Consumer complaint received 2017-09-12
Product: Mortgage — Conventional home mortgage
Issue: Struggling to pay mortgage — 
Company: SELECT PORTFOLIO SERVICING, INC. (NY)

We had submitted numerous applications for a loan modification 's on behalf of this family over the course of the last 2+ years. I will start by referencing the one sent back in XX/XX/XXXX and the gross income at that time the borrowers made was $ XXXX.they were denied due to SPS stating that the borrower made too much income at the time. We resubmitted the application then in XXXX XXXX and SPS had denied the borrower again stating they did not make enough income, their calculations stated that the income at that time was {$4700.00} Then there was another application sent over to SPS in XXXX and the income SPS is stating was {$6700.00}. And now they are stating that the payment is affordable and less than 31 % so again they denied the application and this was the last submission was decisioned on XXXX XXXX XXXX Also, please be aware that in the last denial letter, it states that the homeowner has HOA due in the amount of {$50.00}. a month, there is no HOA dues! This is not a coop or condominium ; this is a single family residence home. That alone is a reason for a complete investigation of this review. 

Here are my calculations : {$410000.00}. X 3 % x 40 yrs= {$1400.00} HOI {$260.00} Taxes {$480.00} New speculated payment {$2200.00} Ratio would be 33 % which is completely within the guidelines set up by the bank for an approval for a loan modification! 

In the denial letter, they are stating that the payment is less than 31 %, the new speculated payment would be 33 %. 

We appealed this denial, they denied the appeal, they also had the house in an REO status, while the house was still not foreclosed upon but still owned by the borrower. The bank had sent a real estate agent to the property who had advised the borrowers that the home was already sold and that they needed to start preparing to vacate the property. The borrowers are not well. This entire process has stressed them out and made there illnesses worse. 

Also, whenever the bank filed a motion, they have been submitted them addressed to the borrowers children and NOT to them directly and the borrowers Son suffers from XXXX XXXX and this has taken him over the edge. The errors go on and on and on ... 

All we want is for the bank to offer these borrowers a loan modification, they have showed affordability over and over and over again. The investor does do loan modification, they just keep stating that they make too little or too much income. As you can see by this statement. 

The bank attorney also followed up with us after every week for two months after the appeal was submitted this last submission. They kept stating that they were following up with their client, and would say there was no decision as of yet. Then the bank attorney changed. Once it changed and I stated that it does not take months to get an appeal reviewed, and that if they do not come up with a decision soon, I am going to file a formal complaint, they stated that the appeal was denied back in XXXX and that a letter was sent to the borrower. This was NOT the case, the borrower never received any denial letter and why would the bank attorney be following up with us, the attorney representing the borrower stating that they are waiting for decision?? 

I have been doing this work since XXXX and I have never seen as many errors as I have seen with this file. 

We have proof of all of the reviews and all of the errors.