Consumer complaint received 2020-07-06
Product: Mortgage — Conventional home mortgage
Issue: Trouble during payment process — 
Company: Fay Servicing, LLC (VA)

We recently entered into a loan modification program with Fay Servicing. As a part of the modification terms I was to pay {$2200.00} for 6 months on time and then the loan terms would be set, I would receive them modification package to sign and get notarized. The modification period was XXXX. I made my initial payments of {$2200.00} on time. I received a letter in the mail on XX/XX/XXXX stating that the modification agreement was enclosed and that i would need to submit the paper work in by XX/XX/XXXX. Which I did ( although we were in the middle of a pandemic and that was at the height of the pandemic I had to put my father ( XXXX years old ) at risk to have them notarized. Fay Servicing would not provide any extension. It stated that the payment would be {$2000.00} and the new payments would begin on XX/XX/XXXX. I called in to made my 1st payments on XX/XX/XXXX. While speaking with the rep they said it would take some time to get everything updated in the system I should call in each month. It took them from XX/XX/XXXX until XXXX to get it updated in the system. I called in on XX/XX/XXXX and made my payment for XXXX. On XXXX I went on the Fay Servicing web site to see if I could log on and I was able to, great we can pay online now is what I thought. When I looked at the amount owed it was {$260.00} more than what was stipulated in my loan documents. However my payment was current it was due for XXXX. I called in on XXXX to ask about the increase and the rep XXXX XXXX said there were some unapplied funds and as soon as that gets updated the system should be good to go for me to pay online. XXXX told me to check back the next day which would have been XXXX. I decided to give them thru the holiday I looked on XXXX and it said now I owed 2 months and the payments were still in there for XXXX, XXXX. I called Fay Servicing to get clarity on why this was increased a large amount. I know that sometimes your escrow will increase and usually you get a notice stating so from the bank and from the county you owe taxes from. However {$260.00} a month increase is a lot. After calling several times through out the day I finally got someone who would at least try and explain what was happening. Her name was XXXX, she said there were some back taxes owed that I needed to pay back now and that was why it jumped so much. The purpose of a modification is to take the money that is in the rear and create a new payment schedule to pay it off, that is done when the loan modification documents were sent. In addition to the {$260.00} increase it now said I owed XXXX and XXXX payment which would be almost {$4100.00}. I asked XXXX to explain to me these changes. She could not. She went on to explain that when you are paying towards the modification ( the 6 months on time and then the payments at the beginning of the modification for XXXX and XXXX ) they reverse them and then re apply them in accordance to the terms of your loan, normally it comes out even and you are on track but mine showed that I owed for XXXX and XXXX. She told me I had un applied funds in the amount of {$1000.00} ( or close ). I had to allow her to apply that to my XXXX ( so I am paying 2x in XXXX ) plus {$480.00}. Now I need to pay XXXX too. When i add up the money I spent over the 6 month trial and the 2 months beginning my new loan modification process the total comes to {$17.00}, XXXX, plus I was in a chapter XXXX bankruptcy and they were taking money and sending to them as well. The money listed on my latest ( XX/XX/XXXX? XXXX ) invoice says that I had {$8300.00} in un applied funds. All XXXX could say is she wasn't sure why my balance wasn't XXXX and that normally after they remove and re apply the funds it comes out to XXXX and she didnt know why mine wasn't but would look into it. That is the normal practice for this company. I feel they are trying to manipulate me into default of the loan by adding unnecessary fees. This is an extreme case of repeated predatory lending. I have had another case where they said I missed a deadline in order to make me default. I requested to see all the documents since I went into default, what is owed, what has been paid to date so that I can see where these numbers are and why I had to pay XXXX twice and now they are expecting me to pay XXXX too, when the second payment to XXXX should have gone towards XXXX. I thought we had resolved everything with the new modification and they are clearly still up to something to get me to pay money that I don't owe and create another whole so that I can default.