Consumer complaint received 2017-08-17
Product: Mortgage — Conventional home mortgage
Issue: Trouble during payment process — 
Company: Fay Servicing, LLC (FL)

In XX/XX/XXXX, XXXX XXXX sold my mortgage loan to Fay Servicing.  I received a letter from Fay Servicing stating that an “Account Manager” would be assigned to my loan to service the loan and that this person would be my contact for any questions or problems I would encounter because they would become familiar with my situation and loan.   At the time that my loan was transferred to Fay Servicing,  I had submitted a complete Modification Package to XXXX that was under review and I was instructed by XXXX not to make any mortgage payments while the modification was being reviewed.  I informed Fay Servicing about this situation and was told that modification paperwork had not been transferred to them with the loan documents.  Fay Servicing then sent me a new Modification Package, which I immediately filled out since I had copies from the paperwork I had submitted to XXXX.  Several weeks passed and I did not hear anything from Fay Servicing regarding the status of the modification so I called the “Account Manager” who had been assigned to service my loan.  I explained my financial situation with him and I was told that I could make payments of XXXX a month.  I was concerned about the repercussions of during this, such as late fees, increased interest, a penalty being assessed on the mortgage, or my loan going into a default status.  I was told that none of these options would apply and there would not be a problem as long as I made the XXXX/month payment.  I asked if the shortage in the mortgage payment amount would be added to the principle amount owing on the loan and I was told that the shortage would be added to the mortgage amount as long as I made the XXXX monthly payment.  No paperwork was given to me to document this.  The following month when the payment of XXXX was due, I called my “Account Manager” to make sure that everything was the same.  After leaving several messages for a week and not receiving a return call, I called the main number for Fay Servicing and was told that my “Account Manager” had been changed.  I did not receive any type of notification about this change.  I called the “2nd Account Manager” and asked about sending the payment of XXXX and I was told that a signed and authorized Forbearance Agreement was required for this type of payment agreement.  When I received the Forbearance Agreement, I immediately signed and returned it.  The “2nd Account Manager” said that there was no modification paperwork in the system, so I was sent a second package, which I again immediately completed and returned.  Again, I was told not to make any payments while the modification was in review.    I did not receive any information regarding the status of the modification, which I assumed was in review, so I called the “2nd Account Manager”, left several messages, did not get a response, so I once again called the main number and was told that my “2nd Account Manager” had been changed and again, I received no notice of this change.  To follow up on the status of the modification review, I called the “3rd Account Manager” and was told that documents that were needed for the modification were missing from the modification package.  I did not receive any type of notification that documents were missing from the package.  The needed documents were sent to me and I immediately signed and returned them.  Again, I was instructed not to make any type of payment while the loan was being reviewed for modification.  I then received a notice saying that nothing more was needed to complete the modification package.  After several weeks, the modification was denied and I received a letter stating that my loan was in default and a foreclosure status was being initiated.  I called my “3rd Account Manager” to discuss why foreclosure was in process and I was told that my loan was being referred to another “Account Manager” that specialized in bankruptcy and foreclosure cases.  This was the 4th change of “Account Managers” and again, I was not informed of any change.  At this point, I was forced to retain the services of an attorney in order to prevent foreclosure as I am XXXX, have no children or family to help me and I would be rendered homeless. My attorney tried several times to reach my “Account Manager” and encountered the same problem I had.  The attorney then took this issue to court before a judge to postpone the foreclosure and advised me to sell the property as soon as possible because the postponement was temporary and my locks could be changed after this temporary delay.  I was extremely afraid of loosing my personal belongings, so I took the first offer that was made to sell my property.  It was sold below market value because of this situation.  Also, I had to place all of my furniture in a consignment store, I could not afford a storage unit to accommodate all of the furniture.  After a short period of time, the “4th Account Manager” returned my loan to the previous manager who had been handling the loan.  This was the 5th change of “Account Managers.”  Due to the fact that my loan had been placed into a foreclosure status in the county records, I could not qualify for a mortgage to purchase something else to live in or rent an apartment.  I was forced to stay with a friend until I had time to find someone to finance a place for me to live.  I am currently living in a mobile home financed by the previous owners.  I have a medical condition that affects my nerves and as a result of the stress, my pain medication had to be increased.  The equity in my home and my furniture was all that I had left for retirement.  I do not have an IRA or any type of insurance policy, only a small pension of XXXX a month, because all was lost when the market fell in XX/XX/XXXX. I am XXXX years old and this situation has caused me mental/physical health issues due to the XXXX and urgency to move quickly.I have documented all transactions pertaining to this loan and my attorney and the judicial system also has a record of everything pertaining to this mortgage loan.  My attorney advised me that Fay Servicing had performed “Mortgage Misrepresentation”.