Consumer complaint received 2015-06-11
Product: Mortgage — Other mortgage
Issue: Loan modification,collection,foreclosure — 
Company: Fay Servicing, LLC (MD)

My mortgage was modified for in-house step mortgage program by my then lender, XXXX, on XXXX/XXXX/2012 before being transferred or sold to Fay Servicing , LLC in XXXX. The rising interest rate and payment coupled with near fatal accident that kept me out of work for several months, made it difficult to maintain my mortgage payment. I subsequently fell behind on my mortgage and reached out to Fay Servicing for assistance. XXXX, they denied my loan before I had a room renter income because, according to them, I did not have sufficient income. Several months later, I reapplied showing additional {$600.00} a month in rental income, Fay Servicing denied my application again because they said this time that I made too much money. I have been denied for HAMP several times, for different reasons, like ; I have already been modified for HAMP once before which is not true, I do n't meet the 31 % threshold for HAMP XXXX XXXX or they can not achieve the 10 % P & I reduction for HAMP XXXX XXXX, and finally that the investor on my loan does not participate in HAMP modification.It was difficult to know their real reason for not wanting to offer me a retention option. 
I contacted the XXXX and worked with a housing counselor who determined that I was a good candidate for the HAMP XXXX XXXX and we tried to conduct a XXXX phone call with FAY Servicing but Fay Servicing declined to discuss my mortgage with them. I submitted a new application to Fay Servicing with documents I received from the housing counselor showing that I met generic HAMP guidelines. Even when I was already more than XXXX months past due on my mortgage payment, Fay Servicing told me the only way they would consider me for a modification was if I agreed to make payments of {$2200.00} while my file was in review and was further advised by my then Account Rep, XXXX XXXX, that making those payments will enhance my chances of getting my mortgage modified. I agreed and made about XXXX payments and my loan was still denied. 
Eventually, XXXX XXXX 's manager, XXXX XXXX XXXX said he might be able to help me get an in-house modification if I completed the financial worksheet he sent to me. I completed the worksheet and sent it back and several weeks later I was notified that my loan modification was approved. I was very excited until I found out that they raised my interest rate from 3 % to 5.875 %, thereby significantly increasing my mortgage payment from {$2300.00} a month to {$2800.00} a month for XXXX years. 
I told them I had a family to maintain and so could not afford the payment increase and that is when my new Account Rep, XXXX XXXX, started calling me almost every day threatening that unless I agreed to a short sale, the only other option will be to voluntarily vacate the property or they will come and evict me if I did not. The calls became relentless and they were quite humiliating to me in front of my family. I discussed Bankruptcy but was told that they would still come after me for any deficiency balance. Left several messages for his manager, XXXX XXXX, who never bothered to call back, not even once. 
XXXX XXXX referred me to work with a company he said they use for FHA short Refi. I contacted that company and worked with someone named XXXX XXXX. I completed their application only to be told they could not help me because of an old judgment on my credit report. 
A friend of mine referred me to a non-profit Short Refi company called XXXX XXXX. I completed their form and submitted with requested supporting financial documents. After about XXXX weeks, I was contacted and told that I was pre-approved for their program. Their program involves getting the house at a short sale and transferring it to me as a Short-Refi. I gave them the permission to contact Fay Servicing for short sale but Fay Servicing declined to work with them. Please help me with Fay