Consumer complaint received 2017-03-09
Product: Mortgage — Conventional adjustable mortgage (ARM)
Issue: Loan modification,collection,foreclosure — 
Company: Fay Servicing, LLC (MA)

My mortgage company Fay Servicing failed to notify me that they were taking over my loan from XXXX. I continued making modification payments to XXXX after the transfer and Fay never applied these payments to my mortgage. Once I figured out that the loan had been transferred to Fay ( they were sending the notices to the wrong address ) I spoke with one of their agents and was told they would not honor the modification I received from XXXX. I could not believe it. I began trying to get to the bottom of the situation, tried to get someone who could help me or a supervisor on the phone but made no progress. Next I received a letter stating that I had been " approved for a new modification '' but the payment was nearly {$1000.00} a month more than the modification I was already in with XXXX. Once again I tried to get Fay on the phone to discuss and work through this but was rebuffed. Their agents were dismissive and rude and I could never speak with the assigned contact to my case. 

Not long after that I started getting threatening letters from their Attorney saying they were going to foreclose on me. This was followed by Fay deciding to force place their own hazard insurance on the property, which was significantly more expensive than the policy I had in place. It seem like these guys are behaving unethically and illegally by not honoring the original modification or properly applying the payments. I have tried to fix this situation with Fay but have made no progress. 

I bought this house with my wife back in XXXX. We refinanced the home in XXXX and the loan ended up going to XXXX. A couple of years later I was involved in a nasty divorce and was basically forced to retire from my job with the XXXX. As part of the final agreement my ex wife got the house and was living in it with our kids as well as her parents. She was supposed to maintain the home and pay the mortgage and the taxes. However, she did not make ANY payments toward the home ( I did not know this because the mail did not come to my address ). After a couple of years I found out that my wife, kids and in laws had moved out and abandoned the house. I fought for several months to finally get the keys but when I got into the place I was shocked! She stripped the place, and took all of the kitchen cabinets, the interior doors, light fixtures, toilet bowls, the hot tub and also stole the above ground pool. 

I had to pay almost XXXX in order to fix the place up and officially moved back into the house in XXXX XXXX. At that time I reached out to XXXX and was able to negotiate a loan modification with a monthly payment of {$2400.00}. I began making regular payments on the modified loan for over a year and continued sending them to XXXX and was never notified that the loan was sold off to Fay. When I finally realized what had happened I tried to get some documentation on the transfer of the loan and the application of the payments. I made ZERO progress, and was then told by Fay they would not honor the original modification. This was followed by more threatening letters ( sent to the wrong address ) as well as the Attorney letter telling me they were taking my house. 

Apparently Fay Servicing feels that the streamline modification that they offered me is a good deal -- but I ALREADY HAD A MODIFICATION THAT WAS SUPPOSED TO BE HONORED FOR THE LIFE OF THE LOAN. Additionally, a streamline modification that increases my monthly obligation nearly {$1000.00} a month is not necessarily a good deal. I want to file a formal complaint against Fay Servicing and hope that you will open an investigation into their unethical and illegal practices.