Consumer complaint received 2018-01-02
Product: Mortgage — Conventional home mortgage
Issue: Struggling to pay mortgage — 
Company: Fay Servicing, LLC (NJ)

We have a problem with Fay Servicing who recently took over our familys mortgage loan. As soon as they got this loan they set an auction date before informing us that they were our new servicer or providing a loan number. As we tried to get more information and find out what was going on we would get transferred from department to department and told to leave messages that were never returned. A single point of contact was never assigned and a review of our current financial information for modification review has not been initiated. Instead they have scheduled a foreclosure sale date for XX/XX/XXXX, even though we have not gone through the mediation process as required by our state of New Jersey. We had been approved for a modification with XXXX XXXX XXXX and made all payments as agreed and signed the paperwork to enter into a permanent modification. AFTER we had moved forward we found out that they had pulled a bait and switch and RAISED our monthly payment {$600.00} on the permanent modification. We could not afford this and tried to find out what was going on from XXXX XXXX XXXX 

In that same time frame we had a major water pipe burst in our home. The damage was significant and the repairs had to be completed to keep the house safe for habitation. We filed an insurance claim and the insurer granted the claim and sent the check to XXXX XXXX XXXX. However, since we had not accepted the modification XXXX XXXX XXXX had put us in foreclosure and they stole our insurance check and kept it for themselves. Then they transferred the loan to Fay Servicing. 

This is outrageous. My family has owned this house for 16 years. We refinanced into a bad adjustable rate loan in XX/XX/XXXX, and the mortgage broker told us to only put my father XXXX XXXX on the loan and just to state his income. Even though I lived in the house along with my mother and husband and son the lender said this was the best way to do this loan, then we got an interest rate of 8.75 % that could only adjust up. 

Literally six months after taking out this loan our monthly payment adjusted up {$600.00}. Over the years this loan was transferred to several different servicers, and since my husband and I were contributing along with my father towards the mortgage we were able to keep up with the high rate and payment. In XX/XX/XXXX I went through a series of health issues and we were overwhelmed with out of pocket medical costs and medicine, and I was unable to work. As a result, we struggled financially and defaulted on our mortgage payment with XXXX XXXX XXXX ( lender at the time ). 

We went through an application process with XXXX XXXX XXXX and were approved for a loan modification with a monthly payment of {$2300.00}. We made this payment as agreed for several months, and were sent paperwork that would convert this payment to a permanent modification. However, we found out after signing the paperwork that the payment had increased over {$600.00} per month, putting us right back where we were when I had health issues. We repeatedly tried to call XXXX XXXX XXXX to find out why they pulled the bait and switch, qualifying us for one program and giving us a monthly payment and then coming back after the fact and increasing it immediately. We could not make any progress. In that same time frame we had a pipe burst and there was major water damage. We had to fix this because it was a health issue -- -and then XXXX XXXX XXXX refused to release the claim check and transferred our loan to Fay Servicing. 

Instead of working with us to solve the problem Fay Servicing is going full speed ahead to foreclose on our home. This is wrong -- -we fit the criteria and guidelines for help, but Fay is not even giving us a chance or an opportunity to be reviewed.