escrow, taxes, or insurance
Company: SELECT PORTFOLIO SERVICING, INC. (CA)

I have been dealing with this company for over XXXX years. In those XXXX years I have spent XXXX fighting for my home and the last XXXX of those years in a lawsuit I filed for wrongful Forclosure, Negligence and Violation of Home Owners Rights and Unfair Business Practices. I had to file the lawsuit as SPS had made numerous mistakes on my account followed by their normal policy of asking for repeated documents that we had sent multiple times, then they were caught dual tracking, falsifying deeds and other documents, offering loan modification but raising the monthly payment not lowering which no one has ever heard of, filing in 2 different courts different deeds as well as filing with the county recorder a different deed then filed in court. My lawsuit went from XX/XX/XXXX to XX/XX/XXXX. They tried numerous times to get my case thrown out but had no luck. Then came court ordered mediation. When this nightmare began with SPS in XXXX they stated they were the new servicer for our original loan mortgagor which was XXXX XXXX ( who we never had problems with ) however XXXX filed for bankruptcy in New York with many other lenders case XXXX and is still going. But for some reason sps kept collecting unsure why as they are not the lender they are only a servicer collecting for the lender. I was XXXX XXXX XXXX and recently widowed when this all started and I was XXXX when I had to file the law suit. At mediation I reluctantly agreed to terms I thought they would follow. I agreed as did all that I would have a fixed loan with the payment fixed at {$3700.00} but they would ONLY agree to that as long as they could have an escrow account. I have never had an escrow account but that was their DEMAN if I wanted the fixed term. By this time in 9 year battle I am XXXX XXXX XXXX I suffered many health issues fighting for my home which was their fault, I was so tired and wanted it to end so I agreed. I thought it would be ok as I have to pay homeowner taxes and insurance anyway and my taxes are approximately {$5200.00} per year and my home owners insurance is approximately {$1500.00} per year so we all agreed and signed the settlement agreement. They provided what the escrow payment would be stating taxes are {$440.00} insurance is {$120.00} and they also added in {$27.00} as shortage I asked what they was for as I have never had an escrow account they stated it was for a cushion. So my total escrow payment was {$600.00} for a monthly total of {$4300.00} first payment due XX/XX/XXXX which I made. I also had to agree to dismiss all claims with prejudice on XXXX which I did. 15 days later I received a notice from SPS ( see attached ) stating that my escrow account was short {$48000.00} and my new escrow monthly charge was {$3000.00} bring my monthly payment to {$6800.00} this was absolutely outrageous. I called them advised that this is impossible I had never had and escrow account so I could not be short. As well as my taxes and ins are approximately {$6800.00} per year there is no way. I also advised that we had a court ordered mediation and did a settlement agreement my payment is fixed for XXXX years. They stated that escrow accounts could increase or decrease per applicable law. I advised this not applicable my taxes or insurance did not increase. This came 27 days after my first payment and only 15 days after I had to dismiss all claims. They came up with my escrow fees for the settlement but now 27 days later they try to increase my payment over {$3000.00}. My attorney for the lawsuit contacted them advised this was not ok and they were acting in bad faith. I was told by him to make the agreed upon payment. In the notice of increase they also stated that they disbursed from my account {$39000.00} for taxes this is absolutely not true. 100 % not true. As early proven thru the tax collector. I continued the {$4300.00} then XX/XX/XXXX I received a notice from XXXX XXXX regarding notice of default and if I did not agree with the amount owed to send written notice by XX/XX/XXXX and they would stop collection until they could provide me infornation they I owed the debt. The written notice stating that the amount was incorrect with all the proof was uploaded on the website they provided as well as sent via certified mail to not only quality loan but to SPS. I received from XXXX XXXX an old deed from XXXX with a statement stating that this proved I owed the money and they will proceed. When I called them they stated they were hired by SPS and get direction from SPS that I needed to talk to SPS. At this same time SPS sent me a letter stating they needed more time to answer my questions SO AGAIN DUAL TRACKING. I advised they need to cancel the default as well as any Forclosure action. I have followed the settlement agreement they have not. I was never ever negative {$48000.00}. I am XXXX XXXX XXXX a widow and been dealing with this for years. They have caused heath issues, enormous stress, and lawyer fees.. All do to their mistakes. This needs to be corrected on SPS and XXXX XXXX side. They have breached the settlement agreement, they have performed with bad faith as well as breached their fiduciary obligation as the escrow account is not for them it is to hold my money for tax and insurance payments of which they have completely mishandled. Now state they filed default and next is Forclosure when they are not owed money from a negative escrow account nor are the owed over {$39000.00} of disbursements they claim they made which is false.I have made my payments I am not in default. 
This complaint is against Select Portfolio Services and XXXX XXXX.