Consumer complaint received 2018-05-31
Product: Mortgage — Other type of mortgage
Issue: Struggling to pay mortgage — 
Company: SELECT PORTFOLIO SERVICING, INC. (DC)

I have been trying to work with SPS Mortgage and the XXXX XXXX of Washington, D.C. since XX/XX/XXXX to complete a short sale for the Estate of XXXX XXXX, my the personal representative for this estate - Property located at XXXX XXXX XXXX XXXX. Washington, DC XXXX. We have had several court dates since the inception of this short sale listing with DC 's XXXX XXXX with the lender attempting to get approval to proceed with the foreclosure against the estate. It's been 3 years since the mortgage was paid and since the owner died. We have had a ratified sales contract on the property ( with the same buyer ) since XX/XX/XXXX. We are to the point now of getting the short sale approved. We've submitted this file for short sale review at least 7x.  The file has been denied 6 out of 7 of those times for various reasons. This time ( No. 7 ) the file was denied for a mysterious insurance claim. Apparently the claim was filed by the mortgage company who is aware that we have a court date on XX/XX/XXXX. The purpose of this date is give one final attempt to short sale ( CASE NO. CA XXXX-XXXX XXXX XXXX XXXX XXXX vs. Estate of XXXX XXXX XXXX ) this property and we were told by the judge that if the sale was not completed by then then foreclosure would be granted to the bank - SPS ( SPS has had a completed file from the beginning but since XX/XX/XXXX, for our 6th attempt at this sale. The short sale was denied at least 3x because the bpo appraiser could not get access to the boarded property. SPS refuse to take an exterior bpo. They have been in possession of a completed file actually every time we have started and restarted this process. WE've been told since XX/XX/XXXX that the file was in for final review. For the last 6 months, the home was been boarded up to protect it from squatters, vandals, more rodents and further needed repairs. Mysteriously the boards came off back in XX/XX/XXXX and a lockbox was installed by a XXXX XXXX XXXX per the request of SPS ( again mysteriously since they denied 3 prior short sales due to the inability to enter the property ) and finally the interior BPO was able to be completed thereby making our file finally complete and ready for short sale review XX/XX/XXXX. A few times before the appraiser could not enter the property because it was boarded by the DC Government and deemed a blithed property. On XX/XX/XXXX we requested our file to be escalated to a supervisor as we were told it was with the investor and any day now we could receive an approval letter. On XX/XX/XXXX, we found out that an insurance claim was filed by the bank - SPS and a check issued to the attorney XXXX XXXX in the amount of {$7900.00} on XX/XX/XXXX. XXXX XXXX represents SPS. The claim was filed by the bank and mailed to XXXX XXXX XXXX XXXX XXXX, XXXX XXXX, CA. The insurance company is XXXX XXXX and the phone number is XXXX. XXXX XXXX works for the bank and with the insurance company and approved this claim payment and her number is XXXX. WE have been told since XX/XX/XXXX and our several attempts of escalating this case to a supervisor that it was " pending approval ''. As of XX/XX/XXXX, we were told that this file was denied due to an open insurance claim even though the claim was paid out. This claim and case has now been closed as of XX/XX/XXXX and we are now being told that we have to start the entire short sale process over for the 7th time - more paperwork, another appraisal, and wait for approval AGAIN. This is terrible considering the lender has essentially sabotaged this sale and maybe stalled ON PURPOSE in order to be able to be granted the ability to proceed with foreclosure to get the property back by the XXXX XXXX of the District of Columbia. Our original offer/list price was for {$65000.00}. The property appraised for {$110000.00} less than a year ago and we were ready to move forward. The bank told us ( despite all of the comps ) that the new value was {$140000.00} which is not supported by any sale in the neighborhood. The cash buyer agreed to accept this valuation and to continue with the short sale and is ready to close upon bank approval every since XXXX. The title company has pulled title and cleared all liens and judgements. We do not see why this short sale has to be re-started nor take yet another 30 or more days for approval considering that the court has issued it's proclamation that after XX/XX/XXXX the foreclosure will be granted to the bank. This is an urgent matter. Its terrible and predatory. Its a violation of the Home Affordable Act. The bank is not doing their best to expedite this matter and are personally trying to stop this family from selling this property and we need some assistance. SPS has essentially filed a bogus insurance claim and committed insurance fraud. NO claim or check should have been issued with out the knowledge and approval of the estate since the estate is still rightfully owned by the decease and managed by her personal representative.