Consumer complaint received 2023-03-19
Product: Mortgage — Conventional home mortgage
Issue: Struggling to pay mortgage — 
Company: SELECT PORTFOLIO SERVICING, INC. (OH)

XXXX XXXX XXXX XXXX XXXX XXXX XXXX, OHIO XXXX XX/XX/XXXX Select Portfolio Servicing ( SPS ) XXXX XXXX XXXX XXXX XXXX XXXX XXXX UT XXXX XXXX : Loan # XXXX Atte : Customer Representative Dear Customer Representative , As per our conversation of last XXXX  XXXX XXXX, XXXX, XXXXnclosed latest appraisal of the property encumbered by the lien you service. The appraisal complies with the requisites of the Puerto Rico Board of Appraisal as with your requirement that it include comparable of similar sales in the property area This appraisal was made and paid by me in accordance to your instructions as the proper means to dispute the BPO utilized by your company to set the possible purchase price of a short sale subject to said encumbrance.

-2- THE BPO VS THE APPRAISAL As you well know, the BPO or the broker price opinion is an estimated value and as such it is used to obtain an assessment of the property. BPOs are mainly done by agent or brokers. Appraisals on the other hand are made by trained experts and therefore its accuracy is much higher since certain benchmarks, such as taking in consideration comparable sales in similar properties. Educational guidelines must be met. Appraisers in the XXXX of Puerto Rico are duly licensed by the Department of State of said jurisdiction. 

THE APPRAISAL The XXXX in this matter was {$250000.00}. The appraisal done valued the property at {$210000.00} ; a difference of {$40000.00}. The appraisal is enclosed. 

REPAIRS The property has been vacant for the last five years. Notwithstanding the appraisal price, it needs urgent repairs to maintain its habitability. The roof must be refitted as some lenders have indicate as a condition to proceed with any loan petition.

Windows and bathrooms must be fixed as well as numerous other cracks throughout the property. Puerto Rico as a tropical island is subject to wetter conditions including hurricanes ( XXXX was the last XXXX last year ). As a result, the property needs constant maintenance. The last person who made an offer for the property ( offer which lacks a response from SPS ), stated that the property according to her contractor needed repairs ascending to {$48000.00}. I enclosed copy of said estimate and Therefore, I surmise that the costs of the repairs which is potential buyer must assume is another item you should consider when determining what will the short sale price would potentially be.

-3- SETTING OF A PURCHASE PRICE Throughout this process SPS has never been specific what the price of the property should be. This has resulted in numerous filings of documents, especially of HUD1 document every time an offer has been made. This has resulted in an onerous process since my real estate agent as well as I must incur in expenses in professional hours and advice on how these documents must be filed. A laconic request for a counteroffer and later a possible refusal has converted this process mor akin to an auction than to a sale. We need your help in setting a minimum price that you could readily analyze. We need SPS to bet explicit and concise. 

BACKGROUND OF THIS MATTER On XX/XX/XXXX nd XXXX I wrote and sent a letter to you concerning the background of this transaction. For purposes of brevity and not to repeat myself I refer and quote the same, to wit : XX/XX/XXXX Re : Select Portfolio Servicing, Inc ( SPS ) Principal Loan # XXXX XXXX XXXX XXXX XXXX ( XXXX ) XXXX XXXX Loan # XXXX Dear Customer representatives, During the past year I have tried in numerous occasions to reach an agreement concerning the execution of a deed in lieu of the property located XXXX XXXXXXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX Puerto Rico . 

XXXX Although I had an approval from SPS to execute said deed, which was notified on XXXX, XXXX, the same was rescinded in XXXX of the same year due to the fact that an junior lien appeared from the Registry of Property in Puerto Rico which impeded the transaction to borne to fruition. 
SPS has notified to me via telephone that I have till XX/XX/XXXX to pay the property or face foreclosure proceedings. 
Notwithstanding the special circumstances of this case. I still have not received. 

-2- an answer to my inquiries. Therefore, please note the following : to wit, XXXX was the previous owner of the principal lien. 
XXXX once that it examined and had the pertinent documents and ascertained the death of the co-owner, approved an initial deed of lieu. 

XXXX appraised the property. 
XXXX on or about XX/XX/XXXX, made a final inspection of the property in order to ascertain that it was in good condition for the execution of the deed On or about XX/XX/XXXX the principal loan was sold and/or transferred to SPS. 
The whole process of sending documents such as death certificates and the like had to be sent again to SPS. 

-5- SPS XXXX in XX/XX/XXXX a deed in lieu of the property subject that the title was able to be transferred. 
SPS repeatedly asked for the probate court documents concerning the decedent co-owner although it was stated to them that in Puerto Rico there is no such -3- court, and that inheritance laws and immovable property law is different from other states. Decedents death certificate was also sent to them at least 3 times. 

SPS indicated in XX/XX/XXXX that the deed in lieu could not be executed because there was a junior lien on the property.

I called and notified XXXX of this notification and told them that I have received assurances from them, at the commencement of this issue, that both liens would be part of the deed of lieu. 

In XX/XX/XXXX, I sent a letter to SPS authorizing SPS to contact SPS regarding the XXXX XXXX as I was in the impression that since XXXX had transferred the principal loan they were cognizant that there was a junior lien with the same institution. 
It has been my impression thru my conversation with XXXX representatives that they are amenable to reach a mutually satisfactory agreement to lessen their lost. 

All court proceedings regarding the decedent co-owner heirs have been made and the document will be presented in the Registry once a deed in lieu has been approved.

-4 SPS has been made cognizant on numerous occasions that the heir of the decedent is a XXXX  of whom I have custody. Therefore, in this XXXX instance, to execute a deed in lieu an approval must be sought in the Superior Court of Puerto Rico authorizing this transaction. 

My attorneys are awaiting my instructions to proceed with the court approval. Nevertheless, if SPS approves the deed in lieu we must know who represents its interests in Puerto Rico since the Court must ascertain that this a true offer. Court proceedings, due to the pandemic are mostly done thru teleconference. 
Home association fees will be paid in full in the event the deed in lieu is approved. 
As you can see, this process has been riddled with confusion and I must add a certain disdain for its denouement. My real estate broker even had on TWO occasions people interested in buying the property for the appraised price, but no attention was paid to them.

The problems which have arisen are from my point of view a solvabl
e. This case does not need to take more of everybodys time and effort.

-5- Please review the same and notify me of your decision which will dictate the future steps that I need to take to protect my wards interests as well as my personal ones. 
Sincerely, XXXX XXXX XXXX XXXX Three years have passed, and this case still has not been resolved.

-7- THE LEGAL ACTION Notwithstanding all my efforts trying to resolve this matter, on XX/XX/XXXX XXXX, XXXX, according to the electronic case docket of the Judicial Branch of Puerto Rico , SPS initiated legal proceeding against me and my ward in the courts of the XXXX of Puerto Rico .

I have had to bring to your attention earlier in the process that your legal action while at the same time negotiating with me first for a deed a-in-lieu and later for a short sale transaction while at the same time pursuing a foreclosure proceedings is not permitted by law. 
Now, once again, from the electronic docket of the case it seems that you have reinitiated the foreclosure proceedings without even having a notification from our latest offer nor waiting for the date that you requested documents and without waiting, as accorded by our call of last XX/XX/XXXX for the appraisal herein included. 
Once again, I believe that the time is not ripe for such action, and it is to my detriment that you follow such course. 

PERSONAL CONSEQUENCES AND RESTATEMENT OF REQUEST The time and effort to this issue has been time consuming and costly to me especially since I only have a pension benefit and a low social security benefit. 
I have been unable to concentrate more efforts on my daughter so that she can have a fulfilling life and not be a burden to the coffers of the state of Ohio. Three years have passed, and this keeps dragging on. Also, this has not permitted me to have any closure since my partners death concerning the home we live and cherish since we live there there for more than 30 years. I have even had to seek XXXX XXXX to deal with the anguish and pain this issue brings me as the latest -8- customer representative who tended to me can attest. I am tired of writing letters and never-ending platitudes. 

Nevertheless, I strongly dispute your XXXX, request that the selling price of the property be no higher than {$210000.00}, take notice that numerous repairs must be done and do your upmost to end this never-ending process. 

Sincerely XXXX XXXX XXXX XXXX XXXX XXXX XXXX 
SPS Ombudsman Office Consumer Financial Protection Bureau Enclosures